TO THE MEMBERS
 
 The Directors have pleasure in presenting the 110th Annual Report of
 the Company together with its Audited profit and Loss Account for the
 year ended March 31, 2011 and the Balance Sheet as on that date:
 
 FINANCIAL RESULTS
 
                                                           Rs. crores
 
 Particulars                                   2010-11          2009-10
 
 Total Income                                  1724.92          1520.36
 
 profit before Depreciation, Interest 
 and Tax                                        471.40           427.38
 
 Less: Depreciation                             108.46           104.14
 
 Less: Interest                                 122.85           152.90
 
 profit before Tax & Exceptional Item          240.09           170.34
 
 Less: Exceptional Items                         17.14          (47.91)
 
 profit before Tax                             222.95           218.25
 
 Less: Provision for Tax                        109.00            62.46
 
 Add : MAT Credit                                32.63
 
 Less: Short Provision of Tax of 
 earlier years (Net)                              5.33             2.69
 
 profit after Tax                              141.25           153.10
 
 Add: Balance brought forward from the 
 previous year                                  454.58           539.25
 
 Amount available for Appropriation             595.83           692.35
 
 APPROPRIATIONS
 
 (i) General Reserve                             14.13            15.31
 
 (ii) Dividend:
 
 A dividend of 100% i.e. Rs. 1/- per Ordinary 
 Share was recommended by the Board
 of Directors on May 24, 2011.
 
 (In respect of the previous year, 
 a final dividend of 100% i.e. Rs. 1/- 
 per Ordinary Share                              75.95            72.35
 was declared and paid to the Members)
 
 Tax on Dividend                                 12.32            11.11
 
 (iii) Transfer to Debenture Redemption 
 Reserve                                        113.30           139.00
 
 (iv) Balance carried to Balance Sheet          380.13           454.58
 
                                                595.83           692.35
 
 INCOME
 
 The total income for the year ended March 31, 2011 at Rs. 1724.92 crores
 was higher than that of the previous year by 13%. Room Income was
 higher than the previous year by 19%. The Average Room Rate (ARR)
 increased by 9% over the previous year. Food & Beverage (F&B) income
 also increased by 19% over the previous year, enabled by a healthy
 growth in banqueting income, which grew by 22% over the previous year.
 
 DEPRECIATION AND INTEREST
 
 Depreciation for the year was higher due to incremental depreciation on
 the newly opened Taj Falaknuma Palace, Hyderabad, as also on account of
 capitalisation of the replaced assets at the Taj Mahal Palace, Mumbai
 and the ongoing renovations across select hotels.
 
 The net interest cost for the year ended March 31, 2011 at Rs. 122.85
 crores was lower than the net interest cost of the preceding year by Rs.
 30.05 crores. The gross interest cost for the year decreased by Rs. 18.19
 crores due to retirement of debt during the year and increase in
 capitalisation of interest on hotel projects under construction.
 Interest income for the year was higher due to currency swap gains
 earned on the Company''s foreign currency loans.
 
 PROFITS
 
 profit before Tax at Rs. 222.95 crores was higher than the previous year
 by 2%. profit after Tax at Rs. 141.25 crores was lower by 8% over the
 previous year, mainly due to a higher incidence of tax on business
 profits.
 
 CONSOLIDATED FINANCIAL RESULTS
 
 The consolidated turnover of the Company for the year ended March 31,
 2011 aggregated to Rs. 2914.90 crores as against Rs. 2562.53 crores for the
 previous year. Loss after Tax which aggregated to Rs. 87.26 crores for
 the year reduced in comparison with the Loss after Tax ofRs. 136.88
 crores for the previous year.
 
