1         CONTINGENT LIABILITIES
 
 (Rs. in Lakh)
 
 (a)  Particulars                          Current Year    Previous Year
 
 (I) Claims against the corporation not 
 acknowledged as debts [Includes for 
 property tax Rs. NIL  (Previous Year 
 Rs.5733.32 takh) demands from custom
 authority Rs.21874.68 Lakh(Previous 
 Year Rs.21881.80 Lakh) and                   28538.11        36003:64
 an sub-judice].
 
 (II) Estimated amount of contracts 
 remaining to be executed on capital
 account (net of advances and excluding 
 escalation In rates, if any)                  2901.76           54.78
 (on completion, part of the work may 
 result as revenue expenditure).                      
 
 (iii) Guarantees executed in favour of 
 various authorities, banks and
 financial institution [including guarantees 
 provided against loans                         212.27          136.18
 obtained by subsidiary companies, Rs.90.00 
 Lakh (Previous year                                   
 Rs.90.00 Lakh),
 
 (iv) Letter of Credit outstanding               84,18            --
 
 (v)  Income Tax matters In appeal [Includes 
 appeals preferred by Income                    507.09          363.21
 Tax Department Rs.25.72 Lakh (Previous 
 Year Rs.25.72 Lakh)]                             
 
 (vi) Sales Tax matters in appeal [Includes 
 Rs. 2465.62 Lakh (Previous Year Rs. 246S.62 Lakh) 
 in respect of Duty Free Shop, Mumbal, appeals  12040.39       9422.95
 against which are pending before Maharastra 
 Sales Tax Tribunal /  High Court).
 
 (vii)  Liability towards service tax (Including 
 Interest thereon ) pertaining to
 
 (a)  banqueting Including catering activities, 
 at hotels upto 31.03.2007.                     Amount          Amount
 (b) Liability towards work contract tax  
 (including  Interest thereon  )             Unascertained  unascertained
 pertaining to building repair work carried at units.
 
 Note no (1) Contingent Liabilities at Sr. No.1(a)(1),l(a)(v) &i(a)(vi)
 are dependent upon court decision/out of court settlement/disposal of
 appeal etc.
 
 Note no (2): Amount indicated as Contingent liability/ claims against
 the corporation only reflect basic value. Legal and other costs being
 Indeterminable at this stage are not considered.
 
 2 CURRENT LIABILITIES AND PROVISIONS
 
 (a) M/s Airports Authority of india(AAl) and other private airport
 operators had levied service tax on their billings for licence
 fee/royalty for Duty Free Shops at various locations and Ashok Airport
 Restaurant w.e.f, 10.9.2004. However the Circular dated 17.9.2004
 Issued by Government of India provides that the activity of renting,
 leasing out part of alrport/clvll enclave premises does not amount to
 rendering of services and the license fee/royalty payable in this
 regard Is not subject to service tax. Similar views on non levying of
 service tax on such licence fee/royalty have also been opined by tax
 consultants. The issue Is also under consideration by the Director
 General of Central Excise Intelligence. Pending clarifications, no
 provision has been made for the estimated liability, towards service
 tax for the period from 10.9.2004 to 31.3,2008 for all the ten duty
 free shops, which works out to 71779.49 Lakh(Prevlous year-Rs. 1779.49
 Lakh.
 
 (b) The Employees State Insurance Corporation (ESI) authorities had
 raised demands (Including interest where applicable) totalling Rs.660.23
 Lakh (Previous year Rs.631.02 Lakh) towards ESI dues in respect of five
 hotel/catering units against Which {he corporation holds deposits of
 7319.32Lakh (Previous year-Rs.319.32 Lakh)(included In Loans and
 Advances) with the said authorlties(made up of amounts withdrawn by the
 authorities after freezing bank accounts-Rs.302.22 Lakh and amount
 deposited 117.10 Lakh). Against this the corporation holds a liability
 of Rs 194.42(previous year 194.42 Lakh) Lakh towards ESI dues, No
 provision has been made for the balance of Rs. 465.81 Lakh(Prevlous year
 Rs.436.60 Lakh) as the matter is sub-judice and pending finality In the
 matter, the same has been included under Contingent Liabilities at SI.
 No. 1(a)(1) above.
 
