Annual Report 2009 10

Annual Report 2009-2010
Contents
Highlights Notice Directors' Report Management Discussion & Analysis Report on Corporate Governance Corporate Social Responsibility Initiatives Break-up of Total Expenses Auditors' Report Balance Sheet Pro t and Loss Account Cash Flow Statement Schedules to Accounts Notes to Balance Sheet and Pro t and Loss Account Balance Sheet Abstract and Company's General Pro le Statement pursuant to Section 212 Summary of Financial Information of Subsidiary Companies Financial Statistics Consolidated Financial Statements
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Board of Directors
Ratan N. Tata R. K. Krishna Kumar K. B. Dadiseth Deepak Parekh Jagdish Capoor Shapoor Mistry Nadir Godrej Arnavaz Aga Raymond N. Bickson Anil P. Goel Abhijit Mukerji Chairman Vice Chairman
Management
Raymond N. Bickson Anil P. Goel Abhijit Mukerji Ajoy K. Misra H. N. Shrinivas Prakash Shukla Rajiv Gujral Yannick Poupon Jyoti Narang P. K. Mohan Kumar Veer Vijay Singh P. Sanker Solicitors Managing Director Executive Director - Finance Executive Director - Hotel Operations Sr. Vice President - Sales & Marketing Sr. Vice President - Human Resources Sr. Vice President - Technology & CIO Chief Operating Of cer and Sr. Vice President Mergers, Acquisitions & Development Chief Operating Of cer - Luxury Hotels (International) Chief Operating Of cer - Luxury Hotels (India) Chief Operating Of cer - Gateway Hotels Chief Operating Of cer - Premium Hotels Vice President - Legal & Company Secretary
Managing Director Executive Director Finance Executive Director Hotel Operations
Committes of the Board Audit Committee K. B. Dadiseth Deepak Parekh Jagdish Capoor Chairman Mulla & Mulla & Craigie Blunt & Caroe Auditors Deloitte Haskins and Sells N. M. Raiji & Company Bankers The Hongkong & Shanghai Banking Corporation Ltd. Standard Chartered Bank Citibank N.A. HDFC Bank Ltd. ICICI Bank Ltd.
Remuneration Committee Jagdish Capoor Chairman Ratan N. Tata R. K. Krishna Kumar Shareholders' / Investor Grievance Committee R. K. Krishna Kumar Raymond N. Bickson Registered Of ce Mandlik House, Mandlik Road, Mumbai - 400 001 Tel: 6639 5515, Fax: 2202 7442 Share Department Mandlik House, Mandlik Road, Mumbai - 400 001 Tel: 6639 5515, Fax: 2202 7442 Email: shares.dept@tajhotels.com Website: www.tajhotels.com
Financial Highlights
2009-10 Rupees (In Crores) Gross Revenue Pro t Before Tax Pro t After Tax Dividend Retained Earnings Funds Employed Net Worth Borrowings Debt : Equity Ratio Net Worth per Ordinary Share of Re. 1/- each Earnings per Ordinary Share (Basic & Diluted) - In Rupees Dividend per Ordinary Share Dividend % 1,566.35 218.25 153.10 72.35 173.78 5,365.56 2,688.75 2,650.55 0.99:1 37.16 2.12 1.00 100% 2008-09 Rupees (In Crores) 1706.52 362.30 234.03 86.81 226.93 4984.57 3046.90 1766.47 0.58:1 42.11 3.28 1.20 120%
The Indian Hotels Company Limited
NOTICE
NOTICE is hereby given that the HUNDRED AND NINTH ANNUAL GENERAL MEETING of THE INDIAN HOTELS COMPANY LIMITED will be held at the Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai 400 020, on Thursday, August 5, 2010, at 3.00 p.m to transact the following business: 1. 2. 3. 4. 5. 6. To receive, consider and adopt the Audited Pro t and Loss Account for the year ended March 31, 2010, and the Balance Sheet as at that date together with the Report of the Board of Directors and the Auditors thereon. To declare a dividend on ordinary shares. To appoint a Director in the place of Mr. K. B. Dadiseth who retires by rotation and is eligible for re-appointment. To appoint a Director in the place of Mr. Shapoor Mistry who retires by rotation and is eligible for re-appointment. To appoint a Director in the place of Mr. Jagdish Capoor who retires by rotation and is eligible for re-appointment. To appoint Auditors and x their remuneration To consider and, if thought t, to pass with or without modi cation, the following resolution as a Special Resolution: RESOLVED THAT pursuant to the provisions of Section 224A and other applicable provisions, if any, of the Companies Act, 1956, M/s Deloitte Haskins & Sells, Chartered Accountants (Firm No. 117366W), and M/s. N. M. Raiji & Company, Chartered Accountants (Firm No. 108296W), be and are hereby re-appointed as Joint Auditors of the Company, to hold of ce from the conclusion of this meeting until the conclusion of the next Annual General Meeting of the Company, to examine and audit the Books of Account of the Company for the nancial year 2010-11 on such remuneration as may be mutually agreed upon between the Board of Directors of the Company and the Auditors, plus reimbursement of service tax, out-of-pocket and travelling expenses actually incurred by them in connection with the audit.
NOTES : 1. 2. The relative Explanatory Statement, pursuant to Section 173 of the Companies Act, 1956, in respect of the business under Item No. 6 is annexed hereto. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. The instrument appointing the proxy should however be deposited at the Registered of ce of the Company not less than 48 hours before the commencement of the meeting. The Register of Members and the Share Transfer Books of the Company will remain closed from Tuesday, July 27, 2010 to Thursday, August 5, 2010 both days inclusive. The Dividend on Ordinary Shares, as recommended by the Board of Directors, if declared at the Annual General Meeting, will be paid on or after August 6, 2010, to the Members whose names appear on the Companys Register of Members on August 5, 2010. As regards shares held in electronic form, the dividend will be payable to the bene cial owners of the shares whose names appear in the Statement of Bene cial Ownership furnished by the National Securities Depository Limited and the Central Depository Services (India) Limited as at the close of business hours on July 26, 2010. Members/Proxies should bring the Attendance Slip sent herewith duly lled in for attending the Meeting.
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Pursuant to Sections 205A and 205C of the Companies Act, 1956, all dividends remaining unclaimed for seven years from the date they rst became due for payment are now required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government under the amended provisions of the Companies Act, 1956. Members shall not be able to claim any unpaid dividend from the said Fund nor from the Company thereafter. It may be noted that unpaid dividend for the nancial year ended March 31, 2003 is due for transfer to the IEPF on November 9, 2010. To avoid loss of dividend warrants in transit and undue delay in the receipt of dividend warrants, the Company has provided a facility to the Members for remittance of dividend through the National Electronic Clearing System (NECS). The NECS facility is available at locations identi ed by the Reserve Bank of India from time to time and covers most of the major cities and towns. Members holding shares in a physical form and who are desirous of availing of this facility are requested to contact the Companys Share Department at the Registered Of ce of the Company. Members holding shares in physical form are requested to kindly notify the Company of any change in their addresses so as to enable the Company to address future communication to their correct addresses. Members holding shares in dematerialized form are requested to notify their respective Depository Participant of any change in their addresses. Pursuant to Clause 49 of the Listing Agreement, the particulars of Directors seeking re-appointment at the meeting are annexed.
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10. Members desiring any information as regards the Accounts are requested to write to the Company Secretary at an early date so as to enable the Management to reply at the Meeting. 11. Members are requested to kindly bring their copy of the Annual Report to the Meeting.
By Order of the Board of Directors P. Sanker Vice President Legal & Company Secretary Mumbai, Dated: June 1, 2010 Registered Of ce: Mandlik House, Mandlik Road, Mumbai 400 001.
EXPLANATORY STATEMENT
As required by Section 173 of the Companies Act, 1956 (the Act) 1. The following Explanatory Statement sets out the material facts relating to the business under Item No. 6 mentioned in the accompanying Notice dated June 1, 2010.
Item No. 6 2. Section 224A of the Act, provides that in the case of a public company, in which not less than 25% of the subscribed share capital of the company, is held, whether singly or in any combination by Financial Institutions, Nationalised Banks, Insurance Companies and other Bodies speci ed in that Section, the appointment of Auditors is to be made by way of a Special Resolution. The shareholdings of the aforesaid Financial Institutions, Nationalised Banks, etc. as on the date of the accompanying Notice is close to 25% of the subscribed share capital of the Company and it may, by the date of the Annual General Meeting, exceed 25% of the subscribed share capital of the Company. Hence, the resolution for re-appointment of M/s Deloitte Haskins & Sells and M/s N. M. Raiji & Company, is being proposed as a Special Resolution. As required under Section 224 of the Act, certi cates have been received from the Auditors to the effect that their appointments if made, will be in accordance with the limits speci ed under Section 224(1B) of the Act. The Members approval is also being sought to authorise the Board of Directors to determine the remuneration payable to the Auditors in consultation with them. The Board commends the Resolution for approval by the Members. None of the Directors of the Company is in any way, concerned or interested in the Resolution at Item No. 6 of the accompanying notice. By Order of the Board of Directors P. Sanker Vice President -Legal & Company Secretary Mumbai, Dated: June 1, 2010 Registered Of ce: Mandlik House, Mandlik Road, Mumbai 400 001.
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Details of Directors seeking re-appointment at the forthcoming Annual General Meeting of the Company (Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges)
Name of Director Date of Birth Date of Appointment Expertise in speci c functional areas Quali cations Mr. K. B. Dadiseth December 20, 1945 May 9, 2000 Finance & Management B. Com., Member Institute of Chartered Accountants, England & Wales Nil Britannia Industries Limited ICICI Prudential Life Insurance Co. Ltd Piramal Healthcare Limited ICICI Prudential Trust Limited Siemens Ltd Godrej Properties Limited Mr. Jagdish Capoor July 1, 1939 July 27, 2001 Banking M.Com., Certi ed Associate of Indian Institute of Bankers (CAIIB) 5,000 HDFC Bank Limited Assets Care Enterprise Ltd. LIC Pension Fund Limited Mr. Shapoor Mistry September 6, 1964 April 17, 2003 Management B.A. (England) - Business & Economics
Details of shares held in the Company List of Companies in which outside Directorships held as on 31.03.2010 (excluding private & foreign companies)
Nil Shapoorji Pallonji & Company Limited Afcons Infrastructure Limited Cyrus Investments Limited Eureka Forbes Limited Forbes & Co. Limited Gokak Textiles Limited Forvol International Services Limited Shapoorji Pallonji Finance Limited Shapoorji Pallonji Infrastructure Capital Co. Limited Shapoorji Pallonji Power Co. Limited United Motors (India) Limited Audit Committee United Motors (India) Limited
Chairman / Member of the *Committees of other Companies on which he is a Director as on 31.03.2010
Audit Committee Britannia Industries Limited Siemens Limited Godrej Properties Limited Shareholders' & Investors Grievance Committee ICICI Prudential Life Insurance Co. Ltd
Audit Committee LIC Pension Fund Limited
Shareholders' & Investors Grievance Committee HDFC Bank Limited
Shareholders' & Investors Grievance Committee United Motors (India) Limited
*The Committees include the Audit Committee and the Shareholders / Investor Grievance Committee.
DIRECTORS REPORT
TO THE MEMBERS
The Directors have pleasure in presenting the 109th Annual Report of the Company together with its Audited Pro t and Loss Account for the year ended March 31, 2010 and the Balance Sheet as on that date: FINANCIAL RESULTS Rs/Crores
Particulars
Total Income Pro t before Depreciation, Interest and Tax Less: Depreciation Less: Interest Pro t before Tax & Exceptional Items Less: Exceptional Items Pro t before Tax Less: Provision for Tax Less: Short Provision of Tax of earlier years (Net) Pro t after Tax Add: Balance brought forward from the previous year Amount available for Appropriation APPROPRIATIONS (i) (ii) General Reserve Dividend: A nal dividend of 100% i.e. Re. 1/- per Ordinary Share was recommended by the Board of Directors on May 26, 2010. (In respect of the previous year, a nal dividend of 120% i.e. Rs. 1.20/- per Ordinary Share was declared and paid to the Members)
2009/10 1566.35 473.37 104.14 152.90 216.33 (1.92) 218.25 62.46 2.69 153.10 539.25 692.35 15.31
2008/09 1706.52 552.16 94.46 89.19 368.51 6.21 362.30 124.58 3.69 234.03 536.78 770.81 30.00
Tax on Dividend (iii) Transfer to Debenture Redemption Reserve (iv) Balance carried to Balance Sheet INCOME
72.35 11.11 139.00 454.58 692.35
86.81 14.75 100.00 539.25 770.81
The total income for the year ended March 31, 2010 at Rs.1566.35 crores was lower than that of the previous year by 8.2%. Room Income was lower than the previous year by 17%. The Average Room Rate (ARR) decreased by 16% over the previous year. Food & Beverage (F&B) income was 5% higher than the previous year. Banquets income grew by 12% over the previous year. DEPRECIATION AND INTEREST Depreciation for the year was higher due to incremental depreciation on new additions to xed assets as also the full year impact of depreciation on the 120 rooms added to Lands End hotel in Mumbai and the Vivanta by Taj hotel that was launched at Bangalore.
Interest cost for the year ended March 31, 2010 was higher at Rs. 152.90 crores as compared to Rs. 89.19 crores in the previous year. Gross interest cost increased by Rs. 54.51 crores due to incremental debt raised during the year to retire foreign currency debt in some of the Company's off shore subsidiaries. Interest income for the year reduced on account of the utilisation of surplus funds for ongoing projects. PROFITS Pro t before Tax at Rs. 218.25 crores was lower than the previous year by 40%. Pro t after Tax at Rs. 153.10 crores was also lower by 35% over the previous year. As is well known, the Tourism industry also bore the brunt of the global economic crisis resulting in depressed occupancies, Room rates and therefore turnover and pro tability. CONSOLIDATED FINANCIAL RESULTS The consolidated turnover of the Company for the year ended March 31, 2010 aggregated to Rs. 2606.18 crores as against Rs. 2756.63 crores for the previous year. The Loss after Tax for the year aggregated to Rs. 136.88 crores against a Pro t after Tax of Rs.12.46 crores for the previous year. The consolidated results for the year were adversely impacted on account of the challenging environment not just in the domestic tourism market but also across the key international markets across which the company owns / operates its portfolio of hotels. The global nancial meltdown in the early part of the year impacted the sector adversely, which reduced margins and pro tability across the hotels of the Company, its joint ventures and associates as well as reduced the management fees from hotels under operation. Closure of the heritage wing rooms of Taj Mumbai which is under restoration post the terror attack and the non-availability of the Loss of Pro t cover beyond the insurance indemnity period further impacted pro tability during the fourth quarter. The Companys subsidiaries in the US were adversely impacted by the recession in the US economy which impacted the occupancies and average daily rates (ADRs) of the 3 hotels in that market. The Pierre hotel in NY which was closed for renovation for 18 months re-opened in June, 2009. The consolidated interest costs include the cost of debt raised to acquire a strategic stake in Orient - Express Hotels Ltd. The Companys JV in the ight catering business was also impacted by the pressures being faced by the domestic aviation sector. At a consolidated level, the pro t improvement will be strongly driven by a general improvement in the domestic economic environment which will lead to improvement in pro tability of the domestic portfolio. In addition, a time bound turn around strategy for the US portfolio of hotels, which is under implementation, is expected to improve the cash ows and margins. With the opening of the Taj Cape Town as well as the bene t from the full year operations of renovated hotels viz. The Pierre, New York and Vivanta by Taj, Coral Reef, Maldives the consolidated results is expected to improve going forward. DIVIDEND In recognition of the fact that economy is recovering and that tourism growth is expected to continue, your Directors are pleased to recommend a dividend of 100% or Re. 1/- per Ordinary Share for the year ended March 31, 2010. BORROWINGS The total borrowings stood at Rs. 2650.55 crores as at March 31, 2010 as against Rs. 1766.47 crores as on March 31, 2009 for the stand alone entity. The increase in debt in the stand alone entity was primarily on account of the need to retire foreign currency debt in some of the Company's off shore subsidiaries. As on March 31, 2010 the gross consolidated debt stood at Rs. 4460.69 crores. After adjustments for uncommitted liquidity of Rs. 759 crores on same date, the effective net consolidated debt stood at Rs. 3701.69 crores. This compared favourably to the consolidated net debt of Rs. 4646.88 crores as on March 31, 2009. CAPITAL EXPENDITURE During the year under review, the Company incurred Rs. 276.75 crores towards capital expenditure. Major expenditure was incurred on the Companys projects at Falaknuma Palace Hyderabad, Dwarka New Delhi, Yeshwantpur Bangalore and the restoration of Taj Mahal Palace and Tower, Mumbai.
BUSINESS OVERVIEW The aftermath of the terror attack on the city of Mumbai in November, 2008 saw a challenging and dif cult 2009-10 for the tourism and hospitality industry. Due to global slowdown, terrorist activities, H1N1 pandemic, travel advisories, etc., the foreign tourist arrivals in India during 2009 fell by 3.3%. The year witnessed a contraction in global tourism by 4.3% in comparison to which India was much better placed. Foreign Exchange Earnings (FEEs) from tourism increased from Rs. 15,064 crores in 2002 to Rs. 54,960 crores in 2009. The growth rate in earnings in 2009 vis--vis 2008 was 8.3%. The slowdown in the tourism sector has had a cascading effect in the tourism industry with a decrease in the occupancy and Average Room Rates. To combat the drop in revenue due to the global events, stringent cost control measures with no compromise in quality were implemented. The guest satisfaction scores at our key hotels re ect that despite the measures, the quality of our hospitality services continues to be at world class levels. The last two quarters of the year witnessed a gradual recovery in the hospitality sector. According to the Travel & Tourism Competitiveness Report 2009 brought out by the World Economic Forum, the contribution of travel and tourism to Gross Domestic Product (GDP) is expected to be at US$ 187.3 billion by 2019. The report also states that real GDP growth for travel and tourism economy is expected to achieve an average 7.7% p.a. over the next 10 years. Export earnings from international visitors and tourism goods are expected to generate US$ 51.4 billion (nominal terms) by 2019. The travel and tourism sector which accounted for 6.4% of total employment in 2009 is expected to generate 40 million jobs i.e.7.2% of total employment by 2019. During the year 7 new hotels were added in the Taj portfolio which included Vivanta by Taj at Panaji, Goa and The Gateway Hotel, Jodhpur apart from the 5 Ginger hotels at Durg, Guwahati, Pune, Jamshedpur and Surat. Vivanta by Taj Coral Reef, Maldives and The Pierre, New York were also reopened during the year after extensive renovations. The inventory of the Taj Group now stands at 103 hotels with 12243 rooms. On the international front, Taj Cape Town, South Africa was soft opened in February, 2010 with an inventory of 166 rooms. More details on the new properties launched, product upgradation and expansion in domestic and international markets are provided under the section Management Discussion and Analysis. The 19th Commonwealth Games 2010 scheduled this October are expected to give a boost to the Tourism and Hospitality Industry. Tourism in India has come into its own as a brand India Tourism. The Ministry of Tourisms efforts in creating niche tourism products like heliport tourism, medical tourism, wellness tourism, adventure tourism, cruise tourism and caravan tourism has served to widen the net of this sector. A ve year tax holiday has been announced to promote the growth of new hotels. Hotel projects upon being delinked from commercial real estate can now look forward to obtain credit at relaxed norms. External commercial borrowing norms have also been relaxed to solve the problem of liquidity faced by the Hotel Industry due to economic slowdown. Your Company continues to pursue the completion of ongoing projects, both in the domestic and international market, at different price points, to achieve sustainable and a balanced pro table growth. Terror attack Your Companys agship property The Taj Mahal Palace & Tower in Mumbai, has been undergoing exhaustive renovations with the intention of reinstating the hotel to its original glory. Steps have been taken to prepare the iconic hotel for the next level with an exclusive dedicated lounge, all oor butler service, exclusive concierge desk and upgraded suites to meet the contemporary ethos. Different sections of the hotel's public areas were re-opened in phases to avoid inconvenience to guests during the restoration. The rooms in the heritage wing are scheduled to re-open for guests in July this year. The three iconic restaurants namely Golden Dragon, Harbour bar and Wasabi were re-launched in December, 2009. The new dcor for
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these restaurants have received great reviews from patrons. The opening of these restaurants have also received media coverage from many key publications and dailies as also international magazines like Vogue, Le Of cial etc. Your Company was covered for the property damage and Loss of Pro t resulting from the terror attack and a claim was led with the insurance Company. An On A/c payment of Rs. 180 crores has been received from the insurers to date. The Company is in continuous dialogue with the insurance Company for a settlement of the claim which is expected once the heritage wing is re-opened. The Taj Public Service Welfare Trust, which was set up by the Company, has so far provided assistance to 230 affected families with disbursement/commitments of Rs. 2.27 crores. Safety and Security As a sequel to the terror attack, your Company sought the advice of security experts on safety and security aspects to protect the hotel properties, guests and associates. Pursuant to the recommendations of security experts, a formal risk assessment has been carried out and specialised security training arranged for the security staff at all levels. Continuous training for security awareness of all hotel staff is underway including rst aid training and specialised baggage screening training. In addition to the security training, installation of new security hardware such as mechanised bollards, shatter resistant glass lm and increased camera surveillance & integration systems have been implemented. Going forward safety and security would be a focus area of continuous improvement. International Operations The revenue share of international units constitute 28% of the Taj Groups aggregate turnover. During the year under review the turnover from international hotels was 3% over that of the previous year aided by re-opening of The Pierre, New York and Vivanta by Taj, Coral Reef. With pressure on occupancies and rates, cost management continues to be the focus area. The Pierre re-opened with an impressive formal launch in October, 2009. Taj Cape Town, South Africa had a soft opening in the last quarter and is now fully operational. Barring St. James Court in London and the hotels in Sri Lanka, all the international hotels were impacted by the global slowdown. The performance of the international hotels is directly linked to the improvement in the global economy. SUBSIDIARIES Your Company has obtained an exemption from the Ministry of Company Affairs (MCA) vide its letter No. 47/131/2010CL-III dated April 22, 2010, for publication of the Accounts of its subsidiaries under the provision of Section 212 of the Companies Act, 1956. The accounts of the subsidiary companies are not separately included in the Annual Report. However, the Consolidated Financial Statements of the Subsidiaries, Joint Ventures and Associates, in accordance with relevant Accounting Standards of the Institute of Chartered Accountants of India, duly audited by the Statutory Auditors, form a part of the Annual Report and are re ected in the consolidated accounts. The Financial Statements of the subsidiary companies and other detailed information will be made available to the investors seeking such information at any point of time. The annual accounts of the subsidiary companies will also be available for inspection at the Registered Of ce of the Company as well as the respective Registered Of ces of subsidiary companies. LISTING The Ordinary Shares of your Company are listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Global Depository Shares (GDS) issued by the Company are listed on the London Stock Exchange. FIXED DEPOSITS Your Companys Fixed Deposit Scheme inviting deposits from the general public at a rate of 9.5% p.a. for a period of two years and 10% p.a. for a period of three years with a minimum amount of deposit being Rs. 25,000 was kept open
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for subscription till July 13, 2009. Your Company has since then stopped accepting deposits from the general public and shareholders. The outstanding amount of xed deposits placed with your Company amounted to Rs. 357.49 crores. (Previous years Rs. 27.18 crores) excluding Rs. 0.27 crores (Previous year Rs.0.41 crores), which remained unclaimed by depositors as on March 31, 2010. DIRECTORS In accordance with the Companies Act, 1956, and the Articles of Association of the Company, three of your Directors, viz., Mr. K. B. Dadiseth, Mr. Jagdish Capoor and Mr. Shapoor Mistry retire by rotation and are eligible for reappointment. Mr. S.K. Kandhari, Independent Director on the Board of your Company for the last 29 years stepped down on August 14, 2009 as Director on attaining the age of 75 years as per the Tata Retirement Policy applicable to Non-Executive Directors. Mr. N. A. Soonawala, Non-Executive Director also a Director on the Board of your Company for the last 29 years, resigned as Director on March 31, 2010. Mr. Soonawalas resignation was also in terms of the Tata Retirement Policy applicable to Non-Executive Directors as he would shortly attain the age of 75 years in June 2010. The Board places on record its appreciation for the valuable services rendered during their tenure as Directors and for their contributions to the deliberations of the Board. CORPORATE GOVERNANCE As required by Clause 49 of the Listing Agreement with the Stock Exchanges, the report on Management Discussion and Analysis, Corporate Governance as well as the Auditors Certi cate regarding compliance of conditions of Corporate Governance, form part of the Annual Report. AUDITORS The Members are requested to re-appoint M/s Deloitte Haskins & Sells, Chartered Accountants (Firm No. 117366W) and M/s N. M. Raiji & Company, Chartered Accountants (Firm No. 108296W) as Joint Auditors for the current year and authorise the Board of Directors to x their remuneration. FOREIGN EXCHANGE EARNINGS AND OUTGO As required under Section 217(1)(e) of the Companies Act, 1956, read with Rule 2 of the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, the information relating to foreign exchange earnings and outgo is given in Notes 21, 22 and 23 of the Notes to the Accounts. STAFF The particulars of employees required to be furnished under Section 217 (2A) of the Companies Act, 1956, read with the Rules thereunder, forms part of this Report. However, as per the provisions of Section 219 (1) (b) (iv) of the Companies Act, 1956, the reports and accounts are being sent to all the Shareholders of the Company excluding the statement of particulars of employees. Any Shareholder interested in obtaining a copy may write to the Company Secretary at the Registered Of ce of the Company. The Directors express their appreciation for the contribution made by the employees to the signi cant improvement in the operations of the Company and for the support received from all other stakeholders, including shareholders, customers, suppliers and business partners.
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DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the Board of Directors, based on the representations received from the Operating Management, hereby con rms that: i. ii. in the preparation of the annual accounts, the applicable accounting standards have been followed and that there are no material departures; it has in the selection of the accounting policies, consulted the Statutory Auditors and has applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at March 31, 2010 and of the pro t of the Company for that period; it has taken proper and suf cient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities, to the best of its knowledge and ability. There are however, inherent limitations, which should be recognized while relying on any system of internal control and records; and it has prepared the annual accounts on a going concern basis.
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GLOBAL COMPACT As part of the Tata Group, your Company had signed up to promote the United Nations Global Compact which lays down ten key principles to speci cally address issues in the areas of human rights, labour, corruption and the environment. Your Company continues to be an active member of Global Compact. Your Company annually submits a Corporate Sustainability Report detailing its economic, environmental and social performance. On behalf of the Board of Directors Ratan N. Tata Chairman Mumbai, June 1, 2010 Registered Of ce: Mandlik House Mandlik Road Mumbai 400 001
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MANAGEMENT DISCUSSION AND ANALYSIS