 The consolidated turnover increased by 14% with improved domestic
 tourism and corporate travel which favourably impacted ARRs and
 occupancies across not just the Company''s hotel portfolio but also the
 hotels in its joint ventures, subsidiaries and associates. There was an
 improvement in the Management Fee income from hotels under operation.
 The restored Taj Mahal Palace, Mumbai, the full year impact of new
 inventory at Taj Lands End and the recently opened Taj Falaknuma
 Palace, Hyderabad contributed to improved results of the Company. Among
 the Company''s domestic subsidiaries, the subsidiary in the economy
 hotels segment grew its hotel portfolio thus improving its turnover.
 The profitability of the Company''s subsidiary in the flight catering
 segment continued to be impacted by the pressures being faced in the
 aviation sector. During the year, the Company exited from its
 investment in the frozen foods sector. Subsequent to the successful
 launch of The Gateway hotels brand in 2009/10, during the year the
 Company launched the Vivanta by Taj brand, the response to which from
 our guests and the trade has been very favourable. Effectively, the
 Company operates its portfolio of hotels now under 4 clear and well
 defined brands, namely Taj Luxury Hotels, Vivanta by Taj, The Gateway
 hotel and Ginger hotels, each addressing opportunities at varying price
 points and providing to our guests well defined and consistent
 products, services and experiences. The Company''s US subsidiary
 continued to be impacted by the slower-than-expected recovery in the US
 economy. The losses from the US portfolio have reduced and all efforts
 are underway to turn the portfolio profitable in the near term. The
 re-opening of The Pierre after renovation has resulted in turnover
 growth which along with other US hotels has registered increasing
 occupancies, the pressure on ADRs notwithstanding. The Company''s UK
 subsidiary continued to register a good performance in line with the
 previous year. The international joint venture with hotels in the
 Maldives registered improved performance taking the benefit of full
 year operations of the renovated Vivanta by Taj, Coral Reef, Maldives.
 
 DIVIDEND
 
 Your Directors, in anticipation of a turnaround in the business, are
 pleased to recommend a dividend of 100 % or Rs. 1/- per Ordinary Share
 for the year ended March 31, 2011.
 
 EQUITY SHARE CAPITAL
 
 During the year, the Company allotted 3.60 crores equity shares at a
 price of Rs. 103.64 per share and 4.80 crores warrants on preferential
 basis to Tata Sons Limited. Through the preferential allotment, the
 Company raised Rs. 373.10 crores towards equity issue and Rs. 124.37 crores
 being 25% of the aggregate exercise price of the warrants. The Company
 would further receive Rs. 373.11 crores, if the warrants are exercised by
 the Tata Sons Limited at any time after April 1, 2011 but before June
 23, 2012.
 
 BORROWINGS
 
 The total borrowings stood atRs. 2338.67 crores as at March 31, 2011 as
 againstRs. 2650.55 crores as on March 31, 2010, a reduction ofRs. 311.88
 crores.
 
 CAPITAL EXPENDITURE
 
 During the year under review, the Company incurred Rs. 307.46 crores
 towards capital expenditure. Major expenditure was incurred on the
 Company''s projects covering the Taj Falaknuma Palace, Hyderabad,
 Vivanta by Taj Hotels at Dwarka, Bangalore and towards the restoration
 of Taj Mahal Palace, Mumbai.
 
 BUSINESS OVERVIEW
 
 Travel & Tourism in Asia Pacific grew very strongly in 2010 in line
 with the recovery from the global recession. All Asia Pacific
 sub-regions made strong gains in 2010, but the best growth was in South
 Asia, boosted by a visible recovery in India, Sri Lanka and the region.
 
 In the year 2010, the tourism sector in India witnessed substantial
 growth as compared to 2009. The Foreign Tourist Arrivals (FTA) in India
 during 2010 were 5.58 million as compared to the FTAs of 5.17 million
 during 2009, showing a growth of 8.1%.  The FTA growth rate during 2009
 over 2008 was (2.2)%. Foreign Exchange Earnings (FEE) from tourism
 during 2010 were Rs. 64,889 crores as compared to Rs. 54,960 crores during
 2009, registering a growth rate of 18.1%. The growth rate in FEE from
 tourism during 2009 over 2008 was 8.3%. The domestic tourist traffic
 is also estimated to have increased by approximately 15%.
 
 The fully restored heritage block of the Taj Mahal Palace, Mumbai
 reopened its doors to guests on August 15, 2010. The spectacular
 Falaknuma Palace, another significant addition to the Company''s
 Palaces portfolio was opened in November, 2010 and has been well
 received. Four new Ginger hotels at Manesar, Chennai, East Delhi and
 Indore commenced operations during the year. On the International
 front, Taj Cape Town, South Africa with an inventory of 155 rooms and
 22 apartments opened with a grand launch event. The inventory of the
 Taj Group of Hotels now stands at 107 hotels with 12,849 rooms.
 Further details on the new properties launched, product upgradation,
 and expansion in domestic and international markets are provided under
 the section Management Discussion and Analysis.
 
