1.  the estimated amount of contracts remaining to be executed on
 Capital Account and not provided for net of advances Rs. 38.07 Million
 (2010 - Rs. 4.03 Million).
 
 2.  Contingent liabilities not provided for in respect of :
 
 (a) claims against the Company not acknowledged as debts pending
 settlement of disputes amounting to Rs. 130.47 Million (2010 - Rs. 107.93
 Million).
 
 (b) guarantee given by the Company for Rs. nil (2010 - Rs. 350.00 Million)
 to a bank on behalf of its wholly owned subsidiary Company, Island
 Hotel Maharaj Limited.
 
 (c) counter guarantee given by the Company to the extent of Rs. nil (2010
 - Rs. 25.00 Million) to Deutsche Bank.
 
 (d) property tax demand of Rs. 5.34 Million (2010 - Rs. 5.34 Million) in
 respect of the oberoi RajvilaŻs, Jaipur, against which the Company has
 fled a Civil Writ Petition in the High Court of Rajasthan which is
 pending adjudication. However, the Company has paid Rs. 3.64 Million
 (2010 - Rs. 3.64 Million) under protest.
 
 (e) sales tax demand amounting to Rs. 9.58 Million (2010 - Rs. 1.06
 Million) against which the Company has preferred an appeal. the Company
 made a payment of Rs. 2.19 Million (2010 - Rs. 0.45 Million) under protest.
 
 (f) urban Development tax demand amounting to Rs. 4.91 Million (2010 - Rs.
 3.51 Million) against which the Company has preferred an appeal. the
 Company has made a payment of Rs. 7.20 Million (2010 - Rs. 1.50 Million)
 under protest.
 
 3. 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 specifed assets as stated below, which are depreciated
 as follows and in respect of which depreciation amounts are not less
 than those prescribed under the Companies Act, 1956:
 
 (i) Buildings, Lift and electrical Fittings at Regent estate, shimla,
 over their lease period of twenty one years or over the remaining lease
 period from the date of installation, whichever is earlier.
 
 (ii) Leased Vehicles over their respective lease period or fve years,
 whichever is earlier.
 
 (iii) Depreciation includes Rs. 13.01 Million (2010 - Rs. 0.64 Million)
 being provision for amoritisation of long term leasehold land.
 
 4a. Fixed Assets acquired under fnance lease amounting to Rs. 22.13
 Million (2010 - Rs. 11.10 Million) being the assets acquired between 1st
 April, 2001 and 31st March, 2011. this includes an amount of Rs. 13.39
 Million (2010 - Rs. 5.95 Million) being assets acquired during the year
 under fnance lease and capitalised in line with the requirement of
 Accounting standard (As-19) on Accounting for Leases notifed pursuant
 to the Companies (Accounting standards) Rules, 2006. Depreciation for
 the year includes an amount of Rs. 3.90 Million (2010 - Rs. 2.59 Million)
 being depreciation charged on these assets.
 
 5b. Disclosures in respect of Companys operating lease arrangements
 entered on or after 1st April, 2001 under Accounting standard (As-19)
 on Leases.
 
 i) General description of the Companys operating lease arrangements:
 
 the Company has entered into operating lease arrangements primarily for
 hiring offce premises, site offces and residential premises for its
 employees and for giving premises on rent to tenants. some of the
 signifcant terms and conditions of the arrangements are:
 
 – Lease agreements are not non-cancellable in nature and may generally
 be terminated by either party by serving a notice;
 
 – the lease agreement are generally renewable by mutual consent on
 mutually agreeable terms.
 
 ii) Rent in respect of the above is charged/credited to the Proft and
 Loss Account.
 
 6.  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 are charged to the Proft and
 Loss Account.
 
 7.  the Company has calculated its tax liability after considering
 Minimum Alternative tax (MAt). this has resulted in an additional tax
 expense of Rs. 2.40 Million and the balance carried forward is to be set
 off against any future tax liability. MAt Credit entitlement has been
 shown under Loans and Advances in the Balance sheet as at 31st March,
 2011.
 
 8.  As the Companys activity is limited to only hotel operations,
 there is no separate reportable segment as per the Accounting standard
 (As-17) on segment Reporting notifed pursuant to the Companies
 (Accounting standards) Rules, 2006.
 
 9.  the Company is not required to give quantitative and value wise
 information in respect of purchase, consumption, turnover, stock etc.
 as the same is exempted vide Circular no. so 301(e) dated 08.02.2011
 issued by Ministry of Corporate Affairs, Government of India.
 
 10.  the details of transactions entered into with Related Parties
 during the year are as follows:
 
 (a)
 
 (i) subsidiary Company
 
 Island Hotel Maharaj Limited
 
 (ii) key Management Personnel
 
 Mr. Vikram oberoi – Managing Director
 
 (iii) enterprise in which key Management Personnel have signifcant
 infuence
 
 EIH Limited
 
 11. the previous years fgures have been regrouped, rearranged and
 reclassifed wherever necessary. Amounts and other disclosures for the
 preceding year are included as an integral part of the current year
 Financial statements and are to be read in relation to the amounts and
 other disclosures relating to the current year.