EIH

1.  The estimated amount of contracts remaining to be executed on
 capital account and not provided for net of advances Rs. 423.65 Million
 (2008-rs.1,374.56 Million).
 
 2.  Contingent Liabilities not provided for in respect of -
 
 (i) Claims against the Company pending appellate/judicial decisions :
 
 (a) Sales tax Rs. 24.52 Million (2008-rs.19.44 Million)
 
 (b) Income-tax Rs. 394.50 Million (2008-rs. 582.47 Million)
 
 (c) Property tax Rs. 217.58 Million (2008-rs. 214.92 Million)
 
 (d) Entertainment tax Rs. 9.13 Million (2008-rs. 11.97 Million)
 
 (e) Luxury tax Rs. Nil (2008-Rs. 4.53 Million)
 
 (f) Customs duty Rs. 452.50 Million (2008-Rs. Nil)
 
 (g) Excise duty Rs. 9.86 Million (2008-Rs. Nil)
 
 (h) Others Rs. 17.73 Million (2008-Rs. 9.79 Million)
 
 (ii) Guarantees given to Banks & Financial Institutions for Rs.
 1,349.50 Million (2008-Rs. 1,899.50 Million) against financial
 facilities availed of by the subsidiary, joint venture and associate
 companies.
 
 3.  As a result of the terrorist attack on 26th November, 2008 and
 consequent damage to properties, business was interrupted in “Trident,
 Nariman Point, Mumbai” and “The Oberoi, Mumbai”. “Trident, Nariman
 Point, Mumbai” was reopened on 21st December, 2008 but “The Oberoi,
 Mumbai” continued to be out of operation for rest of the financial
 year. As the Company is adequately insured against damage for both the
 hotels on replacement value basis, no final adjustment has been made in
 the books of account in respect of damage to the properties pending
 settlement of claim.
 
 Trident, ]Nariman point, Mumbai” and “the Oberoi, Mumbai” are also
 insured against loss due to business interruption.  in response to the
 claim lodged by the Company in respect of business interruption loss
 upto 31st March, 2009, the insurer has communicated a provisional
 assessment of Rs. 967.60 Million against business interruption loss,
 which the Company has recognised as an income from insurance claim in
 the Accounts.
 
 4.  Fixed Deposits of Rs. 23.13 Million (2008-Rs.15.91 Million) have
 been lodged with the Banks/Government Authorities for obtaining
 guarantees or as security deposits.
 
 5.  There are no reportable amount of dues on account of principal and
 interest or any such payments during the year as required by Micro,
 Small and Medium enterprises Development Act, 2006, in respect of Micro
 enterprises and Small enterprises as defined in the Act. this is based
 on information made available to the Company by such enterprises.
 
 6.  Freehold Land, Leasehold Land of perpetual nature and Buildings at
 some locations were revalued on 31st March, 1982 and 31st March, 1993
 resulting in a surplus of Rs. 2,863.88 Million which is included in the
 original cost. The valuation was carried out by an approved valuer on
 the basis of depreciated replacement cost. The nature of indices was
 not mentioned in the report.  The surplus was transferred to
 Revaluation Reserve.
 
 7.  (a) Depreciation has been provided for in the Accounts on “Straight
 Line Method” at the rates prescribed in Schedule XIV to the Companies
 Act, 1956 except for specific assets which are depreciated over the
 useful lives of the assets, which are not less than those prescribed
 under the Companies Act, 1956.
 
 (b) Depreciation for the year as per the Fixed Assets Schedule
 (Schedule-6) includes Rs. 29.99 Million (2008-Rs. 29.99 Million) being
 depreciation on the increased value of building due to the effect of
 revaluation and, accordingly, the same has been adjusted from the
 revaluation reserve Account.
 
 8.  Fixed Assets acquired under finance lease amounted to Rs. 345.01
 Million (2008-Rs. 95.71 Million) being assets acquired between 1st
 April, 2001 to 31st March, 2009. this includes an amount of Rs. 272.68
 Million (2008-rs. 31.27 Million) being assets acquired during the year
 under finance lease and capitalised in line with the requirements of
 Accounting Standard (AS-19). Depreciation for the year includes an
 amount of Rs. 23.64 Million (2008-rs. 23.24 Million) being depreciation
 charged on these assets.
 
 9.  Disclosures in respect of Company’s operating lease arrangements
 entered on or after 1st April, 2001 under Accounting standard (AS-19)
 on Leases issued by the Institute of Chartered Accountants of India :
 
 (a) General description of the Company’s operating lease arrangements :
 
 The Company has entered into operating lease arrangements primarily for
 office premises, site offices, airport services and residential
 premises for its employees. Some of the significant terms and
 conditions of the arrangements are :
 
 - agreements may generally be terminated by either party by serving a
 notice;
 
 - the lease arrangements are generally renewable on the expiry of the
 lease period subject to mutual agreement;
 
 - the Company shall not sublet, assign or part with the possession of
 the premises without prior written consent of the lessor.
 