Your Company has been reporting consolidated results taking into account the results of its subsidiaries, joint ventures and associates (together referred to as the Group). This discussion, therefore, covers the nancial results and other developments during April, 2009 to March, 2010 in respect of the Group. Some statements in this discussion describing the projections, estimates, expectations or outlook may be forward looking. Actual results may, however, differ materially from those stated on account of various factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which your Company conducts its business, exchange rates and interest rates uctuations, impact of competition, demand and supply constraints etc. INDUSTRY STRUCTURE AND DEVELOPMENTS Global and Indian Economy The scal year 2009-10 began as a dif cult one against the background of the growth in the last two quarters of 2008-09 hovering around 6%. The year began with an apprehension that this trend would persist for sometime as the full impact of the economic slowdown in the developed world worked through the system and had its impact in other economies around the world. It was a year of reckoning for the policy makers who had taken a calculated risk in providing substantial scal expansion to counter the negative fallout of the global slowdown. Indian scal de cit increased from the end of 2007-08, reaching 6.8% of GDP in 2009-10. A delayed and severely subnormal monsoon added to the overall uncertainty. The continued recession in the developed world, for the better part of 2009-10, meant a sluggish export performance and a slowdown in nancial ows into the economy. Yet, over the span of the year the economy posted a remarkable recovery, not only in terms of overall growth gures but, more importantly, in terms of certain fundamentals, which justify optimism for the Indian economy in the medium to long term. The real turnaround came in the second quarter of 2009-10 when the economy grew by 7.9%. The economy is estimated to have grown at 7.2% in 2009-10 with the industrial and the service sectors growing at 8.2% and 8.7%, respectively. This recovery is impressive for it has come despite a decline of 0.2% in agricultural output. It re ects renewed momentum in the manufacturing sector which has grown to 8.9% in 2009-10. There has been a recovery in the growth rate of gross xed capital formation with a pick up in the growth of private investment demand. Merchandise export has grown in November and December, 2009 after a continuous decline in the past 12 months. The economic recovery underscores the effectiveness of the Governments policy response in the wake of the nancial crisis. As per the State of the Economy and Prospects presented by the Ministry of Finance the broad based nature of the recovery could put the economy back on the growth path at 9% p.a. A major concern during the year was the emergence of high double digit food in ation. A signi cant part of this in ation is explained by supply side bottle necks in some of the essential commodities. At a global level following one of the deepest downturns in recent times, economic growth took root and extended to advanced economies in the second half of 2009. The pace and shape of recovery however remains uncertain. As per the International Monetary Fund the advanced economies are expected to grow by 2.1% in 2010 while in the case of emerging and developing economies a rise of about 6% in 2010 is expected. The world as a whole is projected to grow 3.9% in 2010 driven by the extraordinary amount of monetary and scal stimulus. Concerns remain of the effect on the momentum once the stimulus is withdrawn. An Overview of the Global & Indian Tourism Industry As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Paci c region and 62nd overall, moving up three places on the list of the worlds attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10 year) growth and is expected to be the second largest employer in the world by 2019.
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India has been ranked the best country brand for value-for-money in the Country Brand Index (CBI) survey conducted by Future Brand a leading global brand consultancy. India also claimed the second place in CBIs best country brand for history, as well as appears among the top 5 in the best country brand for authenticity and art & culture, and the fourth best new country for business. India made it to the list of rising stars or the countries that are likely to become major tourist destinations in the next ve years, led by the United Arab Emirates, China and Vietnam. The year 2009/10 once again saw the resurgence of the domestic traveller, marking a close similarity to the rescue of the sector during the previous downturn. While rates dropped signi cantly in 2009/10, the strong increase in domestic demand actually led to an 8.0% increase in nationwide occupancy. The hospitality industry has typically been so focused on the approximately 5.5 million international travellers who visit India every year that it has never truly tapped into the 600 million-strong domestic population that travels annually. The domestic market will continue to play a dominant role, not just within hospitality, but across all sectors and will help further insulate the Indian economy from problems in other countries and make India less susceptible to global economic uctuations. Future Trends Demand levels are likely to improve in 2010/11 as economic growth gathers momentum and companies increase spending on travel. With expectations of healthy salary increases within the corporate world, discretionary spending is expected to increase further, especially on leisure travel. The amount of new supply proposed within many markets remains an area of concern, especially as numerous projects that were proposed during the heady days see completion and open in the next one year. Previous declines in occupancy levels were mainly the result of an increase in supply. In the long term, the demand-supply gap in India is very real and that there is need for more hotels in most cities. The shortage is especially true within the budget and the mid market segment. There is an urgent need for budget and mid market hotels in the country as travellers look for safe and affordable accommodation. Various domestic and international brands have made signi cant inroads into this space and more are expected to follow as the potential for this segment of hotels becomes more obvious. Tourism as an instrument of economic development and employment generation particularly in remote and backward areas is well recognised the world over. It is a large service industry globally and plays an important role in achieving growth with equity. During the period 2002 to 2009 India witnessed an increase in the Foreign Tourist Arrivals (FTA) from 2.38 million to 5.11 million. In 2009 the growth rates in FTAs fell by 3.3%. Foreign Exchange earnings from Tourism increased from Rs. 15,064 crores in 2002 to Rs. 54,960 crores in 2009 with a growth rate in earnings of 8.3% in 2009 vis--vis 2008. The year 2009-10 witnessed heightened engagements of the Ministry of Tourism with the States to strengthen initiatives to promote tourism to a new height. Some of the initiatives taken by the Ministry were: Promote rural tourism by developing infrastructure in rural areas to showcase rural life, art, culture and heritage. Facilitate Cruise tourism with the objective to make India an attractive Cruise tourism destination with the state of the art infrastructure and other facilities. Both Ocean Cruises and River Cruises are being promoted to popularise Cruise shipping with Foreign and Indian Tourists. Provide nancial assistance for development of Adventure tourism such as mountain biking expedition, skiing and mountaineering, river rafting, sailing and paragliding. Medical Tourism by suitable packaging of identi ed best hospitals, price banding for various speci c treatments and introduction of medical visa for patients and their attendants coming to India for medical treatment. Promoting India as a centre for Ayurveda, yoga, siddha, naturopathy, together with the spiritual philosophy that is intrinsic to the Indian way of life. Eco Tourism to promote preservation and enrichment of natural and cultural resources which positively impact environmental protection and Community development. Promotion of Caravan tourism, camp sites and heliport tourism.
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Update on Key Initiatives The global nancial crisis and tight liquidity position saw your Companys focus shift to completing the project commitments on hand and focus on growth through management contracts in the Domestic and International markets. However, your Company has at strategic locations made commitments by way of acquiring properties on lease from the Government. New Properties Opened The earlier part of the year saw the opening of new hotels under management contracts viz Vivanta by TAJ Panaji, Goa and The Gateway Hotel, Jodhpur. Additionally, your Company commenced operation of the top four oors (120 rooms) at TAJ Lands Ends in the month of June 2009. Your Company added another signi cant hotel to its Luxury portfolio, with the opening of the TAJ Cape Town and Banjar Tola, Kanha. These hotels are owned by the associate companies and are under a management contract with your Company. The Company is also in the nal stages of completing the restoration of the Falaknuma Palace, Hyderabad and the hotel with 60 keys, is slated to open by October, 2010. Expansion In Domestic And International Markets In spite of the economic slowdown in both domestic and international markets, your Companys expansion strategy remained robust. Your Company continued its aggressive growth internationally and entered into arrangements for hotels in Middle East, North Africa and South America. During the year under review, your Company entered into management contracts for a desert Spa hotel in Al Ain, Abu Dhabi and has entered into MOUs for managing properties in Egypt, Morocco, Mexico and British Virgin Islands. All these new hotels will come up over the next few years. During the year, your Company successfully acquired the erstwhile Sea Rock hotel at Bandra Bandstand, Mumbai. The old building has since been brought down and the site will be redeveloped into a high end convention centre cum luxury hotel/apartments, fully integrated into the Lands End hotel. The Company acquired land on lease from the Government of Andaman & Nicobar Islands to set up the rst 5-Star Luxury resort on Havelock Island and also through one of its associate companies entered into a lease agreement with the Punjab Government for a land parcel in Amritsar to develop a Vivanta by Taj hotel. Your Company, through one of its subsidiaries, invested into developing a Vivanta by Taj resort at Coorg and will enter into a Management contract for operating this resort, which is scheduled to open later this year. Your Company also entered into management contracts for several properties in India which will commence operation over the next few years. New Management contracts have been signed for a Vivanta by Taj resort in Srinagar and for Gateway hotels in Bhandup (Mumbai), Shirdi (Near Nashik) and Ludhiana. Update on Key ongoing Expansion Initiatives The various expansion initiatives that your Company had embarked upon are well underway. The 330 room Vivanta by Taj hotel in Yeshwantapur, Bangalore is progressing well and is estimated to be completed in the coming nancial year. The restoration of Falaknuma Palace, another addition to your Companys Luxury Collection, is nearing completion. The palace hotel is expected to open in October, 2010. The construction of the hotel project in Dwarka, New Delhi is underway and your Company has commenced design planning for its project in Guwahati. The 64 room expansion of Taj Fishermans Cove hotel in Chennai is nearing completion. The 180 room Vivanta by Taj hotel in Coimbatore being developed by your Companys associate is progressing as planned. Owing to the change in the political scenario in Thailand and subsequent weakening of the high-end luxury villa
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market, your Company is currently re-assessing the right product mix for its TAJ Exotica Resort and Spa project in Phuket. The down turn in the Middle-East market continued through the last year and your Companys management contract projects are moving at a slow pace. It may be noted that none of the projects have been cancelled, though some have been delayed. Your Companys management contract projects in Beijing and Hainan in China are progressing well. Your Company continued with its focus on Management contracts to grow the Vivanta by Taj and the Gateway brands. For the Vivanta by Taj brand, work is progressing rapidly on its projects in Gurgaon, Kakarduma (Delhi), Bekal (Kerala), Srinagar and Pondicherry. For the Gateway brands, projects in Pune, Kolkata, Chennai, Shirdi, Raipur and Cochin are showing good progress and can be expected to open over the next couple of years. Product Upgradation The restoration and rebuilding of the heritage block at Taj Mahal Palace and Tower in Mumbai was the main focus area for your Company. In a phased manner various areas of the hotel were opened in the past year, these include the legendary Japanese specialty restaurant Wasabi, historical Harbour Bar & Golden Dragon and the iconic banquet hall Ballroom. The next few months will see the opening of the balance areas, such as guestrooms, thereby completing the resurrection of the heritage block. The Company undertook renovation projects for certain key properties of Associate Companies as per the ongoing product upgradation programme. At Taj Coromandel, Chennai, the Company re-launched the exquisite Chinese specialty restaurant, Golden Dragon and in the next few months will be ready to launch The Chambers, an exclusive Business Club for Corporate Leaders. Taj Blue Diamond, Pune saw the opening of its Lobby and at Taj President, Mumbai two guestroom oors were renovated. During the last year, your Company has completed an extensive makeover of the Taj Coral Reef, Maldives and this hotel opened as the rst international Vivanta by TAJ in August, 2009. Ginger Hotels Your Companys subsidiary under the Ginger brand added ve new Ginger Hotels during the year at Durg, Jamshedpur, Pune Wakad, Surat and Guwahati. Further projects at Chennai, Indore, Delhi, Bangalore, Manesar and Tirupur are at various stages of construction. Management contracts for Ginger Hotels at Lucknow, Chandigarh & Amritsar have been entered. A property at Durgapur was sold during the year. As on March 31, 2010 there were 21 operational Ginger Hotels with the room inventory of approximately 2037 rooms. During the year the Ginger hotels focused upon offering improved F & B services to its customers. 9 units are now certi ed under HACCP norms. The upcoming hotel in Chennai would be the rst hotel in India to exclusively use LED lamps re ecting its high environment consciousness. Use of recycled water from the sewage treatment plant has been made mandatory for gardening purposes. The focus of sales & marketing is on National accounts for getting permanent rooms, long stay business, groups and conferences from the corporate segment. Marketing efforts have focused upon obtaining business through low cost methods like alliances, co-promotions, web booking and use of the call centre. Bookings for rooms can now be made on the mobile phone by making a credit card payment through a tie up with NGPay Mobile Mall. Wildlife Lodges Your Companys Joint Venture Taj Safaris Limited operates four lodges viz. Mahua Kothi at Bandhavgarh, Baghvan at Pench, Pashan Garh at Panna and Banjaar Tola at Kanha. The four spectacular lodges complete the tiger wilderness circuit in all the well known Tiger Reserves in the State of Madhya Pradesh. Jiva Spa The philosophy of Jiva is rooted inherently in Indias ancient approach to wellness. The ethos of our carefully recreated treatments is drawn on the fabled lifestyle and culture of Indian royalty and the healing therapies that embrace Indian
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spirituality. Jiva Spa is an eco-sensitive brand and all spa products are natural and contain Indian herbs, pure essential oils, lipids, clays, mud, salts and ower waters - all of botanical source. Jiva Spa uses organic linen and eco-friendly toxin-free pottery. In the year 2009-10, your Company launched ve new Jiva Spas, four of which are housed in the Vivanta by Taj brand and the fth in Taj Cape Town, South Africa. At the Spas, for the time-starved travelling executive who needs relaxation, an exclusive menu with short duration treatments has been developed. The Spas also offers treatments in the luxuries of the room for guests who are short on time. Jagr, or Awaken the 45 minute long signature treatment created specially for the spa at our Premium city hotels, brings the philosophy together with a warm foot soak, a relaxing champi (Indian head massage) and an elevating back walk that will take away the kinks of the busy work day and bring you to a state of blissful surrender. The Jiva Spas at the Premium City hotels boast of single & double treatment rooms, beauty suite, steam, sauna, jacuzzi, experiential showers, heated loungers, gymnasium and swimming pool. In the new openings, Jiva introduced unique signature therapies localized to each destination. At Taj Cape Town, we introduced Cape Fynbos. This treatment is prepared from herbs exclusive to the Cape region and uplifts the senses. At other locations, we have a Jiva spa experience that relaxes you with a foot massage, an invigorating head massage and a hair wash and blow dry. Trupti at Taj President is ideal to soothe a tired mind and body with a Champi, a back massage with gentle stretches and a relaxing foot massage offers you complete bliss. As on March 31, 2010, 21 Jiva Spas are operational in India and international locations. 1. 2. 3. 4. 5. 6. 7. 8. 9. Taj Mahal Palace & Tower, Mumbai Taj Wellington Mews, Mumbai Taj Lake Palace, Udaipur and the Jiva Royal Spa Boat Umaid Bhavan Palace, Jodhpur Rambagh Palace, Jaipur Taj Exotica Resort & Spa, Maldives Taj Exotica, Bentota Taj Tashi Thimphu, Bhutan Fort Aguada Beach Resort, Goa / Taj Holiday Village, Goa
10. Taj Exotica, Goa 11. Fishermans Cove, Chennai 12. Green Cove Resort, Kovalam 13. Usha Kiran Palace, Gwalior 14. Taj Malabar, Cochin 15. Taj Residency, Bangalore 16. Nadesar Palace, Benares 17. Vivanta by Taj - Panaji, Goa 18. Vivanta by Taj - White eld, Bangalore 19. Vivanta by Taj - Coral Reef, Maldives 20. Taj President, Mumbai 21. Taj Cape Town, South Africa
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The Jiva Spas also won several awards & accolades during the year as under: Jiva Grande at Taj Exotica Resort & Spa, Maldives Best Overseas Spa Resort' as No.3 worldwide in the Luxury Travel Readers award survey Gold List 2010 in the category. Jiva at Taj Exotica, Goa voted 6th Best Spa (Hotel Spa, Asia) Condenast Award 2010 Jiva Grande at Umaid Bhawan Palace, Jodhpur Gallivanters Guide Editors Choice Award for Hotel of the Year 2009 Jiva Grande at Rambagh Palace, Jaipur Best Spas in Harpers Bazaar Jiva Grande at Taj Wellington Mews, Mumbai Best Day Spa Crystal Awards FY 2009 Jiva at Taj Residency, Bangalore Petite Day Spa - Crystal Awards FY 2009 Jiva - Best Spa Brand Luxury Spa Finders Award FY 2009 Jiva Grande at Umaid Bhawan Palace Best in Luxury, Luxury Spa Finders Award FY 2009 Jiva Grande at Rambagh Palace Best Interiors, Luxury Spa Finders Award FY 2009 Taj Exotica, Goa CNBC Awaaz Travel Awards FY 2009 Best Resort for Health & Rejuvenation Guest Experience Your Company continues in its quest for excellence by constant enhancement of the Guest Experience through improved service levels and product upgrades. The Pierre, New York A Taj Hotel re-opened with an impressive formal launch event on 19th October, 2009. Le Caprice, the famed London based restaurant opened at The Pierre and has been received well by guests and New Yorkers. A few months after reopening, The Pierre was awarded the coveted 5 Diamond Award from AAA. Taj Lands End, Mumbai your Companys hotel in North Mumbai added 125 spectacular, state-of-the-art Taj Club rooms and suites to its inventory. In keeping with our guests expectations for innovative food and beverage offerings, we re-launched the renovated Golden Dragon and the Chipstead Bar at Taj Coromandel, Chennai and the Blue Ginger at Taj Palace Hotel, New Delhi. Throughout the year the focus has also been on the re-launch of our agship hotel, The Taj Mahal Palace, Mumbai. The re-launch of the renovated outlets at The Taj Mahal Palace, Mumbai - Wasabi by Morimoto, Golden Dragon and Harbour Bar was much awaited by our guests and has been successful. Taj Cape Town with 154 rooms and 12 residential units established the Taj's presence in South Africa, with a soft opening in March, 2010. The hotel has received excellent reviews thus far and the feedback has been encouraging. Your Company undertakes several initiatives to develop the competencies of our associates. The associates in your Company are provided continuous training inputs through Learning and Development Managers and specially designated Certi ed Taj Departmental Trainers. To strengthen the operational focus and develop attention to detail, the Learning and Development team has actively embarked upon various speci cally tailored programmes for all levels of associates - The Spirit of the Taj, The Taj Luxury Experience Tests, certi cation of key skills in operational departments etc. are some examples. The focus on improving and delivering high quality service is an ongoing process. However, our guests now expect a luxury hotel to deliver these service standards in a consistent manner, not just in the hotel but across hotels and cities. Therefore, it is imperative that we move to customizing the individual experience and keeping this in mind, speci c training programmes and initiatives have been developed. We have augmented our skills inventory of Concierges (currently 28 members of the prestigious - Clefs dOr association), Sommeliers, Bartenders and Butlers. A separate programme with sharper focus on Grand Palaces was established for creating a team of Palace Services professionals. E Learning modules covering the Taj Leadership
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System, Taj Leadership Behaviour and Tata Code of Conduct helped associates learn in their own time and at their own pace. The learning experience is further enhanced using varied processes such as Cross Exposure Training, Systematic Induction Programme and Taj Luxury Experience Training. Recognizing that safety is a key concern for our guests, your Company has embarked on a journey to ensure the safety of its guests and associates. We have a Corporate Safety Steering Committee chaired by the Executive Director Hotel Operations. A Safety Management System has been developed and deployed with the involvement of a reputed consulting rm with experience in the subject. Each hotel has a Safety Committee chaired by the General Manager. To create awareness, enthusiasm for the cause of safety and communicate the importance of guests and employee safety, a safety week was held at all hotels, during which, associates were involved in several programs related to safety. The outcome of all these activities and the continuous drive for quality has led to several of our hotels being recognized by prestigious global institutions - Rambagh Palace, Jaipur was voted the Best Hotel in the World by Conde Nast Traveller U.K. in the Readers Travel Awards for 2009 Taj Exotica Resort and Spa, Maldives was awarded the Grand Prize for Commitment to Quality by The Leading Hotels of the World for achieving the highest score amongst 450+ LHW Hotels worldwide in 2009 Umaid Bhawan Palace, Jodhpur was voted the Hotel of the Year 2009 by the Editors of The Gallivanters Guide
The Taj Premium Hotels continue with their growth strategy with plans to open nine new hotels in the course of the next year. All the newly built hotels are designed to ensure that they are geared to the life-style of the work-hard-playhard global traveller. The Premium Hotels have been sharply de ned with a set of unique values and are working towards a distinctive brand identity roll out. All the guest experiences arise out of a deep understanding of the targeted customer groups and seek to be in tune with their needs and aspirations. The objective is to imbibe premium/ rst-class experiences with creativity and luxury, overlaid with informality and a contemporary touch. Based on the Customer Journey tool-kit, the endeavour is to touch our guests with the brand values at various points in their interaction with the hotel. Some examples include creative limousine experience, Food and Beverage options such as al fresco dining, coffee express, juice and herb based welcome drinks, healthy options in the mini-bar and to-go options etc. The Gateway Hotel is the upscale, full-service brand from the Taj Hotels Resorts and Palaces portfolio. Spread across India, the brand caters to the urban nomad with a rede ned product and service offering. The Gateway Hotels are divided into seven zones - Stay, Hangout, Meet, Work, Workout, Unwind and Explore, in line with the brand philosophy of keeping things simple and exible. The brands uniqueness is its 24/7 concept on essential services, menus and facilities. Team Gateways intense focus on total guest satisfaction through excellence in product and service, deep guest engagement and total service recovery makes it a differentiating experience. The Gateway Hotels main theme is holistic wellness which is re ected in its new age lifestyle activities like - instructional yoga videos on in house TV, round the clock tness and pool facilities. A new age culinary innovation which promotes Active Foods that features fresh, high-energy, natural ingredients that go into creating delicious yet healthy signature dishes. Brand USP regional home style meals, Breakfast Gateway, Chefs hat @ Gateway co-creating with the customer, dynamic price point, right size portioning, have received very high visibility and recognition. SALES & MARKETING Key Initiatives: Re-opening of The Pierre, New York: The iconic U.S. agship of your Company in New Yorks Fifth Avenue, re-opened on June 1st following a meticulous $100 million renovation. Post the makeover, The Pierre, opened its
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doors to its patrons with much fanfare. The property, on its opening night, drew celebrities such as Michael Douglas and Tina Brown, amongst others. The event was attended by key corporates, in uencers, decision makers, celebrities and media and received extensive press and media coverage. Le Caprice, the famous London eatery, has also been transported to the hotel. To truly showcase the Pierres storied past bridged with its updated 21stcentury future, AgencySacks developed a new advertising campaign entitled "Pierre, Again." Opening of Taj Cape Town, South Africa on March 20, 2010: A modern day land mark in the historic city, the hotel blends contemporary elegance with heritage and offers 177 luxuriously appointed rooms and suites. Situated partially on vibrant St. Georges Mall, the new luxury hotel is surrounded by signi cant historic buildings. The hotel offers contemporary experiences for the sophisticated and cosmopolitan customer and also gives leisure guests an opportunity to sample the culture & charm of this historic city. Opening of Vivanta by Taj, Panaji, Goa on May 21, 2009: Your Company opened its new upper upscale hotel, "Vivanta by Taj'' - Panaji, Goa. The name of the hotel - Vivanta is drawn from vivacity, vividness & 'bon vivant': an appreciation of the good things in life. It speaks of style, re nement and living life to the full. Vivanta, Panaji is designed to deliver vibrant experiences; combining the charming hospitality that is the hallmark of the Taj, with a contemporary experience. The hotel addresses the needs of Goa's expanding business environment, and offers contemporary experiences for the sophisticated and cosmopolitan customer and also gives Leisure guests an opportunity to sample the culture & charm of this historic city. Combined with the Taj's strong presence in both North & South Goa, Vivanta Panaji gives full coverage and multiple choices to this key tourist market for both domestic as well as international travellers. Opening of Vivanta by Taj, Coral Reef, Maldives: On the occasion of Indias Independence Day, 15th August, your Company announced the reopening of the erstwhile Taj Coral Reef after a stylish & comprehensive makeover. The hotel has been christened Vivanta by Taj- Coral Reef, Maldives and thus becomes the Tajs rst resort hotel under this exciting new brand. The inauguration coincided with the Indo-Maldives Friendship week and was done by his Excellency Mohamed Nasheed, the President of the Maldives in the presence of Mr. Ratan Tata, Mr. Raymond N Bickson & Cabinet Ministers of Maldives as well as the Indian High Commissioner to Maldives. The hotel opening has seen a strong Sales & Marketing thrust, a series of trade & press fam trips. Launch of The Gateway Hotel, Jodhpur in November, 2009: The Gateway Hotel Jodhpur is a tribute to the architectural heritage of Jodhpur. The hotel combines traditional in uences with modern conveniences to make a perfect holiday, 12 km from Jodhpur airport and 8 km from the railway station. The hotel offers a multitude of amenities for business and leisure travellers. The hotel has over 88 aesthetically designed rooms, a palace styled courtyard, beautiful landscaped gardens, boardroom and conference room facilities and lawns at the poolside. Frontier, the Alfresco restaurant, serves NorthWest Frontier cuisine, the Dune Bar serves a vast selection of wine and the restaurant cum caf, Sir Pratap offers Indian and Continental delicacies. Launch of the New Taj Club Rooms at Taj Lands End, Mumbai: Taj Lands End, Mumbai launched 125 new Club rooms and suites in August, 2009. These rooms reinforce Taj Lands End as the preferred destination for the discerning high-end corporate traveller looking to mix business with pleasure. The rooms and suites are positioned as a premium and distinct luxury experience for the contemporary business traveller. Surprises By Taj: As part of the overall strategy to drive revenues for 2009-10; a host of initiatives targeted at key segments to achieve the following objectives were undertaken. The initiatives were marketed under an umbrella campaign Surprises By Taj. The Surprises were in the form of the various offers or rewards offered by the Taj. The Surprise concept allows for exibility in communicating the offers in an elegant tone with a sense of mystery and humour without diluting the image of the brand or commoditizing the same. Some of the key initiatives undertaken as a part of the Surprises were :
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Stay a Bit Longer Early Bird Offer Business Edge Suites and Club Promotion Launch of SELF: In August, 2009, with the objective to drive revenues by leveraging the strength of all associates across the entire organization and the Apex Council, a new initiative was launched called SELF - Sales Enhancement Leverage Force. This program urges all associates to tap into their vast network of contacts and friends to generate leads for hotels. The program emphasizes on incremental business and shifts from competition. The initiative has been very successful across the organization with over 189 employees participating in this and generating leads for hotels. Marketing Alliance with Victoria-Jungfrau Collection, Switzerland: Victoria-Jungfrau Collection (VJC), a small and select group of luxury hotels in Switzerland, and Taj Hotels Resorts and Palaces, signed an ex-parte marketing alliance in February, 2010. This strategic alliance will allow both organizations to develop crosspromotional opportunities to harness each others strengths in their respective markets of dominance. Victoria Jungfrau Collection comprises four hotels, all at prime locations, with a tradition of over one hundred years. With an outstanding reputation, they offer a wealth of timeless tradition, a rich heritage of hospitality and commitment to top quality service. Environmental Initiatives: Your Company recognizes the imperative need to contribute to reducing the impact of its daily operations on the environment & make a contribution. Sustainability Reporting: As demonstration of your Companys commitment being a responsible corporate citizen & in line with international practices, last year your Company prepared a Corporate Sustainability Report based on the GRI (Global reporting initiative) G3 guidelines for Sustainability Reporting & adhering to the 10 principles of UNGC (United Nations Global Compact). This year the total direct GHG (Green House Gas) emissions were 49,555 tons of CO2 eq. & the total indirect GHG emissions were at 2,30,365 tons CO2 eq. Your Company has been participating in the globally recognized Carbon Disclosure Project (CDP) to report our commitment & strategy towards performance in climate change mitigation. Green Globe Certi cation: Your Company has progressed well in this direction. The Green Globe Certi cation now stands at 66 hotels out of which 11 hotels have achieved SILVER certi cation in their rst attempt itself. Not a single hotel has failed this rigorous certi cation till date which amply demonstrates your Companys commitment Green Globe Certi cation status: Certi cation status Bronze certi cation Silver Certi cation Hotels certi ed 55 11
It is planned that all hotels will be Green Globe certi ed by the end of 2010-11 As in the previous years your Company continues to focus on the following key areas: 1. 2. 3. Improving Energy Ef ciencies Water (Fresh & Waste) management Solid Waste Management
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The EARTH (Environment Awareness & Renewal at Taj Hotels) vision that was launched in August 2008 continues to remain in focus. BUSINESS EXCELLENCE 1) Tata Business Excellence Model: Your Company continues to apply for assessment as one organization under the Tata Business Excellence Model (TBEM). Feedback from past assessments has helped your Company improve its processes to deliver a robust business performance and build associate commitment in accomplishing organizational goals. Associates receive appropriate training to drive excellence. Leaders participate in the External Assessment process for other Tata companies as Mentors or team members. Training for quality improvement and usage of quality control tools has resulted in the creation of Process Improvement Teams to drive improvements in operational processes. Rigorous TBEM Blitzes are conducted twice a year at hotels, to assess process readiness and drive improvements, establishing synergies across hotels and regions. This year, your Company won the Highest Delta Award, a Tata Enterprise level recognition at the hands of Group Chairman Mr. R. N. Tata and a TBEM external assessment score of 586 points which is just below the 600 points required to win the coveted JRDQV Award. 2) Best-In-Taj: Leading organizations demonstrate excellence by the rapid identi cation of Best Practices and quick adoption across the organization. Your Company has constituted a Best-In-Taj Council, which identi es Best Practices in hotels which are then adopted as Taj Best Practices. These Best Practices may originate in any function, and are those that have been proved to have a positive impact on business through improved Guest Satisfaction, Associate Satisfaction or Financial savings. The Best-In-Taj Council meets twice a year to agree upon the Best Practices that will be adopted across the organization. Such an approach avoids re-inventing the wheel and ensures synergistic process improvements in hotels. 3) Mystery Shopper Audits: Your Company partners with internationally acknowledged experts to conduct Mystery Shopper Audits. These experts work with the Top 100 hotels globally, which are the worlds top hoteliers. The focus is to build a strong corporate culture of delivering superb service with long-term, deep value propositions with guests, through personal, emotional connections with each guest. These audits provide an unbiased opinion of how your Company is perceived by its guests and uniquely assesses each moment of truth. Audit scores and detailed narratives continue to help your Company meet Brand Standard requirements. 4) Customer Feedback System (CFS): This year, your Company has partnered with an internationally acknowledged expert to analyze Guest feedback and to identify areas for improvement and to benchmark your Companys performance against leading international hotels. The CFS includes extensive evaluation parameters pertaining to all aspects of a resident guests experience at the hotel. Guest feedback of restaurants (residents and non-residents) and of Conferences and Events is also captured and used for driving improvements. Your Company has measured guest perception of the Brands through inclusion of Brand speci c parameters.
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5)
Health and Safety Management Systems: Your Company has taken the lead in the implementation of surprise Hygiene Audits. Partnering with an internationally acknowledged organization, hotels undergo surprise audits for hygiene twice a year. All areas of a hotel are audited guest facing, associate usage, facilities etc. Documentation and procedures are reviewed and scores awarded based on internationally accepted norms. Your Company has constituted a Safety Council to provide guidelines of Safety Management and drive safety awareness among associates. Each hotel has a Safety Council that meets monthly to review and create action plans. Safety Management processes are documented and action plans to mitigate safety risks are created.
HR Initiatives During the year, the HR initiatives were focused on maintaining cost and productivity ef ciencies in view of the economic downturn and slowdown in business. There was a sustained effort on building engagement within the workforce coupled with initiatives to address workforce cost and productivity issues. 1. Gallup Great Workplace Award Your Company has been declared the winner of Gallup Global Great Workplace Award. The Award recognizes companies for their extraordinary ability to create an engaged workplace culture. Gallup award winning companies have the most productive and engaged workforces in the world and Gallup analyses numerous organisations and teams across the world to arrive at this award. Your Company is among the 25 distinguished organizations from across the world and one of the only 2 organizations from India which have been selected for this award. 2. Employee Satisfaction Scores - Gold Standards under Gallup Survey Your Company has been adjudged for the second year running as having achieved the gold standard on the overall satisfaction of employee survey conducted for 2010 by the Gallup Organization. We have scored the highest Q12 grand mean among all large organizations in India and have quali ed for the Gallup Hall of Fame. We are among the highest performing organizations in terms of employee engagement in the Tata Group. 3. Worldwide Hospitality Awards 2009 Year of the Associate Initiative The Year of the Associate initiative was launched last year and aimed at building a vibrant and highly engaged work force. The initiative has been adjudged as among the top three Human Resource initiatives among the hospitality organizations globally in the Worldwide Hospitality Awards. This award was conferred on your Company amidst stiff competition from major leading international hospitality organizations in the Hospitality Awards ceremony held at Paris, France. Some of the key initiatives implemented during the year 2009-10 which were focused on enhancing ef ciency and optimizing productivity of the workforce in line with the business and economic scenario are listed below: A. 1. HR initiatives for building a high performance work culture Year of the Associate (YOA): This company wide program was aimed at creating a vibrant and highly engaged work force. The YOA was rolled out across the Company in 2008-09 and its success manifested in the enhanced Employee Engagement Scores across the organization. The initiative has stabilized in 2009-10 and has been a key driver for maintaining and enhancing engagement levels in an environment of economic downturn. In 2010-11, a fresh set of initiatives are being implemented under the banner of YOA + to provide additional thrust to employee engagement.
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2.
IT Initiatives: Oracle HRMS has been rolled out in 20 hotels with the balance hotels to be covered by June 2010. The current implementation includes modules for compensation, core HR and Self Service with Compensation, being implemented in this phase. Bene ts envisaged include centralization of non-core work and achieving ef ciencies in the HR/ payroll workforce deployed at the hotels. In order to systematically deploy the organizations strategic objectives uniformly across all hotels, a Balanced Score Card automation project has been undertaken. This software system is currently being implemented in all hotels and will provide complete visibility of the organizations strategic direction after implementation. With the perspective of continuously enhancing the guest experience, your Company has always focused on the training and development of frontline associates. Taking this forward, an online Learning Management System is being launched which has more than 150 training modules for frontline staff.
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Career Architecture: The job architecture exercise was launched last year and aims at classifying jobs scienti cally and de ning roles and responsibilities to align with the strategic goals of your Company. Each job is assessed to establish the relative internal value of the job within the organization. This study will provide a scienti c basis for broad banding compensation, grading system, job transfers, career / succession planning and other related HR interventions. The study is almost complete. SPEED + program: With the success of the SPEED program launched last year, a similar Career Development program for junior managers has been deployed. This program called SPEED+ is a part of our continuing endeavour to provide opportunities for talented associates working in supervisory or junior management positions to advance their careers into next level at a quicker pace. Leadership Development: We have implemented multi-tiered leadership development programs in order to build leadership capability within all levels of the organization. For junior management, the same is addressed through the Companys PACE (Performance Alignment and Competency Enhancement) Program. The needs for middle management are covered through the Emerging Leaders of Taj (EL Taj) program while the senior and top management are covered through a customized Leadership Assessment program. These programs support the organisations objective of building a sustainable, high quality pool of leaders to support the strategic growth plans of your Company. All initiatives speci ed above have contributed to maintaining the employee engagement levels as the countrys highest and assisted in optimizing the productivity of the workforce.
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B. 1.
Initiatives for ef cient work force cost management (2009-10) Minimal addition to Workforce: Continuing from the previous year, the effort to minimize new hirings has continued in the current year and has resulted in controlling increase in overall workforce strength, even with new hotels opening up. All new hirings except those in niche skills have been deferred in view of the existing slowdown in business and vacant positions have been lled with internal redeployment where possible. This initiative has assisted in achieving operating ef ciencies and resulted in enhancing overall productivity levels within the Company. Filling most positions in the new hotels through internal redeployment: The practice of redeploying staff from current hotels to new openings were continued through the year. Identi cation of staff for redeployment into new hotels in Delhi, Bangalore, Coorg are being carried out and will be implemented as these hotels open. Holiday for salary increase and cuts in performance incentive: Salary increases for executives were frozen in 2009-10. In most hotels, the salary revisions for staff levels were also deferred to meet the nancial challenges brought on by the slowdown in business. Middle and Senior Management took a cut in their performance bonuses upto 50% while junior management were paid incentive at the normal rate.
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Management Discussion and Analysis of Operating Results and Financial Positions The Annual Report contains Financial Statements of your Company, both on a stand-alone and consolidated basis. An analysis of the nancial affairs is discussed below under summarized headings. Results of Operations for the year ended March 31, 2010 Standalone Financial Results The following table sets forth nancial information for the Company for the year ended March 31, 2010 Rs/Crores Particulars Income Sales & Other operating income Expenditure Consumption of Raw Materials Staff Costs License Fees Fuel, Power and Light Depreciation/Amortisation Other Expenditure Less: Unallocated expenditure during construction period transferred to Fixed Assets Total Expenditure Pro t before Interest and Tax Interest (net) Pro t before Tax and Exceptional Items Exceptional Items Pro t before Tax Provision for tax (including for earlier years) Pro t after Tax 112.58 359.56 90.39 100.67 104.14 438.24 (8.46) 1197.12 369.23 152.90 216.33 (1.92) 218.25 65.15 153.10 114.54 391.05 97.61 98.50 94.46 463.07 (10.41) 1248.82 457.70 89.19 368.51 6.21 362.30 128.27 234.03 1566.35 1706.52 Year ended March 31, 2010 March 31, 2009
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Revenues: The summary of total income is provided in the table below: Rs/Crores Particulars Room Income Food & Beverage Income Other Operating Income Non-Operating Income Total Income Statistical Information Average Room Rate (Rupees) Occupancy (%) 8792 64 10504 66 (16) (2) Year Ended March 31, 2010 699.63 536.34 237.32 93.06 1566.35 March 31, 2009 843.19 508.99 267.39 86.95 1706.52 % Change (17) 5 (11) 7 (8)
Income from Room sales declined mainly due to a decrease in Average Room rates and occupancies due to the recession. However, the Food & Beverages income grew by 5% mainly aided by banquets revenue which increased by 12%. Other Operating income mainly includes income from management fees, laundry, spa and health club, telephone, business centre rents etc. as well as accrual of business interruption insurance claim of Rs. 64.35 crores. Non-Operating income was higher than the previous year due to income from sale of investments which was partially offset by lower Dividend Income during the year. Operating Expenses: The operating expenses decreased by 4% from Rs. 1248.82 crores to Rs. 1197.12 crores. Variable operating costs decreased with declining volume and measures undertaken by the Management to restrict costs. Further, payroll costs were controlled by minimising new hires, skipping salary increases and reducing senior management bonuses. The Company also bene ted from actuarial gains in the retirement funds arising from improved market conditions. Advertisement expenditure was also curtailed in consideration of the challenging economic environment. During the year, the Company has incurred signi cant costs on consulting, training, equipment and hiring personnel to strengthen the security of its hotels. Depreciation for the year increased from Rs 94.46 crores to Rs 104.14 crores due to the full year impact of new properties that commenced operations in the fourth quarter of the previous year. Pro t before Interest and Tax (PBIT): The PBIT declined by 19% from Rs. 457.70 crores to Rs. 369.23 crores. The PBIT margin of the Company dropped from 26.8% of sales from the previous year to 23.6% achieved in the current year mainly due to the industry phenomenon of higher xed cost. Interest costs (Net): Net Interest cost was higher at Rs. 152.90 crores for the year ended March 31, 2010 as compared to Rs. 89.19 crores in the previous year mainly due to increased borrowings to fund the Companys expansion projects, overseas debt retirement as well as lower interest income consequent to the complete utilization of surplus funds during the year.
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Pro t before Tax: Pro t before tax, declined by 40% from Rs. 362.30 crores to Rs. 218.25 crores. Pro t after Tax: Pro t after tax declined by 35% over the previous year from Rs. 234.03 crores to Rs. 153.10 crores. Cash Flow Data Rs/Crores Particulars Net Cash from operating activities Net cash used for investing activities Net cash from nancing activities Net Increase in cash and cash equivalents Operating Activities: Net cash from operating activities was higher at Rs. 450.64 crores as compared to Rs. 293.06 crores in the previous year. While operational pro ts were lower during the year, a lower tax out ow and better working capital management enabled the Company retain higher liquidity. Investing Activities: Net cash used for investing activities was mainly on account of Rs. 1056.43 crores spent towards expansion plans, renovation of existing properties and replacement/up-gradation of existing xed assets. Rs. 276.75 crores spent towards construction of new properties and restoration of the Taj Mahal Palace and Tower, Mumbai. Rs. 1232 crores was invested in subsidiaries for renovation of The Pierre, New York and repayment of existing debt in various subsidiary companies. This was partially funded by divestments of certain investments. Financing Activities: During the year, your Company raised Rs. 1030 crores of debt by issue of 2% Secured Non-Convertible Debentures with a yield to maturity of 9.5% for Rs. 300 crores and two issues of 2% unsecured Non-Convertible Debentures of Rs. 250 crores and Rs. 150 crores with a yield to maturity of 9.85% and 9.25% respectively. In addition, the Company had invited xed deposits from the general public and shareholders through which it raised Rs. 330 crores. A term loan from a bank of Rs. 100 crores, which matured during the year was repaid. Certain Financial Ratios for Standalone Financials: Rs/Crores Particulars Net Debt to Total Capital (total debt less cash and cash equivalents divided by the sum of net debt and net worth) Net Debt to Equity (total debt less cash and cash equivalents divided by net worth) Year Ended March 31, 2010 0.45 0.81 March 31, 2009 0.30 0.43 Year Ended March 31, 2010 450.64 (1056.43) 627.41 21.62 March 31, 2009 293.06 (1105.74) 1183.84 371.16
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Consolidated Financial Results Your Company has Consolidated its Financial Statements with those of its Subsidiaries, Joint Ventures and Associates (together referred as Group Companies or Group) in accordance with generally accepted accounting practices prevailing in India. The Consolidated statements include the nancial position of Subsidiaries on line by line basis, Jointly Controlled entities on a line by line basis to the extent of proportionate holding and Associates by a one-line consolidation of share of pro t after tax. The following table sets forth the Consolidated Financial results for the year ended March 31, 2010 Rs/Crores Particulars Income Sales & Other operating income Other Income Share of Pro t in Associates Total Income Expenditure Consumption of Raw Materials Staff costs License Fees Fuel, Power & Light Depreciation Other Expenditure Less: Unallocated Expenditure during construction period transferred to Fixed Assets Total Expenditure Pro t/(Loss) Before Interest and Tax Interest (Net) Pro t/(Loss) before Tax and Exceptional Items Exceptional Items Pro t/(Loss) before Tax Provision for Tax (incl. for earlier years) Pro t /(Loss) after Tax before minority interest Minority Interest Pro t/(Loss) after Tax Revenues: The Company, its Subsidiaries and its Jointly Controlled Entities (the Group) are primarily engaged in the business of hoteliering with the exception of two Jointly Controlled Entities, which are engaged in the business of Air Catering. The other areas of business primarily include Ready to Eat / Ready to Cook foods business. Year Ended March 31, 2010 2521.02 85.16 (4.57) 2601.61 254.69 847.67 98.39 172.96 218.54 761.28 (12.16) 2341.37 260.24 306.14 (45.90) 7.64 (38.26) 84.71 (122.97) 13.91 (136.88) March 31, 2009 2686.13 70.50 25.49 2782.12 277.22 856.41 106.42 167.74 188.53 790.38 (22.55) 2364.15 417.97 229.21 188.76 (4.76) 184.00 155.77 28.23 15.77 12.46
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Rs/Crores Particulars Hoteliering Air Catering Others Unallocable Income Share of Pro t in Associates Total Revenue Year Ended March 31, 2010 2270.48 248.05 28.41 59.24 (4.57) 2601.61 March 31, 2009 2366.96 281.65 59.24 48.78 25.49 2782.12
Hoteliering revenue was lower due to the prevailing global slowdown, closure of the heritage wing rooms of the Taj Mahal Palace and Tower, Mumbai which was partially offset by the reopening of The Pierre, New York. Air Catering business was lower by 12% impacted by the sluggish demand in the aviation industry leading to reduction of ights. Un-allocable Income represents Dividend Income and Pro t on sale of Investments. Share of pro t in Associates represents Companys proportionate share in Pro t After tax of its associates. The performance of associate companies was impacted by the declining demand in the hoteliering business as well as aviation charters. Operating expenses: The operating expenses were at the same levels as the previous year. This was enabled by reduction in variable operating costs linked to revenue, cost containment measures undertaken by the Management and deferment of advertising expenditures considering the business scenario. Consolidated Pro t before Interest and Tax: Pro t before Interest and Tax declined by 38% from Rs. 417.97 crores to Rs. 260.24 crores, consequent to reduction in turnover a largely xed cost base of the Group. Interest costs: Interest cost for the year ended March 31, 2010 was higher at Rs. 306.14 crores as compared to Rs. 229.21 crores in the previous year mainly due to re nancing of international debt. Pro t/(Loss) after Tax: Pro t/(Loss) after tax for the year was Rs. (136.88) crores as compared to Rs. 12.46 crores. Cash Flow Data: The following table sets forth selected items from the consolidated cash ow statements: Rs/Crores Particulars Net cash from operating activities Net cash used for investing activities Net cash from nancing activities Net Increase / (Decrease) in cash and cash equivalents Year Ended March 31, 2010 427.15 (102.49) (419.17) (94.51) March 31, 2009 338.97 (1161.05) 1231.56 409.48
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Operating Activities: Net cash from operating activities was higher at Rs. 427.15 crores as compared to Rs. 338.97 crores in the previous year, mainly due to tax refund of previous years, lower tax out ows, realisation of claims receivable of Taj Mahal Palace and Tower, Mumbai and improved working capital management. Investing Activities: Net cash used for investing activities was Rs. 102.49 crores, as the cash required for expansion, renovation and upgradation of existing properties and investments are largely funded out of divestment of our investments and restructuring our holding in Sea Rock. Financing Activities: Net cash available from operations has been utilised for servicing existing debt and payment of dividend. Rs/Crores Year Ended Particulars Net Debt to Total Capital (total debt less cash and cash equivalents divided by the sum of net debt and net worth) Net Debt to Equity (total debt less cash and cash equivalents divided by net worth) March 31, 2010 0.58 1.35 March 31, 2009 0.53 1.11
TAJ PUBLIC SERVICE WELFARE TRUST BACKGROUND: On December 12, 2008 your Company sponsored the Taj Public Service Welfare Trust (TPSWT) in response to the terror attack on the city of Mumbai in November, 2008. Setting up of TPSWT helped us draft a response to the outpour of emotions from all well wishers across the globe who were keen to contribute for the welfare of the persons, affected by the aftermath of the 26/11 terror attack and also for those who demonstrated exemplary bravery and commitment against all the odds to protect the lives and property during the attacks. The Trust has been registered as a Public Charitable Trust under the Bombay Public Trust Act, 1950. More recently, in October 2009, the Taj Public Service Welfare Trust was granted permission by the Government of India to accept foreign contributions. Funds thus available will provide further support to the Trust to discharge its mandate to the fullest in the coming years - a mandate that is extended, to cover relief to victims of sudden acts of violence, natural disasters and other tragic events that in ict damage to life and property. OBJECTIVE OF THE TRUST: The aim was to provide immediate assistance to victims and their kin affected by 26/11 and thereafter provide a sustainable livelihood to them. As on date, the Trust has received donations of Rs. 11.26 crores and committed Rs. 2.27 crores to directly bene t 230 families and victims of the terror attack. Not only has the Trust succeeded in meeting its objectives, but it has succeeded in making a positive and incremental impact to the lives of those it has touched. 26/11 terror attack has left a lot of families with an injured or deceased family member. To ensure that these families are able to revert back to their feet at the earliest, the Trust has adopted the Building Sustainable Livelihood approach. The Trust approached Tata Institute of Social Science (TISS) to help us streamline the response. The bene ciaries, belonging to lower strata of the society, have been referred to us by the Collector of Mumbai. TISS put together a team
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of their staff & students, who did a house visit to the bene ciaries and put together a need assessment. This was done in a methodical & professional manner, based on which a range of support was approved, with the view to get the family self sustainable at the earliest. This support options include monthly sustenance, medical / hospitalization support, school children education, support to pursue a livelihood course and setting up of a micro-enterprise with micro- nance as a model. As part of the Public Private partnership model, for vocational training skills to be imparted to the bene ciaries, the Trust is working closely at ITI Lonavla with support from the Directorate of Vocational Training. At ITI Lonavla we have set up a hospitality module, to impart them training on a variety of skills like house keeping, restaurant service, food production, hygiene, personality development, grooming etc. To enable them to stay for the three month training duration, we are setting up hostel facility for them. By undergoing this training they are made employable and can get employed at the Taj or access any other opportunities available in the industry. As a rst step in this direction a Skill Training program at Taj Lands End Skill Training Centre was organised in November 09. A group of 34 bene ciaries have undergone two month skill training in the area of house keeping, food production and F & B service. On the conclusion of the training 80% of these skills trained bene ciaries have been absorbed by the hotel industry. The second batch of 17 bene ciaries has been identi ed and their skill training program would start shortly. Four bene ciaries have been able to rm up the micro-enterprise venture they wish to start and TPSWT is supporting them nancially as well as with counselling to get them self sustainable. The support has been given across following activities: Type of assistance Monthly sustenance Hospitalization expenses / Medical support School Education Skill training program Micro-enterprise Pursue courses Total Bene ciaries 114 11 62 34 04 05
Going forward, the guidance from the Trustees is that a disaster can occur any time in the future. Hence, TPSWT should increase the facilities and programs at ITI Lonavla, such that we can roll out vocational training skills of the hospitality sector to such bene ciaries in the future at short notice. RISKS & CONCERNS Industry Risk General economic conditions Hotel business in general is sensitive to uctuations in the economy. The hotel sector may be unfavourably affected by changes in global and domestic economies, changes in local market conditions, excess hotel room supply, reduced international or local demand for hotel rooms and associated services, competition in the industry, government policies and regulations, uctuations in interest rates and foreign exchange rates and other natural and social factors. Since demand for hotels is affected by world economic growth, a global recession could lead to a downturn in the hotel industry. Socio-political risks In addition to economic risks, your Company faces risks from the socio-political environment, internationally as well as within the country and is affected by events like political instability, con ict between nations, threat of terrorist activities, occurrence of infectious diseases, extreme weather conditions and natural calamities etc., which may affect the level of travel and business activity.
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Company speci c Risks The Company speci c risks remain by and large the same as enumerated last year. These are: Heavy Dependence on India A signi cant portion of your Companys revenues are realised from its Indian operations, making it susceptible to domestic socio-political and economic conditions. Moreover, within India, the operations and earnings are primarily concentrated in hotel properties in ve cities. Dependence on the high-end Luxury segment Luxury hotels contribute a signi cant proportion of the total revenue and earnings of your Company. This segment is affected by the international events and travel behaviour and suffers from high operating leverage. Adverse development affecting these hotels or the cities in which they operate could have a materially adverse effect on the Taj Group. Competition from International Hotel Chains The Indian subcontinent, South East Asia and Asia Paci c with high growth rates have become the focus area of major international chains. Several of these chains have announced their plans to establish hotels to take advantage of the demand supply imbalance. These entrants are expected to intensify the competitive environment. The success of Taj Group will be dependent upon its ability to compete in areas such as room rates, quality of accommodation, brand recognition, service level, convenience of location and to a lesser extent, the quality and scope of other amenities, including food and beverage facilities. Increased outbound travel Recent competitiveness in international airfares and strengthening of the Indian Rupee resulted in destinations like Europe, South East Asia and Australia becoming more affordable to the average Indian traveller. This has increased outbound travel and presents a risk to the domestic segment for leisure resorts. High Operating Leverage The industry in general has a high operating leverage which has further increased with on-going renovations and product upgrades. However, it has been observed that your Company has been able to earn higher revenues with acceptance of its products in the market and improved economic conditions. Foreign exchange uctuation risks Your Company also has a portfolio of foreign currency debt, in respect of which it faces exposure to uctuations in currency as well as interest rate risks. Risk mitigation Initiatives Your Company employs various policies and methods to counter these risks effectively, as enumerated below: In view of the recent terrorist attack, the Company has taken various security measures at all its properties which inter alia include screening of guests luggage, installation of metal detectors etc. To counter the risk of dependence on the high end luxury segment, your Company is entering the mid-market segment which is comparatively insulated from political and social changes in India. The Company through its subsidiary Roots Corporation Limited is also increasing its presence in Budget Hotel segment under the brand Ginger. To successfully counter the risk from growing competition and new properties, your Company is renovating and repositioning all its key properties under new brands Luxury, Gateway and Vivanta by Taj. It is also improving its service standards in consultation with international experts to provide exceptional service consistently across its hotels.
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Operating and nancial leverage by expansion through management contracts and leveraging the strengths of its Associates. Your Company closely monitors foreign currency exposures and hedges in consultation with its advisors. Net exposures, including those from derivative instruments are kept at acceptable levels and within overall limits approved by the Board. These exposures are subjected to regular reviews. Internal control systems and their adequacy Your Company has reviewed internal controls and its effectiveness through the internal audit process. Internal audits were undertaken for every operational Unit and all major corporate functions under the direction of the Group Internal Audit department. The focus of these reviews are as follow: Identify weaknesses and areas of improvement Compliance with de ned policies and processes Safeguarding of tangible and intangible assets Management of business and operational risks Compliance with applicable statutes Compliance with the Tata Code of Conduct The Taj Positive Assurance Model, which is an objective methodology of providing a positive assurance based on the audits of operating units and corporate functions was institutionalized in 2004/05 as a standard audit process in conjunction with empanelled internal audit rms and is now operational for all units. The novelty of this model is that it is a convergence of Process Framework, Risk and Control Matrix and a Scoring Matrix. A framework developed for each functional area identi ed on the basis of an assessment of risk and control and provides a score, allowing the Unit to improve on high risk and weak areas. The Audit Committee of the Board oversees the adequacy of the internal control environment through regular reviews of the audit ndings and monitoring implementations of internal audit recommendations through the compliance reports submitted to them. LIST OF AWARDS AND ACCOLADES Date GROUP Nov '09 Oct '09 Hotel and Details of the Award Taj Hotels Resorts and Palaces Travel Agents Federation of India (TAFI) Awards 2009 held in Chiang Mai - The Indian Hotels Company Ltd. (Taj Group) Best Luxury Hotel Chain Award: Best overseas hotel the Travel Awards 2009 winners. The full list of winners announced at this year's Guardian, Observer and guardian.co.uk Taj Hotels moves up from number 5 to become the most popular overseas hotel Business Traveller Awards Reader's Poll Results 2009, U.K. - No. 1 Taj Hotels Resorts and Palaces - Best Business Hotel Chain in India 4Ps Business and Marketing # 62 in the list of India's 100 most valuable brands 2009. Ranking based on 5 parameters: Brand Awareness 4.86; Brand Image & Perception 4.78; Brand Loyalty 4.73; Brand Performance 4.48; Brand Association 4.54
Sept '09 Aug-Sept '09
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Date
Hotel and Details of the Award The Taj Mahal Palace & Tower, Mumbai
LUXURY HOTELS March '10 Feb '10 Jan '10 ASiAMONEY Travel Poll 2010 - Asia's Best Hotels in Individual Cities - TMPT in Mumbai The Taj Mahal Palace & Tower has been voted as Best Hotel in Mumbai in DestinAsian Readers' Choice Awards 2010. 6th Annual Conde Nast Traveller, UK Gold List Jan 2010 - TMPT the best in Asia for SERVICE marked as a 'Classica' having appeared in the Gold List 5+ times. The 'X Factor' of the property is quite rightly attributed to Mr. Kang and the Taj Staff. Accolade: Tatler Travel Guide 2010 - 101 Best Hotel Guide - The Taj Mahal Palace & Tower, Mumbai has been included within the "Star Quality" section for its enchantment and enduring spirit. The Crystal Awards Asia Paci c 2009 awarded to the Jiva Grande Spa, The Taj Wellington Mews, Mumbai, India in the Best Day Spa category. The Taj Mahal Palace & Tower, Mumbai is the Winner in the Heritage Property category of the The ET TAAI Travel Awards 2009 (Economic Times & TAAI) 2009 Business Traveller Asia-Paci c Awards, Hong Kong - Best Business Hotel in Mumbai TMPT The Taj Mahal Palace & Tower, Mumbai has been awarded the Best Heritage Property as per the rst Economic Times Travel Awards 2009 VIRTUOSO HOTELIER OF THE YEAR award!!!!! Mr. Karambir Kang PATA Gold Awards 2009 - Marketing-Hospitality - The Taj Mahal Palace & Tower, Mumbai after attack and re-launch campaign "The Best in Class" of 236 entries from 120 organisations worldwide. Sponsored by the Macau Government Tourist Of ce T+L USA - World's Best Awards - TMPT ranked 16th with a score of 88.95% in the Top 25 City Hotels in Asia category CNT, USA Gold List Best Places to Stay in the World Score: 90.4% The Jiva Spa at Taj Wellington Mews, Mumbai has won the award for the 'Best Day Spa' at the Pevonia AsiaSpa India Awards 2008 held on April 8, 2009 at The Leela Kempinski Gurgaon. The Pevonia Asia Spa Awards recognise exceptional spas in Asia. The awards have been instrumental in focusing international recognition on Asia's spas. Hewitt Associates' sixth Best Employers in India 2009 study today, in partnership with Outlook Business - Taj Hotels Resorts and Palaces. 81% employees stated that future career opportunities at their organization seem to look good Taj Lake Palace, Udaipur Jan '10 Jan '10 6th Annual Conde Nast Traveller, UK Gold List Jan 2010 - TLP the best in Asia for LOCATION and its 'X Factor' is deservedly the fact that the palace appears to oat on the lake. TripAdvisor Travelers' Choice Awards 2010, USA - In India, TLP is No.3 in the Top 10 Luxury Hotels, No.4 in the Top 10 Hotels for Service and No.4 in the Top 25 Hotels categories
Jan '10
Dec '09 Oct '09 Sept '09 Sept '09 Aug '09 Aug '09
Aug '09 2009 April '09
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Date Aug '09 2009 May '09
Hotel and Details of the Award T+L USA - World's Best Awards - TLP rank:11 score: 89.87% in the Top 15 Resorts in Asia category & Top 100 hotels in the World Rank 78 score: 89.87% CNT, USA Gold List Best Places to Stay in the World Score: 92.5% Conde Nast Traveler, USA Hot List 2009 - 50 New Spas to Lose Yourself in - Spa Boat at Taj Lake Palace, Udaipur Umaid Bhawan Palace, Jodhpur The Editor of The Gallivanter's Guide has voted Umaid Bhawan Palace, Jodhpur, "Hotel of the Year" in the 2009 Gallivanter's Awards for Excellence. TripAdvisor Travelers' Choice Awards 2010, USA - Top 25 Hotels in India - UBPJ is No.21. Jiva Grande Spa at Umaid Bhawan Palace has been selected as one of the top ten spas in the Best for Luxury category in the prestigious 7th annual SpaFinder Readers Choice Awards 2009 competition. Out of 70,000 spas worldwide (and 13,000 stay spas), voted as one of the top ten. The 2009 Best List of Vanity Fair, U.K. - UBPJ Best Palace Rambagh Palace, Jaipur TripAdvisor Travelers' Choice Awards 2010, USA - Rambagh is the winner in the Top 10 Luxury Hotels category in India; and No.5 in the Top 10 Hotels for Service in India, and No.3 in the Top 25 Hotels in India Cond Nast Traveller, UK 2009 Readers' Travel Awards. Rambagh Palace, Jaipur Rank 2 in the World's Top 100 (irrespective of cateogory) with an Overall score:95.62%. And in the Overseas Leisure Hotels - Asia & the Indian Subcontinent Category, Rambagh Palace in Jaipur Ranked 1 has the best ambience/decor (98.12%) and location (96.50%) T+L 500 USA - World's Best Awards - RPJ rank:14 score:89.61% in the Top 15 Resorts in Asia category and Rank 87 score:89.61% in the Top 100 Hotels in the World Taj Palace Hotel, New Delhi Times food Guide, Delhi, 2009 (Times Group Books) has awarded the Orient Express, Taj Palace, New Delhi under the Best European category Taj Mahal Hotel, New Delhi ASiAMONEY Travel Poll 2010 - Asia's Best Hotels in Individual Cities - TMHD in New Delhi The Taj Mahal Hotel New Delhi as Best Hotel in New Delhi in DestinAsian Readers' Choice Awards 2010. 6th Annual Conde Nast Traveller, UK Gold List Jan 2010 - TMHD the best in Asia for FOOD Wasabi and Varq cited as offering the 'X Factor' and Varq singled out as one of the best gourmet Indian restaurants in Delhi The Taj Mahal Palace & Tower is the Winner in the Best Hotel category of the Fourth Annual DestinAsian Readers' Choice Awards 2009. 2009 Business Traveller Asia-Paci c Awards, Hong Kong - Best Business Hotel in New Delhi TMHD
Jan '10 Jan '10 Oct '09
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Date May '09 May '09
Hotel and Details of the Award Conde Nast Traveler, USA 50 Hot Tables - Varq, TMH New Delhi Times Food Guide, Delhi, 2009 (Times Group Books) has awarded Wasabi under the Best Japanese category - Taj Mahal Hotel, New Delhi The Taj West End, Bangalore The Taj West End, Bangalore has been presented the Award for "Commitment to Excellence" at the Leading Hotels of the World Annual Convention held in Venice, Italy in November 2009. Conde Nast Traveller, UK Readers' Travel Awards 2009 - The Taj West End, Bangalore was voted 8th best hotel in the 'Overseas Business Hotels' category with a score of 86.25%. Cond Nast Traveller, UK 2009 Readers' Travel Awards - Taj West End was ranked 8th in the Overseas Business Hotels Section for properties worldwide. Score: 86.25% Taj Exotica Resort & Spa, Maldives Taj Exotica Resort & Spa, Maldives Wins Highest Ranking Commitment to Quality Award at LHW Convention 2009. The Leading Small Hotels of the World 2009 Annual Convention, Venice Italy has presented the Commitment to Quality Award to TERS in recognition of providing the highest levels of excellence in accommodation, facilities and services in the Asia & Paci c category Conde Nast Traveller, UK 2009 Readers' Travel Awards - TERS Maldives was ranked 18 in the Overseas Leisure Hotels - Middle East, Africa & the Indian Ocean category with a score of 74.55% The Pierre, New York, USA Conde Nast Traveller, UK Hot List 2010 - 66 Coolest New Hotels in the World - The Pierre, New York in the Americas & Caribbean category The Pierre hotel, re-opened this year after a $100 million renovation, has been awarded a 2010 AAA Five-Diamond rating, an accolade that recognizes it as among the best in North America. This award puts the Pierre solidly in the elite group of just 113 ve-diamond hotels across America, Canada, Mexico and the Caribbean. South Africa Conde Nast Traveller, UK Hot List 2010 - 66 Coolest New Hotels in the World - Taj Cape Town in the Middle East, Africa & Indian Ocean category Taj President, Mumbai
Nov '09 Nov '09 Sept '09
Dec '09 Nov '09
Sept '09
May '2010 Nov '09
May '10
PREMIUM HOTELS Oct '09 Feb '10 The Miele Guide, Asia - Thai Pavillion - India's Top 5 restaurants 2009-2010 Taj Exotica, Goa The Conde Nast Traveller has announced its Seventh Annual Readers' Spa Awards 2010. The Jiva Spa, Taj Exotica, Goa, India is voted as the 6th Best Spa under the category Hotel spas: Asia & the Indian Subcontinent. With an overall score of 92.76, the numbers are an index of satisfaction with spa facilities and services, scored out of a maximum of 100.
37
Date July '09
Hotel and Details of the Award Taj Exotica Goa has won the CNBC AWAAZ Travel Award 09, in the category Best Resort for Health and Rejuvenation Taj Green Cove Resort, Kovalam TripAdvisor Travelers' Choice Awards 2010, USA - In India, TGCRK is No.5 in the Top 10 Luxury Hotels and No.12 in the Top 25 Hotels categories Taj Green Cove Resort, Kovalam - Luxury Travel Magazine's World's 100 Most Exotica and Luxurious Beach Resorts Taj Residency, Bangalore The Crystal Awards Asia Paci c 2009 awarded to the Jiva Spa, the Taj Residency, Bangalore in the Best Petite Day Spa category. Nadesar Palace, Varanasi Conde Nast Traveller, UK Hot List 2010 - 66 Coolest New Hotels in the World - Nadesar Palace in the Asia & Australasia category Accolade: Tatler Travel Guide 2010 - 101 Best Hotel Guide - Nadesar Palace is reviewed within the "Secret Addresses" section as the only great place to stay in Varanasi, with "the decadence of a palace and the quiet of an ashram" Travel + Leisure, USA - It List: 45 Best New Hotels of 2009 - Nadesar Palace, Varanasi Conde Nast Traveler, USA Hot List 13th Annual 140 Top New Hotels - Nadesar Palace, Varanasi Taj Palace, Dubai Holy Quran Award - This award is given to Taj Palace Dubai in recognition of the contribution to the Hospitality Industry in an ethical manner The Gateway Brand is the Winner in the Budget Hotel category of the ET TAAI Travel Awards 2009 (Economic Times & TAAI) Taj Safari Lodges Accolade: Tatler Travel Guide 2010 - 101 Best Hotel Guide - Banjaar Tola is reviewed with the "Animal Planet" section described as the "lovechild of Taj Hotels and safari wallahs & Beyond" and praised for being "conservation-conscious and yet deeply, wonderfully comfortable". Accolade: Eco Hotels of the World has listed Banjaar Tola with 4 stars in the "Green Luxury Collection". Conde Nast Traveler, USA Hot List 13th Annual 140 Top New Hotels - Pashan Garh, Panna
Jan '10 2006
Dec '09
May '2010 Jan '10
June '09 May '09 Oct '09
GATEWAY HOTELS Oct '09
Jan '10
Dec '09 May '09
38
REPORT ON CORPORATE GOVERNANCE

