The Directors have pleasure in presenting the 45th Annual Report
 together with the audited accounts of the Company for the year ended
 31st March 2010.
 
 Your Company has registered a turnover of Rs.299.75 crore during the
 financial year 2009-10 as against Rs.413.43 crore in the previous
 financial year 2008-09. The decline in turnover is mainly due to
 decline in turnover of some of the business segments like Ashok
 Creative Division due to non- receipt of business from the Ministry of
 Tourism, ATT Division, Hotel Division due to non- availability of rooms
 due to renovation of hotel properties mainly in The Ashok,
 Engineering Division due to deployment of Engineering staff in the
 renovation of hotel properties. The turnover is also adversely impacted
 by the Global recession. During the current year 2009-10 the
 Corporation suffered the loss (before tax) of Rs.20.51 crore as against
 profit before tax of Rs.38.19 crore in the previous year 2008-09. The
 loss occurred mainly due to decline in turnover, increase in wage cost
 as a result of implementation of revision in pay scales of non
 executive employees on IDA pattern w.e.f.  1.1.2007 and provision for
 arrears up to 31.3.2010 and liability for property tax to NDMC in
 respect of 3 Delhi based Hotels.
 
 1. Performance Highlights
 
 The highlights of the financial results of the corporation (Stand
 Alone) are given below :-
 
 / Profit after Tax                    (14.31)        25.36
 
 Add Currency Translation Reserve Written back 0.00          0.02
 
 Amount available for appropriation          (14.31)        25.38
 
 Proposed Dividend(MM)                         0.00          8.58
 
 Dividend Tax                                  0.00          1.44
 
 Equity Capital                               85.77         67.52
 
 Capital Employed                            231.14        291.74
 
 Rate of Return on Capital:-
 
 Before Tax                               (-) 23.91%       56.56%
 
 After Tax                                (-) 16.68%       37.55%
 
 Rate of Return on Capital Employed:-
 
 Before Tax                                (-) 8.87%       13.09%
 
 After Tax                                  (-)6.19%        8.69%
 
 1(a) DIVISION WISE FINANCIAL PEFORNACE
 
 i.  The turnover of Hotel Division during the year 2009-10 has
 decreased to Rs.196.71 crore from Rs.211.91 crore in the previous year
 2008-09 mainly due to decrease in occupancy and non- availability of
 room due to renovation particularly The Ashok and as a result the
 division incurred the net loss of Rs.31.55 crore as against the net
 profit of Rs.12.94 crore in the previous year mainly due to increase in
 wage cost.
 
 ii. The turnover of A.I.T. Division during the year 2009-10 has
 marginally increased to Rs.5.58 crore from Rs.5.56 Crore in the
 previous year 2008-09. During the year 2009-10, the duty free shops in
 operation are at Goa and Coimbtore. One Duty Free Shop at Coimbtore was
 opened in August 2009 during the current financial year 2009-10. Post
 financial year 2009-10, three shops i.e. one at Chennai Seaport
 (May-2010) and one at Kolkatta Seaport (September-2010) and the one at
 Haldia Seaport (September-2010) were opened during the year 2010-11.
 The AIT Division has incurred Net Loss of Rs. 2.34 crore as compared to
 net loss of Rs. 1.88 crore in the previous year mainly due to increase
 in wage cost.
 
 iii. The turnover of ATT Division including the ATSS (i.e. Ashok
 Tourist Service Station) during the year 2009-10 has decreased to
 Rs.55.50 crore from Rs.75.94 Crore in the previous year 2008-09. The
 ATT Division has suffered a net loss of Rs. 2.43 crore as against the
 net loss of Rs.2.31 crore in the previous year mainly because of
 increase in wage cost.
 
 iv. The turnover of the Ashok Creatives Division during the year
 2009-10 has been recorded at Rs.3.01 crore (previous year Rs.53.06
 crore) and as a result the division has suffered a loss of Rs.2.35
 crore as against net profit of Rs.0.92 crore mainly because of reduced
 turnover due to non- receipt of international and domestic campaign
 business from the Ministry of Tourism.
 
 v.  The Engineering Division has achieved a turnover of Rs.3.91 crore
 during the year 2009-10 (previous year Rs.17.31 crore) with net loss of
 Rs.5.04 crore as against net loss of Rs. 3.94 crore in the previous
 financial year. The decline in turnover is due to deployment of
 engineering staff in the renovation of hotel properties particularly
 The Ashok.
 