 (b) Rent in respect of the above is charged to the Profit and Loss
 Account.
 
 10.  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.
 earnings on investments are accounted for on accrual basis.
 
 11.  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.
 
 12.  In the case of Mashobra Resort Limited (“MRL”), several disputes
 with the Government of Himachal Pradesh, the joint venture partner,
 were referred by the high Court of Himachal Pradesh on 17th December,
 2003 to an arbitral tribunal consisting of a single arbitrator whose
 award has been challenged by both the Company and MRL, amongst others.
 The operation of the arbitration award has been stayed pending
 substantive hearing of the applications by the high Court.
 Consequently, the status quo ante of the entire matter stands restored
 to the position as on 17th December, 2003 and the hotel is being
 operated by MRL accordingly.  the Company, in the Board Meeting dated
 27th March, 2009, decided to request MRL for converting such loans into
 equity.  On such conversion the Net Worth of MRL will become positive.
 however, MRL is yet to take any action regarding the proposed
 conversion of shares.
 
 In view of the above and the proposed conversion into equity, the loans
 and advances to MRL amounting to Rs. 1,135.63 Million (2008-rs. 973.99
 Million) have been considered good.
 
 13.  Interest debited to the Profit and Loss Account is net of interest
 capitalised amounting to Rs. 218.34 Million (2008-Rs. 68.99 Million).
 
 14.  Since it is not practicable to give the quantity-wise details in
 respect of purchase, consumption, turnover, stock, etc., the Ministry
 of Corporate Affairs, in exercise of its powers under Section 211(4) of
 the Companies Act, 1956, by its Order No. 46/81/2008-CL-III dated 30th
 May, 2008, has exempted the Company from giving such details.
 
 15.  In respect of printing business, the installed printing capacity
 as on 31st March, 2009 was 525 Million standard impressions (2008-400
 Million). The actual production during the year was 320 Million
 standard impressions (2008-260 Million). The installed printing
 capacity and actual production have been certified by the Management
 and accepted by the Auditors, being a technical matter.
 
 16.  The details of transactions entered into with Related Parties
 during the year are as follows: (A) Name of the Related Parties
 
 (i) Subsidiary companies
 (i) Mercury Car rentals Limited
 (ii) Mashobra resort Limited
 (iii) Oberoi Kerala Hotels and resorts Limited
 (iv) Mumtaz Hotels Limited
 (v) EIH international Ltd.
 
 (vi) EIH Flight Services Limited, Mauritius
 (ii) Associates & Joint Ventures
 (i) EIH Associated Hotels Limited
 (ii) CCA Leisure services private Limited
 (iii) L&T Bangalore Airport hotel Limited
 (iii) Enterprises in which Key Management Personnel have significant
 infuence
 
 (i) Oberoi Hotels private Limited
 (ii) Oberoi properties private Limited
 (iii) Oberoi Holdings private Limited
 (iv) Oberoi investments private Limited
 (v) Oberoi Buildings and investments private Limited
 (vi) Oberoi plaza private Limited
 (vii) Bombay plaza private Limited
 (viii) Oberoi Leasing & Finance Company Private Limited
 (ix) Aravali polymers private Limited
 (x) Island Hotel Maharaj Limited
 
 (iv) key Management Personnel
 
 (i) Mr. P.R.S. Oberoi - Chairman & Chief executive 
 (ii) Mr. S.S.Mukherji - vice Chairman 
 (iii) Mr. V.S. Oberoi - Joint Managing director
 (iv) Mr. A.S. Oberoi - Joint Managing director
 
 17.  Financial Reporting of Interest in Joint ventures :
 
 a) Contingent liability that EIH Limited has incurred in relation to
 its interest in joint ventures and its share in each of the contingent
 liabilities which have been incurred jointly with other venturers :-
 Guarantees given to Banks & Financial Institutions for Rs. 1,110.00
 Million (2008-Rs. 1,310.00 Million) against financial facilities
 availed of by jointly controlled entities.
 
 b) EIH Limited’s share of the contingent liabilities of the joint
 ventures themselves : Rs. 27.61 Million (2008-Rs. 26.18 Million).
 
 c) EIH Limited is not liable for the liabilities of the other venturers
 of any joint venture.
 
 d) There are no capital commitments of EIH Limited in relation to its
 interest in joint ventures and there are no capital commitments that
 have been incurred jointly with other venturers.
 
 e) EIH Limited’s share of capital commitments of the joint ventures
 themselves amounts to Rs. 295.41 Million (2008-rs.12.58 Million).
 
 f) In view of cancellation of the joint venture agreement by mutual
 consent between the joint venture partners, Balamurie Island resort
 private Limited ceased to be joint venture.
 
 18.  The figures for the previous year have been re-grouped/recast as
 far as practicable to make them comparable with those of the current
 year.