 (c ) The Corporation had taken a property on rent from the Custodian of
 Enemy Property In .1965. Subsequently the said property was released in
 favour of present owner by the Custodian. The owner had filed a suit
 for recovery of the possession of the said property. The Honble High
 Court decided the matter In favour of the owner and the Corporation was
 directed to vacate the property. The Honble high court also fixed the
 rent  Rs.30,000/- for the month of January 1980 only on lumpsum/adhoc
 basis alongwlth Interest and also appointed a Local Commissioner to
 determine the amount of rant for the period from 1,2,1980 till data of
 handing over the possession of the property, Aggrieved by the
 decision,* Special Leave Petition before the Honble Supreme Court was
 filed which was dismissed by the court & upheld the earlier Judgement
 of the Honble High Court. Accordingly the premises was vacated &
 possession handed over to the owner on 28.02.2007. Pending
 determination by the Local Commissioner of the amount payable no
 provision has been made In the accounts.
 
 (d) Sundry creditors include unlinked receipts from customers etc.of
 Rs.65.22 Lakh (Previous year Rs.95.31 Lakh) which could not be linked to
 respective customer accounts, for want of adequate details.
 
 3 CAPITAL WORK-IN-PROGRESS
 
 (a) Capital work-in-progress includes expenditure attributable to
 projects, to be apportioned to various projects upon their completion.
 
 (b) The physical Inspection of the incomplete hotel project at Gulmarg
 since 1984-85 has been carried out during 2009-10 by the corporations
 engineers and architect, who have opined that the expected realisable
 value of the assets will be more than the amount invested up to
 31.03,10 of Rs. 209.69 Lakh(Previous Year Rs.206.56 Lakh )and consequently
 no provision for impairment of assets has been considered necessary.
 
 4 FIXED ASSETS
 
 (a) Terms of purchase/lease of land having not been finalised and
 registration of title deeds/execution of lease deeds having not been
 effected, liability towards cost/lease rent, ground rent and
 registration fee, etc, has not been created In respect of Hotel
 Patllputra Ashok at Patna, Ashok Institute of Hospitality and Travel
 Management(AIH&TM) and Tennis Court at New Delhi,
 
 (b) Lease deeds/title deeds have not yet been executed in favour of the
 corporation in respect of land at Hotel Samrat and Office Premises In
 Scope at New Delhi.
 
 (c) Premium paid on Leasehold Land at Hotel Samrat, New Delhi have not
 been amortised In the absence of any tenure in terms of allotment.
 
  Pending finallsatlon of cost and adjustment thereof, capitalisation
 of Land, Building, Furniture & Fixtures and Equipment of retained
 Traders Lodges, Restaurants and Hotel taken over from Ministry of
 Tourism, has been effected based on the payments made.
 
 Pendings receipt/ scrutiny of final bills of the contractors/suppliers,
 settlement of the rates for extra Items and escalation etc., the
 capitalsation and/ or charge to expenditure to the extent of Rs.1171.13
 Lakh has been accounted for based on certificate* Issued by Projct
 Engineers for the work carried out at various projects, jprevlous year
 Rs. 843.67 Lakh).  Adjustments if any to cost is proposed to be carried
 out upon final settlement of the bills.
 
 5 In respect of Ranchl Ashok Bihar Hotel Corporation Limited
 (Subsidiary corporation) whose property was attempted to be takin over
 by Financial Institutions during 1996-97, a provision has been made for
 decrease In the value of Investments Rs. 38.52 Lakh (Previous Year Rs.
 36,52 Lakh) and estimated lower readability of debts and advances,
 amounting to Rs. Nil (Previous Year Rs. 20.03 Lakh).  
 
 (b) Confirmation of balances have not been received In most of the
 cases of Sundry Debtors, Creditors, Loans and Advances and Deposits.
 Besides in a few units, balances in customers accounts are under
 reconciliation with the General Ledger control account balances.Effect
 on the accounts on due confirmation, reconciliation and adjustments
 thereof cannot be indicated at this stage.
 
 (c) The account of National Buildings Construction Corporation (NBCC)
 for work done at project in Iraq could not be reconciled due to non-
 receipt of detailed statement of account/confirmations from the party.
 
 (e) Amount recoverable includes:-
 
 (i) Rs. 268.73 Lakh (Previous year Rs.268.73 Lakh) from NDMC relating
 to transfer of fixed assets of erstwhile Akbar Hotel as agreed with
 them under package deal. The NDMC has agreed to adjust this amount
 against dues of property tax upon finalisation and determination of the
 said amount.
 
