BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The Financial statements are prepared on accrual basis under the
 historical cost convention (except where impairment is made and
 revaluation is carried out) on the basis of going concern and is in
 accordance with Accounting standards notified by the Companies
 (Accounting standards) rules, 2006 issued by the Central Government in
 consultation with the National Advisory Committee on Accounting
 standards and relevant provisions of the Companies Act, 1956.
 
 USE OF ESTIMATES
 
 In preparing the Financial statements in conformity with accounting
 principles generally accepted in India, Management is required to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities as at the
 date of Financial statements and the amounts of revenue and expenses
 during the reported period. Actual results could differ from those
 estimates. Any revision to such estimates is recognised in the period
 the same is determined.
 
 PRIOR PERIOD ADJUSTMENTS, EXCEPTIONAL ITEMS, EXTRAORDINARY ITEMS AND
 CHANGES IN ACCOUNTING POLICIES
 
 Prior period adjustments, exceptional items, extraordinary items and
 changes in accounting policies having material impact on the financial
 affairs of the Company are disclosed.
 
 FIXED ASSETS
 
 Fixed Assets are stated at cost of acquisition or construction and in
 case of revaluation of assets at revalued amounts net of impairment
 loss if any, less depreciation/amortisation. Cost represents direct
 expenses incurred on acquisition or construction of the assets and the
 share of indirect expenses relating to construction allocated in
 proportion to the direct cost involved.
 
 Assets acquired under lease are capitalised at the present value of
 minimum lease payments and are stated at the capitalised value net of
 accumulated depreciation.
 
 Capital work-in-progress comprises the cost of fixed assets that are not
 yet ready for their intended use on the reporting date and materials at
 site.
 
 DEPRECIATION
 
 Depreciation on fixed assets other than land, certain buildings on
 leasehold lands and leased vehicles and machinery is provided on
 straight Line Method at the rates prescribed under schedule XIV of
 the Companies Act, 1956. Certain fixed assets including leased vehicles
 and leased machinery, building installed on leasehold land (other than
 on perpetual lease) are depreciated over the lives of the respective
 leases or over the remaining lease period from the date of installation
 whichever is shorter. Vehicles acquired on lease are depreciated over
 their respective lease period or sixty months from the date of
 acquisition whichever is earlier. Long term Leasehold land (other than
 on perpetual lease) are depreciated over the balance period of lease,
 commencing from the date the land is put to use for commercial
 purposes. the additional depreciation on the increase in the value of
 assets due to revaluation is adjusted against revaluation reserve.
 
 REVENUE RECOGNITION
 
 - Revenue from hospitality services is recognised when the services are
 rendered and the same becomes chargeable. revenue from sale of printing
 and other materials is recognised on despatch of materials. revenue
 from shop Licence Fee, Management and Marketing Fee included under
 other services is recognised on accrual basis as per terms of
 contract.
 
 - Revenue from interest is accrued and recognised on time basis and
 determined by contractual rate of interest.
 
 - Dividend income is stated at gross and is recognised when right to
 receive payment is established.
 
 IMPAIRMENT OF ASSETS
 
 Impairment is ascertained at each Balance sheet date in respect of the
 Company''s fixed assets. An impairment loss is recognised whenever the
 carrying amount of an asset or cash generating unit exceeds its
 recoverable amount.
 
 LEASES
 
 In respect of assets acquired on or after 1st April, 2001, the same are
 capitalised at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term. Lease
 payments are apportioned between the interest charges and reduction of
 the lease liability so as to achieve a constant rate of interest on the
 remaining balance of the liability. interest component is charged to
 the profit and Loss account under interest and Finance charges.
 
 Operating lease payments are recognised as expenditure in the statement
 of profit and Loss on straight line basis, over the lease period.
 
 INVESTMENTS
 
 Investments held by the Company which are long term in nature are
 stated at cost unless there is any permanent diminution in value where
 provision for diminution is made on individual investment basis.
 Current investments are valued at cost or market price or fair value,
 whichever is lower. Earnings on investments are accounted for on
 accrual basis.
 
 INVENTORIES
 
 inventories are valued at cost which is based on First-in-First-out
 method or net realisable value, whichever is lower. unserviceable/
 damaged/discarded stocks and shortages are charged to the profit and
 Loss Account.
 
 TRANSACTIONS IN FOREIGN CURRENCY
 
 Sales made in foreign currency are converted at the prevailing
 applicable exchange rate. Gain/Loss arising out of fluctuations in
 exchange rate is accounted for on realisation.
 
 Payments made in foreign currency including for acquiring investments
 are converted at the applicable rate prevailing on the date of
 remittance. Liability on account of foreign currency is converted at
 the exchange rate prevailing at the end of the year. Monetary items
 denominated in foreign currency are converted at the exchange rate
 prevailing at the end of the year.
 
 Revenue expenditure of all the overseas sales offices are converted at
 the average exchange rate for the year. Assets and liabilities other
 than Fixed Assets are converted at the exchange rate prevailing at the
 close of the accounting year and Fixed Assets are converted at the
 month-end exchange rate of the month of acquisition.
 
 Foreign currency loans covered by forward contracts are realigned at
 the forward contract rates, while those not covered by forward
 contracts are realigned at the rates ruling at the year end. the
 differences on realignment is accounted for in the statement of profit
 and Loss.
 