Philosophy on Corporate Governance Corporate Governance is a system of structuring, operating and controlling a company with a view to achieve long term strategic goals to satisfy its stakeholders including shareholders, creditors, employees, customers and suppliers, as well as complying with the legal and regulatory requirements, apart from meeting environmental and local community needs. It involves de ning and implementing a system of rules, processes, procedures and relationships to manage the organization and ful l its legal, nancial obligations and setting up & implementing processes that guarantee transparent information, to all stakeholders. Corporate Governance has indeed been an integral part of the way we have done business for several decades. This emanates from our strong belief that strong governance is integral to creating value on a sustainable basis. Corporate Governance is a journey for constantly improving sustainable value creation and is an upward moving target. The Company has complied with the provisions of Clause 49 of the Listing Agreement of the Stock Exchange, which deals with the compliance of Corporate Governance requirements as detailed below: The Board of Directors: 1. The Board of Directors comprises Executive, Non-Executive as well as Independent Directors. Non-Executive Directors comprise over 70% of the Board of Directors, with the Chairman being a Non-Executive Director. The Directors possess experience in elds as diverse as hoteliering and architecture, to banking, nance and social service. The experience and wisdom of the Directors who are captains of industry, have proved to be of immense assistance to the Company. The details of Directors seeking re-appointment have been attached along with the Notice of the Annual General Meeting. Independent Directors i.e. Directors who apart from receiving Directors remuneration, do not have any other material pecuniary relationship or transactions with the Company, its promoters, its management or its subsidiaries, which, in the judgement of the Board, may affect the independence of judgement of the Director, comprise more than half of the Board. During the year under review, the Board of Directors of the Company met ve times and the period between any two meetings did not exceed three months. The dates of the Board Meetings held during each quarter are as follows: No. 1 2 3 4 5 Date of Meeting April 21, 2009 June 12, 2009 July 31, 2009 October 30, 2009 January 27, 2010 For The Quarter April to June April to June July to September October to December January to March
2.
3.
As required under Annexure I to Clause 49 of the Listing Agreement with the Stock Exchanges, all the necessary information was placed before the Board from time to time. 4. Mr. S. K. Kandhari, Independent Director who had been a Director on the Board of the Company for the last 29 years stepped down on August 14, 2009 as Director on attaining the age of 75 years as per the Tata Retirement Policy applicable to Non-Executive Directors. Mr. N. A. Soonawala, Non-Executive Director who also was a Director on the Board of the Company for the last 29 years, resigned from the Board on March 31, 2010. Mr. Soonawalas resignation was in terms of the Tata Retirement Policy applicable to Non-Executive Directors
39
as he would attain the age of 75 years in June 2010. The Board expresses its deep sense of appreciation for the contributions of Mr. S. K. Kandhari and Mr. N. A. Soonawala as a Member of the Board. 5. 6. All the relevant information, as recommended by the Securities and Exchange Board of India (SEBI) /Stock Exchanges, is promptly furnished to the Board from time to time in a structured manner. The Non-Whole-time Directors of the Company are paid, in addition to commission, sitting fees @ Rs. 20,000/per meeting for attending meetings of the Board of Directors, Audit Committee and Remuneration Committee and for Share Transfer & Shareholders / Investor Grievance meetings the sitting fees is paid @ Rs. 10,000/- per meeting. None of the Directors of the Board serve as members of more than 10 Committees nor are they Chairmen of more than 5 Committees, as per the requirements of the Listing Agreement. Committees for this purpose include the Audit Committee and the Shareholders / Investor Grievance Committee under the said Clause 49 of the Listing Agreement. A detailed explanation, in the form of a table illustrating the above is given on page No. 45 for ready reference. The Company has adopted a Code of Conduct for its Non-Executive Directors and all Non-Executive Directors have af rmed compliance with the said Code. All Senior Management of the Company have af rmed compliance with the Tata Code of Conduct. The Code of Conduct is also displayed on the Companys web site. The Annual Report of the Company contains a Certi cate duly signed by the Managing Director (CEO) in this regard. Other than transactions entered into in the normal course of business, the Company has not entered into any materially signi cant related party transactions during the year, which could have a potential con ict of interest between the Company and its Promoters, Directors, Management and / or relatives.
7.
8. 9.
10.
Committees of the Board: The Committees constituted by the Board of Directors of the Company are as under: 1. Audit Committee: The Companys Audit Committee comprises entirely of Independent Directors. Each Member of the Committee has the relevant experience in the eld of nance, banking and accounting, with a majority of the Members being Chartered Accountants. The Committee has, inter alia, the following terms of reference: i. ii. iii. Oversight of the Companys nancial reporting process and the disclosure of its nancial information to ensure that the nancial statements are correct, suf cient and credible. Recommending the appointment and removal of statutory auditors, xation of audit fee and also approval of payment for any other services. Reviewing with management the annual nancial statements before submission to the Board for approval, with particular reference to:
n
Matters required to be included in the Boards Report in terms of clause 2AA of Section 217 of the Companies Act, 1956 Any changes in accounting policies and practices and reasons thereof. Major accounting entries based on the exercise of judgement by the Management. Quali cations in the draft audit report. Signi cant adjustments made in the nancial statements, arising out of audit ndings. The Going Concern assumption.
n n n n n
40
n n n
Compliance with Accounting Standards. Compliance with listing and other legal requirements relating to nancial statements. Any related party transactions i.e. transactions of the Company of material nature, with Promoters or the Management, their subsidiaries or relatives etc. that may have potential con ict with the interests of the Company at large.
iv. v.
Reviewing with the management, the quarterly nancial statements before submission to the Board for approval. Reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue, preferential issue etc.) the statement of funds utilised for purposes other than those stated in the Offer Document / prospectus / notice and the report submitted by the Monitoring Agency monitoring the utilisation of the proceeds of a public or rights issue and making appropriate recommendations to the Board to take steps in this matter. Reviewing with the management, performance of statutory and internal auditors and the adequacy of internal control systems.
vi.
vii. Reviewing the adequacy of internal audit function, including the structure of the internal audit department, staf ng and seniority of the of cial heading the department, reporting structure coverage and frequency of internal audit. viii. Discussion with internal auditors on any signi cant ndings and follow-up thereon. ix. Reviewing the ndings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. Discussion with external / statutory auditors before the audit commences, nature and scope of audit, as well as have post-audit discussion to ascertain any area of concern. Reviewing the Companys nancial and risk management policies.
x. xi.
xii. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non payment of declared dividends) and creditors. The details of the composition, names of Members and Chairman as well as the number of meetings held and Directors attendance thereat during the year are as under: NO. MEMBERS ATTENDANCE AT AUDIT COMMITTEE MEETINGS HELD ON 08.05.09 1. 2. 3. 4. Mr. S. K. Kandhari Chairman* Mr. K. B. Dadiseth Chairman* Mr. Deepak Parekh Mr. Jagdish Capoor 12.06.09 31.07.09 30.10.09 27.01.10 03.02.10 -
The Committee met six times during the period under review. *Mr. S. K. Kandhari upon attaining the age of 75 years on August 14, 2009 stepped down from the Board of Directors of the Company and consequently, as the Chairman of the Audit Committee, in terms of the policy applicable to Non- Executive Directors of the Company. Mr. K. B. Dadiseth was appointed as the Chairman of the Audit Committee effective October 27, 2009.
41
Audit Committee meetings are attended by invitation by the Executive Director Finance, Executive Director Hotel Operations, Group Internal Audit and the Statutory Auditors. The Company Secretary acts as the Secretary to the Audit Committee. 2. Share Transfer & Shareholders / Investor Grievance Committee (SSIG): The Share Transfer & Shareholders/Investor Grievance Committee has the required powers to carry out the handling of shareholders / investor grievances. The brief terms of reference of the Committee include redressing shareholder and investor complaints like transfer of shares, non-receipt of Annual Reports, non-receipt of dividends etc. The Committee met once during the period under review. NO. MEMBERS ATTENDANCE AT SHARE TRANSFER & SHAREHOLDERS / INVESTOR GRIEVANCE COMMITTEE MEETINGS HELD ON 11.05.2009
1. 2. 3.
Mr. N. A. Soonawala - Chairman Mr. R. K. Krishna Kumar Mr. Raymond N. Bickson
Mr. N. A. Soonawala resigned as a Director on March 31, 2010 and consequently, as the Chairman of the SSIG Committee, in terms of the policy applicable to Non- Executive Directors of the Company. Share transfers are processed weekly and approved by the Committee. Investor grievances are placed before the Committee. There were no pending investor complaints which remained unresolved. All share transfers lodged up to March 31, 2010 have been processed by the Committee. The status of the complaints received from shareholders from 01.04.2009 to 31.03.2010 is as under: Complaints received 13 Amounts Transferred to IEPF As per the provisions of Section 205A read with Section 205C of the Companies Act, 1956, the Company is required to transfer unpaid dividends, matured deposits, redeemed debentures and interest accrued thereon remaining unclaimed and unpaid for a period of 7 years from the due date to the Investor Education and Protection Fund (IEPF) set up by the Central Government. Given below are the proposed dates for transfer of the unclaimed dividend to the IEPF by the Company: Financial Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Date of declaration of Dividend September 5, 2003 August 10, 2004 August 12, 2005 August 5, 2006 August 4, 2007 April 15, 2008 August 3, 2009 Proposed Date of transfer to IEPF* November 9, 2010 October 15, 2011 October 16, 2012 October 9, 2013 October 8, 2014 June 20, 2015 October 7, 2016 Pending as on 31.03.2010 Nil
* Indicative dates, actual dates may vary
42
It may be noted that no claims will lie against the Company nor the IEPF in respect of the said unclaimed amounts transferred to the Fund. During the year the Company made renewed attempts to establish contact with those Members/ Depositors who have not claimed the dividend or interest. Special mailers were sent by different modes to reach the Members/ Depositors. As a result the Company did achieve a limited success and was able to arrange payment of a sum of Rs. 3,08,131/-. Despite this the Company was statutorily required to transfer the following amounts to IEPF of the Central Government as at March 31, 2010: Particulars Amounts transferred upto March 31, 2009 Amounts transferred during nancial year 2009-10: Unpaid / unclaimed dividend with the Company Unpaid / unclaimed matured deposits with the Company Unpaid matured debentures with the Company Interest accrued on the unpaid matured deposits Interest accrued on the unpaid matured debentures 1,375,467.00 376,030.00 173,355.00 1,924,852.00 27,030,968.67 (a) Rs. 25,106,116.67
Total (b) Amount transferred upto March 31, 2010 (a+b) Compliance Of cer Mr. P. Sanker Vice President - Legal & Company Secretary The Indian Hotels Company Limited Address: Mandlik House, Mandlik Road, Mumbai - 400 001 Phone : 022-6639 5515 Fax : 022-2202 7442 E-mail : shares.dept@tajhotels.com 3.
Remuneration Committee: The Listing Agreement with the Stock Exchanges provides that a Company may appoint a Committee for recommending managerial remuneration payable to the Directors. The Company has in place a Remuneration Committee for the said purpose. The main function of the said Committee is to determine the remuneration payable to the Whole-time Directors. The Chairman of the Remuneration Committee was present at the last Annual General Meeting of the Company. During the year, the Committee met twice as under: NO. MEMBERS ATTENDANCE AT THE REMUNERATION COMMITTEE MEETING HELD ON 12.06.2009 AND ADJOURNED TO 15.09.2009
1. 2. 3. 4.
Mr. Jagdish Capoor - Chairman Mr. Ratan N. Tata Mr. N. A. Soonawala Mr. R. K. Krishna Kumar
43
4.
Remuneration Policy: The remuneration of the Whole-time Director(s) is recommended by the Remuneration Committee based on factors such as industry benchmarks, the Companys performance vis--vis the industry, performance/ track record of the Whole-time Director(s) etc, which is decided by the Board of Directors. Remuneration comprises a Fixed Component viz. salary, perquisites and allowances and a variable component viz. commission. The Remuneration Committee also recommends the annual increments (which are effective April 1 annually) within the salary scale approved by the Members as also the Commission payable to the Whole-time Director(s) on determination of pro ts for the nancial year, within the ceilings on net pro ts prescribed under Sections 198 and 309 of the Companies Act, 1956. The commission payable to Non-Executive Directors is decided by the Board and is distributed based on a number of factors, including number of Board and Committee meetings attended, individual contribution thereat etc. Service Contract and Notice Period of the Managing Director and the Executive Directors Mr. Raymond N. Bicksons contract as a Managing Director is for a period of 5 years, commencing from July 19, 2008 up to and including July 18, 2013 terminable by 6 months notice on either side. Mr. Anil P. Goels contract as Whole Time Director of the Company is for a period of 5 years, commencing from March 17, 2008 up to and including March 16, 2013 terminable by 6 months notice on either side. Mr. Abhijit Mukerji's contract as Whole Time Director of the Company is for a period of 5 years, commencing from March 17, 2008 up to and including March 16, 2013 terminable by 6 months notice on either side. The Company has no scheme for stock options. Details of ordinary shares of the Company held by the Non-Executive Directors as on March 31, 2010, are as under: Mr. Ratan N. Tata Mr. Deepak Parekh Mr. Jagdish Capoor 59,792 1,845 5,000
Details on General Meetings: Location, date and time of the General Meetings held in the last 3 years are as under: Location Annual General Meetings Birla Matushri Sabhagar 19, Sir Vithaldas Thackersey Marg, Mumbai 400 020 August 3, 2009 August 14, 2008 August 3, 2007 3.00 p.m. 3.30 p.m. 3.30 p.m. Date Time
All special resolutions passed in the previous three Annual General Meetings of the Company were unanimously passed by a show of hands by the Members of the Company present and voting at the said meetings. The Company is in the process of obtaining Members approval vide Postal Ballot for Sale of its property at Baramati and for approvals under Section 293(1)(a) of the Companies Act, 1956 to create charge on its existing and future assets upto an amount of Rs. 3000 crores to secure the borrowings of the Company. The results of the Postal Ballot will be announced on June 18, 2010.
44
Board of Directors:
Attendance No. of No. of outside at the last Committee positions Board Annual Meetings held General attended Salary & Sitting Fees Commission Indian Foreign as as Meeting held Perks 2009-2010 20082009 Member Chairman on 3.8.2009 2009-2010 80,000 51,00,000 10 11 3 Yes Remuneration paid Rs. No. of outside Directorships 5,45,83,975 1,01,19,747 82,51,350 2,20,00,000 40,00,000 40,00,000 40,000 3,50,000 2 9 7 3 1,00,000 3,50,000 13 5 7 12 1,00,000 14,00,000 11 2,40,000 34,00,000 3 2 2 3 4 2 1,40,000 20,00,000 16 2 1 5 3 1 3 1,40,000 17,00,000 6 1 3 1 1,20,000 58,00,000 3 4 4 5 5 5 2 4 5 5 1,10,000 42,00,000 4 1,30,000 45,00,000 10 12 1 1 5 Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes
Names
Category
Mr. R. N. Tata (Chairman) Mr. R.K. Krishna Kumar (Vice Chairman) @ Mr. N. A. Soonawala
*Mr. S. K. Kandhari
Mr. K. B. Dadiseth
Mr. Deepak Parekh
Mr. Jagdish Capoor
Mr. Shapoor Mistry
Mr. Nadir Godrej
Ms. Anu Aga
Promoter Non-Executive Promoter NonExecutive Promoter Non-Executive Non-Executive Independent Non-Executive Independent Non-Executive Independent Non-Executive Independent Non-Executive Independent Non-Executive Independent Non-Executive Independent
Mr. Raymond N. Bickson Executive
Mr. Anil P. Goel
Executive
Mr. Abhijit Mukerji
Executive
Retired as Director on August 14, 2009 @ Resigned effective March 31, 2010
NOTE: Traditionally, the Directors are paid commission each year, after the Annual Accounts are approved by the Members at the Annual General Meeting of the Company. A sum of Rs. 1.75 crores has been provided as commission to Non Executive Directors for the year 2009-10. An amount of Rs. 5.0 crores has been provided in the accounts towards commission to the Managing Director and Executive Directors. Payment shall be as recommended by the Remuneration Committee and approved by the Board. Payment of commission to the Directors both Managing, Executive and Non- Executive Directors will be made after the accounts are approved at the Annual General Meeting.
45
Means of Communication:
Quarterly, half-yearly and annual results of the Company were published in leading English and vernacular newspapers viz. Business Standard, Financial Express, Indian Express and Loksatta. Additionally, the results and other important information is also periodically updated on the Companys website viz. www.tajhotels.com, which also contains a separate dedicated section Investor Relations. Further, the Company also holds an Analysts Meet after the quarterly, half-yearly and Annual Accounts have been adopted by the Board of Directors, where information is disseminated and analysed. Moreover, the Company also gives important Press Releases from time to time. The Stock Exchanges have vide introduction of Clause 52 in the Listing Agreement, introduced the Corporate Filing and Dissemination System (CFDS) which is a portal jointly owned, managed and maintained by the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). It is a single source to view information led by listed companies. All disclosures and communications to the BSE and NSE are led electronically through the CFDS portal www.corp ling.co.in. Hard copies of the said disclosures and correspondence are also led with the BSE and NSE. Reminders are sent each year to investors for unclaimed dividend or unclaimed interest on debentures. The Annual Report containing inter alia the Audited Accounts, Consolidated Financial Statements, Directors Report, Auditors Report and other important information is circulated to the investors. Management Discussion and Analysis forms part of the Annual Report. The Annual Reports are also available in the Investor Relations section on the Companys web site www.tajhotels.com. Disclosures: The Board of Directors receive, from time to time, disclosures relating to nancial and commercial transactions from key managerial personnel of the Company, where they and / or their relatives have personal interest. There are no materially signi cant related party transactions, which have potential con ict with the interest of the Company at large. The details of the Related Party transactions are placed before and reviewed by the Companys Audit Committee. The Company has complied with the requirements of the Stock Exchanges / Securities and Exchange Board of India / statutory authorities on all matters relating to capital markets, during the last 3 years. Pursuant to the provisions of sub clause V of the revised Clause 49 of the Listing Agreement with the Stock Exchanges, the Managing Director (CEO) and the Executive Director - Finance have issued a certi cate to the Board, for the Financial Year ended March 31, 2010. Risk Management: The Company has in place a Risk Management Policy, which lays down a vigorous and active process for identi cation and mitigation of risks. This Policy has been adopted by the Audit Committee as well as the Board of Directors of the Company. The Audit Committee reviews the risk management and mitigation plan from time to time. Subsidiary Companies: The Company does not have any material unlisted subsidiary and hence is not required to have an Independent Director of the Company on the Board of such subsidiary. The Audit Committee reviews the nancial statements of the Companys unlisted subsidiary companies. The Minutes of the subsidiary companies are periodically placed before and reviewed by the Board of Directors of the Company.
46
Compliance with non-mandatory requirements: 1. The Board : The Non-Executive Chairman has a separate of ce in his capacity as the Group Chairman at the Tata Group headquarters at Bombay House, 24 Homi Mody Street, Mumbai - 400 001 and hence a separate of ce is not maintained. The Company has adopted the Tata Guidelines for composition of the Board of Directors, Committees of the Board and Retirement Age of Directors, which take into account the provisions of the Listing Agreement, the Companies Act, 1956 and other applicable laws. Remuneration Committee : Details already given under the caption Remuneration Committee in an earlier part of the Report. Shareholders Rights : In addition to publishing its quarterly results in leading English and a Marathi newspaper having wide circulation, the Company publishes its quarterly results on its website www.tajhotels.com. Additionally, the same is also available on www.corp ling.co.in Hence, a quarterly declaration of nancial performance including summary of the signi cant events is presently not being sent to each household of shareholders individually. Audit quali cations : For the nancial year 2009-10, there are no audit quali cations to the Companys nancial statements. Mechanism for evaluating Non-Executive Board members : The Board of Directors of the Company presently comprises eight Non-Executive Directors. The Directors appointed on the Board are from diverse elds relevant to the Companys business and have long-standing experience and expertise in their respective elds. They have considerable experience in managing large corporates and have been in public life for decades. The enormously rich background of the Directors is of considerable value to the Company. Non-Executive Directors add substantial value through the deliberations at the Meetings of the Board and Committees thereof. To safeguard the interests of the investors, they also play a control role. In important Committees of the Board like the Audit Committee, the Remuneration Committee etc., they play an important role by contributing to the deliberations of the Committee Meetings. Besides contributing at the meetings of the Board and Committees, the Non-Executive Directors also have off-line deliberations with the Management of the Company and add value through such deliberations. In the light of the above, the Chairman under authority from the Board decides on the performance of each NonExecutive Director and they are accordingly evaluated and remunerated. 6. Whistle Blower Policy : The Company has adopted the Whistle Blower policy pursuant to which employees can raise their concerns relating to fraud, malpractice or any other activity or event which is against the Companys interest. No employee has been denied access to the Audit Committee in this regard. As regards the other non-mandatory requirements, the Board has taken cognisance of the same and shall consider adopting the same as and when necessary.
2. 3.
4. 5.
47
General Shareholder Information Annual General Meeting Date and Time Venue August 5, 2010 at 3.00 p.m. Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai 400 020 Mandlik House Mandlik Road Mumbai 400 001 91- 22- 6639 5515 91- 22- 2202 7442 www.tajhotels.com shares.dept@tajhotels.com
Registered Of ce
Telephone No. Facsimile No. Website E-mail Financial Calendar Financial reporting for: Quarter ending 30th June, 2010 Quarter ending 30 September, 2010
th
July 2010 October 2010 January 2011 May 2011 July 27, 2010 to August 5, 2010 (both days inclusive) On or after August 6, 2010
Quarter ending 31st December, 2010 Quarter ending 31 March, 2011

st
Date of Book Closure Dividend Payment Date Listing Ordinary Shares Global Depository Shares
Bombay Stock Exchange Ltd. National Stock Exchange of India Ltd. London Stock Exchange
The Company has paid annual listing fees to each of the above Stock Exchanges in respect of the nancial year 2010-2011. Stock Codes STOCK EXCHANGE Bombay Stock Exchange Ltd. National Stock Exchange of India Ltd. STOCK CODE 500850 INDHOTEL EQ
48
Market Price Data : High, Low during each month in last nancial year Months Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 BSE High 55.20 70.80 82.00 70.95 73.95 80.50 85.30 92.00 104.00 109.50 95.60 105.50 BSE Low 39.00 49.20 60.00 56.10 58.10 64.10 71.25 70.05 86.05 87.60 85.00 89.75 No. of Shares traded 70,49,319 1,02,07,005 1,94,43,554 81,24,109 1,03,97,893 1,97,44,876 1,34,75,585 1,97,47,917 1,27,15,784 80,47,670 38,16,016 1,00,38,630 NSE High 55.70 70.90 81.95 70.95 73.90 80.45 85.50 92.00 103.65 108.90 96.00 105.40 NSE Low 39.25 49.25 59.00 55.20 58.40 62.00 71.00 71.55 85.95 87.75 85.00 89.30 No. of Shares traded 2,55,05,682 5,44,90,900 7,93,65,966 2,85,96,100 3,76,35,404 5,96,78,163 3,94,51,093 6,09,76,325 4,58,22,234 3,54,88,329 2,30,13,629 3,94,99,194
IHCL Comparative High Low Price on BSE & NSE
49
Performance in comparison to broad-based indices such as BSE Sensex
Two-way Fungibility of Global Depository Receipts (GDRs) Reserve Bank of India, vide its circular dated February 13, 2002, had brought into force the Operative Guidelines for the twoway fungibility under the Issue of Foreign Currency Convertible Bonds and Ordinary shares (through Depository Receipt mechanism) Scheme 1993. Consequent thereto, the Company has executed documents with Citibank N.A., New York, Depository for GDR holders, supplemental to the Depository Agreements executed by the Company at the time of issue of GDRs in 1995, whereby the Company offers investors the facility for conversion of Ordinary Shares into GDRs, within the limits prescribed for two-way fungibility. Registrar and Share Transfer Agent SEBI Registration No. Share Transfer System All shares have been transferred and returned within 21 days from the date of lodgement, provided the necessary documents were in order. The Company has obtained Category I Registrar to an Issue & Share Transfer Agent Certi cate from SEBI Category I - INR000003746
50
IHCL Distribution of Shareholding as on March 31, 2010 Category of Shareholders Promoters Directors & their Relatives Foreign Institutional Investors Foreign Banks Resident Individuals & HUF Non-Resident Indians Global Depository Receipts Financial Institutions / Banks Insurance Companies Mutual Funds / UTI Clearing Members Corporate Bodies Trusts Central / State Governments Corporate Bodies Foreign Bodies DR Total No. of Shares held 21,31,47,116 4,39,282 10,08,22,435 6,104 15,61,99,234 51,96,545 3,77,222 12,01,56,613 3,75,34,064 4,88,80,766 6,54,264 3,94,53,941 3,29,469 2,900 2,72,832 72,34,72,787 % to Paid up capital 29.46 0.06 13.93 0.00 21.59 0.72 0.05 16.61 5.19 6.76 0.09 5.45 0.05 0.00 0.04 100.00
Shareholding Pattern as on March 31, 2010

Corporate Bodies 5.45% Clearing Members 0.09%
Trusts 0.05%
Mutual Funds / UTI 6.76% Insurance Companies 5.19%
Corporate Bodies - Foreign Bodies DR 0.04%

P Promoters Promoters 29.46% %
Financial Instittions / Banks Banks k 16.61%

Global Depository Receipts 0.05% Non-Resident Indians 0.72% Central / State Governments 0.00%
Resident Individuals & HUF 21.59%
Directors & Their Relatives D Directors s 0.06% Foreign Institutional Investors F Foreign 13.93% Foreign Banks 0.00%
51
Distribution Schedule of The Indian Hotels Company Limited as on March 31, 2010 No. of Shares held Upto 100 101 to 1000 1001to 2500 2501 to 5000 5001 to 10000 10001 to 20000 20001 to 30000 30001 to 40000 40001 to 50000 50001 to 100000 100001 & above Total Secretarial Audit In keeping with the requirements of the SEBI and the Stock Exchanges, a secretarial audit by a practicing Company Secretary is carried out to reconcile the total admitted capital with NSDL and CDSL and the total issued and listed capital. The said audit con rms that the total issued / paid up capital tallies with the total number of shares in physical form and the total number of dematerialised shares held with NSDL and CDSL. A certi cate from the Statutory Auditors of the Company on Corporate Governance is attached as an annexure to the Report. Report on Corporate Governance The Company regularly submits to the Stock Exchanges, within the prescribed period, quarterly reports on Corporate Governance. A certi cate from the Statutory Auditors of the Company on Corporate Governance is attached as an annexure to the Report. Dematerialisation of Shares & Liquidity As of the end of March 31, 2010, shares comprising approximately 96.56% of the Companys Equity Share Capital have been dematerialised. Trading in the Companys shares in a dematerialised form has been made compulsory with effect from April 5, 1999. Total Members 72,590 72,395 15,604 6,456 3,961 1,803 422 169 107 184 249 1,73,940 Total Shares 37,40,025 2,77,55,513 2,53,49,463 2,34,80,723 2,81,87,939 2,46,32,753 1,02,61,464 59,29,003 47,92,687 1,28,20,858 55,65,22,359 72,34,72,787 Total % to Paid up Capital 0.52 3.84 3.50 3.25 3.90 3.40 1.42 0.82 0.66 1.77 76.92 100.00
52
Status on Demateralised Shares
ISIN No. INE053A01029 Outstanding GDRs/ADRs/Warrants or any Convertible instruments, conversion date and likely impact on equity 3,77,222 GDRs are outstanding as on March 31, 2010 without any impact on equity. Sub-Division of Shares The Ordinary Equity Shares of the Company were sub-divided from Rs.10/- each to Re.1/-each w.e.f. 3rd day of November, 2006 being the Record Date xed for the purpose The Members whose name/s was appearing on the Register of Members on the Record Date, was entitled to get 10 fully paid up Ordinary Shares of the face value of Re. 1/- each for every 1 Ordinary Share of face value of Rs.10/- held by them. The Company called back the existing share certi cates having paid-up value of Rs.10/- each and issued the new share certi cate of face value of Re.1/- each. The Members who have still not exchanged their share certi cates are requested to kindly get in touch with the Company. The Members are requested not to deal with share certi cates of face value of Rs.10/- each in any manner whatsoever. If any Member deals, sells, transfers, pledge such share certi cate of a paid value of Rs.10/- each shall do so at his own cost and consequence and the Company shall not be held responsible or liable for such acts of the Members.
53
Registrars to the Companys Fixed Deposit Scheme
Sharepro Services (I) Pvt. Ltd. Samhita Warehousing Complex 13 AB, Gala No.52 Near Sakinaka Telephone Exchange Off. Kurla Andheri Road Sakinaka, Mumbai 400072. Tel. No.91-22-67720400 Fax No.91-22-28508927 Email : ihclfd@shareproservices.com
Investor Correspondence For any queries, investors are requested to get in touch with the Companys share department at Mandlik House, Mandlik Road, Mumbai 400 001. A dedicated e-mail id shares.dept@tajhotels.com has been set up for investor complaints. National Electronic Clearing Service (NECS) RBI vide it's Circular No.DPSS.(CO).EPPD.No.191.04.01.01/2009-2010 dated July 29, 2009 has instructed banks to move to the NECS platform w.e.f. October 1, 2009. Kindly provide your new account number allocated to you after implementation of Core Banking System by your Bank, to avoid ECS credit to your old account either being rejected or returned. Please provide us your new Bank Account particulars by quoting your reference folio number in case shares held by you are in physical form. In case shares are held in demateralised form, you may kindly provide the details to your depository participant, to ensure your future dividend payments can correctly be credited to your new account. DECLARATION BY THE MANAGING DIRECTOR UNDER CLAUSE 49 OF THE LISTING AGREEMENT REGARDING ADHERENCE TO THE CODE OF CONDUCT In accordance with sub-clause I (D) of Clause 49 of the Listing Agreement with the Stock Exchanges, I hereby con rm that, all the Directors and the Senior Management personnel of the Company have af rmed compliance with their respective Codes of Conduct, as applicable to them, for the Financial Year ended March 31, 2010. For The Indian Hotels Company Limited Raymond N. Bickson Managing Director
54
HOTELS LOCATIONS: The various hotels/units of the Taj Group are tabled as under: TAJ LUXURY HOTELS
India The Taj Mahal Palace & Tower, Mumbai Taj Lands End, Mumbai Taj Mahal Hotel, New Delhi Taj Palace Hotel, New Delhi Taj Bengal, Kolkata Taj West End, Bangalore Taj Lake Palace Hotel, Udaipur Taj Wellington Mews, Mumbai Taj Coromandel, Chennai Taj Krishna, Hyderabad Rambagh Palace, Jaipur Umaid Bhawan Palace, Jodhpur Mahua Kothi, Bandhavgarh Baghvan, Pench Pasangarh, Panna Banjar Tola, Kanha Overseas The Pierre, New York Taj Boston, Boston Taj Campton Place, San Francisco Taj Exotica Resort & Spa, Maldives Taj Palace Hotel, Dubai Crown Plaza / St. James Court, London 51 Buckingham Gate, London Taj Cape Town, South Africa
TAJ PREMIUM HOTELS

India Taj Connemara, Chennai Taj Exotica, Goa Fort Aguada Beach Resort, Goa Taj Holiday Village, Goa Usha Kiran Palace, Gwalior Taj Hari Mahal, Jodhpur Jai Mahal Palace, Jaipur Vivanta By Taj, Bangalore Taj Residency, Aurangabad Taj President, Mumbai Taj Residency, Bangalore Ambassador Hotel, New Delhi Taj Banjara, Hyderabad Taj Deccan, Hyderabad Taj Chandigarh, Chandigarh Taj Residency, Lucknow Taj Blue Diamond, Pune Fisherman's Cove, Chennai Taj Malabar, Cochin Taj Garden Retreat, Kumarakom Taj Green Cove Resort, Kovalam Sawai Madhopur Lodge Ramgarh Lodge, Jaipur Taj Residency, Trivandrum Taj Mount Road, Chennai Vivanta by Taj, Panaji, Goa Overseas Taj Samudra, Colombo Taj Exotica, Bentota Taj Coral Reef Resort, Maldives Rebak Island Resort, Langkawi, Malaysia Taj Tashi, Thimphu, Bhutan Taj Pamodzi, Lusaka Airport Garden Hotel, Colombo Blue, Sydney, Australia
GATEWAY HOTELS
TGH - Residency Road, Bangalore TGH - Beach Road, Calicut Hotel Chandela, Khajuraho TGH - Savoy, Ooty TGH - Rawalkot, Jaisalmer TGH - Kuteeram, Bangalore The Gir Lodge, Sasan Gir City Inn, Baramati TGH - Beach Road, Vishakapatnam TGH - Pasumalai Hills, Madurai TGH -Church Road, Coonoor TGH - Port Road, Mangalore TGH - Fatehabad Road, Agra TGH - Ambad, Nasik TGH - Ganges, Varanasi TGH - Marine Drive, Ernakulam TGH - Janaradhanapuram, Varkala, TGH - K M Road, Chikmagalur TGH - Athwa Lines, Surat TGH - M. G. Road, Vijaywada Taj Residency Ummed, Ahmedabad TGH - Akota Gardens, Vadodara TGH - SMS, Jaipur TGH - Jodhpur, Jodhpur Nadesar Palace, Varanasi
GINGER HOTELS
Bangalore Haridwar Bhubaneshwar Mysore Trivandrum Pune, Pimpri Nashik Agartala Puducherry Vadodara Pant Nagar Rail Yatri Niwas, Delhi Goa Ludhiana Ahmedabad Mangalore Durg Guwahati Jamshedpur Pune, Wakad Surat AIR CATERING Mumbai New Delhi Kolkata Chennai Goa Amritsar Bangalore Cochin
55
AUDITORS CERTIFICATE
TO THE MEMBERS OF THE INDIAN HOTELS COMPANY LIMITED We have examined the compliance of conditions of Corporate Governance by The Indian Hotels Company Limited (the Company) for the year ended 31st March, 2010 as stipulated in Clause 49 of the Listing Agreements of the Company with the stock exchanges. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the nancial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Management, we certify that the Company has complied with the condition of Corporate Governance as stipulated in the above mentioned Listing Agreements. We further state that such compliance is neither an assurance as to the future viability of the Company nor the ef ciency or effectiveness with which the Management has conducted the affairs of the Company.
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. 117366W) Nalin M. Shah Partner (Membership No. 15860) Mumbai, May 28, 2010
For N. M. RAIJI & CO. Chartered Accountants (Registration No. 108296W) Vinay D. Balse Partner (Membership No. 39434)
56
Corporate Social Responsibility Initiatives - 2009-10