 vi. The turnover of ARMS (Events) division during the current financial
 year 2009-10 has decreased to Rs.7.20 crore as compared to Rs. 11.88
 crore in the previous year 2008-09 with net profit of Rs.0.18 crore as
 against Rs.0.91 crore in the previous year mainly because of reduced
 turnover due to austerity measures announced by the Govt, of India
 which adversely affected the turnover of the Division.
 
 vii. The Ashok Institute of Hospitality and Tourism Management(AIH&TM)
 during the current year 2009-10 has achieved turnover of Rs.4.45 crore
 as against Rs.5.42 crore in the Previous year 2008-09 with net profit
 of Rs.0.24 (previous year net profit of Rs. 1.54 crore). The turnover
 is reduced due to reduced business due to non-commencement of training
 courses from Ministry of DONER.
 
 viii. The Sound and Light Shows have recorded a turnover of Rs. 0.73
 crore (Previous year Rs.0.52 crore with net profit of Rs.0.16
 crore(previous year profit of Rs. 0.01 crore).
 
 ix. The Corporate H.Q. being the administrative office during the
 current financial year 2009-10 has earned an income of Rs. 22.64 crore
 as compared to Rs.31.83 crore in the previous year 2008-09 mainly
 consisting of income from Interest on short term deposits with banks
 from the surplus funds available with it. The decline in income from
 interest is mainly due to the expenditure on renovation of hotel
 properties being carried out during the year 2009-10 and onwards.
 
 2 Capital Structure
 
 As on 31 March 2010, the paid up share Capital of the Company
 increased from Rs.67.52 crore to Rs.85.77 crores due to preferential
 allotment of 182S0000 equity shares of Rs.10/- each at a premium of
 Rs.30/- per share on 14.09.2009.
 
 3 Dividend
 
 Since the Corporation has suffered the post tax loss of Rs.14.31 crore
 during the year 2009-10, no dividend for the year is proposed to be
 recommended by the Board.
 
 4 Rating of ITDC vis-a-vis MOU targets
 
 Performance of the Company for the year 2006-07 has been rated as Very
 Good in terms of the MOU signed with the Government of India. The Self
 Performance Evaluation Report for the year 2007-08 and 2008-09 has been
 sent to DPE and the rating is awaited.
 
 5 Management Discussion and Analysis
 
 A report on the Management Discussion and Analysis is placed at
 Annexure-I.
 
 6 Plan Schemes
 
 i.  The Revised Budget Estimate towards capital expenditure for 2009-10
 was Rs.97.45 crore which included Rs.95.80 crore for renovation of
 hotel properties and remaining fund for ATT Division and other
 activities of the Corporation. The Capital expenditure during 2009-10
 was Rs. 16.30 crore out of which Rs. 11.17 crore was capitalized and
 Rs.5.12 crores was charged to revenue. Besides this Rs.40.45 crore
 relating to hotel units including Rs.39.31 crore for The Ashok has
 also been spent during the year on the incomplete works relating to
 renovation works of hotel properties.
 
 ii.  The plan outlay for the year 2010-11 is Rs.84.37 crore (including
 the major renovation work at Hotel properties for Rs.79.17 crores and
 ATT & Miscellaneous Schemes for Rs.5.20 crores. The plan outlay for the
 year 2010-11 includes plan outlay for Ashok Hotel where major
 renovation were carried out amounting Rs.34.30 croes approved by the
 Board in their meeting held on 28th day of January, 2010, was
 subsequently revised to Rs.65.26 by the Board due to the termination of
 the contract and the work was further re-awarded.
 
 7 Implementation of official language policy
 
 During the year 2009-10, the Company continued its efforts to give
 impetus to the use of Hindi in official work. To motivate employees for
 increasing use of Hindi in their official work, cash incentives were
 granted to them on doing prescribed quantum of work in Hindi. As part
 of Hindi Training Programme, employees were nominated for Hindi
 Typing/Stenography classes being conducted under the Hindi Teaching
 Scheme of the Government of India. Hindi Workshops were also organized
 to impart them training on noting-drafting and other works in Hindi.
 Various Hindi Competitions were also organized during Hindi Month
 celebrations for creating an environment conductive for promotion of
 Hindi.
 
 8 Particulars of Employees
 
 None of the employees of the Company is drawing remuneration in excess
 of the limits prescribed under Section 217(2A) of the Companies Act
 1956 read with Companies (Particulars of Employees) Rules 1975.
 
 9 Conservation of Energy & technology absorption
 
 The Hotels have been paying special attention to environmental issues.
 All the 3 hotels in Delhi have installed Rainwater Harvesting as one
 major step towards recharging the ground water levels.  Energy
 conservation has also been high on the agenda for which energy audit
 was got done by BEE certified body. The recommendation of the audit are
 currently at various stages of implementation in all the three hotels.
 
