The Board presents the twenty-eighth Annual Report together with the
 Audited statement of Accounts and the Auditors Report in respect of
 the year ended 31st March, 2011.
 
 the fnancial highlights are set out below :
 
                                             Rupees in million 
 
                                              2010-11      2009-10
 
 total Revenue                               1,763.42     1,489.96
 
 earnings before Interest, Depreciation,
 
 taxes and Amortisations (eBIDtA)              561.05       472.21
 
 Interest and Finance Charges                  250.69       276.46
 
 Depreciation                                  127.45       113.83
 
 Proft before tax                              182.91        81.92
 
 Current tax                                     2.45         0.02
 
 Deferred tax                                   60.29        29.02
 
 Proft after tax                               120.17        52.88
 
 Dividend on equity shares                      48.97        29.38
 
 Dividend tax                                    7.94         4.88
 
 transfer to General Reserve                    22.98         5.00
 
 Balance carried over                          198.70       158.42
 
 In accordance with the provisions of section 217(2AA) of the Companies
 Act, 1956 (the Act) and, based on representations from the
 Management, the Board states that:
 
 a) in preparing the Annual Accounts, applicable Accounting standards
 have been followed and there are no material departures;
 
 b) the Directors have selected such accounting policies, applied them
 consistently and made judgments and estimates that are reasonable and
 prudent to give a true and fair view of the state of affairs of the
 Company at the end of the Financial year and of the Proft of the
 Company for the year;
 
 c) the Directors have taken proper and suffcient care in maintaining
 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;
 
 d) the Directors have prepared the Annual Accounts of the Company on a
 going concern basis.
 
 the annexed Management Discussion and Analysis forms a part of this
 Report and covers, amongst other matters, the performance of the
 Company during the Financial year 2010-2011 as well as the future
 outlook.
 
 In accordance with the Listing Agreement with the stock exchanges, the
 following are attached :
 
 1.  Consolidated Financial statements prepared in accordance with the
 Companies (Accounting standards) Rules, 2006, along with the Auditors
 Report.
 
 2.  the Report on Corporate Governance in accordance with Clause 49 of
 the Listing Agreement along with the Auditors Certifcate.
 
 the Board recommends a Dividend of Rs. 2.50 per equity share of Rs. 10 in
 respect of the Financial year 2010-2011.
 
 the Dividend, if approved at the forthcoming Annual General Meeting,
 will be paid on tuesday, 16th August, 2011 to shareholders whose names
 appear on the Register of shareholders at the close of business on
 tuesday, 26th July, 2011. As per the Income tax Act, 1961, the tax on
 the Dividend will be borne by the Company.
 
 energy conservation and responsible environmental practices continue to
 be an area of focus for the Company. new technology, equipment and
 processes are evaluated and energy sources such as solar and wind
 energy are under active evaluation and implementation. All hotels have
 energy conservation committees and periodic energy audits.
 
 energy conservation measures taken during the year include installation
 of variable speed drives, high effciency boilers, occupancy sensors,
 energy effcient LeD, fuorescent and IR lamps.
 
 Measures planned include installation of heat pipes, additional
 occupancy sensors, higher effciency air conditioning and more energy
 effcient lighting systems.
 
 During the Financial year 2010-2011, the Foreign exchange earnings of
 the Company amounted to Rs. 875.16 million as against Rs. 744.37 million in
 the previous year. the expenditure in Foreign exchange during the
 Financial year was Rs. 25.08 million as compared to Rs. 20.83 million in
 the previous year.
 
 Mr. Rajesh Kapadia and Mr. sudipto sarkar are due to retire by rotation
 at the forthcoming Annual General Meeting and are eligible for
 re-appointment.
 
 Approval has been received from the Central Government under section
 212(8) of the Act exempting the Company from attaching a copy of the
 Report and Accounts of Island Hotel Maharaj Limited (IHML), its Wholly
 owned subsidiary. In granting the exemption, the Central Government has
 directed that specifed information on IHML be separately disclosed as a
 part of the Consolidated Financial statements. this information has
 been incorporated on Page 52 of this Annual Report.
 
 subject to prior arrangement, the Audited Annual Accounts of IHML will
 be available for inspection by any shareholder at the Companys
 Registered offce. shareholders interested in obtaining a copy of the
 Audited Annual Accounts of IHML may write to the Company secretary at
 the Registered offce.
 
 the Auditors of the Company, Messrs. Ray & Ray, Chartered Accountants,
 retire and are eligible for re-appointment.
 
 During the Financial year 2010-2011, none of the employees of the
 Company have received remuneration in excess of the limits prescribed
 under section 217(2A) of the Companies Act, 1956, read with the
 Companies (Particulars of employees) Rules, 1975.
 
 the Board takes this opportunity to thank all employees for their
 commitment, dedication and co-operation.
 
                                   For and on behalf of the Board
 
                             VIKRAM OBEROI      P.R.S. OBEROI
 
                             Managing Director  Chairman
 
 Gurgaon 
 
 29th May, 2011