The Taj spirit of giving back to the community is a legacy that is being carried forward from the time of our founder Jamsetji Tata, who believed that our communities will be truly empowered when we work together with them to enhance their potential and self-reliance. Being a part of service industry, we have the unique scope and opportunity to develop raw, potential candidates into skilled workforce that are employable by the hospitality industry, given the fact that hotels and restaurants form a point of convergence of persons from various social-economic backgrounds. A majority of our community projects are focused around our key strengths in food production, kitchen management, housekeeping, customer service and spas. At the Tatas and the Taj, we also believe that volunteering for a societal cause is an enriching experience and allows the human values and self worth of individuals and teams to ourish. We encourage the merging of the business and the human being and facilitate spaces for a holistic being to bloom in our workplaces. As our industry and operations do not directly cause harm to our natural environment, our commitment to the environment is primarily through reduction of the impact of our daily operations on critical natural resources. Our focus has been on improving energy ef ciencies, fresh and waste water management and solid waste management. STRATEGY RELATED TO SUSTAINABLE DEVELOPMENT We believe no company, by any means, is separate from the environment and communities that sustain it. We continuously review and update our approach and processes towards corporate responsibility and make a conscious endeavor to align and integrate our efforts to address contemporary societal needs and challenges. Our approach derives from the Tata Corporate Sustainability Charter and our core business strengths: 1. Creation of sustainable livelihoods:
n
Build bridges between the organized job market and rural/less-educated/less-exposed youth seeking longterm livelihood options. Enable marginalized sections like the differently-abled, scheduled castes and scheduled tribes gain access to training and employment in hospitality industry Actively promote indigenous product development and develop local vendors Facilitate venue and marketing support for local artisans and craftsmen Support income generation projects run by small scale entrepreneurs, Self Help Groups and NGOs Private-Public Partnerships to address entrenched social challenges like child malnutrition, human traf cking, etc.
2.
Preserve and revive indigenous arts, crafts and culture:

n n n
3.
Share our business core competencies:

n
Your Company has continued to play its role as a responsible corporate citizen, adding value to the society and the environment in which we operate. With the growing focus on Corporate Sustainability and Triple Bottom Line approach in the contemporary business environment, Taj as a brand of international repute, constantly assesses and updates its approach and initiatives in this realm. It has been our conscious endeavor to align our existing corporate sustainability activities to the global benchmarks. This has required us to upgrade our structure including aligning it with the company values, establishing robust processes and effectively cascading them down to the various properties. Your Company regularly publishes a comprehensive GRI (Communication on Progress to UN Global Compact) report that re ects the company vision, approach and performance on internationally accepted economic, social and environmental parameters.
57
The Taj continuously endeavors to work symbiotically with the larger community and our focus is to empower our identi ed communities to be independent, earning members of society. By adapting some of our core strengths in hoteliering, we work alongside the state systems towards evolving realistic and sustainable solutions for national challenges like malnutrition, unemployment & gaps in vocational training and education. Our association with the rich heritage of India enables us to provide a platform to showcase indigenous art and culture to the world, while encouraging the craftsmen who create it. Key Facts for 2009-10 Volunteering hours Volunteers Number of people impacted (bene ciaries) Total Direct spend towards Community Initiatives A brief summary of our projects is presented below: ITI Upgradation Program Your Company has tied up with rural ITIs in order to reach out to youth from less-privileged socio-economic backgrounds. We facilitate content re nement, teachers trainings, class-room layouts, dummy training infrastructure, market-relevant skill trainings and on-the-job exposure in service industry. 7 such partnerships are in progress and 3 more shall be operational by the end of this calendar year. We are currently reaching out to more than 280 youth through these tie-ups. Skill trainings for grooming youth for Service Industry Taj President Mumbai supports Kotak Education Foundation and Kherwadi Social Welfare Association towards skill development of youth from Mumbai slums and less-privileged backgrounds. Similarly, various other hotels engage with NGOs and youth and women development organizations to reach out to deserving candidates through training, development and support. Interested candidates are also supported with accessing employment/self-employment opportunities. More than 900 less-privileged youth and women have been given the opportunity to learn and pick up market-relevant skill sets through our hotels initiatives across the Group. More than 80 differently abled candidates have trained and worked with us in various hotels so far. Unique Supply Chains and Vendors Your Company believes in promoting a socio-environmentally responsible supply chain and undertakes local vendor development in identi ed areas. We have engaged with Aura Herbal Wear, a major linen supplier for all our Jiva Spas, which supports several NGOs. Through Taj purchase orders, they are able to support less privileged women by involving them in garment designing and basic stitching; thereby enhancing their skills and empowering them to be self-reliant. Aura Herbal Wear supports Apang Manav Mandal, which educates and trains physically challenged girls; Awag, which supports destitute women by training them in tailoring (Jiva spa therapists uniforms are stitched by this group) and Himmat; a group started to support women from minority communities who were left to fend for themselves and their children after the unfortunate communal riots in Ahmedabad, Gujarat (Most of the Jiva Spa towels have been stitched by women from this group). Another such unique example of the indomitable human spirit can be found behind the sparkle and shine of the fresh laundry at the spa in two Taj North Goa hotels. The entire laundry load of these hotels is handled by Swift Wash, a laundry service managed by the NGO Arz that works towards the economic rehabilitation of victims of commercial sexual exploitation. 59179 5307 139916 Rs. 2.08 crores
58
Before the rescued women could reach this level of business expertise and con dence, a lot of patient, consistent and unconditional support and training was put in by our team of community service volunteers, since July 2007. They conducted training sessions for the women who had basic laundry skills, but little knowledge on how to run a sustainable business. The biggest challenge, midway through the project was to actually forge and sustain a business link with this endeavour. After a series of training sessions in basic communication, team building, customer relations, time management and quality cleaning procedures, they have been able to offer high quality laundry services at market rates not only to the Taj but also to a host of other clients. In recognition of their efforts, they received the Godfrey Philips Bravery Award 2009 in the category Social Act of Courage. Swift Wash is currently providing economic rehabilitation to 50 women and girls, and 15 delinquent adolescent boys. In order to enhance their operational ef ciencies, various technical inputs were provided and the laundry manager was helped with frameworks for tracking cost-turnover ratios. A lot of our hotels also source their daily raw material stores of peeled onion, garlic, pickles, staff cafeteria snacks, etc. from local women Self Help Groups. Various items like candles, jute bags, room amenities and stationery of some of our brands and properties are also co-developed and sourced from voluntary organizations working for the bene t of less-privileged groups. One such example is the fact that Taj gives more than Rs. 10 million worth of business per year to Cancer Patients Aid Association that works for the bene t of family and friends of less-privileged cancer patients who are taking care of patients for long durations, rendering it impossible for them to pursue regular employment options. We also purchase our centralized stock of cloth bags for laundry from a project supporting differently abled candidates from Munnar, Kerala. Taj-Pratham Skill Training Center - Aurangabad This project trains school dropouts and other less-privileged aspirants from rural areas in hotel operations like Food Production, House-keeping and Food & Beverage Services. More than 100 youth from Khaultabad region near Aurangabad have been trained from June 2009 onwards. More such batches are ongoing. Promoting indigenous art, crafts and culture Our hotels located near culturally rich and diverse places proactively engage with cultural troupes and local artisans to help them show case their local art, craft and tradition. More than 12 of our hotels provide a show case and selling space slots for cultural shows etc. for indigenous arts and crafts from various parts of India. The renowned master weavers of Varanasi are the keepers of the exquisite art of hand-weaving silks. Unfortunately due to the rising costs, changing fashions and imported arti cial and cheaper textiles, these traditional weavers and the art were being pushed to the brink. To alleviate their economic situation and enable them to keep their tradition alive, we are providing the previously unemployed and under-employed weavers in Sarai Mohana village, near Varanasi, with design and material inputs in terms of warps and wefts. Our contributions help them create sarees with a more contemporary appeal, which we then source from them for utilization as staff uniforms across many of our Luxury properties. Our aim is to enable exposure and showcase indigenous art with nesse, in order to boost its revival. More than 40 weavers and their families, 23 women SHGs and nearby villages are supported through this project. Villagers are also provided with basic support like solar lighting, health & hygiene, nutritional support for children, women and drinking water facilities etc. to enable a better quality of life. Working with the Government and Civil Society Organizations to Enhance Child Nutrition Leveraging our core competence in food preparation, palatability & presentation, we have pledged our support to the cause of abolishing child malnutrition in India. We have been working alongside the Governments Integrated Child Development Scheme (ICDS), Maharashtra to supplement the nutrition being offered by the government to children
59
aged 0-6 years, lactating mothers and pregnant women. The Nandurbar district in Maharashtra was chosen as a pilot location due to the high incidence of malnutrition in its migratory tribal population. Based on the public schemes daily budget for a meal, Taj speciality-cuisines chefs took on the challenge of preparing recipes that met the daily dietary requirements of 300 kcals of energy and 8 gms of protein within Rs. 2 per day per person. More than 40 recipes were developed within this tight framework, making it simple for functionaries to adopt these recipes in their daily cooking habits an innovation by the Taj team, wearing a completely different hat! Following a train-the-trainers approach, this has been cascaded down to 12,000 self-help group workers and mothers groups in the villages by the group of 90 women who were trained directly by the trainers from Taj-ICDS-Bhavishya network at IHM, Aurangabad. In order to reinforce and ensure sustained behavior change, twenty of our Taj Management inducts were deployed to stay in the villages of Nandurbar district for a 10 day period in order to conduct hands-on workshops and practical demonstrations for Women Self Help Groups who are involved in day-to-day cooking of supplementary nutrition meals. This also furthered our employee volunteering ethos and facilitated an opportunity for our management groups to understand and appreciate the concerns of rural India and learn ways of contributing to further the cause of an equitable society.
60
Break Up of Total Expenses
Break Up of Other Expenditure
61
AUDITORS REPORT
TO THE MEMBERS OF THE INDIAN HOTELS COMPANY LIMITED
1. We have audited the attached Balance Sheet of THE INDIAN HOTELS COMPANY LIMITED (the Company) as at March 31, 2010, the Pro t and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These nancial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these nancial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the nancial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the nancial statements. An audit also includes assessing the accounting principles used and the signi cant estimates made by the Management, as well as evaluating the overall nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditors Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters speci ed in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows: (a) (b) (c) (d) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; the Balance Sheet, the Pro t and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; in our opinion, the Balance Sheet, the Pro t and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2010; (ii) in the case of the Pro t and Loss Account, of the pro t of the Company for the year ended on that date and (iii) in the case of the Cash Flow Statement, of the cash ows of the Company for the year ended on that date. 5. On the basis of the written representations received from the Directors as on 31st March, 2010, taken on record by the Board of Directors, none of the Directors is disquali ed as on 31st March, 2010 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956. For N. M. RAIJI & CO. Chartered Accountants (Registration No. 108296W) Vinay D. Balse Partner (Membership No. 39434)
2.
3.
4.
(e)
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. 117366W) Nalin M. Shah Partner (Membership No.15860) MUMBAI, 26th May, 2010
62
ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 3 of our report of even date)
(i) (ii) Having regard to the nature of the Companys business/activities/result/transactions, etc. clauses (viii), (x), (xiii) and (xiv) of paragraph 4 of CARO are not applicable. In respect of its xed assets: (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the xed assets. The xed asset records of the Taj Mahal Palace & Tower, Mumbai have not been updated, as pursuant to the terrorist attack in November 2008, the Unit is in the process of restoration of its property, which is covered by a reinstatement policy. The records, we are informed, will be updated only after the insurance claim for reinstatement has been settled. Physical veri cation of xed assets has been carried out by the Management at most of the Units in accordance with a programme of veri cation which, in our opinion, provides for physical veri cation of all the xed assets at reasonable intervals. We have been informed that the reconciliation of assets veri ed with the xed assets register is still in progress at some of the Units. Discrepancies, if any, arising out of veri cation and reconciliation are yet to be determined. The xed assets disposed off during the year, in our opinion, do not constitute a substantial part of the xed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.
(b)
(c)
(iii)
In respect of its inventory: (a) (b) As explained to us, the inventories were physically veri ed during the year by the Management at reasonable intervals. In our opinion and according to the information and explanations given to us, the procedures of physical veri cation of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business. In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical veri cation.
(c) (iv)
According to the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured, to/from companies, rms or other parties listed in the Register under Section 301 of the Companies Act, 1956. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and xed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us: (a) (b) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under the said Section have been so entered. There were no transactions in excess of Rs. 5 lakhs each in respect of any party during the year.
(v)
(vi)
63
(vii)
In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 58A and 58AA, or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975, with regard to the deposits accepted from the public. According to information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
(viii) In our opinion, the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business. (ix) According to the information and explanations given to us, in respect of statutory dues: (a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other material statutory dues with the appropriate authorities. There were no undisputed amounts payable in respect of Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at 31st March, 2010 for a period of more than six months from the date they became payable. Details of dues of Sales Tax and Service Tax which have not been deposited as on 31st March, 2010 on account of disputes are given below: Name of Statute Nature of Dues Sales Tax Amount (Rs.in crores) 0.25 7.72 0.07 0.03 0.10 0.27 0.23 0.75 0.05 Period to which the amount relates 1997-98 2000-03 2000-2001/ 2002-2003 2004-05 1992-95 1995-96 1996-98 2001-2002/ 2005-2007 2004-05 Forum where dispute is pending Maharashtra Sales Tax Tibunal Joint Commissioner of Sales Tax Additional Commissioner of Sales Tax (Appeals) Deputy Commissioner of Sales Tax (Appeals) Tribunal Appellate Board Appellate & Revision Board Deputy Commissioner of Commercial Taxes Assistant Commissioner of Sales Tax (Appeals)
(b)
(c)
Central Sales Tax Act, 1956 and Sales Tax Act of various states
64
Name of Statute
Nature of Dues Service Tax
Amount (Rs.in crores) 0.05 0.33 0.59 1.10
Period to which the amount relates 2000-05 2003-06 2002-04 2002-07
Forum where dispute is pending Assistant Commissioner of Service Tax (Appeals) Joint Commissioner of Service Tax (Appeals) Central Excise Service Tax Appellate Tribunal Service Tax Department, New Delhi
Finance Act, 1994
Total (x) (xi) (xii)
11.54
(xiii) (xiv)
(xv)
(xvi)
(xvii)
(xviii)
In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks, nancial institutions and debenture holders. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by others from banks and nancial institutions are not, prima facie, prejudicial to the interests of the Company. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes for which they were obtained, other than temporary deployment pending application. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for longterm investment. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies/ rms covered in the Register maintained under Section 301 of the Companies Act, 1956. According to the information and explanations given to us, during the period covered by our audit report, the Company had issued 3,000 2% Secured Non-Convertible debentures of Rs. 10 lakhs each. The Company is in the process of creating security for these debentures within the prescribed time frame. We have veri ed the end use of money raised by the Rights Issue of simultaneous but unlinked issue of Equity Shares and Non Convertible Debentures as disclosed in Note 3 of Schedule 14 Notes to the Balance Sheet and the Pro t and Loss Account. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year. For N. M. RAIJI & CO. Chartered Accountants (Registration No. 108296W) Vinay D. Balse Partner (Membership No. 39434)
65
Balance Sheet as at March 31, 2010

Schedule SOURCES OF FUNDS Shareholders Funds Share Capital Reserves and Surplus Total Secured Loans Unsecured Loans Total Long Term Trade Deposits Foreign Currency Monetary Item Translation Difference Account (Refer Note 17, Page 97) Deferred Tax Liability (Refer Note 5 (b), Page 92) APPLICATION OF FUNDS Fixed Assets Gross Block Less : Depreciation / Amortisation Net Block Capital work-in-progress (Refer Note 2 (a), Page 90) Total Investments Long Term Deposits Foreign Currency Monetary Item Translation Difference Account (Refer Note 17, Page 97) Deferred Tax Asset (Refer Note 5 (b), Page 92) Current Assets, Loans and Advances Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Less: Current Liabilities and Provisions Liabilities Provisions Net Current Assets Miscellaneous Expenditure (to the extent not adjusted or written off) The accompanying schedules form an integral part of the Balance Sheet In terms of our report attached. For DELOITTE HASKINS & SELLS Chartered Accountants For N. M. RAIJI & CO. Chartered Accountants Rupees crores 72.35 2,616.87 2,689.22 3 4 1,752.77 897.78 2,650.55 21.69 4.10 5,365.56 5 2,408.32 847.06 1,561.26 370.12 6 7 1,931.38 2,445.63 1,012.81 30.79 8 31.25 121.62 447.12 438.12 1,038.11 9 393.53 700.10 1,093.63 (55.52) 10 13 / 14 0.47 5,365.56 For and on behalf of the Board R. K. KRISHNA KUMAR RAYMOND N. BICKSON ANIL P. GOEL ABHIJIT MUKERJI K. B. DADISETH JAGDISH CAPOOR SHAPOOR MISTRY NADIR GODREJ SANKER PARAMESWARAN Rupees crores
March 31, 2009 Rupees crores 72.34 2,975.29 3,047.63 1,598.02 168.45 1,766.47 23.53 146.94 4,984.57
1 2
2,362.23 776.83 1,585.40 215.10 1,800.50 2,026.88 677.78 11.63 38.91 101.70 23.44 776.76 940.81 320.36 153.40 473.76 467.05 0.73 4,984.57
Vice - Chairman Managing Director Executive Director - Finance Executive Director - Hotel Operations
Nalin M. Shah Partner
Vinay D. Balse Partner
Directors Vice President - Legal & Company Secretary
Mumbai, May 26, 2010
66
Pro t and Loss Account for the year ended March 31, 2010
Schedule INCOME Rooms, Restaurants, Banquets and Other Income EXPENDITURE Operating and General Expenses Depreciation / Amortisation Interest (net) (Refer Note 14, Page 96) Total Less : Expenditure during construction period transferred to Fixed Assets PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS EXCEPTIONAL ITEMS (Refer Note 2 (b), Page 90) PROFIT BEFORE TAX Less : Provision for Tax (Refer Note 5 (a), Page 91) Less : Short Provision of Tax of earlier years (Net) PROFIT AFTER TAX Add : Balance brought forward from Previous Year Amount available for Appropriation Appropriation: Proposed Dividend Tax on Proposed Dividend Transfer to Debenture Redemption Reserve Transfer to General Reserve Balance carried forward Earnings Per Share - (In Rupees) (Refer Note 35, Page 116) Basic and Diluted Face Value per Ordinary share - (In Rupees) The accompanying schedules form an integral part of the Pro t & Loss Account In terms of our report attached. For DELOITTE HASKINS & SELLS Chartered Accountants For N. M. RAIJI & CO. Chartered Accountants 13 / 14 2.12 1.00 3.28 1.00 72.35 11.11 139.00 15.31 454.58 692.35 86.81 14.75 100.00 30.00 539.25 770.81 8.46 1,350.02 216.33 (1.92) 218.25 62.46 2.69 153.10 539.25 692.35 10.41 1,338.01 368.51 6.21 362.30 124.58 3.69 234.03 536.78 770.81 12 1,101.44 104.14 152.90 1,358.48 1,164.77 94.46 89.19 1,348.42 11 1,566.35 1,706.52 Rupees crores Rupees crores Previous Year Rupees crores
For and on behalf of the Board R. K. KRISHNA KUMAR RAYMOND N. BICKSON ANIL P. GOEL ABHIJIT MUKERJI K. B. DADISETH JAGDISH CAPOOR SHAPOOR MISTRY NADIR GODREJ SANKER PARAMESWARAN Vice - Chairman Managing Director Executive Director - Finance Executive Director - Hotel Operations
67
Cash Flow Statement for the year ended March 31, 2010
Rupees crores Cash Flow From Operating Activities Net Pro t Before Tax Adjustments For : Depreciation / Amortisation Amortisation of VRS Expenditure Provision for Doubtful Debts and Advances Pro t on sale of investments Pro t on sale of assets Dividend Income Interest (Net) Unrealised Exchange Loss Provision for Diminution in value of Investments Provision for Loyalty Programmes (net of Redemptions) Provision for Employee Bene ts Cash Operating Pro t before working capital changes Adjustments For : Trade and Other Receivables Inventories Trade Payables Cash Generated from Operating Activities Direct Taxes Paid Net Cash From Operating Activities Cash Flow From Investing Activities Purchase of Fixed Assets Sale of Fixed Assets Purchase of Investments (including Advance paid) Sale of Investments Interest Received Dividend Received Long Term Deposits Placed with Subsidiaries Long Term Deposits Placed with Others Long Term Deposits Refunded by Other Companies Loans repaid by Subsidiaries Short Term (Loans to) / Loans repaid by Other Companies (net) Net Cash Used In Investing Activities Cash Flow From Financing Activities Proceeds from Issue of Ordinary Shares Debenture issue costs Interest Paid Repayment of Long Term Loans and Debentures Proceeds from Long Term Loans and Debentures Short Term Loans Repaid (net) Long Term Trade Deposits Repaid (net) Dividend Paid (Including tax on dividend) Net Cash Used In Financing Activities Net Increase / (Decrease) In Cash and Cash Equivalents Cash and Cash Equivalents - Opening - 1st April - (Refer Note 10 (b), Page 94) Cash and Cash Equivalents - Closing - 31st March - (Refer Note 10 (b), Page 94) Rupees crores 218.25 104.14 4.79 (39.16) (7.13) (36.83) 152.90 0.98 0.02 2.20 1.65 183.56 401.81 8.02 7.66 70.38 86.06 487.87 (37.23) 450.64 (276.75) 49.01 (1,161.80) 780.12 22.57 36.83 (540.60) 3.24 1.77 29.18 (1,056.43) 1.02 (3.87) (166.92) (115.81) 1,030.31 (14.85) (1.84) (100.63) 627.41 21.62 445.59 467.21
Previous Year Rupees Rupees crores crores 362.30 94.46 0.13 2.98 (4.09) (69.50) 89.19 10.03 1.61 6.45 131.26 493.56 (70.55) (6.06) 31.25 (45.36) 448.20 (155.14) 293.06 (262.44) 8.67 (353.36) 31.77 69.50 (482.72) (7.25) 10.17 19.46 (139.54) (1,105.74) 823.90 (9.44) (79.44) (142.52) 922.99 (197.71) (0.10) (133.84) 1,183.84 371.16 74.43 445.59
In terms of our report attached. For DELOITTE HASKINS & SELLS Chartered Accountants For N. M. RAIJI & CO. Chartered Accountants
For and on behalf of the Board R. K. KRISHNA KUMAR RAYMOND N. BICKSON ANIL P. GOEL ABHIJIT MUKERJI K. B. DADISETH JAGDISH CAPOOR SHAPOOR MISTRY NADIR GODREJ SANKER PARAMESWARAN Vice - Chairman Managing Director Executive Director - Finance Executive Director - Hotel Operations
68
Schedules forming part of the Balance Sheet

Schedule 1 : Share Capital
March 31, 2009 Rupees Rupees crores crores AUTHORISED SHARE CAPITAL Ordinary Shares 100,00,00,000 Ordinary Shares of Re. 1/- each Preference Shares 1,00,00,000 Cumulative Redeemable Preference Shares of Rs. 100/- each 100.00 200.00 ISSUED SHARE CAPITAL 72,34,89,291 (Previous Year - 72,34,21,792) Ordinary Shares of Re. 1/- each (See Notes below) 72.35 72.35 SUBSCRIBED AND PAID UP 72,34,72,787 (Previous Year - 72,34,05,288) Ordinary Shares of Re. 1/- each, Fully Paid (See Notes below) 72.35 72.35 72.34 72.34 72.34 72.34 100.00 200.00 100.00 100.00
Notes : Of the total paid up capital : (i) (ii) 4,90,04,000 Ordinary Shares, of the face value of Re. 1/- each, were issued as fully paid Bonus Shares by capitalisation of Reserves. 24,88,77,170 Ordinary Shares, of the face value of Re. 1/- each, were issued as fully paid Bonus Shares by capitalisation of Securities Premium Account.
(iii) 13,54,84,873 Ordinary Shares, of the face value of Re. 1/- each, were issued as fully paid shares, pursuant to exercise of option for conversion by holders of Foreign Currency Convertible Bonds (FCCBs). (iv) 1,62,19,670 Ordinary Shares, of the face value of Re. 1/- each, were allotted as fully paid shares, pursuant to amalgamation of Gateway Hotels & Getaway Resorts Limited and Indian Resort Hotels Limited with the Company. (v) 67,499 Ordinary Shares, of the face value of Re 1/- each, were allotted on October 15, 2009 as fully paid shares, being Warrants exercised pursuant to Rights Issue of Ordinary Shares by the Company (Refer Note 3 (a), Page 91).
(vi) 16,504 Ordinary Shares have been issued but not subscribed to as at the end of the respective years and have been kept in abeyance pending resolution of legal dispute.
69

Schedule 2 : Reserves and Surplus
Rupees crores Rupees crores 43.91 1.12 1,675.28 1.01 2.55 374.09 430.81 15.31 9.82 455.94 5.00 4.03 0.41 188.67 139.00 7.51 7.51 2.31 7.51 9.82 76.99 (52.43) 1,299.65 March 31, 2009 Rupees crores 43.91 1.12 851.37 831.82 7.91 1,675.28 404.63 30.00 3.82 430.81 5.00 4.03 0.41 88.67 100.00 188.67 7.51 7.51 2.31 2.31 10.55 86.63 20.19 76.99 539.25 2,975.29
Capital Reserve Balance as per Last Account Capital Redemption Reserve Balance as per Last Account Securities Premium Account Balance as per Last Account Add: On allotment of shares issued persuant to exercise of detachable warrants attached to Rights Issue (Refer Note 3 (a), Page 91) Add: On allotment of Rights Issue of Ordinary Shares Less: Share / Debenture Issue Expenses written off (Refer Note 3 & 4, Page 91) Less: Provision for premium on Redemption of Non Convertible Debentures (Refer Note 4, Page 91) Total General Reserve Balance as per Last Account Add: Transferred from Pro t and Loss Account Add: Transferred from Foreign Exchange Earnings Utilised Reserve Less: Transferred to Foreign Currency Monetary Item Translation Difference Account (Refer Note 17, Page 97) Total Investment Reserve Balance as per Last Account Investment Allowance Utilised Reserve Balance as per Last Account Export Pro ts Reserve Balance as per Last Account Debenture Redemption Reserve Balance as per Last Account Add: Transferred from Pro t and Loss Account Total Foreign Exchange Earnings Reserve Balance as per Last Account Less: Transferred to Foreign Exchange Earnings Utilised Reserve Total Foreign Exchange Earnings Utilised Reserve Balance as per Last Account Add: Transferred from Foreign Exchange Earnings Reserve Less: Transferred to General Reserve Total Foreign Currency Translation Reserve (Refer Note 1 (f), Page 88) Balance as per Last Account Add / (Less): Foreign Exchange uctuation for the year Less: Transferred to Pro t and Loss Account Total Pro t and Loss Account Balance carried forward
327.67
24.56 454.58 2,616.87
70

Schedule 3 : Secured Loans
Rupees crores DEBENTURES i. 2,500, 9.50% Secured Non-Convertible Debentures of Rs.10 lakhs each, allotted on February 27, 2007 and repayable at the end of the 5th year from the date of allotment 3,000, 9.86% Secured Non-Convertible Debentures of Rs.10 lakhs each, allotted on September 3, 2007 and repayable at the end of the 3rd year from the date of allotment 6,02,76,898, 6% Secured Non-Convertible Debentures of Rs.100 each, allotted on May 13, 2008 and repayable at the end of the 3rd year from the date of allotment 3,000, 11.8% Secured Non-Convertible Debentures of Rs.10 lakhs each, allotted on December 18, 2008 and repayable in 3 annual instalments commencing from the end of the 3rd year 3,000, 2% Secured Non-Convertible Debentures of Rs.10 lakhs each, allotted on March 22, 2010 and repayable in 3 annual instalments commencing from the end of the 5th year along with redemption premium Security : All the above Debentures except 3,000, 2% Secured Non-Convertible Debentures alloted on March 22,2010, for which the Company has time of six months from the date of allotment to create a charge, are secured by a pari passu rst charge created on all the xed assets of the Company, both present and future. FROM BANK Term loan from a Bank [Repayable within one year - Nil (Previous year - Rs. 100 crores)] Add: Exchange Loss/(Gain) on Currency Swap of the above Term Loan Security : The Term Loan was secured by a speci c charge on the immovable properties and movable assets of Taj Wellington Mews, Mumbai Bank Overdraft (Secured by hypothecation of Operating Supplies, Stores, Food & Beverages and Receivables) TOTAL 1,752.77 1,598.02 29.44 100.00 15.81 115.81 Rupees crores March 31, 2009 Rupees crores
250.00
250.00
ii.
300.00
300.00
iii.
602.77
602.77
iv.
300.00
300.00
v.
300.00
71

Schedule 4 : Unsecured Loans
Rupees crores DEBENTURES 2,500, 2% Unsecured Non-Convertible Debentures of Rs.10 lakhs each, allotted on 9th December, 2009 and repayable at the end of the 10th year along with redemption premium Less : Exchange gain on currency swap of the above Debentures 1,500, 2% Unsecured Non-Convertible Debentures of Rs.10 lakhs each, allotted on 9th December, 2009 and repayable at the end of the 5th year along with redemption premium FIXED DEPOSITS From Shareholders: (Refer Note 1 below ) [Repayable within one year - Rs. 0.76 crore (Previous Year - Rs. 0.03 crore)] From Others : [Repayable within one year - Rs. 0.24 crore (Previous Year - Rs. 0.17 crore)] INTER - CORPORATE DEPOSITS (Refer Note 2 below ) 15.00 0.41 263.22 5.04 94.27 22.14 250.00 Rupees crores March 31, 2009 Rupees crores
6.71
243.29 150.00
[Repayable within one year - Rs. 15.00 crores (Previous Year - Rs. 0.41 crore)] FOREIGN CURRENCY TERM LOAN FROM BANKS [Repayable within one year - Nil (Previous Year - Nil)] TOTAL 897.78 168.45 132.00 140.86
Notes : 1) 2) Includes Fixed deposits from a Director - Rs. 0.60 crore (Previous Year - Rs. 0.60 crore). Includes deposits from a subsidiary - Nil (Previous Year - Rs. 0.41 crore).
72

Schedule 5 : Fixed Assets
Rupees crores Gross Block (at cost) as at 01.04.2009 Additions for the Year Deductions for the Year Gross Block (at cost) as at 31.03.2010 Accumulated Depreciation/ Amortisation as at 01.04.2009 (See Note 2) Depreciation/ Amortisation for the Year Deductions for the Year Accumulated Depreciation/ Amortisation as at 31.03.2010 (See Note 2) Net Block as at 31.03.2010
TANGIBLE ASSETS Freehold Land 136.89 136.89 Leasehold Land 11.83 11.83 Buildings (See Note 1 below) 975.65 838.58 Plant and Machinery 861.54 740.91 Furniture, Fixtures and Of ce Equipment Vehicles 334.45 304.59 16.13 13.00 INTANGIBLE ASSETS Wesbite Development Cost 4.61 4.61 Customer Reservation System and licensed software Service and Operating Rights 8.72 6.57 12.41 12.70 TOTAL 2,362.23 2,069.68 2.00 2.15 1.12 89.92 315.33 1.41 43.83 22.78 4.61 4.61 10.72 8.72 12.41 12.41 2,408.32 2,362.23 4.56 4.55 2.84 1.55 6.17 5.29 776.83 700.56 0.01 1.54 1.29 0.89 2.28 104.14 94.46 1.40 33.91 18.19 4.56 4.56 4.38 2.84 7.06 6.17 847.06 776.83 0.05 0.05 6.34 5.88 5.35 6.24 1,561.26 1,585.40 27.01 139.61 48.56 133.79 11.18 34.91 1.17 3.75 0.61 3.20 2.54 31.03 13.16 8.54 5.05 0.45 0.62 136.28 136.89 11.83 11.83 999.46 975.65 879.07 861.54 337.09 334.45 16.85 16.13 3.88 3.88 0.46 0.32 121.93 102.98 423.33 387.55 207.41 188.74 6.25 5.70 0.18 0.14 24.20 19.39 52.36 47.48 23.78 22.84 1.19 1.03 0.47 0.44 26.72 11.70 6.37 4.17 0.35 0.48 3.88 3.88 0.64 0.46 145.66 121.93 448.97 423.33 224.82 207.41 7.09 6.25 132.40 133.01 11.19 11.37 853.80 853.72 430.10 438.21 112.27 127.04 9.76 9.88
Notes : (1) (2) (3) (4) Gross Block includes improvements to buildings constructed on leasehold land - Rs. 431.78 crores; Previous Year - Rs. 423.10 crores. Accumulated Depreciation includes adjustment for impairment of Rs. 9.25 crores, including on Freehold Land, made in the earlier years. Attention is invited to Note 2 (a) Page 90 of Schedule 14 regarding the damage to The Taj Mahal Palace & Tower in Mumbai. Figures in italics are in respect of the previous year.
73

Schedule 6 : Investments
Particulars Face Value Rupees (unless otherwise stated) Holdings As at March 31, 2010 Rupees crores Rupees crores Holdings As at March 31, 2009 March 31, 2009 Rupees crores
Long Term (Refer note 3 below) Trade Investments : Fully Paid Unquoted Equity Shares (unless otherwise stated) : Hotels and Restaurant Co-op. Service Society Ltd. (Rs. 1,000/-) Ideal Ice & Cold Storage Co. Ltd. India Tourism Development Corporation Ltd. (Listed but not quoted) Inditravel Pvt. Ltd. Kumarkrupa Hotels Ltd. Piem Hotels Ltd. Rallis India Ltd. (7.5% Cumulative Redeemable Preference Shares) (Redeemed during the year) Taida Trading & Industries Ltd. Taj Air Ltd. TAL Hotels & Resorts Limited (formerly known as Taj Asia Ltd). Taj Enterprises Ltd. IHMS Hotels (SA) (Proprietary) Ltd. (Rs. 3,052) Taj Karnataka Hotels & Resorts Ltd. (2,00,000 shares acquired during the year) Taj Kerala Hotels & Resorts Ltd. Taj Madras Flight Kitchen Pvt. Ltd. Taj Madurai Ltd. Taj Rhein Shoes Co. Ltd. Taj Trade & Transport Co. Ltd. Taj Safaris Ltd. Tata Projects Ltd. Tata Services Ltd. Tata Sons Ltd. BJETS Pte Ltd., Singapore Tril Infopark Ltd. (2,19,81,940 shares acquired during the year) Lands End Properties Pvt. Ltd. (19,90,000 shares purchased during the year) Quoted Equity Shares - Fully Paid : Tourism Finance Corporation of India Ltd. Benares Hotels Ltd. TAL Lanka Hotels PLC (formerly known as Taj Lanka Hotels Ltd.) Oriental Hotels Ltd. Taj GVK Hotels & Resorts Ltd. Tata Consultancy Services Ltd. (sold during the year) Carried over
50 10 10 10 10 10 10 100 10 US$ 1 100 South African Rand 1 10 10 10 10 100 10 10 100 1,000 1,000 US$ 1 10 10
20 107,224 67,50,275 2,40,003 96,432 8,81,228 26,912 1,47,060 13,29,778 7,000 500 5,00,000 1,41,51,663 79,44,112 9,11,994 45,000 12,54,000 59,16,667 90,000 421 4,500 2,00,00,000 7,11,00,000 19,90,000
0.06 44.58 0.24 0.94 35.27 0.27 0.15 13.63 0.07 0.50 15.67 8.56 0.95 0.45 2.67 7.92 0.17 0.03 25.00 102.59 71.10 1.99 332.81
20 107,224 67,50,275 2,40,003 96,432 8,81,228 2,00,00,000 26,912 1,47,060 13,29,778 7,000 500 3,00,000 1,41,51,663 79,44,112 9,11,994 45,000 12,54,000 59,16,667 90,000 421 4,500 2,00,00,000 4,91,18,060 -
0.06 44.58 0.24 0.94 35.27 20.00 0.27 0.15 13.63 0.07 0.30 15.67 8.56 0.95 0.45 2.67 7.92 0.17 0.03 25.00 102.59 49.12 328.64 0.10 0.69 18.72 28.73 40.34 0.05 88.63 417.27
10 10 Sri Lankan Rs10 10 2 1
50,000 2,93,000 3,43,75,640 33,76,455 1,60,00,000 -
0.10 0.69 18.72 28.73 40.34 88.58 421.39
50,000 2,93,000 3,43,75,640 33,76,455 1,60,00,000 6,14,376
74

Schedule 6 : Investments (Contd.)
Particulars Face Value Rupees (unless otherwise stated) Holdings As at March 31, 2010 Rupees crores Rupees crores Holdings As at March 31, 2009 March 31, 2009 Rupees crores 417.27
Brought over Investments in Subsidiary Companies Unquoted Equity Shares - Fully Paid : International Hotel Management Services Inc. (includes Rs. 1,588.93 crores (Previous year Rs. 772.22 crores) by way of Additional Paid-in Capital) KTC Hotels Ltd. Residency Food & Beverages Ltd. Roots Corporation Ltd. Taj International Hotels (H.K.) Ltd. TIFCO Holdings Ltd. Taj SATS Air Catering Ltd. United Hotels Ltd. Non-trade Investments - Long Term Central India Spinning Weaving & Manufacturing Co. Ltd. (10% unquoted Cumulative Preference Shares) (Rs. 27,888/-) HDFC Bank Ltd. (quoted Equity Shares) (Rs. 5,000/-) National Savings Certi cate (Rs 45,000) (Previous year Rs 10,000) Total Long Term Investments - Gross Less : Provision for Diminution in Value of Investments Total Long Term Investments - Net Current Investments (Refer note 3 below) Investments in Mutual Fund Units (Unquoted) ABN Amro Money Plus IP Fund-Daily Dividend DWS Money Plus Fund-IP-Daily Dividend Kotak Floater-LT-Daily Dividend Birla Sun Life Liquid Plus-IP-Daily Dividend ICICI Prudential Flexible Income Plan-Daily Dividend JM Money Manager Fund-Super Plan- Daily Dividend Templeton India Ultra Short Bond Fund-IP-Daily Dividend Tata Floater Fund-Daily Dividend UTI Liquid Plus Fund- IP-Daily Dividend Sundaram BNP Paribas-Ultra Short Term Super IP-Daily Dividend Fidelity Ultra Short Term Debt Fund-Super IP-Daily Dividend Religare Credit Opportunities Fund- IP-Monthly Dividend TOTAL Notes : 1 Aggregate of Quoted Investments - Gross 2 Aggregate of Unquoted Investments - Gross
421.39
US $ 1 10 10 10 US $ 1 10 10 10
100 6,04,000 1,85,00,000 5,10,00,000 5,00,00,000 8,15,00,000 88,74,000 25,18,320
1,600.26 0.70 18.25 51.00 190.23 81.50 61.82 1.11 2,004.87
100 6,04,000 1,85,00,000 5,10,00,000 5,00,00,000 8,15,00,000 88,74,000 25,18,320
783.55 0.70 18.25 51.00 190.23 81.50 61.82 1.11 1,188.16
500
50
50
10
500
2,426.26 0.72 2,425.54
500
1,605.43 0.70 1,604.73
10 10 10 10 10 10 10 10 1,000 10 10 10
15,039,796 5,024,613
15.06 5.03 20.09 2,445.63
6,60,81,388 4,08,81,766 3,98,15,614 5,62,92,424 4,94,02,547 50,24,833 4,57,84,604 5,10,02,326 2,08,201 4,14,47,061 20,16,879
66.10 40.92 40.13 56.33 52.24 5.03 45.84 51.18 20.82 41.55 2.01 422.15 2,026.88 88.63 184.92 1,938.95
: Cost : Market Value : Cost
88.58 417.55 2,357.77
75

