1. NOTES TO THE ACCOUNTS
 
 i) The estimated amount of contracts remaining to be executed on
 capital account not provided for Rs.1,48,72,699/- (Previous Year 
 - Rs.2,01,44,317/-)
 
 ii) (a) Claims against the Company not acknowledged as debt -
 Rs.7,64,76,702/- (Previous Year - Rs.1,51,63,418/-). This amount does
 not include an amount of Rs.14,90,27,114/- forming part of the demand
 raised by the Income Tax Authorities in respect of the Assessment Year
 1995-96 which is considered to be not tenable in view of an apparent
 error in the relevant Assessment Order. The matter is under appeal.
 
 (b) Corporate Guarantees outstanding - Nil (Previous Year -
 Rs.20,00,00,000/-). [Outstanding loan as at 31st March, 2004 - Nil
 (Previous Year - Rs.13,00,00,000/-)].
 
 Bank Guarantee outstanding - Rs.65,00,000/- (Previous Year - Nil).
 
 iii) The Suit filed by a third party in September, 1980 for
 cancellation of lease in respect of Bangalore land appurtenant to ITC
 Hotel Windsor Sheraton is still sub-judice. In the opinion of the
 Management based upon legal advice, the Company's title is tenable.
 
 iv) Freehold Land includes land at Jaipur (Rs.9,32,87,095/-), for which
 mutation is under progress.
 
 vii) Earnings in Foreign Currency - * Rs.72,17,27,854/- (Previous Year
 - Rs.51,05,95,426/-)
 
 * As reported by the Company to the Department of Tourism, Government
 of India and includes Rs.61,00,10,515/-(Previous Year -
 Rs.42,72,14,459/-) being Indirect Foreign Exchange Earnings during the
 year through Credit Cards and Travel Agencies, etc., as certified by
 the Bankers.
 
 Note: a) The above excludes contribution to the approved group pension
 and gratuity fund which are actuarially determined on an overall basis
 at the year end.
 
 b) Mr. S.S.H. Rehman, Managing Director (till 30th July, 2003), did not
 receive any remuneration from the Company in view of his wholetime
 Directorship with the Holding Company, ITC Limited.
 
 c) Mr. Nakul Anand has been appointed as Managing Director with effect
 from 30th July, 2003. His appointment and remuneration (amounting .to
 Rs.27,78,310/- for the period 30th July, 2003 to 31st March, 2004) is
 subject to the approval of the members in the Annual General Meeting.
 
 d) Mr. S.C. Sekhar's appointment and remuneration from 28th March, 2004
 is subject to the approval of the members in the Annual General
 Meeting.
  
 Includes Rs.6,00,000/- for the financial year 2002-03 paid during the
 current year upon receipt of Central Government approval.
 
 viii) Retirement Benefits in respect of Pension, Gratuity etc. are
 provided for based on Actuarial Valuations as at the Balance Sheet
 date.
 
 ix) The Company operates in one operating segment i.e. Hoteliering.
 
 x) In view of the Company's current financial performance and the
 future profit projections, the Company expects to fully recover the
 deferred tax assets.
 
 xi) The Company's significant leasing arrangements are in respect of
 operating leases for premises. These leasing arrangements which are not
 non-cancellable range between 11 months and 9 years generally, or
 longer, and are usually renewable by mutual consent on mutually
 agreeable terms. The aggregate lease rentals payable are charged as
 Rent under Schedule 18.
 
 xii) The outstanding liabilities as at the close of the year do not
 include any amounts due to any small scale industrial undertaking as
 defined under section 3(j) of the Industries (Development & Regulation)
 Act, 1951.
 
 xiii) Ansal Hotels Limited, an associate of the Company has taken
 approval from the Company Law Board to issue shares to ITC Limited at
 Rs. 6.50 per share through conversion of outstanding loan and interest
 thereon. In the opinion of the management, the said value of Rs.6.50
 per share does not amount to a permanent diminution in the carrying
 value of shares in the books of the Company based on the long term
 potential of the business, reduction in interest costs and the inherent
 value of the property. Hence no impact has been considered in these
 accounts.
 
 xiv) Previous Year's figures have been regrouped/rearranged wherever
 necessary.