 Your Company continues to pursue the completion of ongoing projects,
 both in the domestic and international market, under various brands to
 achieve sustainable and profitable growth.
 
 SUBSIDIARIES
 
 The Ministry of Corporate Affairs vide their Letter no.
 5/12/2007-CL-III dated February 8, 2011 has granted a general exemption
 under Section 212 (8) of the Companies Act, 1956 for publication of the
 Accounts of subsidiary companies, subject to fulfilment of certain
 conditions. In view of the same, your Company is also exempted from
 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 reflected in the consolidated accounts.
 
 Innovative Foods Limited is no longer a subsidiary of The Indian Hotels
 Company Limited with effect from February 11, 2011 due to the sale of
 stake by Residency Foods & Beverages Limited.
 
 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 Offi
 ce of the Company as well as the respective Registered offices 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.
 
 DEBENTURES
 
 The Company had redeemed the following debentures:
 
 (i) 3,000 - 9.86% Secured Non-Convertible Redeemable Debentures of the
 face value ofRs. 10,00,000/- each (Rupees Ten Lakhs only) issued on
 private placement basis were redeemed on September 7, 2010 for an
 aggregate value of Rs. 300,00,00,000 /- (Rupees Three Hundred Crores
 only).
 
 (ii) 6,02,76,898 - 6% Secured Non-Convertible Redeemable Debentures of
 the face value of Rs. 100 /- each (Rupees Hundred only) issued on rights
 basis were redeemed on May 13, 2011 for an aggregate value ofRs.
 602,76,89,800 /-(Rupees Six Hundred and Two Crores Seventy Six Lakhs
 Eighty Nine Thousand and Eight Hundred only).
 
 FIXED DEPOSITS
 
 Your Company''s 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 until July 13, 2009. Your Company has since
 stopped accepting deposits from the general public and shareholders.
 
 The outstanding amount of fixed deposits placed with your Company
 amounted to Rs. 354.18 crores (Previous year Rs. 357.49 crores) excluding Rs.
 0.28 crores (Previous year Rs. 0.27 crores), which remained unclaimed by
 depositors as on March 31, 2011.
 
 DIRECTORS
 
 In accordance with the Companies Act, 1956, and the Articles of
 Association of the Company, three of your Directors, viz., Mr. Ratan N.
 Tata, Mr. R. K. Krishna Kumar and Mr. Deepak Parekh retire by rotation,
 and are eligible for re-appointment.
 
 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'' Certificate regarding compliance
 of conditions of Corporate Governance, form part of the Annual Report.
 
 AUDITORS
 
 M/s N. M. Raiji & Co., Chartered Accountants, have not offered
 themselves for re-appointment as the Joint Auditors of the Company. The
 Board wishes to place on record its appreciation of the services
 rendered by M/s. N. M. Raiji & Co., to the Company during their tenure
 as Auditors of the Company.
 
 At the Annual General Meeting, the Members will be requested to
 re-appoint M/s Deloitte Haskins & Sells, Chartered Accountants (Firm
 No. 117366W), and to appoint M/s. PKF Sridhar & Santhanam, Chartered
 Accountants (Firm No.  003990S) as the Joint Auditors for the current
 year and authorise the Board of Directors to fix 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 22, 23 and 24
 (Refer page 97) 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 office of
 the Company.
 
 The Directors express their appreciation for the contribution made by
 the employees to the significant improvement in the operations of the
 Company and for the support received from all other stakeholders,
 including shareholders, customers, suppliers and business partners.
 
 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 confirms that:
 
 (i) in the preparation of the annual accounts, the applicable
 accounting standards have been followed and that there are no material
 departures;
 
 (ii) 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, 2011 and of the profit of the Company for that period;
 
 (iii) it has taken proper and sufficient 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
 
 (iv) it has prepared the annual accounts on a going concern basis.
 
 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
 specifically 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, May 24, 2011
 
 Registered office:
 
 Mandlik House 
 Mandlik Road 
 Mumbai 400 001