Note 3 : During the year the Company acquired and sold the following investments
Rupees crores Purchase Cost 213.37 275.92 231.62 720.91 Current Investments AIG India Liquid Fund - Super IP - Daily Dividend AIG India Treasury Plus Fund - Super IP - Daily Dividend Birla Sun Life Cash Plus- Institutional Premium Plan-Daily Dividend Birla Sun Life Interval Income Fund Monthly Plan - Series I - IP - Dividend Birla Sun Life Interval Income Fund Monthly Plan - Series II - IP - Dividend DWS FTF - Series 57 - IP - Dividend DWS Insta Cash Plus - Super IP - Daily Dividend DWS Liquid Plus Fund - IP - Daily Dividend Fortis Interval Fund - Mtly Plan A - Dividend-Red Fortis Overnight Fund - Insti Plus Plan - Dly Dividend HDFC Cash Management Fund- Savings Plan-Daily Dividend HDFC FRIF-STF-WP-Daily Dividend HSBC Cash Fund - Super IP - Daily Dividend HSBC Cash Fund-Institutional Plus - Daily Dividend HSBC FTS 60 - IP - Dividend IDFC Cash Fund - Plan B - Daily Dividend IDFC Cash Fund - Plan C - Daily Dividend IDFC F R F - IP - LTP - Plan B - Daily Dividend IDFC Liquid Plus - Treasury Plan - Plan B - Daily Dividend IDFC Liquid Plus - Treasury Plan - Plan C - Daily Dividend IDFC Liquidity Manager Fund Plus - Daily Dividend ING Liquid Fund - Super IP - Daily Dividend ING Liquid Plus Fund - IP - Daily Dividend Kotak Flexi Debt Fund- Daily Dividend Kotak FMP- 1 Months- Series 1- Dividend Kotak FMP- 1 Months- Series 3 - Dividend Kotak FMP- 1 Months- Series III - Dividend Kotak FMP- 3 Months- Series 33- Dividend Kotak Liquid - Inst Premium Plan - Daily Dividend Kotak Liquid - Inst Premium Plan - Daily Dividend Kotak Monthly Interval Plan - Series II - Dividend Carried over 1,000 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 1,000 10 10 10 10 10 10 10 10 10 10 34,58,97,877 19,11,73,311 37,09,37,713 9,25,65,825 23,13,27,566 30,45,43,013 346.57 191.75 371.05 93.31 232.43 372.40 1,607.51 4,69,721 7,53,67,185 23,71,02,202 50,35,870 3,51,05,626 1,02,06,017 16,54,04,003 17,61,11,508 2,51,77,027 13,60,59,167 2,77,39,359 14,53,83,770 5,29,84,395 10,99,11,639 2,55,54,228 75,61,892 2,79,98,362 15,03,05,712 2,61,09,587 1,50,25,846 9,99,960 17,34,78,913 20,05,34,414 12,00,85,807 5,07,92,668 2,51,80,479 4,02,70,267 5,18,77,738 65,43,523 7,78,47,348 2,53,47,051 Rupees crores March 31, 2009 Rupees No of crores Shares/Units Purchase Cost 47.01 75.45 237.59 5.04 35.27 10.21 165.73 176.30 25.36 136.08 29.51 146.56 53.04 110.04 25.55 8.00 28.01 150.39 26.29 15.03 100.02 173.56 200.60 120.49 50.79 25.18 40.27 51.88 8.00 95.19 25.35 2,397.79
Particulars Long Term Investments ELEL Hotels & Investments Ltd. Skydeck Properties & Developers Ltd. Sheena Investments Pvt. Ltd.
Face No of value Shares/Units 10 10 10 536,547 275,923,110 1,000,000
76

Particulars Brought over Fidelity Cash Fund - Super IP - Daily Dividend HDFC Cash Management Fund - Call Plan - Daily Dividend HDFC Cash Management Fund- Savings Plus- WholesaleDaily Dividend ICICI Prudential FMP - S 48 - 1 Months - Plan A - IP - Dividend ICICI Prudential FMP - Series 44 - 1M - Plan D - Ret - Dividend ICICI Prudential FMP- Series 44-1M PLan A- Ret Dividend ICICI Prudential FMP- Series 44-1M PLan B- Ret Dividend ICICI Prudential FMP- Series 44-1M PLan C- Ret Dividend ICICI Prudential FRF - Plan D - Daily Dividend ICICI Prudential Interval Fund - Monthly Interval I - IP - Dividend ICICI Prudential Interval Fund - Monthly Interval III - Dividend ICICI Prudential Interval Fund II - Quarterly Interval Plan A - Dividend ICICI Prudential Liquid-Super IP-Daily Dividend JM FMF - Series XII - Monthly Plan 3 - IP - Dividend JM FMF - Series XII - Monthly Plan 3 - IP - Dividend JM High Liquidity- Super IP- Daily Dividend JM Money Manager Fund- Super Plan - Daily Dividend JM Money Manager Fund- Super Plan - Daily Dividend JM Money Manager Fund-Super Plan-Daily Dividend JM Money Manager Fund-Super Plan-Daily Dividend SBI Magnum Insta Cash - Daily Dividend Sundaram BNP Paribas Money Fund - IP - Daily Dividend Sundaram BNP Paribas Money Fund - Super IP - Daily Dividend Tata Dynamic Bond Fund - Option B - Dividend Tata FIP Fund - Series A2 - IP - Monthly Dividend Tata FIP Fund - Series A3 - IP - Monthly Dividend Tata FIP Fund - Series A3 - IP - Monthly Dividend Tata Liquid Fund - SHIP - Daily Dividend Templeton India TMA - IP - Daily Dividend Templeton India TMA - Super IP - Daily Dividend Templeton India Ultra Short Bond Fund - IP - Dividend Templeton India Ultra Short Bond Fund - Super IP - Dividend UTI Fixed Income Interval Fund - Monthly Plan I - IP - Dividend UTI Fixed Income Interval Fund - Monthly Plan II - IP - Dividend UTI Liquid Fund - Cash Plan - IP - Daily Dividend UTI Money Market - Daily Dividend Carried over 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 1,000 1,000 1,000 1,000 10 10 10 1,000 10 3,40,27,933 7,47,41,321 22,36,49,682 19,93,85,112 11,24,39,111 12,20,523 11,04,362 6,63,21,178 90,649,311 29,41,087 Rupees Rupees Face value No of crores crores No of Shares/Units Purchase Cost Shares/Units 1,607.51 34.05 279.53 224.02 199.49 113.51 136.03 110.51 66.40 90.75 79.01 2,940.81 99,96,054 57,62,078 10,95,44,616 2,00,00,000 7,00,00,000 7,00,00,000 3,01,93,500 3,00,00,000 7,53,85,401 13,68,98,349 6,54,37,245 1,53,30,720 40,12,25,178 2,01,48,971 2,01,52,604 27,05,43,679 21,47,20,813 2,02,11,053 38,75,66,594 2,51,93,922 29,94,765 49,54,531 3,56,67,811 7,40,14,183 5,54,46,674 3,61,50,429 1,50,27,132 25,47,923 1,54,926 4,49,776 5,69,725 7,27,58,712 15,73,86,465 7,63,63,000 7,40,731 5,53,51,518 March 31, 2009 Rupees crores Purchase Cost 2,397.79 10.00 6.01 110.46 20.16 70.49 70.42 30.19 30.21 75.40 136.90 65.47 15.33 401.25 20.15 20.15 270.99 214.81 20.22 387.82 25.21 5.02 5.00 36.01 75.90 55.59 36.32 15.36 281.39 15.50 45.01 57.01 72.90 157.39 76.36 75.51 100.27 5,509.97
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Particulars Brought over ABN Amro Money Plus IP Fund-Daily Dividend * Baroda Pioneer Liquid Fund-IP-Daily Dividend Baroda Pioneer Treasury Advantage Fund-IP-Daily Dividend Birla Sun Life Liquid Plus-IP-Daily Dividend * Birla Sun Life-Savings Fund- IP- Daily Dividend DWS Cash Opportunities-IP- Daily Dividend DWS Money Plus Fund-IP-Daily Dividend * DWS Short Maturity Fund-IP-Weekly Dividend Fidelity Ultra Short Term Debt Fund-Super IP-Daily Dividend Fidelity Ultra Short Term Fund - Super IP - Daily Dividend * Fortis Flexi Debt Fund- Weekly Dividend Fortis Short Term Income Fund-IP Fund- Daily Dividend HDFC Cash Management Fund-Treasury advantage Daily Dividend HDFC Liquid Fund- Premium Plan-Daily Dividend HSBC-Cash Fund-IP-Daily Dividend HSBC-FRF-LTP-IP-Weekly Dividend ICICI Premium-Ultra ST- Premium Plan-DDR ICICI Prudential Flexible Income Plan-Daily Dividend * ING Liquid Fund-Super IP-Daily Dividend ING Treasury Advantage Fund- Daily Dividend ING Treasury Management Fund- Daily Dividend JM Money Manager Fund-Super Plan- Daily Dividend Kotak Floater-LT-Daily Dividend * LIC MF-Floating Rate Fund-ST-Daily Dividend LIC-MF- Liquid Fund- Daily Dividend LIC-MF-Savings Plus Fund- Daily Dividend Reliance Liquid Fund-TP-IP-Daily Dividend Reliance Money Manager Fund-IP-Daily Dividend Religare Liquid Fund-IP-Daily Dividend Religare liquid Fund-Super IP-Daily Dividend Religare Short Term Plan-IP-Daily Dividend Religare Ultra Short Term Plan- IP-Daily Dividend Sundaram BNP Paribas-Ultra Short Term Super IP-Daily Dividend * Tata Floater Fund-Daily Dividend * Templeton India Ultra Short Bond Fund-IP-Daily Dividend UTI Liquid Plus Fund- IP-Daily Dividend * UTI Treasury Advantage Fund-IP- Daily Dividend Total Total Face value 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 15 1,000 10 10 10 10 10 10 10 1,000 1,000 Rupees No of crores Shares/Units Purchase Cost 35,48,95,550 1,54,91,502 1,54,95,574 22,32,51,264 12,50,73,220 11,31,16,365 9,20,15,346 98,73,124 2,00,52,037 20,00,183 50,14,233 4,49,08,731 11,25,73,596 3,39,82,942 3,04,01,931 11,97,97,112 9,62,78,634 49,98,053 95,03,640 43,44,492 16,76,97,106 8,57,38,142 21,08,56,043 17,21,47,078 39,25,182 60,044 1,29,92,704 4,99,72,181 3,08,77,959 2,69,79,032 15,52,14,261 18,31,13,124 2,50,149 7,51,512 2,940.81 355.01 15.50 15.51 223.40 125.16 113.39 92.73 10.29 20.06 1.99 5.02 45.05 138.01 34.00 34.17 120.05 253.73 5.00 9.51 4.50 169.04 85.74 231.52 172.15 6.00 6.01 13.00 50.00 31.05 27.02 155.79 183.77 25.02 75.17 5,794.17 6,515.08 Rupees crores March 31, 2009 Rupees No of crores Shares/Units Purchase Cost 7,86,40,962 5,509.97 78.65
28,57,08,886 69,94,065 79,98,001 23,22,61,567 14,61,26,150 2,48,02,079 24,76,29,343 49,99,839 99,979 -
285.90 7.00 8.00 245.58 146.20 25.00 248.51 5.01 10.00 6,569.82 6,569.82
* Movements in these investments include opening balances brought over from previous year
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Schedule 7 : Long Term Deposits
Rupees crores Long term deposits placed for Hotel Properties [includes Rs. 3.50 crores placed with a subsidiary (Previous Year - Rs. 3.50 crores)] Shareholders Deposit placed : (i) With Subsidiary Companies (Refer Note 6, Page 92) 846.43 29.73 1,012.81 508.30 29.59 677.78 136.65 March 31, 2009 Rupees crores 139.89
(ii) With Others TOTAL
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Schedule 8 : Current Assets, Loans and Advances
Rupees crores Inventories Stores and Operating Supplies Food and Beverages Sundry Debtors (Unsecured) (See Note 1 below) Outstanding over six months : Considered good Considered doubtful Others : Considered good Considered doubtful Less : Provision for Doubtful Debts (Refer Note 27, Page 106) Cash and Bank Balances Cash on Hand [Including Cheques on Hand - Rs.7.67 crores; (Previous Year - Rs. 4.10 crores)] Balances with Scheduled Banks : In Current Accounts In Call and Short Term Deposit Accounts Balances with Non-Scheduled Banks (Refer Note 10 (a), Page 94) : In Current Accounts Loans and Advances (Unsecured, considered good unless stated otherwise) Deposits with Public Bodies and Others Advances to Subsidiary Companies Deposits with Companies : Subsidiary Companies Others Other Advances (See Note 2 below) : Considered good Considered doubtful Provision for Doubtful Advances TOTAL 14.10 17.15 31.25 30.34 9.19 39.53 91.28 0.07 91.35 130.88 9.26 121.62 8.87 45.25 392.56 437.81 0.44 447.12 33.49 7.74 0.05 129.93 129.98 266.91 1.89 268.80 1.89 266.91 438.12 1,038.11 Rupees crores March 31, 2009 Rupees crores 17.96 20.95 38.91 21.89 10.39 32.28 79.81 79.81 112.09 10.39 101.70 5.24 15.63 1.46 17.09 1.11 23.44 36.34 16.10 1.82 159.11 160.93 563.39 0.98 564.37 0.98 563.39 776.76 940.81
Notes : (1) Sundry Debtors include debts due from Directors - Rs. 38,819 /- (Previous Year - Rs. 0.02 crore) in the ordinary course of business. Maximum amount due during the year - Rs. 0.07 crore (Previous Year - Rs. 0.07 crore). (2) Other Advances include : (i) Amount paid towards Share Application Money - Nil (Previous Year - Rs. 0.20 crore). (ii) Advance payment of Income tax, net of provisions for current tax - Rs. 126.45 crores (Previous Year - Rs. 150.35 crores). (iii) Advance consideration for acquisition of shares of a Company owning hotel property - Nil (Previous Year - Rs. 250.00 crores). (iv) Insurance claim receivable (net of reimbursement) - Rs. 34.22 crores (Previous Year - Rs. 73.49 crores).
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Schedule 9 : Current Liabilities & Provisions
Rupees crores CURRENT LIABILITIES Sundry Creditors : (i) (ii) Total Outstanding dues of micro and small enterprises (Refer Note 31, Page 107) Total Outstanding dues of Creditors other than micro and small enterprises (Refer Note 1 below) 0.34 244.96 245.30 Other Liabilities Sundry Deposits Advance Collections against Reservation Interest accrued but not due on loans Amount to be credited to Investor Education and Protection Fund (Refer Note 2 below ) : Dividend Warrants issued but not encashed Unclaimed matured deposits Unclaimed debenture application money (Rs. 25,100) Refund of excess Rights Issue application money not encashed Unclaimed Interest accured theron 2.42 0.27 0.12 0.11 2.92 TOTAL CURRENT LIABILITIES PROVISIONS Employee Bene ts Contingencies (Refer Note 11 (c), Page 95) Fringe Bene t Tax (net) Loyalty Programmes (Refer Note 28, Page 106) Premium on Redemption of Debentures / Bonds (Refer Note 4, Page 91) Proposed Dividend Tax on Dividend TOTAL PROVISIONS TOTAL Note: 1) 2) The gure includes Rs 6.74 crores (Previous year - Rs 6.63) due to subsidiary companies. The gure does not include any amount, due and outstanding, to be credited to Investor Education and Protection Fund. During the year Rs. 0.19 crore (Previous year - Rs. 0.22 crore) has been transferred to the Fund. 39.40 1.12 0.40 14.77 560.27 72.35 11.79 700.10 1,093.63 37.75 1.12 0.40 12.57 86.81 14.75 153.40 473.76 393.53 2.17 0.41 0.16 0.09 2.83 320.36 47.43 7.28 40.79 49.81 0.40 186.74 187.14 32.19 8.72 42.21 47.27 Rupees crores March 31, 2009 Rupees crores
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Schedule 10 : Miscellaneous Expenditure (to the extent not adjusted or written off)
Rupees crores Borrowing Costs Opening Balance Less : Amortised during the year (Refer Note 14, Page 96) Closing Balance Voluntary Retirement Scheme (VRS) Opening Balance Less : Amortised during the year Closing Balance TOTAL 0.47 0.13 0.13 0.73 0.73 0.26 0.47 1.32 0.59 0.73 Rupees crores March 31, 2009 Rupees crores
82
Schedules forming part of the Pro t and Loss Account

Schedule 11 : Rooms, Restaurants, Banquets and Other Income
Rupees crores INCOME Rooms, Restaurants, Banquets and Other Services [Includes Sale of Food and Beverages - Rs. 488.98 crores (Previous Year - Rs. 460.08 crores)] Other Operating Income (Refer Note 2 (a), Page 90) TOTAL Other Income Dividend Income (Refer Note 9 (c) & (d), Page 93) Pro t on sale of assets (Net) Pro t on sale of Long Term Investments Pro t on sale of Current Investments Exchange Gain (Net) (Refer Note 9 (e), Page 93) Miscellaneous Income TOTAL TOTAL Rupees crores 1,408.94 Previous Year Rupees crores 1,534.03
64.35 1,473.29 36.83 7.13 39.16 3.33 6.61 93.06 1,566.35
85.54 1,619.57 69.50 4.09 0.04 13.32 86.95 1,706.52
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Schedule 12 : Operating and General Expenses (Refer Note 9, Page 93)
Rupees crores OPERATING EXPENSES Payments to & Provisions for Employees Salaries, Wages, Bonus etc. Companys Contribution to Provident & Other Funds (Refer Note 18, Page 97) Reimbursement of Expenses on Personnel Deputed to the Company Payment to Contractors Staff Welfare Expenses Food & Beverages Consumed (Refer Note 20, Page 104) Opening Stock Add: Purchases Less: Closing Stock Carried Over Rupees crores Previous Year Rupees crores
269.91 12.88 8.32 17.99 50.46 359.56 20.95 108.78 129.73 17.15 112.58 472.14
265.35 46.04 11.21 16.41 52.04 391.05 17.69 117.80 135.49 20.95 114.54 505.59
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Schedule 12 : Operating and General Expenses (Contd.)
Previous Year Rupees crores Brought Over Other Operating Expenses Linen & Room Supplies Catering Supplies Other Supplies Fuel, Power & Light Repairs to Buildings Repairs to Machinery Repairs to Others Linen & Uniform Washing and Laundry Expenses Payment to Orchestra Staff, Artists and Others Guest Transportation Travel Agents Commision Discount to Collecting Agents Other Operating Expenses GENERAL EXPENSES Rent Licence Fees Rates & Taxes Insurance Advertising & Publicity Printing & Stationery Passage & Travelling Provision for Doubtful Debts (Refer Note 27, Page 106) Professional Fees Exchange Loss (Net) (Refer Note 9 (e), Page 93) Other Expenses (Refer Note 13, Page 95) Auditors Remuneration (Refer Note 15, Page 96) Amortisation of Voluntary Retirement Scheme Expenses Directors Fees and Commission TOTAL Rupees crores 472.14 Rupees crores 505.59 24.97 13.95 2.23 98.50 19.85 22.40 16.59 6.62 9.97 11.13 13.12 16.33 21.38 277.04 28.21 97.61 22.03 5.63 74.01 8.06 14.51 2.98 38.30 22.23 63.35 1.37 378.29 0.13 3.72 1,164.77
20.54 13.53 1.95 100.67 18.04 22.39 12.75 6.55 15.11 8.74 12.12 14.91 21.23 268.53 32.98 90.39 22.63 7.46 63.55 6.80 10.50 3.88 51.50 67.29 1.92 358.90 1.87 1,101.44
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Schedule 13 : Computation of Net Pro t Under Sections 198 and 309(5) of the Companies Act, 1956
Rupees crores Pro t as per Pro t and Loss Account Add : Provision for doubtful debts (net) Directors Remuneration (including Directors Fees) 3.60 14.16 17.76 236.01 Less : Capital pro t on sale of assets Bad Debts written off Pro t on sale of investments 6.82 4.73 39.16 50.71 Pro t Commission to Directors : Maximum Remuneration which can be paid to single Executive Directors (Restricted to 5% of net pro t) Maximum Remuneration which can be paid to all Executive Directors (Restricted to 10% of net pro t) Other Directors (Restricted to 1% of net pro t) TOTAL 5.00 1.75 6.75 3.00 3.60 6.60 185.30 4.94 1.89 0.04 6.87 369.58 1.96 12.19 14.15 376.45 Rupees crores 218.25 Previous Year Rupees crores 362.30
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Schedule 14 : Notes to the Balance Sheet and the Pro t and Loss Account
1. Signi cant Accounting Policies: The nancial statements are prepared under the historical cost convention, on an accrual basis and comply with the Accounting Standards (AS) noti ed by the Companies (Accounting Standards) Rules, 2006. The preparation of the nancial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the nancial statements and the reported income and expenses. The Management believes that the estimates used in the preparation of the nancial statements are prudent and reasonable. Future results could differ from these estimates. The signi cant accounting policies adopted in the presentation of the nancial statements are as under:(a) Rooms, Restaurants, Banquets and Other Services: Rooms, Restaurants, Banquets and Other Services comprise of sale of rooms, food and beverages, allied services relating to hotel operations, including net income from telecommunication services and management and operating fees. Revenue is recognised upon rendering of the service. (b) Export Bene ts Entitlement: Bene ts arising out of Duty Free Scrips utilised for the acquisition of xed assets are adjusted against the cost of the related xed assets. (c) Employee Bene ts: i. Provident Fund The Companys contribution to the recognised Provident Fund, paid/payable during the year, is debited to the Pro t and Loss Account. The shortfall, if any, between the return guaranteed by the statute and the actual earnings of the Fund is provided for by the Company and contributed to the Fund. ii. Gratuity Fund The Company makes annual contributions to funds administered by trustees for amounts noti ed by the funds. The Company accounts for the net present value of its obligations for gratuity bene ts, based on an independent external actuarial valuation, determined on the basis of the projected unit credit method, carried out as at the Balance Sheet date. Actuarial gains and losses are recognised immediately in the Pro t and Loss Account. iii. Post Retirement Bene ts The net present value of the Companys obligation towards post retirement pension scheme for retired whole time directors is actuarially determined, based on the projected unit credit method. Actuarial gains and losses are recognised immediately in the Pro t and Loss Account. iv. Superannuation The Company has a de ned contribution plan, wherein it annually contributes a sum equivalent to the employees eligible annual basic salary to funds administered by trustees. The Company recognises such contributions as an expense in the year they are incurred. The Company also has separate funded and unfunded schemes, which guarantee a minimum pension to certain categories of employees. The Company accounts for the net present value of its obligations therein, based on an independent external actuarial valuation, carried out as at the Balance Sheet date,
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which is determined on the basis of the projected unit credit method. Actuarial gains and losses are recognised immediately in the Pro t and Loss Account. v. Compensated Absences The Company has a scheme for compensated absences for employees, the liability for which is determined on the basis of an actuarial valuation, carried out at the Balance Sheet date. vi. Other Employee Bene ts Other bene ts, comprising of Long Service Awards and Leave Travel Allowances, are determined on an undiscounted basis and recognised based on the likely entitlement thereof. (d) Fixed Assets: Fixed assets are stated at cost less depreciation/amortisation and impairment losses, if any. Cost includes expenses incidental to the installation of assets and attributable borrowing costs. (e) Depreciation/Amortisation: In respect of assets acquired before December 16, 1993, depreciation is provided under the straight-line method at the rates and in the manner speci ed in Schedule XIV to the Companies Act, 1956, as existing on that date. In respect of assets acquired on or after December 16, 1993, depreciation is provided at the rates as speci ed in Schedule XIV to the Companies Act, 1956, as revised with effect from that date. In respect of Leasehold Land, depreciation is provided for from the date the land is put to use for commercial operations, over the balance period of the lease. In respect of Improvements to Buildings, depreciation is provided @ 6.67%. Intangible assets are amortised on a straight-line basis at the rates speci ed below: Website Development Cost Cost of Customer Reservation System (including licensed software) Service & Operating Rights (f) Transactions in Foreign Exchange: Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. In respect of integral foreign operations:i. Monetary items outstanding as at the Balance Sheet date are translated at the exchange rate prevailing at the Balance Sheet date and the resultant difference is recognised as income or expense, as the case may be; Non-monetary items outstanding as at the Balance Sheet date are reported, using the exchange rate prevailing on the date of each transaction. - 20.00% - 16.67% - 10.00%
ii.
In respect of non-integral foreign operations:Both monetary and non-monetary items are translated at the closing rate and the resultant difference is accumulated in a Foreign Currency Translation Reserve, until the disposal of the net investment.
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The exchange differences arising on revaluation of long term foreign currency monetary items for the year ended March 31, 2009 and 2010 are being amortised over the shorter of the maturity period or March 31, 2011. The unamortised balance as at the year end is presented as Foreign Currency Monetary Item Translation Difference Account. (g) Derivative Instruments: Exchange differences arising on repayment/revaluation of derivative contracts, entered into in respect of some of the Companys underlying borrowings, are recognised as income or expense, as the case may be, in the period in which they arise. Interest rate derivatives are accounted, based on an underlying benchmark for the relevant period. (h) Impairment of Assets: Impairment is ascertained at each Balance Sheet date in respect of the Companys xed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash ows are discounted to their present value, based on an appropriate discount factor. (i) Assets taken on lease: Operating Lease payments are recognised as expenditure in the Pro t and Loss Account on a straight line basis, representative of the time pattern of bene ts received from the use of the assets taken on lease. (j) Inventories: Stock of Food and Beverages and Stores and Operating supplies are carried at cost (computed on a weighted average basis) or Net Realisable Value, whichever is lower. (k) Investments: i. ii. (l) Long term investments are carried at cost. Provision is made for diminution in value, other than temporary, on an individual basis. Current investments are carried at the lower of cost and fair value, determined on a category-wise basis.
Miscellaneous Expenditure: Payments made under the Voluntary Retirement Scheme, including the additional liabilities towards leave encashment and gratuity, arising pursuant to the Voluntary Retirement Scheme, are amortised over a period of 60 months, commencing from the month in which the Scheme is implemented, or upto 31st March, 2010, whichever is earlier.
(m) Taxes on income: i. Income tax is computed in accordance with Accounting Standard 22 - Accounting for Taxes on Income (AS-22), noti ed by the Companies (Accounting Standards) Rules, 2006. Tax expenses are accounted in the same period to which the revenue and expenses relate. Provision for current income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws. The differences between the taxable income and the net pro t or loss before tax for the year as per the nancial statements are identi ed and the tax effect of timing differences is recognised as
ii.
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a deferred tax asset or deferred tax liability. The tax effect is calculated on accumulated timing differences at the end of the accounting year, based on effective tax rates substantively enacted by the Balance Sheet date. Deferred tax assets, other than on unabsorbed depreciation and carried forward losses, are recognised only if there is reasonable certainty that they will be realised in the future and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date. In situations where the Company has unabsorbed depreciation and carried forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that the same can be realised against future taxable pro ts.
iii.
(n)
Accounting for Provisions, Contingent Liabilities and Contingent Assets: Provisions are recognised in terms of Accounting Standard 29 Provisions, Contingent Liabilities and Contingent Assets (AS-29), noti ed by the Companies (Accounting Standards) Rules, 2006, when there is a present legal or constructive obligation as a result of past events, where it is probable that there will be out ow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognised only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future out ow of resources, or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable out ow of resources are provided for. Contingent Assets are not recognised in the nancial statements.
(o)
Borrowing Costs: i. Interest and other borrowing costs, attributable to qualifying assets are capitalised. ii. Interest not attributable to qualifying assets is charged to the Pro t and Loss Account in the year in which it is incurred. iii. Debenture issue costs and entire premium on redemption of Debentures are adjusted against the Securities Premium Account in accordance with Section 78 of the Companies Act, 1956. iv. Other Borrowing Costs are charged to revenue account over the tenure of the borrowing. The Taj Mahal Palace & Tower in Mumbai was attacked by terrorist on November 26, 2008 amongst other targets in the city, due to which the heritage wing of the property was severely damaged. The Company is adequately insured for the property restoration. The cost of reinstatement of damage will be recovered from the insurance company, subject to the adjustment on account of expected deductions from claim amounts. The facilities that have been put to use are capitalised at its carrying value on the date of the loss, increased for the expected deductions from claim amounts. The amount spent on areas that are yet to be commissioned are re ected in Capital Work in Progress on similar basis. The Company is also insured for Loss of Pro ts to cover the period of interruption for up to 12 months from the date of incident, which has since expired on November 25, 2009. The Company has recognised an amount of Rs 64.35 crores (Previous Year Rs 85.54 crores) towards loss of pro t due to business interruption on an estimated basis. The Company is in an advanced stage of nalisation of the claim with the insurers. In respect of the previous year, Exceptional Item of Rs. 6.21 crores pertains to annuities purchased from LIC of India for pension payments to legal heirs of the employees deceased in the above mentioned incident. Out of the above, Rs. 1.92 cores has been refunded during the year.
2.
(a)
(b)
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3. Rights Issue of Simultaneous but unlinked issue of Ordinary Shares and Non-Convertible Debentures with Detachable Warrants to the ordinary shareholders of the Company (a) Under the terms of the simultaneous but unlinked Rights Issue of Ordinary Shares of Rs.70/- each and 6% Non Convertible Debentures with detachable Warrants aggregating Rs.1,446.65 crores, completed on April 24, 2008, the Warrant holders were entitled to apply for 1 ordinary share at a price of Rs.150/- each, during the month of September 2009. The Company received valid applications for 67,499 shares from Warrant holders, for which allotment was made on October 15, 2009. Consequently, the Share Capital of the Company has increased from Rs. 72,34,05,288 to Rs. 72,34,72,787. The funds raised by way of Rights Issue of Ordinary Shares and Non-Convertible Debentures were fully utilised by March 31, 2010 as under :Rs. crores Particulars Amounts raised through Rights Issue Utilisation Capital expenditure on Projects Investment in International Subsidiaries / Associates Investment in Domestic Companies Repayment of Long Term Debts General corporate purposes Issue expenses Total 4. Non-Convertible Debentures: The Company has, during the year, raised Rs. 700 crores through private placement of Non-Convertible Debentures, redeemable at a premium. The redemption premium payable on maturity amounting to Rs. 560.27 crores and expenses in relation to the above issues amounting to Rs. 3.87 crores, after netting of tax of Rs. 187.50 crores, comprising of current tax of Rs. 4.73 crores and deferred tax of Rs. 182.77 crores, has been set off against the Securities Premium Account, in accordance with Section 78 of the Companies Act, 1956. 5. Provision for Current Tax, Deferred Tax & Fringe Bene t Tax: (a) Provision for tax includes the following: Particulars Current Tax Wealth Tax Deferred Tax charge Fringe Bene t Tax Total provision Current Year 56.42 1.00 5.04 62.46 Rs. crores Previous Year 109.00 1.00 9.08 5.50 124.58 108.80 697.35 299.10 83.30 250.30 7.80 1,446.65 Amount 1,446.65
(b)
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(b) The net deferred tax Assets / liability comprises of the following : Rs. crores Particulars Deferred tax assets: Provision for doubtful debts Premium on Redemption of Debentures Provision for Employee Bene ts Others Total (A) Deferred tax liability: Depreciation on xed assets Total (B) Net deferred tax Asset / (Liability) (A-B) 6. 171.45 171.45 30.79 167.00 167.00 (146.94) 3.08 182.77 9.47 6.92 202.24 3.53 8.48 8.05 20.06 Current Year Previous Year
Shareholders Deposits placed with a subsidiary company include Rs. 276.99 crores (equivalent to USD 61.363 million) [(previous year Rs.168.70 crores) (equivalent to USD 33.110 million)] placed in earlier years, with the Company retaining the right to convert the said deposits into equity by December 31, 2012, as per the permission received from the Reserve Bank of India. (a) The Company has given an undertaking to The Hongkong & Shanghai Banking Corporation in respect of borrowing by IHMS (Australia) Pty Limited, a wholly-owned subsidiary, for Australian Dollars 1.00 million (previous year 10.44 million), that it will not dilute its shareholding in the subsidiary. Samsara Properties Limited, a wholly-owned subsidiary of the Company has taken a loan from ICICI Bank for US$ 177 million. The Bank has an option to sell / transfer the loan to the Company on the occurrence of an event of default under the loan agreement. The Company owns 19.90% of issued share capital of Lands End Properties Private Limited (LEPPL), a company owning 67% interest in the Hotel Sea Rock Property through its wholly-owned subsidiary, Sky Deck Properties & Developers Private Limited (SDPDPL). LEPPL has raised a debt of Rs. 400 crores by issuance of zero coupon Non-Convertible Debentures, redeemable at a premium. In respect of the debentures issued by LEPPL, the Company has :i. ii. the rst right to purchase the entire shareholding of SDPDPL held by LEPPL for an aggregate value of Rs. 525.65 crores; or the obligation to make good the value of the short-fall if the lenders of LEPPL realise an amount lower than the Redemption Amount on sale of the shares of SDPDPL in case the right referred in (i) above is not exercised.
7.
(b)
(c)
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(d) The Company has given an option to certain shareholders of ELEL Hotels & Investment Ltd., a company having an underlying lease of the Hotel Sea Rock Property as under:i. Shareholders holding 3,98,090 shares have an option to sell these shares to the Company. The option is exercisable at a price to be determined based on ful lment of certain obligations by the holders of these shares on January 1, 2011 or July 1, 2011 or January 1, 2012 or July 1, 2012. Shareholders holding 5,36,339 shares have an option to sell these shares to the Company. The option is exercisable at a price to be determined based on ful lment of certain obligations by the holders of these shares at an agreed xed return, payable from June 25, 2009 at a price so determined. The shareholders can exercise the option on January 1, 2013 or July 1, 2013 or January 1, 2014 or July 1, 2014. The Company also has an option to purchase these shares at the same price on April 1, 2013 or September 1, 2013 or April 1, 2014 or September 1, 2014.
ii.
8. 9.
Estimated amount of contracts remaining to be executed on capital account net of capital advances and not provided for is Rs. 234.64 crores (previous year Rs. 351.29 crores). (a) Expenditure recovered from other parties :Particulars Fuel, Power and Light Repairs to Buildings Repairs to Machinery Linen and Uniform Washing Rent Other Expenses Total (b) (c) (d) (e) Current Year 3.94 0.11 0.10 1.08 0.19 0.90 6.32 Rs. crores Previous Year 4.24 0.11 0.11 0.97 0.11 0.67 6.21
Purchase of Food and Beverages is after adjusting Rs. 0.76 crore (previous year - Rs. 0.69 crore) on account of sale of empties, etc. Dividend Income includes dividend from subsidiary companies - Rs. 3.35 crores (previous year - Rs. 6.51 crores). Dividend Income includes income on long term trade investments - Rs. 23.75 crores (previous year Rs. 31.08 crores) and on current investments - Rs. 13.08 crores (previous year - Rs. 38.42 crores). Exchange gain includes gain on currency swap - Rs. 6.25 crores (previous year loss of Rs. 24.80 crores included in Exchange Loss) and loss on foreign exchange transactions - Rs. 2.92 crores (previous year gain of Rs. 2.57 crores included in Exchange Loss). Other expenses include Bad Debts written off Rs. 4.73 crores (previous year - Rs. 1.89 crores) and contribution to Electoral Trust Rs. 1.00 crore (previous year Nil) (The Objects of the Trust inter alia, include holding by the Trustees of Distribution Funds for distribution to political parties).
(f)
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10. Cash and Bank Balances: (a) Balances with Non-Scheduled Banks comprise of :Maximum amount outstanding in Current Year Rs. Maximum amount outstanding in Previous Year Rs.
Particulars Current Year Rs. Current Account Standard Chartered Bank, Beijing Citibank, New York National Westminster Bank PLC, London HSBC Bank, Dubai Total Current Account (b) 3,21,065 15,50,849 20,18,803 4,98,861 43,89,578 2,63,317 17,44,239 78,10,589 13,12,348 1,11,30,493 Previous Year Rs.
3,41,600 17,49,043 78,10,589 13,12,348
2,63,317 17,44,239 80,88,477 25,34,733
Details of Cash and Cash Equivalents:Rs. crores Particulars Cash and Bank balances (as per Schedule 8 Page 80) Add :- Investment in Liquid Mutual Funds (as per Schedule 6 Page 75) Cash and Cash Equivalents as per Cash Flow Statement Current Year 447.12 20.09 467.21 Previous Year 23.44 422.15 445.59
11.
Contingent Liabilities: (a) On account of Income Tax matters in dispute : i. In respect of matters which have been decided in the Companys favour by the Appellate Authorities, where the Income Tax Department has preferred an appeal - Rs. 13.03 crores (previous year - Rs. 57.01 crores). In respect of other matters for which Companys appeals are pending - Rs. 1.83 crores (previous year - Rs. 21.67 crores).
ii.
The said amounts have been paid / adjusted and will be recovered as refund if the matters are decided in favour of the Company. (b) On account of other disputes in respect of :i. ii. Luxury tax Rs. 0.32 crore (previous year Rs. 0.32 crore). Entertainment tax Rs. 0.53 crore (previous year - Rs. 0.53 crore).
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iii. iv. v. vi. (c) Sales tax Rs. 6.63 crores (previous year - Rs. 6.22 crores). Property tax Rs. 7.40 crores (previous year - Rs. 6.77 crores). Stamp Duty Rs. 2.34 crores (previous year Rs. 2.34 crores) Others Rs. 7.74 crores (previous year Rs. 8.17 crores)
In respect of a disputed demand of Rs. 4.15 crores made in an earlier year towards Entertainment Tax in respect of a property, the Company has preferred an appeal in the High Court of Calcutta, and has paid an amount of Rs. 3.03 crores under protest, to the relevant authorities as directed by the court. As a matter of prudence, the Company has made a provision of the entire amount. The unpaid demand of Rs. 1.12 crores is being re ected in the books of account as Provision for Contingencies. Other claims against the Company not acknowledged as debts - Rs. 120.71 crores (previous year - Rs. 90.14 crores) mainly pertain to the demand of Rs. 21.64 crores, raised by the Delhi Development Authority towards additional License Fees (previous year - Rs. 22.32 crores) and additional ground rent amounting to Rs. 99.07 crores (previous year Rs 67.82 crores) demanded by the Mumbai Port Trust. Guarantees given by the Company in respect of deposits received and loans obtained by other companies and outstanding as on March 31, 2010 - Rs. 392.41 crores (previous year - Rs. 463.27 crores). In respect of a subsidiary, arbitration proceedings initiated to resolve a long standing dispute with the Airport Authority of India (AAI) for granting access through the subsidiarys land at Mumbai have been concluded in favour of the Company. As a result, the claim made by AAI on the Company amounting to Rs. 10.22 crores stands withdrawn. The revised claim pursuant to the award given by the arbitrator is awaited from the AAI. The Company does not expect any liability for the past period and should there be any liability crystallising on the subsidiary for any reason, the same is indemni able by the Company. Rs. crores Previous Year 3.51 0.16 1.80 3.00 8.47
(d)
(e) (f)
12.
Managerial Remuneration: Particulars Salaries Contribution to Provident and Other Funds Bene ts in Cash or in kind (estimated monetary value) Commission on Pro ts Total Current Year 4.62 0.16 2.51 5.00 12.29
Managerial remuneration excludes provision for gratuity and compensated absences, since these are provided on the basis of an actuarial valuation of the Companys liability to all its employees. 13. The Company has taken certain vehicles on operating lease. The total lease rent paid on the same amounting to Rs. 2.19 crores (previous year - Rs. 2.17 crores) is included under Other Expenses. The minimum future lease rentals payable in respect thereof are as follows:Rs. crores Particulars Current Year Previous Year 0.37 Not later than one year 1.90 Later than one year but not later than ve years 1.33 Later than ve years -
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14. Interest expense is net of interest income and comprises of : Particulars Interest Expense Fixed loans# Other loans On Income Tax Demand Less Interest Capitalised Total expense (A) Interest Income (Gross)* Inter-Corporate Deposits Deposits with Banks On Deposits from related parties Interest on Income Tax Refunds Others Total Income (B) Interest (net) (A-B) * Tax deducted at source 5.20 0.54 0.64 15.18 1.01 22.57 152.90 0.78 21.85 0.64 0.73 3.79 4.76 31.77 89.19 5.15 172.90 1.29 5.75 179.94 4.47 175.47 119.15 1.81 120.96 120.96 Current Year Rs. crores Previous Year
# Interest on Fixed Loans includes Rs. 0.26 crore (previous year - Rs. 0.59 crore) being expenses on loans amortised over the tenure of the loan. 15. Auditors Remuneration: Particulars 1) 2) 3) 4) 5) 6) As Auditors For Tax Audit For Company Law matters [Current year Nil (Previous year - Rs. 25,000)] For Other Services For out-of pocket expenses Service tax on above [Net of credit availed - Rs. 0.19 crore (Previous Year Rs. 0.15 crore)] Current Year 1.48 0.20 0.12 0.12 1.92 Rs. crores Previous Year 1.12 0.18 0.06 0.01 1.37
Total Auditors Remuneration
The above excludes Nil (previous year Rs. 0.69 crore) paid to auditors for Other Services and debited to the Securities Premium Account.
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16. 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:(a) Derivative Instruments outstanding: Currency Nature of Hedge Principal - only swap Option Contract Libor Cap Currency swap (b) INR/USD INR/USD INR/USD INR/USD Current Year Previous Year (USD million) Rs. crores (USD million) Rs. crores 30.00 30.00 40.00 132 187 22.73 30.00 30.00 100 153 -
Unhedged Foreign currency exposure receivables (net): Currency United States Dollar (Million) South African Rand (Million) Current Year 121.32 27.07 Previous Year 52.95 27.07
17.
The Company has exercised the option granted vide noti cation F.No.17/33/2008/CL-V dated March 31, 2009, issued by the Ministry of Corporate Affairs and, accordingly, the exchange differences arising on revaluation of long term foreign currency monetary items for the year ended March 31, 2009 and 2010 have been recognised over the shorter of the maturity period or March 31, 2011. The unamortised balances as at the year end are presented as Foreign Currency Monetary Item Translation Difference Account. Employee Bene ts: (a) The Company has recognised the following amounts in the Pro t and Loss Account under the head Companys Contribution to Provident Fund and Other Funds:Rs. crores Particulars Provident Fund Superannuation Fund Total (b) The Company operates post retirement de ned bene t plans as follows :i. Funded : Post Retirement Gratuity Pension to Employees Post retirement minimum guaranteed pension scheme for certain categories of employees, which is funded by the Company and the employees. Current Year 14.19 5.15 19.34 Previous Year 13.89 4.49 18.38
18.
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ii. Unfunded : Pension to Executive Directors and Employees Post retirement minimum guaranteed pension scheme for certain retired executive directors and certain categories of employees, which is unfunded. (c) Details of gratuity plan are as follows :i. Amount to be recognised in Balance Sheet and movement in net liability Particulars Present Value of Funded Obligations Fair Value of Plan Assets Net Liability recognised in the Balance Sheet and included under Sundry Creditors ii. Expenses recognised in the Pro t & Loss Account Particulars Current Service Cost Interest Cost Expected return on Plan Assets Actuarial Losses / (Gains) recognised in the year Net gratuity expenses included in Payments to & Provision for Employees Actual Return on Plan Assets iii. Reconciliation of De ned Bene t Obligation Particulars Opening De ned Bene t Obligation Current Service Cost Interest Cost Actuarial Losses / (Gains) Bene ts Paid Closing De ned Bene t Obligation Current Year 94.22 6.16 6.72 (6.40) (5.26) 95.44 Current Year 6.16 6.72 (5.43) (13.92) (6.47) 12.93 Current Year 95.44 (95.09) 0.35 Rs. crores Previous Year 94.22 (72.94) 21.28
Rs. crores Previous Year 4.90 5.99 (5.25) 23.21 28.85 (2.61) Rs. crores Previous Year 74.80 4.90 5.99 15.33 (6.80) 94.22
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iv. Reconciliation of Fair Value of Plan Assets Rs. crores Particulars Opening Fair Value of Plan Assets Expected return on Plan Assets Actuarial Gains / (Losses) Contributions by Employer Bene ts Paid Closing Fair Value of Plan Assets Expected Employers contribution next year v. Description of Plan Assets (Managed by an Insurance Company) Particulars Government of India Securities Corporate Bonds Special Deposit Scheme Equity Others Grand Total vi. Experience Adjustments Rs crores Particulars 2006 De ned Bene t Obligation Plan Assets Surplus / (De cit) Exp. Adj. on Plan Liabilities Exp. Adj. on Plan Assets 50.32 59.06 8.74 Year Ended March 31, 2007 62.42 60.84 (1.58) 11.87 0.93 2008 74.80 73.34 (1.46) 9.26 5.94 2009 94.22 72.94 (21.28) 9.06 (7.87) 2010 95.44 95.09 (0.35) 2.45 7.49 Current Year (%) 7 65 1 14 13 100 Previous Year (%) 12 59 1 15 13 100 Current Year 72.94 5.43 7.52 14.46 (5.26) 95.09 7.00 Previous Year 72.34 5.25 (7.87) 9.02 (6.80) 72.94 10.00
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vii. Summary of Actuarial Assumptions Particulars Discount Rate Expected rate of return on Assets Salary Escalation Rate Attrition rate Mortality (d) Current Year (%) 8.15 7.50 5.00 12 Previous Year (%) 7.00 7.50 5.00 12
Published notes under the LIC (1994-96) mortality tables
Details of unfunded post retirement de ned bene t obligation are as follows :i. Reconciliation of De ned Bene t Obligation Rs. crores Particulars Opening De ned Bene t Obligation Current Service Cost Interest Cost Actuarial (Gains) / Losses Bene ts Paid Closing De ned Bene t Obligation ii. Expenses recognised in the Pro t & Loss Account Rs. crores Particulars Current Service Cost Interest Cost Actuarial (Gains) / Losses Net expenses included in Payments to and Provision for Employees Current Year 0.90 0.63 (2.11) (0.58) Previous Year 0.78 0.49 2.73 4.00 Current Year 8.38 0.90 0.63 (2.11) (1.45) 6.35 Previous Year 5.73 0.78 0.49 2.73 (1.35) 8.38
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iii. Experience Adjustments Rs. crores Particulars De ned Bene t Obligation Plan Assets Surplus / (De cit) Exp. Adj. on Plan Liabilities Exp. Adj. on Plan Assets iv. Summary of Actuarial Assumptions Particulars Discount Rate Pension Increase Rate Salary Escalation Rate Attrition rate Mortality (e) Pension Scheme for Employees: The Company has formulated a funded pension scheme for certain employees. The actuarial liability arising on the above, after allowing for employees contribution is determined as at the year end, under the basis of uniform accrual bene t, with demographic assumptions taken as Nil, is as follows: i. Amount to be recognised in Balance Sheet Rs. crores Particulars Present Value of Funded Obligation Fair Value of Plan Asset Present Value of Obligation Unrecognised Past Service Cost Net Liability Current Year 3.75 (3.85) (2.28) (2.38) Previous Year 3.44 (2.66) 0.78 Current Year (%) 8.15 4.00 5.00 12 Previous Year (%) 7.00 4.00 5.00 12 Year Ended March 31, 2006 2.53 (2.53) 2007 6.82 (6.82) 0.06 2008 5.73 (5.73) (1.70) 2009 8.38 (8.38) 1.85 2010 6.35 (6.35) (1.03) -
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ii. Expense to be recognised in the Pro t & Loss Account Rs. crores Particulars Current Service Cost Interest on De ned Bene t Obligation Net Actuarial Losses / (Gains) recognised in Year Past Service Cost Net expenses included in Payments to and Provision for Employees Actual Return on Plan Asset iii. Reconciliation of Bene t Obligation for the year Rs. crores Particulars Changed in De ned Bene t Obligation Opening De ned Bene t Obligation Unrecognised Past Service Cost Current Service Cost Interest Cost Actuarial Losses / (Gains) Closing De ned Bene t Scheme iv. Reconciliation of Fair Value of Plan Assets Rs. crores Particulars Changed in Fair Value of Assets Opening Fair Value of Plan Assets Expected return on Plan Assets Actuarial (Losses) / Gains Contributions by Employer Bene ts Paid Closing Fair Value of Plan Assets Expected Employers contribution next year 0.12 3.73 3.85 Current Year Previous Year 3.44 0.13 0.25 (0.07) 3.75 3.04 0.11 0.24 0.05 3.44 Current Year Previous Year Current Year 0.13 0.25 (0.19) 0.38 0.57 0.12 Previous Year 0.11 0.24 0.05 0.38 0.78 -
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v. Description of Plan Assets (Managed by an Insurance Company) Particulars Government of India Securities Corporate Bonds Special Deposit Scheme Equity Property Insurer Managed Funds Others (Fixed Deposits) Grand Total vi. Experience Adjustments Rs. crores Particulars De ned Bene t Obligation Plan Asset Surplus/ (De cit) Exp. Adj. on Plan Liabilities Exp. Adj. on Plan Asset Year Ended March 31, 2006 2007 2008 3.04 (3.04) 2009 3.44 (3.44) (0.37) 2010 3.75 3.85 0.10 0.55 0.12 Current Year (%) 100 100 Previous Year (%) -
vii. Financial Assumption at the Valuation date Particulars Discount Rate Expected rate of return on Assets Salary Escalation Rate Current Year (%) 8.15 7.50 Previous Year (%) 7.00 -
The past service liability is being amortised over the average vesting period of 8.02 years.
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(f) Provident Fund In keeping with the Guidance on implementing Accounting Standard (AS) 15 (Revised) on Employee Bene ts noti ed by the Companies (Accounting Standards) Rules, 2006, employer established provident fund trusts are treated as De ned Bene t Plans, since the Company is obligated to meet interest shortfall, if any, with respect to covered employees. According to the Management, the Actuary has opined that actuarial valuation cannot be applied to reliably measure provident fund liabilities in the absence of guidance from the Actuarial Society of India. Accordingly, the Company is currently not in a position to provide other related disclosures as required by the aforesaid AS 15 read with the Accounting Standards Board Guidance. However, having regard to the position of the Fund (for covered employees) and con rmation from the Trustees of such Fund, provision has been made for such shortfall as at the year-end. The estimate of future salary increases, considered in actuarial valuation, takes into account in ation, seniority, promotions and other relevant factors. The above information has been certi ed by the actuary and has been relied upon by the Auditors. 19. As the turnover of the Company includes sale of food and beverages, it is not possible to give quantitative details of the turnover and food & beverages consumed. The Company has been exempted from giving these particulars vide order no. 46/20/2008-CL-III dated May 23, 2008, issued by the Department of Company Affairs. Food and Beverage Consumed: Rs. crores Particulars Imported Indigenous Total 21. CIF Value of imports is as follows: Rs. crores Particulars Raw Materials (Food and Beverages) Stores, Supplies and Spare Parts for Machinery Capital Goods 22. Earnings in Foreign Exchange are as follows : Rs. crores Particulars Rooms, Restaurants, Banquets and Other Services Current Year 574.22 Previous Year 627.16 Current Year 6.28 4.90 45.47 Previous Year 5.96 5.68 45.60 Current Year 16.30 96.28 112.58 % 14.48 85.52 100.00 Previous Year 7.99 106.55 114.54 % 6.98 93.02 100.00
20.
The earnings in foreign exchange, as reported above, are on the basis of actual receipts during the year, as certi ed by the Management.
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23. Expenditure in Foreign Exchange: Rs. crores Particulars Membership Fees Advertising Professional Consultancy Fees Others 24. Remittance in Foreign Currencies for dividend to non-resident shareholders: The Company has not remitted any amount in foreign currencies on account of dividend during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by/on behalf of non-resident shareholders. The particulars of dividend paid to non-resident shareholders during the year, are as under: Particulars Year to which dividend relates Numbers of non-resident shareholders Number of Ordinary Shares held by non-resident shareholders Gross amount of dividend (Rs. crores) Net amount of dividend (Rs. crores) 25. Current Year 2008-09 2,633 7,556,719 0.91 0.91 Previous Year 2007-08 1,785 7,573,235 1.44 1.44 Current Year 1.57 14.61 28.78 8.67 Previous Year 1.26 20.82 7.51 13.78
The Company has an investment of Rs. 0.50 crore (previous year - Rs. 0.30 crore) and advances outstanding (including interest) of Rs. 8.76 crores (previous year - Rs. 9.42 crores) in a Joint Venture, Taj Karnataka Hotels and Resorts Limited (TKHRL). TKHRL has accumulated losses in excess of its paid-up capital and reserves. Considering the inherent value of TKHRLs assets, based on a valuation of the property and its proposed nancial restructuring, for which the Company is in talks with the JV partner the Government of Karnataka, the Management is of the view that there is no diminution, other than temporary, in the value of the investment and that the amount outstanding after the nancial restructuring will be fully recovered. The Company, on a review of its foreign operations had, in the past, made voluntary disclosures to the appropriate regulator, of what it considered to be possible irregularities, in relation to foreign exchange transactions relating to the period prior to 1998. Arising out of such disclosures, the Company received show cause notices. The Company has replied to the notices and is waiting for the directorate to return its les, after which it will complete the replies. Adjudication proceedings are in progress.
26.
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27. Provision for Doubtful Debts : Particulars Opening Balance Add : Provision during the year Less : Bad debts written off Less : Provision no longer required, written back Closing Balance 28. Provision for Loyalty Programmes : The Company has loyalty programmes, which enable its customers to accumulate points based on their spends at the hotels. Such points can be encashed either by stay at the Companys hotels or by purchase of merchandise. The estimated liability in respect of the loyalty schemes is as under: Rs. crores Particulars Opening Balance Less : Redeemed during the year Add : Provision during the year Closing Balance 29. Current Year 12.57 0.66 11.91 2.86 14.77 Previous Year 10.96 0.90 10.06 2.51 12.57 Current Year 10.39 3.88 14.27 4.73 0.28 9.26 Rs. crores Previous Year 10.32 2.98 13.30 1.89 1.02 10.39
Long Term Deposits and Loans and Advances in the nature of loans to Subsidiaries, Jointly controlled entities and Associates:Rs. crores Maximum amount outstanding during the year 837.51 1.82 827.04 3.00 Balance Outstanding as on March 31, 2010 Maximum amount outstanding during the previous year 346.79 4.25 10.57 312.64 12.00 Balance Outstanding as on March 31, 2009
Particulars
Subsidiaries IHMS Inc. Innovative Foods Ltd. Residency Foods & Beverages Ltd. Taj International Hotels (HK) Ltd. Roots Corporation Ltd. 40.63 0.05 805.81 195.64 1.82 312.64 -
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Maximum amount outstanding during the year Balance Outstanding as on March 31, 2010 Maximum amount outstanding during the previous year Balance Outstanding as on March 31, 2009
Particulars
Jointly Controlled Entities IHMS Hotels (SA) (Proprietary) Ltd. Taj Karnataka Hotels & Resorts Ltd. TAL Hotels & Resorts Ltd. (formerly known as Taj Asia Ltd.) Taj GVK Hotels & Resorts Ltd. Associates Oriental Hotels Ltd. BJETS Pte Ltd., Singapore Taj Air Ltd. 30. 23.00 5.63 29.50 23.00 5.26 12.80 25.00 24.50 12.00 24.50 17.73 5.35 25.48 5.00 16.45 5.35 20.04 5.00 15.92 5.35 25.47 5.00 14.62 5.35 25.47 5.00
Investments made in the Ordinary Shares of the Company and its subsidiaries by a loanee as at March 31, 2010: Rs. crores Company Oriental Hotels Ltd. Piem Hotels Ltd. Current Year Previous Year 2.74 6.80
31.
Micro and Small Enterprises: (a) (b) There is no interest paid/payable during the year by the Company to the suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006. The above information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose.
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32. Related Party disclosures: (a) The names of related parties of the Company are as under: i) Subsidiary Companies Name of the Company Domestic TIFCO Holdings Ltd. KTC Hotels Ltd. United Hotels Ltd. Roots Corporation Ltd. Taj SATS Air Catering Ltd. Residency Foods & Beverages Ltd. Innovative Foods Ltd. International Taj International Hotels (H.K.) Ltd. IHMS (HK) Ltd. (De-registered with effect from March 26, 2010) Chieftain Corporation NV IHOCO BV St. James Court Hotels Ltd. Taj International Hotels Ltd. International Hotel Management Services Inc. Samsara Properties Ltd. IHMS (Australia) Pty. Ltd. IHMS (Restaurants) Pty. Ltd. (De-registered with effect from November 04, 2009) Apex Hotel Management Services (Pte) Ltd. ii) Jointly Controlled Entities Name of the Company Domestic Taj Madras Flight Kitchen Pvt. Ltd. Taj Karnataka Hotels & Resorts Ltd. Taj Kerala Hotels & Resorts Ltd. Taj GVK Hotels & Resorts Ltd. Taj Safaris Ltd. India India India India India Country of Incorporation Hong Kong Hong Kong Netherlands Antilles Netherlands United Kingdom United Kingdom United States of America British Virgin Islands Australia Australia Singapore India India India India India India India Country of Incorporation
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Name of the Company International TAL Hotels & Resorts Ltd. (formerly known as Taj Asia Ltd.) IHMS Hotels (SA) (Proprietary) Ltd. iii) Associates Name of the Company Domestic Benares Hotels Ltd. Taj Air Ltd. Piem Hotels Ltd. Taj Trade and Transport Co. Ltd. Taj Enterprises Ltd. Inditravel Pvt. Ltd. Oriental Hotels Ltd. Taj Madurai Ltd. Taida Trading & Industries Ltd. Ideal Ice & Cold Storage Co. Ltd. International Lanka Island Resort Ltd. (formerly known as Taj Lanka Resorts Ltd.) TAL Lanka Hotels PLC. (formerly known as Taj Lanka Hotels Ltd.) BJETS Pte Ltd., Singapore * Sri Lanka Sri Lanka Singapore India India India India India India India India India India Country of Incorporation Hong Kong South Africa Country of Incorporation
* Although the holding exceeds 50%, the investment is treated as an associate in terms of the shareholders agreement which caps the ultimate holding of the company to 44.44%. Key managerial personnel comprise whole-time directors, who have the authority and responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such directors is disclosed in Note 12 on Page 95 and the dues from such persons are disclosed in footnotes 1 and 2 (i) of Schedule 8 Current Assets, Loans and Advances, forming part of the Balance Sheet. Presently Mr. Raymond N Bickson, the Managing Director, Mr. Anil P. Goel, the Executive Director - Finance and Mr. Abhijit Mukerji, the Executive Director - Hotel Operations, are the Key Management Personnel drawing remuneration excluding commission of Rs. 5.45 crores (previous year Rs. 3.89 crores), Rs. 1.02 crores (previous year Rs. 1.00 crore) and Rs. 0.82 crore (previous year Rs. 0.58 crore) respectively.
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(b) The details of transactions with related parties are as follows: Subsidiaries Particulars Interest paid / provided Interest received/accrued Dividend received Operating / Licence fees paid Operating fees received Purchase of goods and services Sale of goods and services Due from/(to) on Current A/c Purchase of Shares Sundry Debtors Deposits (Net) (c) Statement of Material Transactions Name of Company Subsidiaries TIFCO Holdings Ltd. ICDs raised ICDs repaid Interest paid KTC Hotels Limited Licence Fees paid ICDs raised ICDs repaid Due to - Current Account 0.53 0.41 2.89 0.53 0.41 2.45 15.90 29.95 0.60 Current Year Current Year 0.03 3.35 0.53 6.26 1.54 0.22 3.80 666.92 6.15 849.98 Previous Year 0.61 1.97 6.51 0.53 6.21 0.59 0.57 12.54 474.19 4.69 513.21 Associates Current Year 2.94 7.74 45.52 46.67 4.87 9.24 14.41 41.06 Previous Year 0.21 2.93 8.75 0.15 47.64 45.63 5.00 0.91 102.59 13.04 36.50 Rs. crores Joint Ventures Current Year 0.96 5.89 24.15 0.33 0.96 (0.36) 17.89 46.85 Previous Year 1.04 7.50 23.91 0.20 0.98 1.09 1.25 13.53 50.45 Rs. crores Previous Year
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Rs. crores Name of Company United Hotels Ltd. Dividend received Operating fees received Purchase of Goods & Services Sale of Goods & Services Sundry Debtors Taj SATS Air Catering Ltd. Dividend received Due from Current Account Purchase of Goods & Services Sale of Goods & Services Roots Corporation Ltd. ICDs placed ICDs encashed Operating fees received Interest received / accrued Sundry Debtors International Hotel Management Services Inc. Due on Current Account Purchase of shares Deposits given outstanding ICDs placed ICD/Shareholders Deposit encashed IHMS (Australia) Pty. Ltd. Sundry Debtors Due to - Current Account 1.34 0.33 0.85 4.27 666.92 4.48 365.08 195.65 325.23 365.08 3.20 3.20 1.20 0.02 2.92 41.00 53.00 0.96 1.90 1.33 2.15 1.29 0.13 3.99 1.68 2.01 3.21 0.23 0.07 0.93 2.52 3.20 Current Year Previous Year
111