 EMPLOYEE BENEFITS
 
 Short term employee Benefit is recognised as expense in the statement of
 profit and Loss of the year in which related service is rendered.
 
 Post employment and other Long term employee Benefits are provided in
 the Accounts in the following manner:
 
 (i) Gratuity - Maintained as a defend benefit retirement plan and
 contribution is made to the Life insurance Corporation of India, as per
 Company''s scheme. provision/ write back, if any, is made on the basis
 of the present value of the liability as at the Balance sheet date
 determined by actuarial valuation following projected unit Credit
 Method and is treated as liability under other Current Liability.
 
 (ii) Leave encashment on termination of service - As per actuarial
 valuation as at the Balance sheet date following projected unit Credit
 Method.
 
 (iii) Provident Fund - provident Fund for most of the employees is a
 defend Contribution scheme, where the contribution is made to a Fund
 administered by the Government provident Fund Authority.
 
 For a few employees, provident Fund, administered by a recognised
 trust, is a defend Benefit plan wherein the employee and the Company
 make monthly contributions. Pending the issuance of Guidance Note from
 the Actuarial society of India, actuarial valuation is not carried out
 and the Company provides for required liability at year end, in respect
 of the shortfall, if any, upon confirmation from the trustees of such
 Fund.
 
 BORROWING COST
 
 Borrowing cost that is attributable to the acquisition / construction
 of fixed assets are capitalised as part of the cost of the respective
 assets. other borrowing costs are recognised as expenses in the year in
 which they arise.
 
 SHARE ISSUE EXPENSES
 
 Share issue expenses are written off against the securities premium
 Account in accordance with section 78 of the Companies Act, 1956.
 
 TAXES ON INCOME
 
 Income-tax is accounted for in accordance with Accounting standard on
 ''Accounting for taxes on income'' notified pursuant to the Companies
 (Accounting standards) rules, 2006.
 
 Minimum Alternate tax (MAT) is accounted for in accordance with tax
 laws which give rise to future economic benefits in the form of tax
 credit against which future income tax liability is adjusted and is
 recognised as an asset in the balance sheet.
 
 deferred tax is provided and recognised on timing differences between
 taxable income and accounting income subject to prudential
 consideration. deferred tax assets on unabsorbed depreciation and carry
 forward of losses are not recognised unless there is virtual certainty
 about availability of future taxable income to realise such assets.
 
 PROPOSED DIVIDEND
 
 Dividend recommended by the Board of directors is provided for in the
 Accounts pending shareholders'' approval.
 
 PROVISIONS CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 provisions are recognised when there is a present legal or statutory
 obligation as a result of past events and where it is probable that
 there will be outflow 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 outflow of resources or where a reliable
 estimate of the obligation cannot be made. obligations are assessed on
 an on going basis and only those having a largely probable outflow of
 resources are provided for.
 
 Contingent Assets are not recognised in the financial statements.
 
 b) The Company has one class of equity shares having a par value of Rs.
 2 per share. each share holder is eligible for one vote per share held
 and such dividend as proposed by the Board of directors, subject to the
 approval of the shareholders in the ensuing Annual General Meeting.
 
 d) Out of the above shares of the company, 130,984,657 shares were
 issued as fully paid up Bonus shares by Capitalisation of securities
 premium Account in 2006-07.
 
 e) 178,615,442 shares of face value Rs. 2 each have been alloted as
 fully paid up shares at a premium of Rs. 64 per share to the
 shareholders on rights basis during 2010-11.
 
 Dividend of Rs. 1.10 per share (2011 - Rs. 0.90 per share) amounting to
 Rs.628.73 Million (2011 - Rs. 514.41 Million) has been recommended by
 the Board of directors. this dividend will be paid to the shareholders
 if approved at the forthcoming Annual General Meeting.
 
 PARTICULARS OF TERM LOANS :
 
 (i) Term Loan from ICICI Bank Limited carries interest at bank''s base
 rate  2.5% repayable in 7 quarterly installments of Rs. 200 million
 each.  repayment will be complete in December 2014.
 
 (ii) The Finance Lease obligations are secured by hypothecation of
 vehicles taken under Lease. Repayments are done by equated monthly
 installment over 36 to 60 months.
 
 PARTICULARS OF SECURITIES :
 
 Term loan from ICICI Bank Limited is secured by way of equitable
 mortgage by deposit of title deeds in respect of the Company''s hotel in
 delhi known as Maidens Hotel, ranking pari passu.
 
 PARTICULARS OF SHORT TERM BORROWINGS :
 
 Cash credit facilities are secured by way of hypothecation of all stock
 of inventories, book debts and other current assets of the company,
 both present and future, ranking pari passu. Cash Credit with united
 Bank of India is additionally secured by way of second charge in
 respect of the company''s hotel in Kolkata known as the oberoi Grand.
 Cash Credit is repayable on demand and carries interest at floating rate
 linked to the base rates of the respective banks.
 
 * others includes withholding and other taxes payable Rs. 177.64
 Million (2011 - Rs. 227.35 Million)
 
 * National savings Certifcates have been lodged with Government
 Authorities as security deposit.
 
 * Inventories are valued at cost which is based on First-in-First-out
 method or net realisable value, whichever is lower.
 
 EXCEPTIONAL ITEMS
 
 Shortfall arising on final settlement of insurance claim for loss due to
 business interruption surplus arising on final settlement of insurance
 claim for damage profit on sale of property and Apartment