 (ii) Rs. 208.00 Lakh (Previous year Rs.208.00 Lakh) paid by the
 corporation against bid for property of Ranchl Ashok Bihar Hotel
 Corporation Limited (Subsidiary corporation) which was attempted to be
 taken over by the Financial Institutions due to non- repayment of loan
 & Interest by the subsidiary corporation. Subsequently, co-promoter
 viz. Bihar State Tourism Development Corporation Ltd (BSTDC) had also
 offered to purchase the said property against which ITDC has filed a
 case in the High Court and matter is subjudice.
 
 7 PROFIT ANP LOSS ACCOUNT.
 
 (a) The current liabilities, current assets and revenue items of
 project at Iraq in US Dollar have been converted on the basis of
 prevailing .  rate of exchange as on 31.3.2010.The net gain of 73.31
 Lakh (previous year net loss of 76.83 Lakh) has been credited to profit
 and loss account. Further in case of M/s NBCC. the liability has been
 shifted in INR in view of issue of bonds by EXIM Bank to NBCC In INR
 against amount payable In US Dollar. The balance in Iraqi dinar however
 continues to appear in books as recorded as on 31.03.1991 in view of
 non-availability of exchange rate.
 
 (b) Interest on deferred payments from M/s NBCC from 01.4.1994 onwards
 regarding Iraq project has not been accounted for in the absence of
 advice from NBCC.  _
 
 (d) Following past practice, consumption of Stocks, stores, crockery,
 cutlery etc. has been worked out by adding opening balances to
 purchases and deducting therefrom closing balance based on physical
 Inventories valued as per accounting policy.
 
 (m) Out of the balance amount of Rs. 20.56 Lakh (Previous year Rs.
 21.40 Lakh) of Deferred Government Grants from the Ministry of Tourism
 for the renovatlon/upgradation of properties, a sum of Rs. 9.21 Lakh
 incurred during the year (Previous year 10.84 Lakh) has been charged to
 the respective head of expenditure. The amount equivalent to the grant
 related cost incurred during the year has accordingly been recognised
 as Income. The balance of Rs. 11.35 Lakh (previous year Rs. 20.56 Lakh)
 at the close of the year has been presented in the accounts as Deferred
 Government grant after Reserve and Surplus.
 
 (n) Rs.1629.88 Lakh spent on renovation during the year at various
 hotels has been segregated as relating to capital Rs. 1116.96 Lakh and
 revenue expenditure Rs. 512.92 Lakh based on certificate Issued by the
 Project engineer and which have been relied upon by the auditors.
 
 (o) (a) Pending execution of fresh license Agreements, income from
 License fees( from continuing licensees)has been accounted for on
 provisional basis and/or based on the earlier license agreements.
 
 b) Consequent to the flnallsation of revised license agreements in case
 of one of the hotel unit ,a sum of 1334.28 lakh has been accounted for
 as Income from services rendered (including Rs. 141.44 Lakh pertaining
 to period up to 31.03.2009) during the year.
 
 8 DISINVESTMENT OF. HOTEL UNITS
 
 (a) As per Government of Indias policy of disinvestment, 10 hotel
 units of the corporation were dlsinvested In the year 2001-02 and 11
 more hotel units were disinvested and handed over during the year
 2002-03, The entire exercise relating to disinvestment process was
 handled directly by Ministry of Disinvestment, Government of india.The
 salient features of the scheme of demerger between ITDC and respective
 newlv Incorporated companies for each disinvested hotel unit are as
 under:-
 
 i) With effect from appointed date, i.e. 31.3.2000, the disinvested
 units, pursuant to the provisions contained In section 394 of the
 Companies Act, 1956, were transferred to and vested In the transferee
 companies alongwith all assets, liabilities, debts and obligations
 pertaining to disinvested units,
 
 ii) The units got demerged w.e.f. 31.3.2000 and thereafter up to the
 date of handing over, ITDC is deemed to have carried on all business
 relating to disinvested units for and on account of and in trust for
 the transferee companies.
 
 iii) With effect from 31.3.2000 and up to the date of handing over on
 the date of signing of the share purchase agreements, all profits
 accruing to ITDC losses arising or incurred by it relating to
 disinvested units were, for ail purposes, to be treated as the profits
 or losses, as thecases of the transferee companies.  
 