Rs. crores Name of Company Taj International Hotels (HK) Ltd. ICD/Shareholders Deposit Purchase of shares Due from Current Account ICD/Shareholders Deposit placed Residency Foods & Beverages Ltd. Interest received ICDs encashed ICDs placed Taj International Hotels Ltd. Operating fees received Sundry Debtors Associates Taj Air Ltd. Interest received Purchase of Goods & Services ICDs placed ICDs encashed Piem Hotels Ltd. Dividend received Operating Fees received Interest paid Due to - Current Account ICDs placed ICDs repaid Sundry Debtors Sale of Goods & Services 3.52 25.07 5.64 2.16 4.41 27.11 0.12 0.59 9.00 18.00 4.45 1.76 1.98 36.32 13.30 25.00 1.77 24.06 42.00 17.50 1.86 0.95 0.01 1.82 0.05 0.68 1.82 805.81 540.60 312.65 109.11 8.15 157.48 Current Year Previous Year
112

Rs. crores Name of Company Oriental Hotels Ltd. Dividend received Operating Fees received ICDs placed ICDs encashed ICDs repaid Interest paid Interest received Sundry Debtors Sale of Goods & Services Deposits taken Deposits Repaid Taj Trade & Transport Co. Ltd. Sale of Goods & Services Due to - Current Account Licence Fees Paid Inditravel Pvt. Ltd. Purchase of Goods & Services Sale of Goods & Services Benares Hotels Ltd. Due from Current Account Taj Enterprises Ltd. Due to Current Account Taj Madurai Ltd. Due to Current Account TAL Lanka Hotels PLC. (formerly known as Taj Lanka Hotels Ltd.) Due from Current Account 10.43 0.34 0.23 2.45 8.43 0.79 19.02 0.89 0.75 0.16 1.25 0.12 3.04 17.53 78.50 67.50 0.68 7.43 0.84 3.55 18.31 56.00 44.00 0.09 1.04 6.94 0.59 5.00 15.00 Current Year Previous Year
113

Rs. crores Name of Company BJETS Pte Ltd. ICDs taken Purchase of shares Jointly Controlled Entities Taj Madras Flight Kitchen Pvt. Ltd. Dividend received Taj GVK Hotels & Resorts Ltd Operating Fees received Dividend received Interest received Sundry Debtors Sale of Goods & Services Purchase of Goods & Services Due from Current Account Taj Kerala Hotels & Resorts Ltd. Dividend received Purchase of Goods & Services Sale of Goods & Services Due from Current Account Sundry Debtors Taj Karnataka Hotels & Resorts Ltd Sale of Goods & Services Due from Current Account TAL Hotels & Resorts Ltd. (formerly known as Taj Asia Ltd.) Interest received Due to Current Account Sundry Debtors 0.61 2.15 5.18 0.69 3.34 0.14 2.20 0.71 0.13 0.10 2.42 3.96 19.19 3.20 0.35 7.36 0.65 0.19 2.25 19.62 5.12 0.35 5.55 1.99 2.38 5.26 102.59 Current Year Previous Year
114

33. In compliance with Accounting Standard 27 Financial Reporting of Interests in Joint Ventures - (AS-27), noti ed by the Companies (Accounting Standards) Rules, 2006, the Company has interests in the following jointly controlled entities: Rs. crores
Amount of Interest based on the Last Audited Accounts for the year Name of the Company Country of Incorporation Holding (%) Assets Liabilities ended March 31, 2010 Income Expenditure Contingent Capital
Liabilities Commitment 25.45 Taj Safaris Ltd.* India (33.33) Taj GVK Hotels and Resorts Ltd. Taj Karnataka Hotels and Resorts Ltd. 25.52 India (25.52) 21.19 India (40.00) 28.30 Taj Kerala Hotels Ltd. India (28.30) Taj Madras Flight Kitchen Pvt. Ltd. TAL Hotels & Resorts Ltd. (formerly known as Taj Asia Ltd.) * IHMS Hotels (SA) (Proprietary) Ltd. South Africa (50.00) (39.81) (38.08) (2.08) (0.16) (20.94) Hong Kong (26.66) 50.00 (103.06) 62.84 (46.86) 69.54 (32.80) 12.41 (33.43) 1.35 (13.59) (0.11) 50.00 India (50.00) 26.66 (18.84) 90.73 (0.90) 42.89 (21.48) 40.41 (15.93) 39.41 (5.61) 12.29 (0.31) 1.06 (15.49) 19.10 (1.07) 0.40 (9.78) 14.41 (8.57) 13.10 (0.58) 4.52 (0.51) (2.85) 16.30 (5.61) 1.19 (1.57) 8.86 (1.62) 7.91 0.51 (0.02) 0.95 (108.02) 1.60 (38.86) 2.91 (60.79) 0.84 (39.66) 0.80 (2.91) (2.59) 0.04 (7.27) 111.00 (4.34) 36.31 (2.37) 58.50 (4.44) 44.39 (0.12) 2.16 (0.12) 7.86 5.59 3.56 2.61 4.00 0.07 -
* Based on Unaudited nancial statements. Note : Figures in the brackets relate to the previous year. 34. The Companys only business being hoteliering, disclosure of segment-wise information is not applicable under Accounting Standard 17 - Segmental Information (AS-17) noti ed by the Companys (Accounting Standards) Rules, 2006. There is no geographical segment to be reported since all the operations are undertaken in India.
115

35. Earnings Per Share (EPS) : Earnings Per Share is calculated in accordance with Accounting Standard 20 Earnings Per Share - (AS-20), noti ed by the Companys (Accounting Standards) Rules, 2006. Particulars Pro t after tax - (Rs. crores) No of Ordinary Shares Basic and Diluted Earnings Per Share - (In Rupees) Basic and Diluted 36. Current Year 153.10 72,34,72,787 2.12 Previous Year 234.03 71,35,64,442 3.28
Previous years gures have been regrouped, wherever necessary, to conform to the current years presentation. For and on behalf of the Board R. K. KRISHNA KUMAR RAYMOND N. BICKSON ANIL P. GOEL ABHIJIT MUKERJI K. B. DADISETH JAGDISH CAPOOR SHAPOOR MISTRY NADIR GODREJ SANKER PARAMESWARAN Vice Chairman Managing Director Executive Director - Finance Executive Director - Hotel Operations Director Director Director Director Vice President Legal & Company Secretary
116
Information Pursuant to Part IV of Schedule VI of the Companies Act,1956

Balance Sheet Abstract and Companys General Pro le
Registration Details Registration No. Balance Sheet Date 183 31 03 10 Rights Issue 67 Private Placement Nil Total Assets 53,655,585 Reserves & Surplus 26,168,745 Unsecured Loans 8,977,796 Trade Deposits 216,910 Investments 24,456,285 Net Current Assets (555,200) Deferred Asset Liability 307,915 Total Expenditure 13,500,244 +/+ Pro t / Loss after Tax 1,530,967 Divident Rate % 100 State Code : 11
Capital Raised during the year (Amount in Rs. Thousands) Public Issue Nil Bonus Issue Nil Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands) Total Liabilities 53,655,585 Sources of Funds Paid-up Capital 723,473 Secured Loans 17,527,690 Foreign Currency Monetary Item Translation Difference Account 40,971 Application of Funds Net Fixed Assets 19,313,790 Long Term Deposits 10,128,050 Misc. Expenditure 4,744 Performance of Company (Amount in Rs. Thousands) Turnover 15,663,522 +/+ Pro t / Loss before Tax 2,163,279 Earnings Per Share in Rs. (Basic) 2.12 Earnings Per Share in Rs. (Diluted) 2.12 Generic Names of Principal Product / Services of the Company (as per monetary terms ) Product Description Hoteliering & Catering Item Code No. (ITC Code) Not Applicable
117
Statement Pursuant To Section 212 Of The Companies Act, 1956

TIFCO Holdings Ltd. 1 2 The Financial Year of the Company ends on : Fully paid-up shares held by IHCL in the Subsidiary Company or by Subsidiary Company in the Subsubsidiary Company at the end of the Financial Year of the Subsidiary or Sub-subsidiary Company as the case may be a) Number 81,500,000 Equity Shares of Rs. 10/- each fully paid-up 6,04,000 Equity Shares of Rs. 10/- each fully paid-up 4,620,000 Equity Shares of Rs. 10/- each fully paid-up 8,874,000 Equity Shares of Rs. 10/- each fully paid-up 51,000,000 Equity Shares of Rs. 10/- each fully paid-up 19,000,070 Equity Shares of Rs. 10/- each fully paid-up 8,035,629 Equity Shares of Rs. 10/- each fully paid-up 50,000,000 Equity Shares of US$ 1 each fully paid-up 31st March 2010 KTC Hotels Ltd. 31st March 2010 United Hotels Ltd. 31st March 2010 Taj SATS Aircatering Ltd. 31st March 2010 Roots Residency Foods and Corporation Ltd. Beverages Ltd. 31st March 2010 31st March 2010 Innovative Foods Ltd. 31st March 2010 Taj International Hotels (H.K.) Ltd. 31st March 2010
b) Extent of holding 3 Changes in the interest of the Company or the Subsidiary Company between the end of the Financial Year of the Subsidiary Company or Sub-subsidiary Company and 31st March, 2010 Number of Shares acquired The net aggregate of Pro t of the Subsidiary Company/Sub-subsidiary Company so far as they concern the Members of the Company a) Dealt with in the accounts of the Company for the year ended 31st March, 2010 b) Not dealt with in the accounts of the Company for the year ended 31st March, 2010 5 The net aggregate of pro ts/(losses) of the Subsidiary/Sub-subsidiary Company for previous nancial years, so far as they concern the Members of the Company a) Dealt with in the accounts of the Company for the year ended 31st March, 2010 b) Not dealt with in the accounts of the Company for the year ended 31st March, 2,010 6 Material changes between the end of the Financial Year of the Subsidiary or Subsubsidiary Company as the case may be and 31st March, 2010 a) Fixed Assets b) Investments c) Moneys lent by the Subsidiary Company d) Moneys borrowed by the Subsidiary Company other than for meeting Current Liabilities
100.00%
100.00%
55.00%
51.00%
100.00%
98.68%
69.22%
100.00%
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Rs. 108,674,000
Rs. 3,886,270
Rs. 43,034,489
Rs. 53,945,760
Rs. (24,124,000)
Rs. (8,253,412)
Rs. (24,020,439)
US$ 2,654,709
Nil
Nil
36,960,000
13,311,000
Nil
Nil
Nil
Nil
Rs. 902,810,000
Rs. 19,027,074
Rs. 53,623,743
Rs. 930,982,560
Rs. (447,463,000)
Rs. (51,980,950)
Rs. (72,706,331)
US$ 2,345,333
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
118
Statement Pursuant To Section 212 Of The Companies Act, 1956 (Contd.)

Chieftain Corporation NV 1 2 The Financial Year of the Company ends on : Fully paid-up shares held by IHCL in the Subsidiary Company or by Subsidiary Company in the Subsubsidiary Company at the end of the Financial Year of the Subsidiary or Sub-subsidiary Company as the case may be a) Number 9,923 Equity Shares of UK 1 each fully paid-up 41,000 Equity Shares of DFL 100 each fully paid-up 30,527,912 Equity Shares of UK 1 each fully paid-up 2 Equity Shares of UK 1 each fully paid-up 100 Equity Shares of US$ 1 each fully paid-up 20,001,000 Equity Shares of US$ 1 each fully paid-up 5,000,000 Equity Shares of AUD$ 1 each fully paid-up 2 Equity Shares of S$ 1 fully paid-up 31st March 2010 IHOCO B.V. ST. James Court Hotel Ltd. 31st March 2010 Taj International Hotel Ltd. (U.K.) 31st March 2010 IHMS INC. Samsara Properties Ltd. 31st March 2010 IHMS (AUS) Pty. Ltd. 31st March 2010 Apex Hotel Management Services Pte. Ltd. 31st March 2010 31st March 2010 31st March 2010
b) Extent of holding 3 Changes in the interest of the Company or the Subsidiary Company between the end of the Financial Year of the Subsidiary Company or Sub-subsidiary Company and 31st March, 2010 Number of Shares acquired The net aggregate of Pro t of the Subsidiary Company/Sub-subsidiary Company so far as they concern the Members of the Company a) Dealt with in the accounts of the Company for the year ended 31st March, 2010 b) Not dealt with in the accounts of the Company for the year ended 31st March, 2010 5 The net aggregate of pro ts/(losses) of the Subsidiary/Sub-subsidiary Company for previous nancial years, so far as they concern the Members of the Company a) Dealt with in the accounts of the Company for the year ended 31st March, 2010 b) Not dealt with in the accounts of the Company for the year ended 31st March, 2,010 6 Material changes between the end of the Financial Year of the Subsidiary or Subsubsidiary Company as the case may be and 31st March, 2010 a) Fixed Assets b) Investments c) Moneys lent by the Subsidiary Company d) Moneys borrowed by the Subsidiary Company other than for meeting Current Liabilities
100.00%
100.00% *
54.01% #
100.00%
100.00%
100.00%
100.00%
100.00%
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
UK 22,599 (4,756)
UK 827,000
UK 721
US$ (38,494,569)
US$ (22,492,711)
AUD$ (1,048,403)
S$ Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
UK (700,201) 9,952,742
UK (5,653,031)
UK 1,791,890
US$ (73,028,214)
US $ (24,167,098)
AUD$ (15,819,778)
S$ Nil
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
Does Not Arise
*Indirect holding as per Hong Kong Law #Inclusive of indirect holding of 21.23% as per Hong Kong Law Note : IHMS (Restaurants) Pty. Ltd. has been de-registered effective November 4, 2009
For and on behalf of the Board R. K. KRISHNA KUMAR RAYMOND N. BICKSON ANIL P. GOEL ABHIJIT MUKERJI K. B. DADISETH JAGDISH CAPOOR SHAPOOR MISTRY NADIR GODREJ SANKER PARAMESWARAN
Vice - Chairman Managing Director Executive Director- Finance Executive Director- Hotel Operations Directors Vice President- Legal & Company Secretary
119
120
Rs. Crores IHOCO BV Taj Inter- IHMS Samsara International (Australia) Properties Pty. national Hotel Ltd. Ltd. Hotels Management Ltd. Services Inc. 0.00 12.20 (503.41) (69.84) 1,582.16 20.70 90.28 (210.62) United Hotels Ltd. Roots Taj Residency Innovative Apex Taj InterCorpo- SATS Food Foods Hotel national ration Airand Ltd. Manage(H.K.) Ltd. cateing Beverages ment Ltd. Ltd. Ltd. Services Pte. Ltd. 191.00 (47.16) 195.73 3.50 0.80 4.30 7.19 24.86 278.07 235.49 26.62 14.60 0.00 1,198.53 597.56 78.74 85.04 134.23 22.36 13.32 16.97 950.26 273.78 7.23 0.31 1.97 14.17 43.35 13.32 9.23 950.26 90.88 15.13 7.74 273.78 1.66 318.24 42.69 360.93 1,439.68 112.18 112.18 63.04 797.91 637.98 1,435.89 1,315.55 (6.00) (13.98) 22.57 (60.79) 78.67 73.77 17.40 19.30 11.61 0.00 225.70 384.58 0.07 11.27 St. James Chieftain Court CorpoHotels ration NV Ltd. 0.60 2.29 16.46 8.40 3.57 3.62 0.49 12.46 22.17 29.61 8.09 4.27 (0.01) 710.64 4.16 6.26 0.03 18.52 0.30 458.96 (20.99) 1.27 5.65 251.74 205.85 0.01 10.03 0.01 28.94 617.18 83.34 (4.60) 83.17 1.87 10.58 3.59 1,467.30 (43.89) 16.26 66.35 (3.31) 1,196.48 104.20 14.88 7.19 0.58 0.50 0.11 0.39 7.82 (2.41) 10.58 3.88 5.79 (0.84) 11.70 (2.41) 16.37 (0.84) 32.94 58.23 193.06 4.77 24.86 278.07 235.49 26.62 14.60 32.51 (3.47) (3.47) 0.00 1.28 0.00 0.00 1,198.53 19.64 12.67 12.67 597.56 197.63 11.67 11.67 78.74 0.19 0.17 0.17 85.04 0.00 (0.06) (0.03) (0.03) 14.17 40.92 0.09 0.08 0.01 1,439.68 351.23 (183.06) 0.73 (183.79) 63.04 38.98 (4.25) (4.25) 1,315.55 0.12 (107.39) (107.39) -
Summary of Financial Information of Subsidiary Companies
Name of Subsidiary
TIFCO KTC Holdings Hotels Ltd Ltd.
Funds Employed
Capital
81.50
Reserves
101.15
Liabilities
Secured Loans
Unsecured Loans
Deferred Tax Liability
Total Liabilities
Total Funds Employed
182.65
Application of Funds
Assets
Fixed Assets (Including CWIP)
1.03
Investments
137.11
Long Term Deposits
Net Current Assets
44.51
Deferred Tax Assets
Miscellaneous Expenditure (to the extent not written off)
Total Assets (Net)
182.65
Total Income
11.72
Pro t Before Taxation
11.61
Provision for Taxation
0.75
Pro t After Taxation
10.86
Proposed / Interim Dividend
Financial Statistics
Rs. Crores Capital Accounts Year Share Capital Reserves and Surplus 0.35 0.76 1.12 1.94 2.21 2.38 3.39 5.41 5.58 8.53 9.20 12.34 17.45 22.23 28.70 32.73 41.97 48.54 51.44 56.77 73.72 124.44 165.65 205.84 567.16 671.86 767.68 844.35 913.96 980.10 844.13 842.17 844.79 1081.80 1657.83 1738.39 1956.29 2975.29 2616.87 Borrowing Gross NetBlock Block Investment Gross Revenue Expen diture (including Interest) 2.60 3.50 4.82 5.79 6.73 8.45 9.76 13.63 18.59 23.13 26.72 36.87 43.79 55.39 69.32 79.68 90.98 100.61 120.93 139.42 169.52 188.24 223.49 263.20 347.42 405.67 427.53 435.36 482.49 560.47 589.81 575.43 646.89 754.55 890.90 1146.47 1254.11 1348.42 1358.48 Depreciation Revenue accounts Pro t before Taxes Prov. Taxes Pro t Net after Transfer Tax to Reserves 0.07 0.44 0.51 0.98 1.05 1.05 1.69 2.70 3.23 4.00 3.94 4.49 6.70 6.37 6.06 6.37 6.76 9.37 11.52 9.03 21.08 32.20 52.03 82.11 140.57 146.48 137.96 119.14 113.23 116.79 80.70 40.48 60.65 105.86 183.78 322.39 377.46 234.03 153.10 0.03 0.29 0.35 3.61 0.64 0.49 1.01 2.02 2.18 2.95 2.49 2.99 5.11 4.78 4.22 4.02 4.23 6.42 7.83 5.33 16.75 24.86 41.21 60.15 107.10 104.70 95.78 76.57 70.66 67.07 40.00 7.50 8.57 11.00 20.00 35.00 38.00 30.00 15.31 Dividend Rate of Dividend on Ordinary Shares % 0.00 6.00 6.40 18.00 20.00 20.00 25.00 25.00 25.00 22.00 22.00 23.00 25.00 25.00 25.00 30.00 30.00 30.00 25.00 25.00 35.00 50.00 70.00 55.00 75.00 85.00 85.00 85.00 85.00 100.00 80.00 70.00 80.00 100.00 130.00 160.00 190.00 120.00 100.00
1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 ! # * **
* ** ***
a + !!
!!! =
2.34 2.35 2.35 2.35 2.35 3.07 3.07 3.07 5.09 5.09 6.90 6.35 6.35 6.35 7.85 7.85 9.86 9.86 14.78 14.78 14.78 19.96 19.96 39.92 45.12 45.12 45.12 45.12 45.12 45.12 45.12 45.12 45.12 50.25 58.41 60.29 60.29 72.34 72.35
3.45 5.38 5.32 4.55 4.21 3.98 4.73 6.17 5.56 7.76 8.87 26.71 32.25 42.20 38.82 53.58 63.47 74.06 97.13 121.07 123.53 106.86 100.86 245.05 200.18 219.75 197.31 178.42 432.32 555.31 809.21 799.50 1412.46 1052.03 544.34 943.94 1134.18 1766.47 2650.55
6.96 10.06 10.58 10.99 11.82 12.21 13.14 17.81 20.48 25.01 28.79 49.54 58.48 67.77 71.69 89.73 107.70 127.39 161.28 178.61 194.44 210.68 234.64 293.59 384.01 500.10 581.48 665.67 842.01 942.16 946.15 985.71 1159.69 1290.70 1308.34 2014.34 2072.16 2362.23 2408.32
5.47 8.12 8.14 8.09 8.42 8.30 8.69 12.68 14.31 17.60 20.06 39.22 44.40 44.55 53.72 67.56 80.08 93.56 119.95 128.43 135.89 142.53 156.21 201.92 273.21 364.08 414.57 466.77 606.86 665.06 655.08 677.77 813.13 885.20 843.01 1360.05 1371.60 1585.40 1561.26
0.06 0.02 0.16 0.20 0.20 0.25 0.34 0.55 0.74 1.10 1.13 2.65 3.77 11.70 6.21 5.53 6.90 9.34 11.19 12.37 13.76 16.93 32.54 36.04 142.09 214.80 218.09 259.09 337.75 422.13 541.34 571.64 600.83 607.01 656.57 962.81 977.58 2026.88 2445.63
2.90 4.35 5.82 7.26 8.61 10.77 13.92 18.42 26.49 31.54 36.09 42.98 54.69 65.50 78.48 93.05 105.69 117.72 141.50 159.11 206.79 239.21 301.92 381.88 547.36 613.33 623.91 623.34 650.91 742.92 617.55 609.91 727.09 896.23 1154.80 1618.83 1823.16 1706.52 1566.35 a
0.20 0.45 0.50 0.49 0.50 0.52 0.53 0.69 1.04 1.24 1.33 1.62 3.80 2.66 3.44 4.25 5.55 6.24 7.80 9.11 ++8.85 9.77 10.90 13.67 20.37 27.18 32.42 33.84 37.69 45.16 47.49 38.98 48.58 56.77 65.90 91.44 85.48 94.46 104.14
0.10 0.03 0.40 0.04 0.50 0.01 0.98 0.00 1.38 0.33 1.80 0.75 3.63 1.94 4.10 1.40 6.86 3.63 7.17 3.17 8.04 4.10 4.49 0.00 7.10 0.40 7.45 1.08 7.66 1.60 9.12 2.75 9.16 2.40 10.87 1.50 12.77 1.25 10.58 1.55 27.58 6.50 41.20 9.00 67.53 15.50 105.11 23.00 179.57 39.00 180.48 33.60 163.96 26.00 154.14 35.00 130.73 17.50 137.29 20.50 98.14 17.44 53.80 13.72 80.20 19.55 141.68 35.82 272.00 88.22 474.64 152.25 580.47 203.01 362.30 128.27 218.25 65.15
0.04 0.16 0.17 0.37 0.41 0.56 0.68 0.68 1.05 1.45 1.45 1.50 1.59 1.59 1.84 2.35 2.53 2.96 3.70 3.70 5.17 8.68 13.97 21.96 33.47 38.35 38.35 38.35 @ 38.35 45.12 36.09 31.58 36.09 50.25 77.95 96.46 114.54 86.81 72.35
Pref. and Ordinary Share Fully Called Preference Dividend Preference and Ordinary Dividend Issue of Bonus Shares in the Ratio 2:5 Issue of Bonus Shares in the Ratio 4:5 Issue of Bonus Shares in the Ratio 2:5 Convension of foreign currency bonds into share capital. Split of Shares of face value Rs.10/ each to share of Face value Re.1/- each
After conversion of a part of the 15,000,000 Convertible debenture at a premium of Rs 15/- per share + After conversion of a part of the 20,01,121 Convertible debenture at a premium of Rs 15/- per share !! After issue of bonus share in the Ratio 1:2 ++ After deducting Es.0.84 Crore towards excess provision of depreciation for previous year !!! After Right issue of Shares in the Ratio of 1:3 Issue of Bonus Shares in the Ratio of 1:1 = Issue of Global Depository Shares @ Ordinary / Interim dividend for the year After Right issue of Shares in the Ratio of 5:1
121
AUDITORS REPORT
TO THE BOARD OF DIRECTORS OF THE INDIAN HOTELS COMPANY LIMITED
1. We have audited the attached Consolidated Balance Sheet of THE INDIAN HOTELS COMPANY LIMITED (the Company), its subsidiaries and jointly controlled entities (the Company, its subsidiaries and jointly controlled entities constitute the Group) as at March 31, 2010, the Consolidated Pro t and Loss Account and the Consolidated Cash Flow Statement of the Group for the year ended on that date, both annexed thereto. The Consolidated Financial Statements include investments in associates accounted on the equity method in accordance with Accounting Standard 23 (Accounting for Investments in Associates in Consolidated Financial Statements) and the jointly controlled entities accounted for in accordance with Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures) as noti ed under the Companies (Accounting Standards) Rules, 2006. These nancial statements are the responsibility of the Companys Management and have been prepared on the basis of the separate nancial statements and other nancial information regarding components. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the nancial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the nancial statements. An audit also includes assessing the accounting principles used and the signi cant estimates made by the Management, as well as evaluating the overall nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As stated in Note 16 of Schedule 12, the Group has led a petition before the Honourable High Court of Judicature at Madras for winding up of Paramount Airways Private Limited for non-payment of dues to the Group amounting to Rs. 4 crores and has made a provision for doubtful debts amounting to Rs. 2 crores in respect of the same based on the Managements estimate of the recoverability of the said dues. On the basis of the information available to us and since the matter is subjudice, we are unable to form an opinion regarding the adequacy of the provision made on this account. The auditors of a subsidiary have expressed their inability to comment on the ultimate outcome of disputed excise duty, sales tax claims, etc. aggregating Rs. 10.35 crores considered by the Management as contingent in nature. They have also stated that no provision has been made in respect of disputed advances of Rs. 11.73 lakhs. We did not audit the nancial statements of fourteen subsidiaries and three joint ventures, whose nancial statements re ect total assets (net) of Rs. 3,707.24 crores, as at 31st March, 2010, total revenues of Rs. 787.50 crores and net cash out ows amounting to Rs. 110.45 crores for the year ended on that date as considered in the Consolidated Financial Statements. These nancial statements have been audited by other auditors whose reports have been furnished to us and our opinion, in so far as it relates to the amounts included in respect of these subsidiaries and joint ventures, is based solely on the reports of the other auditors. The Consolidated Financial Statements include the unaudited nancial statements of two joint ventures, whose nancial statements re ect total assets (net) of Rs. 89.46 crores as at 31st March, 2010, total revenues of Rs. 42.99 crores and net cash in ows amounting to Rs. 2.61 crores for the year ended on that date. The Consolidated Financial Statements also include the Companys share of net loss amounting to Rs. 36.64 crores based on the unaudited nancial statements of four associates. The aforesaid entities have been consolidated on the basis of their management accounts.
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6.
122
7.
We report that the Consolidated Financial Statements have been prepared by the Company in accordance with the requirements of Accounting Standard 21, (Consolidated Financial Statements), Accounting Standard 23 (Accounting for Investment in Associates in Consolidated Financial Statements) and Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures) as noti ed by the Companies (Accounting Standards) Rules, 2006. Based on our audit and on consideration of the separate audit reports on individual nancial statements of the Company, the subsidiaries, joint ventures and associates, and to the best of our information and according to the explanations given to us, in our opinion, subject to our comments in paragraph 3 regarding the adequacy of the provision for doubtful debts in respect of the amount due from Paramount Airways, paragraph 4 regarding disputed claims and advances of a subsidiary and paragraph 6 regarding the inclusion of unaudited accounts relating to two joint ventures and four associates, the Consolidated Financial Statements give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) (c) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at March 31, 2010; in the case of the Consolidated Pro t and Loss Account, of the loss of the Group for the year ended on that date and in the case of the Consolidated Cash Flow Statement, of the cash ows of the Group for the year ended on that date.
8.
123
Consolidated Balance Sheet as at March 31, 2010