 Since your Companys operation do not involve technology absorption,
 the particulars as per the Companies (Disclosure of Particulars in the
 Report of Board of Directors) Rules 1988 regarding technology
 absorption, are not applicable.
 
 10 Foreign Exchange Earnings & Outgo
 
 i.  The Direct Foreign Exchange Earnings during the year 2009-10 has
 decreased Rs. 15.09 crore as against Rs.20.10 crore in the previous
 year 2008-09. The outgo of foreign exchange during the year was Rs.9.54
 crore as against Rs. 4.41 crore in 2008-09.
 
 ii.  During the year, 12 officials were sent on foreign tours at the
 cost of Rs.17.99 lakh approximately in connection with promotion of the
 Companys business.
 
 11 Subsidiary Companies
 
 The Corporation has seven subsidiary companies viz. (i) Donyi Polo
 Ashok Hotel Corporation Ltd (ii) Assam Ashok Hotel Corporation Ltd
 (iii) MP Ashok Hotel Corporation Ltd (iv) Pondicherry Ashok Hotel
 Corporation Ltd v) Ranchi Ashok Bihar Hotel Corporation Limited, (vi)
 Utkal Ashok Hotel Corporation Ltd, (vii) Punjab Ashok Hotel Company
 Ltd. The Hotel Units set up under the aforesaid subsidiary companies at
 Itanagar, Guwuhati, Bhopal, Pudicherry and Ranchi respectively. The
 operation of Hotel unit at Puri is closed since 2004 and the Hotel has
 been planned to be leased out and the Hotel project at Anandpur Sahib
 is incomplete. The Annual Accounts of all the subsidiary companies have
 been audited and finalized and the Consolidated Annual Accounts
 pursuant to clause 32 of the Listing Agreement has been prepared and
 presented in this Annual Report.
 
 12 Exemption under section 212(8) of the Companies Act. 1956
 
 The Ministry of Corporate Affairs vide its letter No.
 47/709/2010-CL-III has granted exemption under Section 212(8) of the
 Companies Act, 1956 from annexing the annual accounts and other
 information of the subsidiary companies along with the Accounts of the
 Company for the financial year ended 31.03.2010. In terms of the said
 exemption letter, a statement containing brief financial details of the
 Companys subsidiaries for the year ended March 31, 2010 is enclosed as
 Annexure-VI of this report. The Annual Accounts of the subsidiary
 companies and the related detailed information are open for inspection
 by any shareholder including the shareholder of subsidiary companies at
 the registered office of the company and the subsidiaries concerned
 during the working hours on all working days. The Company will make
 available these documents to the shareholders including shareholders of
 subsidiary companies upon receipt of request from them. The
 shareholders, if they desire, may write to the company to obtain a copy
 of financials of the subsidiary companies.
 
 13 Board of Directors
 
 i.  During the year, nine Board meetings were held to transact the
 business of the Company.
 
 ii.  During the year under review Shri Sanjay Kothari, Additional
 Secretary(Tourism) ( w.e.f.  1.12.2009) was appointed as C&MD pursuant
 to Article 61 of the Articles of Association of the Company. Further
 post financial year 2009-10, Dr.  Lalit K. Panwar ( w.e.f. 22.4.2010)
 as C&MD, Shri Anand Kumar (w.e.f.  7.7.2010) as Govt. Nominee and Shri
 P. K. Agarwal ( w.e.f. 29.7.2010) as Director (Finance) joined the
 Board of Directors.
 
 iii. During the year under review, Shri Parvez Dewan (w.e.f. 1.12.2009)
 as C&MD, Shri P.P.  Singh (w.e.f. 1.3.2010) as Director (Finance), Smt.
 Leena Nandan ( w.e.f. 23.12.2009) as Govt.  Nominee ceased to be on the
 Board of Directors of the company. Further post financial year 2009-10
 Shri Sanjay Kothari (w.e.f. 21.4.2010) as C&MD, Shri Rajiv Makin
 (w.e.f. 1.8.2010) as Director (C&M), Shri Ashok Pahwa (w.e.f.
 17.4.2010) as Non-official Director, Shri Romesh Chopra (w.e.f.
 