 (b) As per the Share Purchase Agreements between the purchasers,
 transferee companies and Government of India (Department of Tourism),
 the post closing adjustments are to be settled by the Department of
 Tourism with the respective purchasers on the blsls of audited accounts
 of dlslnvested units as of 31.03.2001. Therefore the amount of Rs.1326.12
 Lakh (Previous Year Rs.1326.12 Lakh) (comprising of transfer of funds
 from Corporate Office/ remittances made and expenses Incurred by
 Headquarters and other units on behalf of dlslnvested units and net of
 other transactions) has been shown as recoverable from 15 transferee
 companies on account of carrying on the businesses of dlslnvested units
 for and on account of and in trust for transferee companies as per (a)
 above.during the period from 1,4.2001 upto dates of handing over of the
 respective units and the same Is included in Loans & Advances. In case
 of 3 transferee companies (net of similar transactions) amounting to Rs.
 356.45 Lakh (Previous Year Rs. 356.45 Lakh ) due to them, is Included in
 Sundry Creditors. However no confirmation from respective transferee
 companies have been obtained.
 
 (c) Regarding the claim for the period from 1,4.2000 to 31.03.2001
 Rs.3316.30 Lakh (Including? 61.48 Lakh recoverable directly from a
 transferee company in respect of units at Bangalore, the share holding
 of which continues to be with Government and other existing
 shareholders), the claims have been lodged with the Department of
 Tourism, Government, of India and as the Government has not taken any
 decision till date on these claims, the same has not been accounted for
 as recoverable in accounts.
 
 9 Against the Share Application money of Rs. 73.00 crore received from
 Govt, of India in December 2007,1,82,50,000. no. of equity shares have
 been alloted to The President of India through preferential allotment
 on 14.09.2009 @ Rs 40/- per share (including premium 7 30/- per share)
 in the demat form. These shares will rank pari passu and have the lock
 in period of 3 years.
 
 10 Rental, agreement with Life Insurance Corporation of India (LIC)
 expired on 25.07,2005 and was pending renewal. Pending finalisation of
 ¦ terms and conditions and execution of new lease deed, the corporation
 had provided for rent payable to the Life Insurance Corporation of
 India, for premises under Its occupation @ Rs 60/- per sq.feet for the
 period from 26/07/2005 to 22/02/2008 and Rs 100/- per sq.feet for the
 period from 23/02/2008 to 31/03/2010 as against Rs 100/- per Sq. feet
 originally indicated by the DC for the entire period. Pending renewal
 of agreement/ finalisation of terms and conditions with UC amount of Rs
 188.94 Lakh(Prevlous year Rs 186.94 lakh) being the difference between
 the amount indicated by the LIC @ Rs 100/- per Sq.Feet and that
 provided upto the period 22/2/08 has been included under Contingent
 Liabilities In para 1 (a) (I).
 
 11 (a) The Corporation had, with due approval of its board and
 administrative ministry vide its letter dated 27.10.2010, decided to
 implement and implemented the wage settelment in respect of unionized
 workers on IDA pattern w, e. f. 01.01.2007. Accordingly, the liability
 on account of the Arrears of Pay Revision amounting to Rs 3335.24 Lakh
 (Including implication to PF and other allowances) for the period from
 01.01.2007 to 31.03.2010 has been provided and charged to Profit and
 Loss Account.
 
 (b) Though the corporation had considered the provident fund In cases
 referred to in (a) above, no such consideration could be given to the
 provisions for Gratuity and Leave Encashment, due to pay revision.
 Effect on the accounts on due quantification and recording thereof
 cannot be indicated at this stage.
 
 12 .The Corporation had, for the purpose of running of the Duty Free
 Trade In India, established on 18/09/2007 a Joint Venture Company (JV)
 in collaboration with M/s Aldeasa of Spain vide agreement dated
 10/07/2007. In terms of the JV agreement, the corporation and Aldeasa
 were to equally contribute funds to the JV towards capital and
 accordingly the corporation has, being a promoter subscriber, recorded
 an Investment to the extent of Rs 50,000 (5,000 equity shares of Rs 10
 each) in the Joint venture, though the share certificates remained to
 be received from the JV company. During the year on the basis of draft
 financial statements of the JV company and concept of prudence
 corporations share of loss amounting to Rs 245.52 Lakh In connection
 with running of the JV has been accounted for based on the ratification
 of expenditure by JV Board & subsequent acceptance by ITDC. The amount
 of Rs 32.23 Lakh Incurred by ITDC In connection with JV operations
 shown as amount recoverable in earlier year has been adjusted during
 the year from the liability of Rs.245.52 lakh.
 