Schedule SOURCES OF FUNDS Shareholders Funds Share Capital Reserves and Surplus Preference shares issued by a subsidiary (Refer Note 6, Page 147) Total Minority Interest Loan Funds Secured Loans Unsecured Loans Total Long Term Trade Deposits Foreign Currency Monetary Item Translation Difference Account (Refer Note 21, Page 155) Deferred Tax Liabilities (Refer Note 12 (b), Page 148) APPLICATION OF FUNDS Fixed Assets Gross Block Less : Depreciation Net Block Capital work-in-progress Total Goodwill on consolidation Investments Long Term Deposits for Hotel Properties Foreign Currency Monetary Item Translation Difference Account (Refer Note 21, Page 155) Deferred Tax Assets (Refer Note 12 (c), Page 149) Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balances Loans and Advances Less : Current Liabilities and Provisions Liabilities Provisions Net Current Assets Miscellaneous Expenditure (to the extent not adjusted or written off) The accompanying notes form an integral part of the Balance Sheet In terms of our report attached. For DELOITTE HASKINS & SELLS Chartered Accountants Nalin M. Shah Partner Mumbai, May 26, 2010 Rupees crores Rupees crores March 31, 2009 Rupees crores
1 2
72.35 2,352.80 120.00 2,545.15 272.74
72.34 3,105.55 120.00 3,297.89 274.11 2,659.60 1,987.28 4,646.88 23.80 160.52 8,403.20
3 4
2,566.41 1,894.28 4,460.69 21.91 4.10 16.93 7,321.52
5 5,814.15 1,440.66 4,373.49 429.99 4,803.48 330.38 1,905.42 173.59 31.29 7 59.65 205.50 548.76 565.35 1,379.26 8 579.72 744.77 1,324.49 54.77 22.59 7,321.52 555.55 201.47 757.02 624.17 7.64 8,403.20 64.10 177.77 252.84 886.48 1,381.19 5,376.11 1,304.08 4,072.03 743.54 4,815.57 361.15 2,407.68 174.99 11.63 0.37
9 12
For and on behalf of the Board Raymond N. Bickson Anil P. Goel Abhijit Mukerji Managing Director Executive Director - Finance Executive Director - Hotel Operations
124
Consolidated Pro t and Loss Account for the year ended March 31, 2010
Schedule INCOME Rooms, Restaurants, Banquets and Other Income EXPENDITURE Operating and General Expenses Depreciation / Amortisation Interest (net) (Refer Note 18, Page 153) Total Less : Unallocated Expenditure during construction period transferred to Fixed Assets PROFIT / (LOSS) BEFORE EXCEPTIONAL ITEM AND TAX (Add) / Less : Exceptional item (Refer Note 3 (b), Page 146 ) (Add) / Less : Pro t on sale of a hotel property (Refer Note 7, Page 147 ) PROFIT / (LOSS) BEFORE TAX Less : Provision for Tax (Refer Note 12 (a), Page 148) Less : Short Provision of Tax of earlier years (Net) PROFIT / (LOSS) AFTER TAX Less : Pro t attributable to minority interest (net) Add : Share of (Loss) / Pro ts of Associates (Net) PROFIT / (LOSS) AFTER MINORITY INTEREST AND SHARE OF PROFIT / (LOSS) OF ASSOCIATES Add : Balance brought forward from previous year Add : Adjustment on account of reduction in stake of Joint Controlled Entities AMOUNT AVAILABLE FOR APPROPRIATION Appropriation : Proposed Dividend Tax on Dividend Transfer to Debenture Redemption Reserve Transferred to General Reserve Transferred to Reserve Fund Balance carried forward Earnings Per Share - (In Rupees) ( Refer Note 29, Page 168) Basic & Diluted Face Value per Ordinary share - (In Rupees) The accompanying notes form an integral part of the Pro t and Loss Account In terms of our report attached. For DELOITTE HASKINS & SELLS Chartered Accountants Nalin M. Shah Partner Mumbai, May 26, 2010 12 (1.99) 1.00 0.15 1.00 72.35 16.10 139.00 18.94 2.20 37.64 286.23 86.81 20.09 100.00 35.09 3.40 420.32 665.71 11 2,134.99 218.54 306.14 2,659.67 12.16 2,647.51 (41.33) (1.92) (5.72) (33.69) 82.23 2.48 (118.40) 13.91 (4.57) (136.88) 420.32 2.79 286.23 2,198.17 188.53 229.21 2,615.91 22.55 2,593.36 163.27 6.79 (2.03) 158.51 151.97 3.80 2.74 15.77 25.49 12.46 653.25 665.71 10 2,606.18 2,756.63 Rupees crores Rupees crores Previous Year Rupees crores
125
Cash Flow Statement for the year ended March 31, 2010
Rupees crores Cash Flow From Operating Activities Net Pro t/(Loss) Before Tax Adjustments For : Depreciation Amortisation of VRS Expenditure Pro t on sale of investments Pro t on sale of a hotel property Pro t on sale of assets Provision for Doubtful Debts and advances Dividend Income Interest (Net) Unrealised Exchange Loss / (Gain) on nancing activities Provision for Loyalty Programmes (net of Redemptions) Provision for contingencies Provision for Employee Bene ts Cash Operating Pro t before working capital changes Adjustments For : Trade and Other Receivables Inventories Trade Payables Cash Generated from Operating activities Direct Taxes Paid Net Cash From Operating Activities Cash Flow From Investing Activities Purchase of Fixed Assets Sale of Fixed Assets Purchase of Investments (including advance paid) Sale of Investments Interest Received Dividend Received [including Rs. 14.19 crores from associates, (Previous Year Rs.20.63crores)] Deposits Refunded by / (Placed with ) Other Companies (Net) Net Cash Used In Investing Activities Cash Flow From Financing Activities Debenture issue / Loan arrangement costs Interest Paid Repayment of long term Loans and Debentures Proceeds of long term Loans and Debentures Short Term Loans Raised/(Repaid) (Net) Long Term Trade Deposits Raised/( Repaid) Share application money Proceeds from issue of Equity shares Proceeds from issue of Preference shares by a subsidiary Dividend Paid (Including tax on dividend) Net Cash Used In Financing Activities Net Increase / (Decrease) In Cash and Cash Equivalents Cash and Cash Equivalents Opening 1st April - (Refer Note 22, Page 155) Impact of Exchange Fluctuations on Cash and Cash Equivalents Cash and Cash Equivalents Closing 31st March - (Refer Note 22, Page 155) (512.98) 65.19 (564.91) 780.12 25.35 34.77 69.97 (102.49) (23.30) (319.96) (791.32) 1,957.40 (1,133.59) (1.89) 1.02 (107.53) (419.17) (94.51) 678.57 (12.02) 572.04 (12.87) (230.10) (192.63) 1,287.40 (449.47) 30.67 0.15 823.90 120.00 (145.49) 1,231.56 409.48 260.21 8.88 678.57 Rupees crores (33.69) 218.54 (39.16) (5.72) (4.49) 8.22 (20.08) 306.14 (2.39) 2.20 0.66 463.92 430.23 (9.56) 2.48 57.19 50.12 480.34 (53.19) 427.15 (793.64) 12.83 (352.11) 12.00 32.55 69.45 (142.13) (1,161.05) (71.47) (9.22) 48.50 (32.19) 530.39 (191.42) 338.97 188.53 0.30 (0.04) (2.03) (2.71) 4.50 (48.74) 230.46 20.90 1.61 0.20 11.09 404.07 562.58 Previous Year Rupees Rupees crores crores 158.51
In terms of our report attached. For DELOITTE HASKINS & SELLS Chartered Accountants Nalin M. Shah Partner Mumbai, May 26, 2010
126
Schedules forming part of the Consolidated Balance Sheet

Schedule 1 : Share Capital
Rupees crores AUTHORISED SHARE CAPITAL Ordinary Shares 100,00,00,000 Ordinary Shares of Re. 1/- each 100.00 100.00 March 31, 2009 Rupees crores
Preference Shares 1,00,00,000 Cumulative Redeemable Preference Shares of Rs. 100/- each 100.00 200.00 ISSUED SHARE CAPITAL 72,34,89,291 (Previous Year 72,34,21,792) Ordinary Shares of Re. 1 /- each, Fully Paid (See Notes below) 100.00 200.00
72.35 72.35
72.34 72.34
SUBSCRIBED AND PAID UP 72,34,72,787 (Previous Year 72,34,05,288) Ordinary Shares of Re. 1 /- each, Fully Paid (See Notes below)
72.35 72.35
72.34 72.34
Notes: (i) 67,499 Ordinary Shares of the face value of Re 1/- each, were allotted on October 15, 2009 as fully paid shares, being Warrants exercised pursuant to Rights Issue of Ordinary Shares by the Company (Refer Note 4, Page 147). 16,504 Ordinary Shares have been issued but not subscribed to as at the end of the respective years and have been kept in abeyance pending resolution of legal dispute.
(ii)
127

Schedule 2 : Reserves and Surplus
Rupees crores March 31, 2009 Rupees Rupees crores crores 43.97 1.12 1,675.28 1.01 (2.55) (374.09) 470.08 18.94 9.82 (0.58) (0.31) 24.60 2.20 43.87 (33.22) 497.95 1,299.65 43.97 1.12 851.37 831.82 (7.91) 1,675.28 438.23 35.09 0.69 (0.11) (3.82) 470.08 21.20 3.40 24.60 50.34 (6.47) 43.87 5.00 4.03 0.41 88.67 100.00 188.67 7.51 7.51 5.28 0.69 4.59 17.76 198.34 216.10 420.32 3,105.55
Capital Reserve Balance as per Last Account Capital Redemption Reserve Balance as per Last Account Securities Premium Account Balance as per Last Account Add: Premium on exercise of detachable warrants attached to Rights Issue (Refer Note 4, Page 147) On allotment of Rights Issue of Ordinary Shares Less: Share / Debenture Issue Expenses written off (Refer Note 5, Page 147) Provision for premium on Redemption of Non Convertible Debentures (Refer Note 5, Page 147) Total General Reserve Balance as per Last Account Add: Transferred from Pro t and Loss Account Transferred from Foreign Exchange Earnings Utilised Reserve Less : Foreign Exchange uctuation for the year Adjustment on account of reduction in stake of Jointly Controlled Entities Transferred to Foreign Currency Monetary Item Translation Difference Account (Refer Note 21, Page 155) Total Reserve Fund (In terms of Section 45-IC of the Reserve Bank of India Act, 1934) Balance as per Last Account Add: Transferred from Pro t and Loss Account Total Revaluation Reserve Balance as per Last Account Less : Foreign Exchange uctuation for the year Total Investment Reserve Balance as per Last Account Investment Allowance Utilised Reserve Balance as per Last Account Export Pro ts Reserve Balance as per Last Account Debenture Redemption Reserve Balance as per Last Account Add: Transferred from Pro t and Loss Account Total Foreign Exchange Earnings Reserve Balance as per Last Account Less: Transferred to Foreign Exchange Earnings Utilised Reserve Total Foreign Exchange Earnings Utilised Reserve Balance as per Last Account Add: Transferred from Foreign Exchange Earnings Reserve Less: Transferred to General Reserve Total Foreign Currency Translation Reserve (Refer Note 2 (f), Page 144) Balance as per Last Account Add / (Less) : Foreign Exchange uctuation for the year Total Pro t and Loss Account Balance carried forward
26.80
10.65 5.00 4.03 0.41
188.67 139.00 7.51 7.51 4.59 7.51 9.82 216.10 (120.47)
327.67
2.28
95.63 37.64 2,352.80
128

Schedule 3 : Secured Loans
Rupees crores Non - Convertible Debentures Term loans from Banks Term loans from Others Bank Overdraft Interest accrued & due Others (Finance Lease) (Refer Note 17 (c), Page 152) TOTAL 1,752.77 795.65 8.85 7.03 1.01 1.10 2,566.41 March 31, 2009 Rupees crores 1,452.77 1,161.80 7.13 34.98 1.13 1.79 2,659.60
129

Schedule 4 : Unsecured Loans
Rupees crores Fixed Deposits Foreign Currency Term Loan from Banks Non - Convertible Debentures Long Term Loans from Banks Short Term Loans from Banks Short Term Loan from Others Inter - Corporate Deposits Bank Overdraft TOTAL 357.49 132.00 393.29 942.35 2.26 18.70 47.47 0.72 1,894.28 March 31, 2009 Rupees crores 27.18 140.86 366.84 849.09 597.22 2.36 3.73 1,987.28
130

Schedule 5 : Fixed Assets
Rupees Crores Particulars Gross Block Translation (at cost) Adjustment as at (Refer Note 4) 01.04.2009 Additions for the year Deductions for the year Gross Block Opening Translation Depreciation/ (at cost) Depreciation/ Adjustment Amortisation as at Amortisation (Refer Note 4) for the 31.03.2010 as at year 01.04.2009 Deductions Accumulated for the Depreciation/ year Amortisation as at 31.03.2010 (Refer Note 5) Net Block as at 31.03.2010
TANGIBLE ASSETS LAND (Freehold) LAND (Leasehold) BUILDINGS PLANT AND MACHINERY FURNITURE, FIXTURES AND OFFICE EQUIPMENTS VEHICLES INTANGIBLE ASSETS LEASEHOLD PROPERTY RIGHTS WEBSITE DEVELOPMENT COST CUSTOMER RESERVATION SYSTEM AND LICENSED SOFTWARE MANAGEMENT CONTRACTS NON COMPETE FEES BRAND TOTAL 14.38 10.17 4.61 4.61 9.48 6.53 67.21 55.48 12.41 12.94 4.07 4.07 5,376.11 4,646.45 (2.26) 2.40 0.26 (6.26) 11.73 (0.24) (204.83) 220.53 0.64 1.81 0.01 2.20 2.69 0.11 1.12 717.96 553.90 0.02 11.81 1.41 75.09 44.77 12.74 14.38 4.62 4.61 11.68 9.48 49.25 67.21 12.41 12.41 4.07 4.07 5,814.15 5,376.11 2.60 1.85 4.56 4.55 2.98 1.52 47.67 37.50 6.17 5.37 1.42 1.01 1,304.08 1,132.07 (0.33) (0.13) 0.08 (4.21) 7.27 (0.01) (0.07) (29.18) 14.13 0.86 0.88 0.01 1.67 1.38 2.62 2.90 0.89 2.28 0.41 0.41 218.54 188.53 0.01 11.81 1.41 52.78 30.65 3.12 2.60 4.56 4.56 4.65 2.98 34.27 47.67 7.05 6.17 1.83 1.42 1,440.66 1,304.08 9.62 11.78 0.06 0.05 7.03 6.50 14.98 19.54 5.36 6.24 2.24 2.65 4,373.49 4,072.03 449.67 379.88 230.13 246.54 2,848.55 2,441.25 1,163.53 975.36 526.27 472.91 45.80 36.71 (31.25) 59.32 (14.29) (14.66) (134.04) 149.40 (6.61) 3.38 (9.76) 8.51 (0.36) 0.43 1.38 10.53 1.56 530.91 263.96 84.40 206.11 96.45 56.66 1.86 9.46 0.61 0.06 2.15 3.31 10.14 6.06 37.86 21.32 11.88 11.81 0.62 0.80 419.19 449.67 213.69 230.13 3,235.28 2,848.55 1,203.46 1,163.53 601.08 526.27 46.68 45.80 3.88 3.88 22.53 21.80 330.71 267.94 538.83 483.25 323.32 287.66 19.41 15.74 (1.92) 0.47 (11.88) 2.63 (3.86) 1.69 (6.76) 1.84 (0.21) 0.35 2.58 2.74 79.23 62.02 75.96 68.16 49.99 43.81 4.33 3.94 0.01 2.48 0.79 1.88 30.34 14.27 9.33 9.99 0.49 0.62 3.88 3.88 23.18 22.53 397.27 330.71 580.59 538.83 357.22 323.32 23.04 19.41 415.31 445.79 190.51 207.60 2,838.01 2,517.84 622.87 624.70 243.86 202.95 23.64 26.39
Notes : 1 2 3 Figures in italics are in respect of the previous year. Gross block includes improvements to leased buildings - Rs.1,506.15 crores ( Previous Year - Rs. 1,112.45 crores), net of translation adjustment. Furniture, Fixtures and Of ce Equipments as at the year end includes Fixed Assets on nance lease: Gross Block - Rs. 2.15 crores; (Previous year - Rs.2.35 crores), Accumulated Depreciation - Rs.0.89 crore (Previous year Rs.0.45 crore) Depreciation for the year - Rs.0.45 crore (Previous year - Rs.0.46 crore). Adjustment on account of foreign exchange translation difference on opening balance and depreciation charge for the year is re ected as "Translation Adjustment". This also includes impact of reduction in respect of dilution in shareholding of certain jointly controlled entities. Accumulated Depreciation includes adjustment for impairment of Rs. 9.40 crores, including on Freehold Land, made in the earlier years.
4 5
131

Schedule 6 : Investments
Rupees crores Long Term Trade Investments In Associate Companies [Includes Goodwill of Rs. 92.61 crores {Previous Year - Rs. 92.61 crores} and is net of capital reserve of Rs. 1.18 crores) {Previous Year - Rs. 1.18 crore} arising on the acquisition of Associates] In Shares a) b) Quoted (Refer notes below) (Refer Note 8, Page 147) Unquoted 1,182.08 212.58 23.28 1,905.95 0.53 1,905.42 Notes: (i) (ii) Investments in Quoted Shares include 50,900 shares of the Company held by a subsidiary, at a cost of Rs. 73,950, which were acquired by it prior to it becoming a subsidiary. Aggregate of Quoted Invesments - Gross : Cost / Carrying Value Market Value 1,369.50 711.30 1,456.41 257.82 1,263.27 200.52 425.73 2,408.18 0.50 2,407.68 March 31, 2009 Rupees crores
488.01
518.66
Current Investments - Units of Liquid Mutual Funds TOTAL Less : Provision for Diminution in Value of Investments
132

Schedule 7 : Current Assets, Loans and Advances
Rupees crores Inventories Stores and Operating Supplies Food and Beverages Apartments held for sale Sundry Debtors (Unsecured) Outstanding over six months : Considered good Considered Doutful Others : Considered good Considered doubtful 140.64 0.07 140.71 221.68 Less : Provision for Doubtful Debts Cash and Bank Balances Cash on hand [Including Cheques on Hand Rs. 10.39 crores (Previous Year - Rs. 5.02 crores)] Balances with Banks : In Current Accounts In Short Term Deposit Accounts 85.92 449.26 535.18 548.76 813.91 LOANS AND ADVANCES (Unsecured, net of provision) Deposits with Public Bodies and Others Advance payment of Tax (net of provision) Other Advances (net of provision) Deposits with Companies TOTAL 47.95 147.51 183.21 186.68 565.35 1,379.26 43.21 161.25 505.59 176.43 886.48 1381.19 59.05 179.54 238.59 252.84 494.71 13.58 14.25 16.18 205.50 128.90 128.90 191.82 14.05 177.77 64.86 16.11 80.97 48.87 14.05 62.92 30.64 25.52 3.49 59.65 36.77 27.33 64.10 Rupees crores Rupees crores March 31, 2009 Rupees crores
133

Schedule 8 : Current Liabilities & Provisions
Rupees crores CURRENT LIABILITIES Sundry Creditors Other Liabilities Sundry Deposits Advance from customers Interest accrued but not due TOTAL CURRENT LIABILITIES PROVISIONS Employee Bene ts Contingencies (Refer Note 24, Page 155) Loyalty programmes (Refer Note 23, Page 155) Premium on Redemption of Debentures / Bonds (Refer Note 5, Page 147) Taxation (net of advance) Proposed Dividend Tax on Dividend TOTAL PROVISIONS TOTAL 68.55 1.40 14.77 560.27 15.64 72.35 11.79 744.77 1,324.49 69.21 1.40 12.57 16.73 86.81 14.75 201.47 757.02 336.15 99.53 7.75 76.59 59.70 579.72 296.78 115.52 8.89 72.13 62.23 555.55 Rupees crores March 31, 2009 Rupees crores
134

Schedule 9 : Miscellaneous Expenditure (to the extent not adjusted or written off)
March 31, 2009
Rupees crores Borrowing Costs Opening Balance Add : Incurred during the year Add : Translation Adjustment Less : Amortised during the year Closing Balance 7.64 30.23 0.22 15.50
Rupees crores
Rupees crores 8.85 1.76 0.62 3.59
22.59
7.64
Voluntary Retirement Scheme Expenses Opening Balance Less : Amortised during the year Closing Balance TOTAL 22.59 0.30 0.30 7.64
135
Schedules forming part of the Consolidated Pro t and Loss Account

Schedule 10 : Rooms, Restaurants, Banquets and Other Income
Previous Year
Rupees crores INCOME Rooms, Restaurants, Banquets and Other Services Other Operating Income (Refer Note 3 (a), Page 146) 2,456.67 64.35
Rupees crores
Rupees crores 2,600.59 85.54
2,521.02 Other Income Dividend Income (Refer Note 11, Page 148) Pro t on sale of assets (Net) Pro t on sale of Long Term Investments Pro t on sale of Current Investments Exchange Gain (Net) Miscellaneous Income 20.08 4.49 39.16 9.24 12.19 85.16 TOTAL 2,606.18
2,686.13
48.74 2.71 0.04 0.00 19.01 70.50 2,756.63
136
Schedules forming part of the Consolidated Pro t and Loss Account