 17.4.2010) as Non-official Director, Shri Jose Dominic (w.e.f.
 17.4.2010) as Non-official Director, Shri Zubin Karkaria (w.e.f.
 19.7.2010) as Non-official Director and Shri Jyotindra Jain (w.e.f.
 19.7.2010) as Non-official Director ceased to be on the Board of
 Directors. The Board appreciates the valuable services rendered by them
 during their tenure on the Board of the Company. The present
 composition of the Board is as under:
 
 Dr. Lalit K. Panwar - Chairman & Managing Director
 
 Shri P. K. Agarwal - Director (Finance)
 
 Shri E.K. Bharat Bhushan- Non-executive Director & part time Govt.
 Director
 
 Shri Anand Kumar - Non executive & part time Govt. Director
 
 iv. Pursuant to Article 61 of the Articles of Association of the
 Company, Shri Anand Kumar, Director retires by rotation at the ensuing
 Annual General Meeting and being eligible, offers himself for
 re-appointment. Shri Anand Kumar is an IAS and presently holding the
 post of Joint Secretary (Tourism) in the Ministry of Tourism. He has
 also served as Resident Commissioner, Govt, of Kerala. His educational
 qualification is M. Sc., M.Phil., and MBA. He does not hold
 directorship in any other companies. In ITDC, he is the member of the
 Audit Committee.
 
 14 Corporate Governance
 
 As per the requirement of clause 49 of the Listing Agreement, a
 detailed report on Corporate Governance together with the following
 is-given in Annexure-II which forms part of this Report.
 
 (i) CEO/CFO Certificate [as per clause 49(v) and)
 
 (ii) Certificate from the Companys Auditors [as per clause 49 (vii)].
 
 As per the Certificate of the Companys Auditors on Corporate
 Governance as per clause 49 (vii) above, there is only one observation
 which is as under:
 
 As required by Para IV C of the Clause 49 of the Agreement, we are
 informed that the Corporation is in the process of preparing a risk
 management policy.
 
 In its reply, it may be submitted that the Risk Management Policy
 laying down a sound process for identification and mitigation of risks,
 as approved by the Board in its meeting held on the 11th May 2010, has
 been circulated on the 23rd September 2010 for implementation.
 
 15 Corporate Social Responsibility (CSRV.
 
 CSR Policy of the Corporation has been devised with the objective of
 Capacity Building leading to employment generation in the
 Hospitality/Tourism sector, thereby building value for its stakeholders
 and customers. In the background of guidelines issued by DPE on CSR,
 the Board has given mandate to give vocational training to the students
 belonging to poor, including below poverty line, economically backward
 classes, SCs/STs to equip them to get some employment in the market and
 include it as an activity in MOU 2010-11.
 
 16 Directors Responsibility Statement
 
 Pursuant to the requirement under Section 217(2AA) of the Companies Act
 1956, it is hereby confirmed: -
 
 ¦ that in the preparation of the accounts for the financial year ended
 31st March 2010, the applicable accounting standards have been followed
 read along with proper explanation relating to departures;
 
 ¦ that the Directors have selected such accounting policies and applied
 them consistently and made judgements and estimates that were
 reasonable and prudent so as to give a true and fair view of state of
 affairs of the Company at the end of the financial year and of the
 profit of the Company for the year under review.
 
 ¦ that the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act 1956 for safeguarding the assets of the
 Company and for preventing and detecting fraud and other
 irregularities;
 
 ¦ that the Directors have prepared the accounts for the financial year
 ended 31st March 2010 on a going concern basis.
 
 17 Auditors and Auditors Report
 
 The Comptroller & Auditor General of India have appointed M/s Grover
 Lalla & Mehta, Chartered Accountants as Statutory Auditors of the
 Company and also various Branch Auditors for the year 2009-10 under
 Section 619(2) of the CompaniesAct, 1956. The Managements replies to
 the comments and observations of the Statutory Auditors on the accounts
 ( Standalone and the Consolidated) for the year 2009-10 are given in
 Annexures in. IV & V.
 
 18 Comments of the Comptroller and Auditor General of India
 
 The Accounts for the year ended 31st March 2010 were sent for review by
 the Comptroller and Auditor General (CAG) of India. Their comments and
 reply of the Management thereto are awaited and shall be sent as soon
 as these are received.
 
 19 Acknowledgement
 
 i.  The Board places on records its sincere appreciation towards the
 Companys customers/clients for the support and confidence reposed by
 them in the organisation and look forward to the continuance of this
 relationship in future.
 
 ii.  The Board also gratefully acknowledges the support and guidance
 received from various Ministries of the Government of India
 particularly the Ministry of Tourism, in Companys operations and
 developmental plans. The Board also wishes to record its deep gratitude
 to all the members of ITDC family whose enthusiasm, dedication and
 co-operation, put the Company on the path of progress.
 
                              For and on behalf of Board of Directors
 
 Date : 07.12.2010                                   (Laht K. Panwar)
 Place : New Delhi                    Chairman and Managing Director