 II) The disclosure relating to AS-15 (Revised) 
 
 • Employees Benefits:-
 
 (a) Provident Fund -12% of Basic (including dearness pay) plus Dearness
 Allowance, contributed to Recognised Provident Fund.
 
 (b) Leave Encashment -Payable on separation to eligible employees who
 have accumulated earned leave.
 
 (c) Gratuity- Payable on separation @ 15 days pay for each completed
 year of service to eligible employees who render continuous service for
 5 years or more. Maximum limit Is Rs.10.00 Lakh.  
 
 iii) Disclosure pursuant to Accounting Standard 17 on Segment Reporting
 is given In Annexure B to this schedule.
 
 iv) Disclosure of transactions with related parties as per Accounting
 Standard -18, to the extent applicable. Is as under: •
 
 Key Management Personnels: -
 
 1 Mr. Lalit K Panwar, C&MD w.e.f ,21,04.2010
 
 2 Mr. Sanjay Kothari, Ex.C&MD w.e.f. 01.12.2009 to 21.04.2010.
 
 3 Mr. Parvez Dewan, Ex.C&MD w.e.f.05.04.2006 to 01.12.2009.
 
 4 Mr. P.K.Agarwal, Director (Finance) w.e.f. 29.07.2010.
 
 5 Mr. P.P.Stngh, Ex. Director (Finance) w.e.f. 25.08.2005 to
 
 6 Mr, Rajiv Makln, Ex Director (C&M) w.e.f. 17.10.2008 to 31.07,2010.
 
 v) Disclosure In pursuance of Accounting Standard -19 on leases:-
 
 The corporations leasing arrangements are generally in respect of
 operating lease for premises (residential, office accomodation, and
 godowns etc). These leasing arrangements are not non-cancellable and
 are also usually renewable by mutual consent on mutually agreeable
 terms.The aggregate lease rentals paid/payable are charged as Rent
 under Employees Remuneration & Benefits (Schedule- 10) & operating and
 other expenses (Schedule-11). In some of the hotel units, arrangements
 made with other parties to operate restaurants and other business
 premises are on licence basis which are also not non-cancellable and
 are usually renewable by mutual consent on mutually agreeable terms.
 
 viii) Impairment of Assets:- Accounting Standard - 28)
 
 Impairment of Fixed Assets/ Capital work-in-progress at each balance
 sheet date and impairment loss, if any, ascertained as per Accounting
 Standard-28-lmpalrment of Assets issued by the Institute of Chartered
 Accountants of India Is recognised. As on 31st March, 2010, in the
 opinion of the Management except to the extent of loss recognised in
 respect of assets not in active use capital work- in-progress, no such
 Impairment loss warranting recognition/provision was noticed.
 
 (e) (I) Amount due to Small Scale Industries, to the extent such
 parties have been identified from available Information, of more than
 one lakh and for a period exceeding 30 days Is t NIL (Previous Year T
 NIL Lakh).
 
 (ii) The Government of India had promulgated The Micro.Small and
 Medium Enterprises Development Act 2006As per the said Act, the
 corporation is to Identify the parties and pay them interest beyond the
 specified period if not paid. The corporation is in the process of
 Identifying the suppliefln view of this, the liability for interest
 could not be worked out.
 
 (iii) The Companies (Second Amendment) Act, 2002 provides for levy of
 cess, towards rehablliatlon/revlval of sick Industrial companies, which
 shall not be less than 0.005% but not more than 0.10% of the turnover
 or the gross receipts as the Central Government may from time to time
 specify in the Official Gazette. Since no notification has been issued,
 provision thereof has not been created.
 
 (f) Additional information regarding details of opening stock,
 purchases, closing stock, consumption of raw materials, sates and
 services and consumption of imported and indigenous raw material, spare
 parts and components has not been given as the corporation has been
 exempted from providing such information vide Order
 No46/180/2009-CL-III of the Ministry of Corporate Affairs dated
 02.07.2009 for the financial years 2008-09 to 2010-11.
 
 (a) The corporation has been vide letter dated 04.11,2010 exempted
 under section 212(8) from annexing the Accounts of Subsidiary Companies
 with the Annual Accounts of the corporation from the Ministry of
 Company Affalrs.Government of India for the period upto 31.03.2010,
 
 15 Balance Sheet Abstract and corporations General Business Profile as
 per part IV, Schedule VI to the Companies Act 1956 Is given In Annexure
 
 16 Previous years figures have been regrouped/rearranged wherever
 necessary.