Schedule 11 : Operating and General Expenses
Previous Year
Rupees crores Operating Expenses Payments to & Provisions for Employees Salaries, Wages, Bonus etc Groups Contribution to Provident & Other Funds Payment to Contractors Staff Welfare Expenses Food & Beverages Consumed Other Operating Expenses Linen & Room Supplies Catering Supplies Other Supplies Fuel, Power & Light Repairs to Buildings Repairs to Machinery Repairs to Others Linen, Uniform Washing and Laundry Expenses Payment to Orchestra Staff, Artistes and Others Guest Transportation Travel Agents Commission Discount to Collecting Agents Other Operating Expenses General Expenses Rent Licence Fees Rates & Taxes Insurance Advertising & Publicity Printing & Stationery Passage & Travelling Provision for Doubtful Debts and Advances Professional Fees Exchange Loss (Net) Other Expenses Auditors Remuneration (Refer Note 19, Page 154) Amortisation of Voluntary Retirement Scheme Expenses Directors Fees and Commission TOTAL
Rupees crores
Rupees crores
649.75 54.99 61.29 81.64 847.67 254.69 51.44 21.46 16.72 172.96 28.15 34.98 27.41 18.51 16.10 9.47 27.19 28.87 40.61 493.87 72.31 98.39 57.19 17.86 88.67 11.92 16.61 8.22 63.26 97.79 4.56 536.78 1.98 2,134.99
617.93 97.10 58.81 82.57 856.41 277.22 46.57 22.84 15.92 167.74 27.78 35.51 30.69 16.64 11.15 11.59 25.79 29.55 47.93 489.70 45.59 106.42 52.35 16.31 88.86 13.94 22.57 4.50 61.70 46.59 107.82 4.14 570.79 0.30 3.75 2,198.17
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Schedules 12
NOTES ON CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 1. (a) Basis of Consolidation: The Consolidated Financial Statements relate to The Indian Hotels Company Ltd. (the Company) its Subsidiaries, Jointly Controlled Entities and Associates. The Company, its subsidiaries and jointly controlled entities together constitute the Group. The Consolidated Financial Statements have been prepared on the following basis: The nancial statements of the Company and its Subsidiaries have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after eliminating intra-group balances, intra-group transactions and unrealised pro ts or losses as per Accounting Standard 21 Consolidated Financial Statements, as noti ed by the Companies (Accounting Standards) Rules, 2006. In case of foreign subsidiaries and foreign jointly controlled entities, revenue items are consolidated at the average exchange rate prevailing during the year. The opening balance in Pro t and Loss Account and the opening balance in Reserves and Surplus have been converted at the rates prevailing as at the respective Balance Sheet dates. All assets and liabilities as at the year-end are converted at the rates prevailing as at the end of the year. Any exchange difference arising on consolidation is shown under Foreign Currency Translation Reserve on Consolidation. Investments in Associate Companies have been accounted for under the equity method as per Accounting Standard 23 Accounting for Investments in Associates in Consolidated Financial Statements, as noti ed by the Companies (Accounting Standards) Rules, 2006. Interests in Jointly Controlled Entities have been accounted for by using the proportionate consolidation method as per Accounting Standard 27 Financial Reporting of Interests in Joint Ventures, as noti ed by the Companies (Accounting Standards) Rules, 2006. The nancial statements of Subsidiaries, Jointly Controlled Entities and Associates used in the consolidation are drawn upto the same reporting date as that of the Company except in the case of an Associate Company where the accounts have been drawn upto December 31, 2009. The excess of cost to the Company of its investment in the Subsidiaries and Jointly Controlled Entities over the Companys portion of equity as at the date of making the investment is recognised in the nancial statements as Goodwill. The excess of Companys portion of equity of the Subsidiaries and Jointly Controlled Entities over the cost of acquisition of the respective investments as at the date of making the investment is treated as Capital Reserve. Goodwill / Capital Reserve arising on investments in Associate Companies is retained / adjusted under the head Investments in Associate Companies. Goodwill arising out of consolidation is not amortised. However, the same is tested for impairment at each Balance Sheet date. Minority Interest in the net assets of Subsidiaries consists of : i. the amount of equity attributable to the minorities at the date on which investment in Subsidiary is made and ii. the minorities share of movements in equity since the date the parent-subsidiary relationship came into existence.
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Schedule 12 : NOTES ON CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
(b) The list of Subsidiaries, Jointly Controlled Entities and Associates, which are included in the consolidation with their respective country of incorporation and the Groups holdings therein, is given below: i. Subsidiary Companies Name of the Company Domestic TIFCO Holdings Ltd. KTC Hotels Ltd. United Hotels Ltd. Roots Corporation Ltd. Taj SATS Air Catering Ltd. Residency Foods & Beverages Ltd. Innovative Foods Ltd. International Taj International Hotels (H.K.) Ltd. (TIHK) Chieftain Corporation NV IHOCO BV IHMS (HK) Ltd. * St. James Court Hotels Ltd. Taj International Hotels Ltd. International Hotel Management Services Inc. and its Limited Liability Companies (IHMS Inc.) Samsara Properties Ltd. IHMS (Australia) Pty. Ltd. IHMS (Restaurants) Pty. Ltd.** Apex Hotel Management Services (Pte) Ltd. * - De-Registered with effect from March 26, 2010 ** - De-Registered with effect from November 4, 2009 Hong Kong Netherlands Antilles Netherlands Hong Kong United Kingdom United Kingdom United States of America British Virgin Islands Australia Australia Singapore 100 100 100 54.01 100 100 100 100 100 100 100 100 100 100 54.01 100 100 100 100 100 100 India India India India India India India 100 100 55 100 51 98.68 69.22 100 100 55 100 51 98.68 67.94 Country of Incorporation Holding (%) Current Year Previous Year
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ii. Jointly Controlled Entities Name of the Company Domestic Taj Madras Flight Kitchen Pvt. Ltd. Taj Karnataka Hotels & Resorts Ltd. Taj Kerala Hotels & Resorts Ltd. Taj GVK Hotels & Resorts Ltd. Taj Safaris Ltd. International TAL Hotels & Resorts Ltd. (formerly known as Taj Asia Ltd.) IHMS Hotels (SA) (Proprietary) Ltd. iii. Associates Name of the Company Domestic Ideal Ice & Cold Storage Co. Ltd. ** Benares Hotels Ltd. Taj Air Ltd. Piem Hotels Ltd. Taj Trade and Transport Co. Ltd. Taj Enterprises Ltd. Taida Trading and Industries Ltd. ** Inditravel Pvt. Ltd. Oriental Hotels Ltd. Taj Madurai Ltd. International Lanka Island Resorts Ltd. (formerly known as Taj Lanka Resorts Ltd.) (LIRL) TAL Lanka Hotels PLC (formerly known as Taj Lanka Hotels Ltd.) BJETS Pte Ltd. * **
@
Country of Incorporation India India India India India Hong Kong South Africa
Holding (%) Current Previous Year Year 50.00 21.19 28.30 25.52 25.45 26.66 50.00 50.00 40.00 28.30 25.52 33.33 26.66 50.00
Country of Incorporation India India India India India India India India India India Sri Lanka Sri Lanka Singapore
Holding (%) Current Previous Year Year 34.99 49.53 45.64 46.20 46.62 44.60 41.50 47.08 33.80* 26.00 24.16 24.62 61.54@ 34.99 49.53 45.64 46.20 46.62 44.60 41.50 47.08 33.80* 26.00 24.16 24.62 61.54@
Including 5.25% of the shares held in the form of Global Depository Receipts (GDR) Investments in these Associates have been reported at NIL value as the Groups share of losses exceeds the carrying amount of its investments. Although the holding exceeds 50%, the investment is treated as an associate in terms of the shareholders agreement which caps the ultimate holding of the Group to 44.44%.
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(c) In the case of the following entities, unaudited nancial statements as certi ed by the Management of the respective entities have been considered in the consolidated nancial statements. The adoption of the accounts by the Board of Directors of these companies is pending : i. ii. iii. iv. v. vi. (d) TAL Hotels & Resorts Ltd. (formerly knows as Taj Asia Ltd.) (Jointly Controlled Entity) Taj Safaris Ltd. (Jointly Controlled Entity) Lanka Island Resorts Ltd. (Associate Company) TAL Lanka Hotels PLC ( Associate Company) BJETS Pte Ltd. (Associate Company) Taj Air Ltd. ( Associate Company)
The following amounts are included in the Financial Statements in respect of the Jointly Controlled Entities based on the proportionate consolidation method prescribed in the Accounting Standard relating to Financial Reporting of Interest in Joint Ventures (AS 27) as noti ed by the Companies (Accounting Standards) Rules, 2006 :Rs. crores Particulars Assets Fixed Assets (Net Block) ( including CWIP) Investments Working Capital: Current Assets, Loans and Advances Less :- Current Liabilities and Provisions Net Current Assets Miscellaneous Expenditure (to the extent not written off or adjusted) Liabilities Loan Funds: Secured Loans Unsecured Loans Deferred Tax Liability Contingent Liabilities Capital Commitments Income Operating Income Other Income: Dividend Pro t on sale of assets (net) Miscellaneous Income Current Year 278.77 3.32 37.01 38.88 (1.87) 1.07 Previous Year 255.75 3.75 55.95 35.48 20.47 0.42
104.60 21.06 8.58 19.55 9.91 124.97 0.10 0.01 12.50
84.08 30.32 5.26 22.81 24.60 127.37 0.10 0.01 1.19
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Rs. crores Particulars Expenses Operating Expenses: Payments to & Provisions for Employees Food & Beverages consumed Other Operating Expenses General Expenses Directors' Fees Depreciation Interest (net) 2. Signi cant Accounting Policies: The nancial statements are prepared under historical cost convention on an accrual basis and comply with the Accounting Standards (AS) noti ed by the Companies (Accounting Standards) Rules, 2006. The preparation of the nancial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the nancial statements and the reported income and expenses. The Management believes that the estimates used in the preparation of the nancial statements are prudent and reasonable. Future results could differ from these estimates. The signi cant accounting policies adopted in the presentation of the nancial Statements are as under:(a) Rooms, Restaurants, Banquets and Other Services: Rooms, Restaurants, Banquets and Other Services comprise of sale of rooms, food and beverages, allied services relating to hotel operations, including net income from telecommunication services and management and operating fees. Revenue is recognised upon rendering of the service. (b) Export Bene ts Entitlement: Bene ts arising out of Duty Free Scrips utilised for the acquisition of xed assets are being adjusted against the cost of the related xed assets. (c) Employee Bene ts: i. De ned Contribution Schemes Employee bene ts arising out of contributions to recognised Provident Fund, Superannuation, Social Security etc. paid/payable during the year are recognised in the Pro t and Loss Account. The shortfall, if any, between the return guaranteed by the statute and actual earnings of the Provident Fund is provided for and contributed to the Fund. The Group also has separate funded and unfunded schemes, which guarantee a minimum pension to certain categories of employees. The Group accounts for the net present value of its obligation therein, based on an independent external actuarial valuation carried out at the Balance Sheet date. Certain international subsidiaries operate a de ned contribution pension scheme and the pension charge represents the amounts paid/payable by them to the Fund. Current Year Previous Year
26.12 15.02 24.64 29.92 0.02 13.35 4.90
25.54 15.34 24.61 19.85 0.03 11.41 3.09
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ii. Gratuity The Group has separate funded and unfunded schemes for gratuity bene ts. In respect of funded schemes, annual contributions are made to funds administered by the trustees for amounts noti ed by the funds. The Group accounts for the net present value of its obligations for gratuity bene ts based on an independent external actuarial valuation, determined on the basis of the projected unit credit method, carried out at the Balance Sheet date. Actuarial gains and losses are immediately recognised in the Pro t and Loss Account. iii. Post Retirement Bene ts The net present value of the Groups obligation towards post retirement pension scheme, wherever applicable, is actuarially determined based on the projected unit credit method as at the Balance Sheet date. Actuarial gains and losses are recognised immediately in the Pro t and Loss Account. iv. Compensated Absences The Group has a scheme for compensated absences for employees, the liability for which is determined on the basis of an actuarial valuation carried out at the Balance Sheet date except in case of an international subsidiary wherein the liability is determined on an arithmetic basis. v. Other Employee Bene ts Other bene ts, comprising of Long Service Awards and Leave Travel Allowance, are determined on an undiscounted basis and recognised based on the likely entitlement thereof. (d) Fixed Assets: Fixed assets are stated at cost less depreciation/amortisation and impairment losses, if any. Cost includes expenses incidental to the installation of assets and attributable borrowing costs. (e) Depreciation and Amortisation: i. Depreciation: Indian Entities In respect of assets acquired before December 16, 1993, depreciation is provided under the straightline method at the rates and in the manner speci ed in Schedule XIV to the Companies Act, 1956, as existing on that date. In respect of assets acquired on or after December 16, 1993, depreciation is provided at the rates as speci ed in Schedule XIV to the Companies Act, 1956, as revised with effect from that date. In respect of Leasehold Land, depreciation is provided for, from the date the land is put to use for commercial operations, over the balance period of the lease. In respect of Improvements to Building, depreciation is provided @ 6.67%. In respect of one subsidiary, depreciation is provided under the written down value method at the rates and in the manner speci ed in Schedule XIV to the Companies Act, 1956, amounts in respect of which are not material.
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International Entities Assets are depreciated based on the estimated useful life determined by the Management of the respective Subsidiaries, whereof the average rates of depreciation for each category are equal to or higher than the rates prescribed in Schedule XIV to the Companies Act, 1956. In respect of improvements in the nature of structural changes and major refurbishment to Buildings occupied on lease, depreciation is provided for over the period of the lease subject to minimum rates prescribed as per Schedule XIV to the Companies Act, 1956. ii. Amortisation: Intangible assets are amortised on a straight-line basis at rates speci ed below: Leasehold Property Rights Website Development Cost Cost of Customer Reservation System and Licensed Software Management Contract Acquisition Costs Others Service & Operating Rights Non-Compete Fees Lease Acquisition Costs of a Jointly Controlled Entity Brand * - Over the term of the lease. ** - Based on the terms of the Contract. (f) Transactions in Foreign Exchange: Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. In respect of integral foreign operations:i. ii. Monetary items outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the Balance Sheet date and the resultant difference is recognised as income or expense. Non-monetary items outstanding at the Balance Sheet date are reported using the exchange rate at the date of the transactions. 10.00% 14.29% 5.00% 10.00% 6.67% * 20.00% 16.67% 5% to 33.33% **
In respect of non-integral foreign operations:Both monetary and non-monetary items are translated at the closing rate and the resultant difference is accumulated in a Foreign Currency Translation Reserve, until the disposal of the net investment. The exchange differences arising on revaluation of long term foreign currency monetary items for the year ended March 31, 2009 and 2010 are being amortised over the shorter of the maturity period or March 31, 2011. The unamortised balance as at the year end is presented as Foreign Currency Monetary Item Translation Difference Account.
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(g) Derivative Instruments: Exchange differences arising on repayment/revaluation of derivative contracts, entered into in respect of some of the Groups underlying borrowings, are recognised as income or expense, as the case may be, in the period in which they arise. Interest rate derivatives are accounted, based on an underlying benchmark for the relevant period. (h) Impairment of Assets: Impairment is ascertained at each Balance Sheet date in respect of the Groups xed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash ows are discounted to their present value, based on an appropriate discount factor. (i) Assets taken on lease: i. ii. In respect of nance lease arrangements, the assets are capitalised and depreciated. Finance charges are debited to the Pro t and Loss Account of the year in which they are incurred. Operating Lease payments are recognised as expenditure in the Pro t and Loss Account on a straight line basis, representative of the time pattern of bene ts received from the use of the assets taken on lease.
(j)
Inventories: Stock of Food and Beverages and Stores and Operating supplies are carried at cost (computed on weighted average basis) or Net Realisable Value, whichever is lower. All other inventories are valued at the lower of Cost and Net Realisable Value.
(k)
Investments: i. ii. Long term investments are carried at cost. Provision is made for diminution in value, other than temporary, on an individual basis. Current investments are carried at the lower of cost and fair value determined on a category-wise basis.
(l)
Miscellaneous Expenditure: Payments made under the Voluntary Retirement Scheme, including the additional liabilities towards leave encashment and gratuity arising pursuant to the Voluntary Retirement Scheme, are amortised over a period of 60 months, commencing from the month in which the Scheme is implemented, or upto 31st March, 2010, whichever is earlier.
(m) Taxes on income: i. Income tax is computed in accordance with Accounting Standard 22 - Accounting for Taxes on Income (AS-22), noti ed by the Companies (Accounting Standards) Rules, 2006. Tax expenses are accounted in the same period to which the revenue and expenses relate. Provision for current income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws. The differences between the taxable income and the net pro t or loss before tax for the year as per the nancial statements are identi ed and the tax effect of timing differences is recognised as a deferred tax asset or deferred tax liability. The tax effect is calculated on accumulated timing
ii.
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differences at the end of the accounting year based on effective tax rates substantively enacted by the Balance Sheet date. Deferred tax assets, other than on unabsorbed depreciation or carried forward losses, are recognised only if there is reasonable certainty that they will be realised in the future and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date. In situations where an entity has unabsorbed depreciation or carried forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that the same can be realised against future taxable pro ts.
iii.
(n)
Accounting for Provisions, Contingent Liabilities and Contingent Assets: Provisions are recognised in terms of Accounting Standard 29 Provisions, Contingent Liabilities and Contingent Assets (AS-29), noti ed by the Companies (Accounting Standards) Rules, 2006, when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be out ow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognised only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future out ow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable out ow of resources are provided for. Contingent Assets are not recognised in the nancial statements.
(o)
Borrowing Costs : i. ii. iii. iv. Interest and other borrowing costs, attributable to qualifying assets are capitalised. Interest not attributable to qualifying assets is charged to the Pro t and Loss Account in the year in which it is incurred. Debenture issue costs and entire premium on redemption of Debentures are adjusted against the Securities Premium Account in accordance with Section 78 of the Companies Act, 1956. Other Borrowing Costs are charged to revenue account over the tenure of the borrowing.
3.
(a)
The Taj Mahal Palace & Tower in Mumbai was attacked by terrorist on November 26, 2008 amongst other targets in the city, due to which the heritage wing of the property was severely damaged. The Company is adequately insured for the property restoration. The cost of reinstatement of damage will be recovered from the insurance company, subject to the adjustment on account of expected deductions from claim amounts. The facilities that have been put to use are capitalised at its carrying value on the date of the loss, increased for the expected deductions from claim amounts. The amount spent on areas that are yet to be commissioned are re ected in Capital Work in Progress on similar basis. The Company is also insured for Loss of Pro ts to cover the period of interruption for up to 12 months from the date of incident, which has since expired on November 25, 2009. The Company has recognised an amount of Rs. 64.35 crores (Previous Year Rs. 85.54 crores) towards loss of pro t due to business interruption on an estimated basis. The Company is in an advanced stage of nalisation of the claim with the insurers. In respect of the previous year, Exceptional Item of Rs. 6.21 crores pertains to annuities purchased from LIC of India for pension payments to legal heirs of the employees deceased in the above mentioned incident. Out of the above, Rs. 1.92 cores has been refunded during the year. Further Exceptional item of Rs. 0.58 crore in the previous year pertains to expenditure incurred by a subsidiary, IHMS Inc towards Employee severance costs consequent to closure of one of its properties for extensive renovation.
(b)
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4. Rights Issue of Simultaneous but unlinked issue of Ordinary Shares and Non-Convertible Debentures with Detachable Warrants to the ordinary shareholders of the Company Under the terms of the simultaneous but unlinked Rights Issue of Ordinary Shares of Rs.70/- each and 6% Non Convertible Debentures with detachable Warrants aggregating Rs.1,446.65 crores, completed on April 24, 2008, the Warrant holders were entitled to apply for 1 ordinary share at a price of Rs.150/- each, during the month of September 2009. The Company received valid applications for 67,499 shares from Warrant holders, for which allotment was made on October 15, 2009. Consequently, the Share Capital of the Company has increased from Rs. 72,34,05,288 to Rs. 72,34,72,787. 5. Non-Convertible Debentures: During the year the Company has raised Rs. 700 crores through private placement of Non-Convertible Debentures, redeemable at a premium. The redemption premium payable on maturity amounting to Rs. 560.27 crores and expenses in relation to the above issues amounting to Rs. 3.87 crores, after netting of tax of Rs. 187.50 crores, comprising of current tax of Rs. 4.73 crores and deferred tax of Rs. 182.77 crores, has been set off against the Securities Premium Account, in accordance with Section 78 of the Companies Act, 1956. 6. During the previous year, a Subsidiary of the Group had issued 1,40,00,000, 5% Cumulative Convertible Preference Shares of Rs. 100 each, aggregating Rs. 140 crores. Each Preference Share shall be compulsorily and automatically converted into one fully paid-up equity share of Rs. 10 each of the subsidiary at a premium of Rs.90 per share at the end of 3 years from the date of allotment without any further act on the part of the shareholders. Out of the total issue, 20,00,000 shares have been issued to another Subsidiary of the Group which have been eliminated on consolidation. Pro t on sale of a hotel property of Rs. 5.72 crores relates to sale by a Subsidiary Company. In respect of the previous year, Rs. 2.03 crores relates to pro t on sale of a property by a Jointly Controlled Entity. The Group has an investment of Rs. 1,181.90 crores (USD 261.8 million) [previous year Rs. 1,263.05 crores (USD 247.9 million)] in a company listed on the New York Stock Exchange. On the basis of the market price of this company on the Balance Sheet date, there is a signi cant diminution in the value of the Groups investment in this company. The Groups investment in this company is for long-term and is strategic in nature. This company is a venerable, more than 70-years old company which has consistently made pro ts and provided healthy return to its shareholders. All its assets are unique, iconic, strategically located and of world class quality. On the basis of the Companys long-term commitment and on consideration of the valuation report of an independent valuer and other long-term strategies of the Company, in the opinion of the Management, the diminution in value of its shareholding of this company is of a temporary nature. The Group owns 19.90% of issued share capital of Lands End Properties Private Limited (LEPPL), a company owning 67% interest in the Hotel Sea Rock Property through its wholly-owned subsidiary, Sky Deck Properties & Developers Private Limited (SDPDPL). LEPPL has raised a debt of Rs. 400 crores by issuance of zero coupon Non-Convertible Debentures, redeemable at a premium. In respect of the debentures issued by LEPPL, the Company has :(a) (b) the rst right to purchase the entire shareholding of SDPDPL held by LEPPL for an aggregate value of Rs 525.65 crores; or the obligation to make good the value of the short-fall if the lenders of LEPPL realise an amount lower than the Redemption Amount on sale of the shares of SDPDPL in case the right referred in (i) above is not exercised.
7. 8.
9.
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10. The Group has given an option to certain shareholders of ELEL Hotels & Investment Ltd., a company having an underlying lease of the Hotel Sea Rock Property as under:i. Shareholders holding 3,98,090 shares have an option to sell these shares to the Group. The option is exercisable at a price to be determined based on ful lment of certain obligations by the holders of these shares on January 1, 2011 or July 1, 2011 or January 1, 2012 or July 1, 2012. Shareholders holding 5,36,339 shares have an option to sell these shares to the Group. The option is exercisable at a price to be determined based on ful lment of certain obligations by the holders of these shares at an agreed xed return, payable from June 25, 2009 at a price so determined. The shareholders can exercise the option on January 1, 2013 or July 1, 2013 or January 1, 2014 or July 1, 2014. The Group also has an option to purchase these shares at the same price on April 1, 2013 or September 1, 2013 or April 1, 2014 or September 1, 2014.
ii.
11.
Dividend Income: Dividend Income consists of income on long term investments Rs. 6.83 crores (Previous Year: Rs. 10.13 crores) and on current investments Rs. 13.25 crores (Previous Year: Rs. 38.61 crores)
12.
Provision for Current Tax & Deferred Tax: a. Provision for Tax Includes Current Year 72.23 1.74 8.26 82.23 Rs. crores Previous Year 133.05 1.00 6.30 11.62 151.97 Rs. crores Previous Year 184.94 184.94 4.51 10.51 9.40 24.42 160.52
Particulars Current Tax Wealth Tax Fringe Bene t Tax Deferred Tax charge Total b.
The net deferred tax liability comprises of the following components: Current Year 21.92 0.11 22.03 1.88 2.01 0.68 0.53 5.10 16.93
Particulars Deferred tax Liability Depreciation on xed assets Deferred revenue expenditure Total Deferred tax Assets Provision for doubtful debts Provision for Employee Bene ts Unabsorbed Business Losses* Others Total Net Deferred Tax Liability
* - Deferred tax asset has been created for unabsorbed business losses in respect of one Jointly Controlled Entity, as in the view of Management there is a virtual certainty in the form of suf cient book pro ts to utilise the recognised Deferred tax asset in the future.
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c. The net deferred tax assets comprises of the following components : Rs. crores Particulars Deferred tax Assets Provision for Employee Bene ts Unabsorbed Depreciation Premium on Redemption of Debentures Others Total Deferred tax Liability Depreciation on xed assets Total Deferred Tax Assets 13. 14. 171.45 171.45 31.29 0.37 9.54 0.41 182.77 10.02 202.74 0.07 0.30 0.37 Current Year Previous Year
Estimated amount of contracts remaining to be executed on capital account and not provided for (including share of Jointly Controlled Entities) is Rs. 253.70 crores (previous year - Rs. 458.06 crores.) Contingent Liabilities (Includes share of Jointly Controlled Entities) a) On account of Income Tax matters in dispute: i) ii) b) In respect of appeals pending before Appellate Authorities for matters which have been decided in the Groups favour in earlier assessment years - Rs.15.07 crores (previous year - Rs. 58.07 crores). In respect of other matters for which appeals are pending - Rs.17.37 crores (previous year - Rs. 33.90 crores).
On account of dispute in respect of: i) ii) iii) iv) v) vi) Luxury tax Rs. 0.56 crore (previous year - Rs. 0.38 crore) Entertainment tax Rs. 0.53 crore (previous year - Rs. 0.53 crore) Sales tax Rs. 11.49 crores (previous year - Rs. 9.89 crores) Property tax Rs. 7.40 crores (previous year - Rs. 9.34 crores) Stamp Duty Rs 2.34 crores (previous year - Rs 2.34 crores) Others Rs. 30.51 crores (previous year - Rs. 22.24 crores)
c)
Other claims against the Group not acknowledged as debts - Rs. 152.38 crores (previous year - Rs. 108.60 crores).
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d) e) f) 15. Guarantees given by the Group in respect of deposits received and loans obtained outstanding as on March 31, 2010 - Rs. 46.18 crores (previous year - Rs. 37.64 crores). A subsidiary has unpaid Preference Dividend of Rs. 10.23 crores (previous year - Nil) (including dividend distribution tax of Rs. 1.49 crores) on 5% Cumulative Convertible Preference Shares of Rs. 100/- each. A subsidiary has reported a contingent liability in respect of a labour dispute, the amount of which is unascertainable. Guarantees given to bankers: St. James Court Hotel Limited owns the leasehold interest in a property in London, such interest having been assigned to it in an earlier period by an erstwhile subsidiary company on the basis of a licence granted by the landlord of the property, Scottish Widows Fund and Life Assurance Society. The licence was granted for such assignment upon the guarantee from the Company for the due performance and observance by St. James Court Hotel Limited of the covenants and conditions contained in the licence. The obligations of the Company in favour of the landlord shall remain in force throughout the full term of the lease, including any renewals. b) Undertakings given: The Group has given the following undertakings as at the Balance Sheet date: i. The Group has con rmed its intention to make nancial support to a subsidiary, St James Court Hotels Limited (SJCHL) to meet its liabilities as they fall due for a period of at least one year from the date of approval of SJCHLs nancial statements for the year ended March 31, 2010. The Group has entered into a Share Retention Agreement with International Finance Corporation, Washington, USA (IFC) in November 2003, in consideration of IFC having provided loan facilities to a subsidiary of a jointly controlled entity, Taj Maldives Private Limited (TMPL). The Group, of which TIHK is a member, has also agreed to maintain at least a 26% aggregate effective shareholding in TMPL and to retain effective control of TMPL, so long as any amount remains outstanding under the loan agreement between TMPL and IFC. The Group has given an undertaking to a lender of Taj Air Limited (TAL) not to transfer, assign, dispose of or encumber its holding in the shares of TAL without the said lenders prior written approval, except for changes in the shareholding of TAL between speci ed entities.
Guarantees and Undertaking Given a)
ii.
iii.
16.
Sundry Debtors as at March 31, 2010 include an amount of Rs. 4 crores receivable from Paramount Airways Private Ltd. (Paramount Airways) for the in- ight catering services rendered by the Group. The Group had led a petition with the Honourable High Court at Madras for winding up of Paramount Airways under Sections 433 and 434 of the Companies Act, 1956 for a claim of Rs. 4 crores. Simultaneously, the Group is in negotiations with Paramount Airways for a Memorandum of Compromise which could lead to restoration of supplies and settlement of past dues. However, the Group has on a prudent basis, estimated and made a provision of doubtful debts as at March 31, 2010 amounting to Rs. 2 crores. Finance and Operating Leases: (a) IHMS Inc. formed IHMS LLC (New York LLC) under the laws of the State of Delaware, U.S.A. The New York LLC was formed to acquire the lease with 795 Fifth Avenue Corporation, its af liates 795 Fifth
17.
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Avenue Limited Partnership, Barneys New York and individual apartment owners, which encompass the facilities of the Hotel Pierre. The New York LLC has entered into lease agreements for the use of various facilities at the Hotel Pierre for the purpose of operating a hotel business. Under the terms of the various Agreements, the New York LLC is required to: i. ii. iii. provide an irrevocable unconditional letter of credit in the amount of $ 5 million, as to be renewed annually until expiration of the lease. spend not less than $35 million on renovations of the property not later than June 30, 2007. In November 2007, the New York LLC entered into a lease modi cation agreement with its landlord. The principal modi cation extended the lease term for an additional 10 years to June 30, 2025 and increased the New York LLCs renovation commitment to $80 million. In order to expedite the renovation, the New York LLC closed the hotel rooms and restaurant operations of the Hotel Pierre effective December 31, 2007, and entered into a severance arrangement with the union to offer eligible employees enhanced severance payments with no recall rights or normal severance payments with recall rights. The company paid approximately $12.25 million in severance payments in January 2008. The lease modi cation required the New York LLC to complete the renovation by January 30, 2009. The New York LLC is expected to substantially complete the renovation project on June 30, 2010. On December 10, 2008, the New York LLC sent a letter request to 795 Corp. to extend the renovation completion dated to June 30, 2009 which 795 Corp. agreed to through a letter dated December 19, 2008 to the New York LLC. Also as part of the renovations, 795 Corp. required the New York LLC to post a $20 million performance bond. As the renovations were almost substantially completed, on April 8, 2009, 795 Corp. reduced the required performance bond to $10 million. On March 15, 2010, the required performance was further reduced to $2 million as the Hotel Pierre renovation was completed. Future xed and minimum rentals, exclusive of formula or percentage rentals for the period ending March 31, are approximately as under:Year 2011 2012 2013 2014 2015 Thereafter Total iv. Rs. Crores 8.89 8.89 8.89 8.89 8.89 2.22 46.67
Lease on cooperative apartments and ballroom The New York LLC assumed a lease agreement with Barneys New York, currently scheduled to expire in June 2013, for the use of Hotel Pierres ballroom and with some other individuals for the use
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of their cooperative apartments as hotel rooms and suites. Such leases require the New York LLC to pay minimum rent which increase annually by the change in the Consumer Price Index and to reimburse the owners for their actual cooperative maintenance charges. Future xed minimum rentals, exclusive of formula or percentage rentals for the years ending March 31, are approximately as follows: Year 2011 2012 2013 2014 2015 Thereafter Total (b) Rs. Crores 3.72 3.72 3.72 1.54 0.45 0.45 13.60
IHMS New York LLC and IHMS Boston LLC, as lessors under various operating leases, will receive base rents over the next ve years and in the aggregate, over the remaining terms of the leases as follows :Rs. crores Mar-31 2011 2012 2013 2014 2015 Thereafter Total Boston LLC 2.09 1.96 1.96 1.96 1.96 4.25 14.18 New York LLC 0.81 0.77 0.64 0.00 0.00 0.00 2.22 Total 2.90 2.73 2.60 1.96 1.96 4.25 16.41
(c)
The Group has taken assets on nance lease, certain assets, the minimum future lease rentals and present value of minimum lease rentals payable are as follows: Rs. crores Particulars Minimum lease rentals payable as on Balance Sheet date Present value of Minimum lease rentals payable at discounted rate implicit in lease agreement Current Year 1.10 1.05 Previous Year 1.79 1.62
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Rs. crores Present value of minimum lease payment at discounted rate implicit in lease agreement Current Year 0.68 0.25 0.12 1.05 Previous Year 0.77 0.85 1.62
Particulars
Minimum lease payment
Current Year Not later than one year Later than one year but not later than ve years Later than ve years Total (d) 0.72 0.26 0.12 1.10
Previous Year 0.88 0.91 1.79
The Group has taken on operating lease, certain assets, the minimum future lease rentals payable on which are as follows: Rs. crores Particulars Current Year Previous Year 22.46 Not later than one year 3.68 81.41 Later than one year but not later than ve years 10.62 90.56 562.96 Later than ve years
18.
A subsidiary company is liable, in certain cases, to pay variable rent based on ful lment of certain operational parameters. The total amount charged to Pro t and Loss Account in respect thereof is Rs. 0.06 crore (previous year Rs. 0.04 crore) Interest expense is net of interest income and it comprises of: Rs. crores Particulars Current Year Previous Year Interest Expenses 323.11 Fixed Loans* 265.79 18.49 Other Loans 14.49 5.75 On Income Tax Demand 347.35 280.28 9.92 Less : Interest Capitalised 10.44 337.43 Total Expenses 269.84 Interest Income (Gross) Inter-Corporate Deposits Deposits with Banks Interest on Income Tax Refund Others Total Income Interest (net) 10.63 1.87 15.20 3.59 31.29 306.14 23.82 3.60 3.79 9.42 40.63 229.21
Interest on Fixed Loans includes Rs. 15.50 crores (Previous year - Rs. 3.59 crores) being expenses on loans amortised over the tenure of the loan.
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Schedules
19. Auditors Remuneration: Rs. crores Particulars 1) 2) 3) Audit Fees Payment for Other Services Expenses and incidentals Current Year 3.50 0.84 0.22 4.56 Previous Year 3.02 1.02 0.10 4.14
Total Auditors Remuneration
The above excludes Nil (previous year Rs. 0.69 crore) paid to auditors for Other Services and debited to the Securities Premium Account. 20. Derivative Instruments: The Group uses forward exchange contracts, interest rate swaps, currency swaps, forward contracts and option contract to hedge its exposure in foreign currency borrowings and interest rates. The information on derivative instruments is as follows:(a) Derivative Instruments outstanding: Current Year Particulars Currency swaps Option Contracts Risk Hedged USD/INR USD/INR GBP/USD USD/ZAR USD GBP USD/INR GBP/USD USD/ZAR USD LIBOR (USD Million) 40.00 30.00 144.00 1.03 70.00 60.47 15.00 2.12 Rs. crores 187.00 132.00 Previous Year (USD Million) 22.73 30.00 30.00 59.17 0.50 155.00 Rs. crores 100.00 153.00 2.52 789.70
Libor Cap
Forward Contracts Interest Rate Swaps (b)
Unhedged Foreign currency exposure receivables (net): Currency United States Dollar (Million) South African Rand (Million) Current Year 121.32 85.79 Previous Year 52.95 70.51
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21. The Company has exercised the option granted vide noti cation F.No.17/33/2008/CL-V dated March 31, 2009, issued by the Ministry of Corporate Affairs and, accordingly, the exchange differences arising on revaluation of long term foreign currency monetary items for the year ended March 31, 2009 and 2010 have been recognised over the shorter of the maturity period or March 31, 2011. The unamortised balance as at the year end is presented as Foreign Currency Monetary Item Translation Difference Account. Details of Cash and Cash Equivalents: Particulars Cash and Bank Balances (as per Schedule 7) Add : Investments in Liquid Mutual Funds (as per Schedule 6) Cash and Cash Equivalents 23. Provision for Loyalty Programmes: Particulars Opening Balance Less : Redemption during the year Add : Provision for the year Closing Balance 24. Current Year 12.57 0.66 11.91 2.86 14.77 Current Year 548.76 23.28 572.04 Rs. crores Previous Year 252.84 425.73 678.57 Rs. crores Previous Year 10.96 0.90 10.06 2.51 12.57
22.
Provision for Contingencies: The Group is carrying provisions for contingencies towards various claims against the Company not acknowledged as debts towards disputed statutory claims. Rs. crores Particulars Opening Balance Add: Provision made during the year Closing Balance Current Year 1.40 1.40 Previous Year 1.20 0.20 1.40
25.
Employee Bene ts: (a) The Group has contributed the following amounts towards domestic de ned contribution plans in the Pro t and Loss Account under the head Groups Contribution to Provident Fund and Other Funds.Rs. crores Particulars Provident Fund Superannuation Fund Others Total Current Year 16.27 5.34 0.09 21.70 Previous Year 15.98 5.09 0.04 21.11
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Schedules
(b) The Group has contributed Rs. 39.12 crores (Previous Year: Rs. 42.06 crores) towards foreign De ned Contribution Plans in the Pro t and Loss Account under the head Groups Contribution to Provident Fund and Other Funds. The Group operates post retirement de ned bene t plans as follows :a. Funded : i. ii. b. Post Retirement Gratuity Pension to Employees Post retirement minimum guaranteed pension scheme for certain categories of employees, which is funded by the Company and the employees. Pension to Executive Directors and Employees Post retirement minimum guaranteed pension scheme for certain retired executive directors and certain categories of employees, which is unfunded. Post Retirement Gratuity
(c)
Unfunded : i.
ii. (d) i.
Details of funded gratuity plans are as follows :Amount to be recognised in Balance Sheet and movement in net liability Rs. crores Particulars Present Value of Funded Obligations Fair Value of Plan Assets Net Liability recognised in the Balance Sheet and included under Sundry Creditors ii. Expenses recognised in the Pro t and Loss Account Rs. crores Particulars Current Service Cost Interest Cost Expected return on Plan Assets Actuarial Losses/(Gains) Past Service Cost Net gratuity expenses included in Payments to & Provision for Employees Actual Return on Plan Assets Current Year 7.40 8.04 (6.50) (16.54) 0.02 (7.58) 15.72 Previous Year 5.95 7.24 (6.35) 26.19 0.12 33.15 (3.88) Current Year 114.50 (115.10) (0.60) Previous Year 112.51 (86.99) 25.52
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iii. Reconciliation of De ned Bene t Obligation Rs. crores Particulars Opening De ned Bene t Obligation Current Service Cost Interest Cost Actuarial Losses/ (Gains) Bene ts Paid Past Service Cost Closing De ned Bene t Obligation iv. Reconciliation of Fair Value of Plan Assets Rs. crores Particulars Opening Fair Value of Plan Assets Expected return on Plan Assets Actuarial Gains/(Losses) Contributions by Employer Bene ts Paid Closing Fair Value of Plan Assets Expected Employers contribution next year v. Description of Plan Assets (Managed by Insurance Companies) Particulars Government of India Securities Corporate Bonds Special Deposit Scheme Insurer Managed Funds Equity Insurer Managed Funds Debt Others Grand Total Current Year (%) 5.78 53.69 0.83 14.52 14.27 10.91 100 Previous Year (%) 10.06 49.47 0.84 15.00 13.56 11.07 100 Current Year 86.99 6.50 9.45 18.54 (6.38) 115.10 7.43 Previous Year 88.32 6.35 (10.17) 9.76 (7.27) 86.99 11.83 Current Year 112.51 7.40 8.04 (7.09) (6.38) 0.02 114.50 Previous Year 90.57 5.95 7.24 16.02 (7.27) 112.51
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Schedules
vi. Summary of Actuarial Assumptions Particulars Discount Rate Expected rate of return on Assets Salary Escalation Rate Attrition rate Mortality (e) Pension Scheme for Employees: The Company has formulated a funded pension scheme for certain employees. The actuarial liability arising on the above after allowing for employees contribution is determined as at March 31, 2010, under the basis of uniform accrual bene t with demographic assumptions taken as Nil is as follows: i. Amount to be recognised in Balance Sheet Rs. crores Particulars Present Value of Funded Obligation Fair Value of Plan Assets Present Value of Obligation Unrecognised Past Service Cost Net Liability ii. Expense to be recognised in the Pro t & Loss Account Rs. crores Particulars Current Service Cost Interest on De ned Bene t Obligation Net Actuarial Losses / (Gains) recognised in Year Past Service Cost Net expenses included in Payments to and Provisions for Employees Actual Return on Plan Assets Current Year 0.13 0.25 (0.19) 0.38 0.57 0.12 Previous Year 0.11 0.24 0.05 0.38 0.78 Current Year 3.75 (3.85) (2.28) (2.38) Previous Year 3.44 (2.66) 0.78 Current Year (%) 7.00 - 8.30 7.50 - 9.15 5 10 1 -2 Previous Year (%) 7-8 7.50 - 9.15 3 - 10 12
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Schedules
iii. Reconciliation of De ned Bene t Obligation Rs. crores Particulars Changed in De ned Bene t Obligation Opening De ned Bene t Obligation Current Service Cost Interest Cost Actuarial Losses / (Gains) Closing De ned Bene t Obligation iv. Reconciliation of Fair Value of Plan Assets Rs. crores Particulars Changed in Fair Value of Assets Opening Fair Value of Plan Assets Expected return on Plan Assets Actuarial (Losses) / Gains Contributions by Employer Bene ts Paid Closing Fair Value of Plan Assets Expected Employers contribution next year v. Description of Plan Assets (Managed by an Insurance Company) Particulars Government of India Securities Corporate Bonds Special Deposit Scheme Equity Property Insurer Managed Funds Others (Fixed Deposits) Grand Total Current Year (%) 100 100 Previous Year (%) 0.12 3.73 3.85 Current Year Previous Year 3.44 0.13 0.25 (0.07) 3.75 3.04 0.11 0.24 0.05 3.44 Current Year Previous Year
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vi. Experience Adjustments Rs. crores Particulars De ned Bene t Obligation Plan Asset Surplus/ (De cit) Exp. Adj. on Plan Liabilities Exp. Adj. on Plan Asset vii. Financial Assumption at the Valuation date Particulars Discount Rate Expected rate of return on Assets Current Year (%) 8.15 7.50 Previous Year (%) 7.00 Year Ended March 31, 2006 2007 2008 3.04 (3.04) 2009 3.44 (3.44) (0.37) 2010 3.75 3.85 0.10 0.55 0.12
The past service liability is being amortised over the average vesting period of 8.02 years. (f) Details of unfunded post retirement de ned bene t obligation are as follows :i. Reconciliation of De ned Bene t Obligation Rs. crores Particulars Opening De ned Bene t Obligation Current Service Cost Interest Cost Actuarial (Gain) / Losses Bene ts Paid Closing De ned Bene t Obligation Current Year 8.90 0.95 0.67 (2.21) (1.45) 6.86 Previous Year 6.23 0.89 0.53 2.76 (1.51) 8.90
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Schedules
ii. Expenses recognised in the Pro t and Loss Account Rs. crores Particulars Current Service Cost Interest Cost Actuarial (Gain) / Losses Net expenses included in Payments to and Provisions for Employees (g) Provident Fund In keeping with the Guidance on implementing Accounting Standard (AS) 15 (Revised) on Employee Bene ts noti ed by the Companies (Accounting Standards) Rules, 2006, employer established provident fund trusts are treated as De ned Bene t Plans, since the Company is obligated to meet interest shortfall, if any, with respect to covered employees. According to the Management, the Actuary has opined that actuarial valuation cannot be applied to reliably measure provident fund liabilities in the absences of guidance from the Actuarial Society of India. Accordingly, the Company is currently not in a position to provide other related disclosures as required by the aforesaid AS 15 read with the Accounting Standards Board Guidance. However, having regard to the position of the Fund (for covered employees) and con rmation from the Trustees of such Fund, provision has been made for such shortfall as at the year-end. (h) One of the international subsidiaries makes contributions along with many other employers to unionsponsored multiemployer pension plans based on the number of hours worked by employees covered under union contracts. The Multiemployer Pension Plan Amendments Act of 1980 of that country imposes certain liabilities upon employers associated with multiemployer plans who withdraw from such a plan or upon termination of said plans. The subsidiary had not undertaken to terminate, withdraw or partially withdraw from the plans. The subsidiary has not received information from the plans administrators to determine its share of unfunded vested bene ts, if any. Amounts charged to the subsidiarys expense for contribution to the multiemployer plans for the years ended March 31, 2010 and 2009 amounted to $1,580,472 (equivalent to Rs. 7.55 crores) and $1,255,189 (equivalent to Rs. 5.83 crores) respectively. The estimate of future salary increases, considered in actuarial valuation, takes into account in ation, seniority, promotions and other relevant factors. Experience Adjustments are not disclosed since the information from a groups perspective is not readily available with the Company. The above information has been certi ed by the actuaries and has been relied upon by the Auditors. 26. Discontinued Operations During the year, a subsidiary discontinued its Manufacturing facilities of marine products at Visakhapatnam by terminating the agreement with the owner of the manufacturing facility with effect from July 14, 2009. (a) Date and nature of the initial disclosure event In terms of the Board resolution dated March 30, 2009 the Group had intimated the owner of the facility of its intention not to renew the said agreement beyond July 14, 2009. Current Year 0.95 0.67 (2.23) (0.59) Previous Year 0.89 0.53 2.76 4.18
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Schedules
(b) The Group has closed all the manufacturing activities including disposal of stocks during the year. The process of realisation of debtors and other assets of the business is expected to be completed by the end of nancial year 2010 - 2011. The summary of the carrying values of various assets and liabilities pertaining to the above referred operation as at the year end are as below: Rs. crores Particulars Assets Fixed Assets at WDV Inventories Sundry Debtors Cash and Bank Loans and Advances Total Assets Liabilities Sundry Creditors Other Liabilities and Provisions Total Liabilities 0.01 0.01 0.68 0.01 0.69 0.29 0.70 0.26 1.25 0.09 2.71 4.46 0.29 2.65 10.20 As at March 31, 2010 As at March 31, 2009
(c)
The Management of the entity expects that the above assets and liabilities in respect of the Visakhapatnam facility will be realised and settled respectively at the carrying values. (d) The revenue and expenses in respect of the ordinary activities attributable to the discontinuing operation are as follows: Rs. crores Particulars Revenue Expenses (e) Year ended March 31, 2010 3.86 4.65 Year ended March 31, 2009 33.27 33.40
The pre-tax loss and income tax expense related thereto from attributable to the discontinuing operation are as follows: Rs. crores Particulars Pre-tax loss Tax expense After tax loss Year ended March 31, 2010 0.79 0.79 Year ended March 31, 2009 0.13 0.01 0.14
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(f) The amount of net cash ows attributable to the operating, investing and nancing activities of the discontinuing operation are as follows: Rs. crores Particulars Operating activities Investing activities Financing activities 27. Related Party Disclosures : (a) Associates and Co-Ventures The names of all the associates and jointly controlled entities are given in Note no. 1 (b) (ii) and (iii) on Page 140. (b) Investing Parties Singapore Airport Terminal Services Ltd. (SATS) Malaysian Airline Systems Tourism Resorts Kerala Ltd. Zinc Holdings Ltd. (formerly known as Cigen Corporation) And Beyond Holdings Pty. Ltd. (formerly known as The Conservation Corporation of South Africa Ltd.) (c) Key Management Personnel Key managerial personnel comprise the whole-time directors of the Company, who have the authority and responsibility for planning, directing and controlling the activities of the Company. Following are the Key Management Personnel: a) b) c) (d) Mr. Raymond N. Bickson Mr. Anil P. Goel Mr. Abhijit Mukerji Year ended March 31, 2010 8.26 0.07 (0.47) Year ended March 31, 2009 (1.03) (0.07) 2.69
The details of transactions with related parties (Associates, co-ventures and investing parties) are as follows: Rs. crores Particulars Interest paid/provided Interest received/accrued Dividends received Operating/Licence fees paid Operating fees received Associates CY 1.56 4.59 7.40 0.85 42.60 PY 2.33 5.88 20.62 0.15 50.73 Investing Parties CY 0.04 0.99 4.61 0.44 21.71 PY 1.04 7.50 26.15 Total CY 1.60 5.58 12.01 1.29 64.31 PY 2.33 6.92 28.12 0.15 76.88
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Rs. crores Particulars Purchase of goods and services Sale of goods and services Due from / (to) Current Account Sundry Debtors Purchase of shares Issue of Shares Deposits Associates CY 46.35 6.10 12.96 14.40 64.66 PY 46.37 6.39 1.33 13.04 102.59 100.00 67.45 Investing Parties CY 1.29 2.37 0.38 19.14 3.35 46.85 PY 0.21 1.12 1.06 13.53 1.25 50.45 Total CY 47.64 8.47 13.34 33.54 3.35 111.51 PY 46.58 7.51 2.39 26.57 103.84 100.00 117.90
Key managerial personnel comprise whole-time directors, who have the authority and responsibility for planning, directing and controlling the activities of the Company. Presently Mr. Raymond N Bickson, the Managing Director, Mr. Anil P. Goel, the Executive Director - Finance and Mr. Abhijit Mukerji, the Executive Director - Hotel Operations, are the Key Management Personnel drawing remuneration excluding commission of Rs. 5.45 crores (previous year Rs. 3.89 crores), Rs. 1.02 crores (previous year Rs. 1.00 crore) and Rs. 0.82 crore (previous year Rs. 0.58 crore) respectively. (e) Statement of Material Transactions Rs. crores Name of Company Associates Inditravel Pvt. Ltd. - Purchase of Goods & Services - Sales of Goods & Services - Dividend Received Oriental Hotels Ltd. - Dividend Received - Operating / License fee received - Sale of Goods & Services - ICDs Raised - ICDs Repaid - Interest paid/provided - Interest received/accrued - Deposits Taken - Deposits Repaid - Due to Current Account 8.52 3.88 17.53 2.40 92.50 79.50 1.42 0.68 19.20 0.89 4.11 6.40 19.95 1.98 70.50 44.00 0.80 1.48 5.00 15.00 0.15 Current Year Previous Year
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Rs. crores Name of Company Sundry Debtors Loan Given Issue of Shares Current Year 8.77 3.52 25.07 2.16 5.64 3.85 36.32 17.30 25.00 0.85 2.45 Previous Year 6.94 1.00 50.00 8.81 27.11 1.53 1.76 18.00 1.03 9.00 4.45 50.00 4.18 24.16 81.00 17.50 1.25 0.12 -
Piem Hotels Ltd. - Dividend Received - Operating / License fee received - Interest paid/ provided - Sale of Goods & Services - Deposits repaid - Due to - Current Account - ICDs repaid - Sundry Debtors - Issue of Shares Taj Air Ltd. - Interest received/accrued - Purchase of Goods & Services - ICDs Placed - ICDs Encashed Operating / License fee paid Taj Trade & Transport Co. Ltd. - Sale of Goods & Services - Licence Fees paid Benares Hotels Ltd. - Due from - Current Account Lanka Island Resorts Ltd. (formerly known as Taj Lanka Resorts Ltd.) - Due from - Current Account Taida Trading & Industries Ltd. - Due from - Current Account TAL Lanka Hotels PLC (formerly known as Taj Lanka Hotels Ltd.) - Due From Current Account BJETS Pte Ltd. - Purchase of Shares - Loan Given
0.70 1.03
10.43
1.15
10.53
102.59 -
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Schedules
Rs. crores Name of Company Co-Ventures Taj GVK Hotels & Resorts Ltd. Operating Fees Received Dividend Received Due from - Current Account Sundry Debtors Dividend Received Due from Current Account Sundry Debtors Due to - Current Account Due from - Current Account Interest received/accrued Sundry Debtors Due to - Current Account 19.19 3.20 2.25 7.36 1.99 2.44 3.96 (2.20) 0.61 7.70 (2.15) 19.62 5.12 1.36 5.55 0.83 3.34 Current Year Previous Year
Taj Madras Flight Kitchen Pvt. Ltd. Taj Kerala Hotels & Resorts Ltd.
Taj Karnataka Hotels & Resorts Ltd. Taj Safaris Ltd. TAL Hotels & Resorts Ltd.
Investing Parties Singapore Airline Terminal Services Dividend Paid Sale of Goods & Services 1.18 3.83 -
Zinc Holdings Ltd. (formerly known as Cigen Corporation) Issue of Shares Licence Fees Paid 2.61 0.44 0.44 Tourism Resorts Kerala Ltd. And Beyond Holdings Pty. Ltd. (formerly known as The Conservation Corporation of South Africa Ltd.) Issue of Shares 0.74 -
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28. Segmental Information: The Group regards the business segment as the primary segments. The business segments have been classi ed as follows: Hoteliering Air Catering Others comprising of Food Processing and Investing activities. The disclosure in respect of the above business segments are as under: Business Segments
Particulars Segment Revenue Dividend Pro t on sale of Assets Pro t on sale of investments Total Revenue Segment Results Add: Unallocable Income Interest (net) Pro t/(Loss) before tax and Exceptional Item Less/(Add): Exceptional Item Pro t/(Loss) before tax Provision for tax Pro t/(Loss) after tax Segment Assets Unallocated Assets Total Assets Segment Liabilities Unallocated Liabilities (including Minority interest) Total Liabilities Other Information Depreciation Signi cant non-cash expenditure other than depreciation Capital Expenditure 200.78 6.07 694.44 172.33 8.58 501.67 16.67 (4.36) 23.09 14.87 4.32 67.78 1.09 (0.17) 0.43 1.33 0.72 218.54 1.54 717.96 188.53 12.90 570.17 1,191.50 700.91 45.80 51.15 24.98 28.76 6,059.46 5,841.45 237.66 239.08 59.23 129.97 192.22 306.23 20.07 36.19 (11.21) 2.53 Hoteliering CY 2,265.99 PY 2,364.25 Air Catering CY 248.05 PY 281.65 Others CY 28.41 PY 59.24 Total CY 2,542.45 20.08 4.49 39.16 2,606.18 201.08 63.73 306.14 (41.33) (7.64) (33.69) 84.71 (118.40) 6,356.35 2,289.68 8,646.03 1,262.28 4,754.46 6,016.74 PY 2,705.14 48.74 2.71 0.04 2,756.63 344.95 48.78 230.46 163.27 4.76 158.51 155.77 2.74 6,210.50 2,949.72 9,160.22 780.82 5,081.51 5,862.33 Rs. crores
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The disclosures in respect of the above geographic segments are as under: Geographic Segments Domestic CY 1,851.90 3,859.45 181.34 PY 2,033.53 3,429.33 521.53 International CY 690.55 2,496.90 536.62 PY 671.61 2,781.17 48.64 Total CY 2,542.45 6,356.35 717.96 PY 2,705.14 6,210.50 570.17 Rs. Crores
Particulars Segment Revenue Segment Assets Capital Expenditure
Figures pertaining to Subsidiaries and Jointly Controlled Entities have been reclassi ed wherever necessary in order to conform to the presentation in the Companys nancial statements. 29. Earnings Per Share (EPS): Earnings per share is calculated in accordance with Accounting Standard 20 Earnings Per Share as noti ed by the Companies (Accounting Standards) Rules, 2006. Particulars Pro t/(Loss) after tax after Minority Interest and Share of Pro ts of Associates (Rs. crores) Less: Preference Dividend (not provided for) Adjusted Pro t/(Loss) No. of Ordinary Shares Basic and Diluted Earnings Per Share Basic and Diluted (In Rupees) 30. Current Year (136.88) (7.02) (143.90) 72,34,72,787 (1.99) Previous Year 12.46 (1.75) 10.71 71,35,64,442 0.15
Previous years gures have been regrouped wherever necessary to conform to the current years presentation.
For and on behalf of the Board Raymond N. Bickson Anil P. Goel Abhijit Mukerji Mumbai, May 26, 2010 Managing Director Executive Director - Finance Executive Director Hotel Operations
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Notes
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3 4-7 8 - 13 14 - 38 39 - 56 57 - 60 61 62 - 65 66 67 68 69 - 86 87 - 116 117 118 - 119 120 121 122 -168

Managing Director Executive Director Finance Executive Director Hotel Operations

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

Chairman / Member of the *Committees of other Companies on which he is a Director as on 31.03.2010

Audit Committee LIC Pension Fund Limited

Shareholders' & Investors Grievance Committee HDFC Bank Limited

Shareholders' & Investors Grievance Committee United Motors (India) Limited

The Indian Hotels Company Limited

72.35 11.11 139.00 454.58 692.35

86.81 14.75 100.00 539.25 770.81

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

MANAGEMENT DISCUSSION AND ANALYSIS

Annual Report 2009-2010

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Annual Report 2009-2010

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The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

The Indian Hotels Company Limited

Annual Report 2009-2010

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Sept '09 Aug-Sept '09

Annual Report 2009-2010

Aug '09 2009 April '09

The Indian Hotels Company Limited

Date Aug '09 2009 May '09

Jan '10 Jan '10 Oct '09

April '09 Jan '10

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Dec '09 Sept '09

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Date May '09 May '09

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Date July '09

Jan '10 2006

May '2010 Jan '10

June '09 May '09 Oct '09

GATEWAY HOTELS Oct '09

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Annual Report 2009-2010