1.  Employees stock option scheme
 
 Under the Employee Stock Option Scheme equity shares are allotted to
 the Mahindra Holidays & Resorts India Limited Employees Stock Option
 Trust (the trust) set up by the company. The trust holds these shares
 for the benefit of the eligible employees/Directors as defined under
 the scheme and issues the shares to them as per the recommendation of
 the remuneration committee.
 
 
 In accordance with the Guidance Note issued by the Institute of
 Chartered Accountants of India, the shares allotted to the trust
 including bonus shares but not allotted to the employees have been
 reduced from the share capital by Rs. 6,240,940 and securities premium
 account reduced by Rs. 4,212,960. The said shares will be added to the
 issued share capital as and when the trust issues the shares to the
 concerned persons on their exercising the option and till such shares
 are issued the amount received from the trust is disclosed under
 current liabilities.
 
 The General Reserve has been reduced by Rs. 1,731,680 for bonus shares
 issued on exercise of stock options during the year.
 
 The company has adopted the intrinsic value method in accounting for
 employee cost on account of ESOS. The intrinsic value of the shares
 based on the valuations obtained from an independent valuer is Rs. 16
 per equity share as on 31st March, 2006, Rs.52 per equity share as on
 1st January, 2007, 31.08.2008 and 01.11.2008 based on the Discounted
 Cash Flow Method. As the difference between the intrinsic value and the
 exercise price per share is Rs. Nil no employee compensation cost has
 been charged.
 
 The fair value of options based on the valuation of the independent
 valuer as of the respective dates of grant i.e. 15th July 2006, 30th
 March 2007, 1st November 2007 and 1st November 2008 is Rs. 4.28, Rs.
 16.36, Rs.16.55 and Rs.16.04 respectively.
 
 Had the company adopted the fair value method in respect of options
 granted, the total amount that would have been amortised over the
 vesting period is Rs.10,383,964 and the impact on the financial
 statements would be :
 
  
 Mahindra Holidays & Resorts India Limited
 
 2.  Secured loans
 
 Loans and advances from a bank are secured by an exclusive charge on
 inventories, receivables and other moveable assets.
 
 3.  contingent Liabilities
 
                                                             Rs.
 
                                            As at             As at
                                       March 31, 2011    March 31, 2010
 
 (a)   Receivables securitised, 
       with recourse.                  2,036,782,120      2,657,820,819
 Certain specified Receivables have 
 been securitised with a bank for availing
 finance. In case a member defaults in 
 payment to the bank, the bank would
 have recourse to the company. In such 
 cases, the company has recourse to the
 customer.
 
 (b)  Claims against the company not
  acknowledged as debts                     6,420,314         9,668,526
 
 Claims not acknowledged as debts 
 represent luxury tax claimed on room
 revenue and other services provided to 
 members, which has been disputed by
 the company. The possibility of 
 reimbursement depends on the outcome of
 the cases pending before the adjudicating 
 authority.
 
 (c) Income tax matters
 
 (i) The Income Tax Departments appeal 
 against the orders of the CIT(A)   for the 
 assessment years 1998-99 to 2002-03, in respect of
 issues relating to revenue recognition, was 
 decided in favour of the Company by the 
 Appellate Tribunal in May 2010. Amount involved was
 Rs. 116,013,707 (including interest of 
 Rs 58,051,475). For the assessment years 2003-04 
 to 2008-09, the Company has gone on appeal to the
 CIT(A) in respect of the same issue. The amount 
 involved, exclusive of consequential effect of 
 similar matter in respect of the assessments
 remaining to be completed, is Rs. 1925,645,407 
 (including interest of Rs. 382,089,632); As at 
 31st March, 2010, Rs. 1,315,373,266/- (including
 interest of Rs. 251,752,898).
 
 (ii)  Disallowance of expenditure during 
 construction / Software expenses.
 Rs. 43,935,275/- (including interest of 
 Rs. 7,384,579); As at 31st March, 2010 
 Rs. 35,484,928/- (including interest of 
 Rs. 5,966,891)
 
 The above are exclusive of consequential effect 
 of similar matter in respect of the assessments 
 remaining to be completed.
 
 However, even if these liabilities crystallise, 
 there would be future tax benefits available on
 account of timing differences, except for interest
 and income tax rate differences. Cash outflows 
 would depend on the outcome of the appeals.
 
 (iii) Other disallowances (including interest 
 of Rs. 22,633,591)                              166,844,896   78,537,507
 (as at 31st March, 2010 Rs. 9,909,258)
 
 (d) Other matters under appeal
 
 (i) The Government of Kerala issued an Order dated 3rd July 2007
 cancelling the assignment of land underlying the Munnar resort and
 directed repossession of land on the grounds that it is agricultural
 land and cannot be used for commercial purposes. The company has filed
 an appeal before the Commissioner of Land Revenue against the Order
 stating that the patta issued does not specify that the land should be
 used only for agricultural purpose and also obtained a Stay Order from
 the Kerala High Court against eviction from the property.
 
 The Commissioner of Land Revenue, Trivandrum vide his Order dated
 November 22, 2007 dismissed the appeal filed by the Company against the
 Order of the Sub-Collector, District of Devikulam dated 3rd July 2007
 cancelling the assignment of land underlying the Munnar Resort and
 directing repossession of land on the grounds that it is agricultural
 land and cannot be used for commercial purposes. The Company filed a
 writ petition before the Kerala High Court against the said Order and
 on December 13, 2007, the Court granted an interim stay of all further
 proceedings.
 
 f.  In the absence of the relevant information from the actuary, the
 above details do not include the composition of plan assets /
 experience adjustment in respect of actuarial losses / gains.
 
 g.  Estimates of future salary increases considered in actuarial
 valuation take account of inflation, seniority, promotions, increments
 and other relevant factors such as supply and demand in the employment
 market
 
 4.  Segment Reporting:
 
 The Company has a single reportable segment namely sale of Vacation
 Ownership and other services for the purpose of Accounting Standard 17
 on Segment Reporting. Business segment is considered as the primary
 segment
 
 5.  Related party Transactions:
 
 (i) Names of related parties and nature of relationship where control
 exists:
 
 A.  Holding Company Mahindra & Mahindra Limited
 
 B.  Subsidiary Companies Mahindra Holidays & Resorts U.S.A Inc.
 
 Mahindra Hotels & Residences India Limited MHR Hotel Management GmbH
 Heritage Bird (M) Sdn Bhd.  BAH Hotelanlagen AG
 
 C.  Fellow Subsidiaries with whom Mahindra Logisoft Business Solutions
 Limited the company has transactions Mahindra Intertrade Limited
 
 Mahindra United Football Company
 Mahindra Navistar Automotives Limited
 Mahindra Shubhlabh Services Limited
 Mahindra & Mahindra Financial Services Limited
 Mahindra Lifespace Developers Limited
 Mahindra World City (Jaipur) Limited
 Mahindra World City Developers Limited
 Mahindra First choice Wheels Limited
 Mahindra First Choice Services Limited
 Mahindra Ugine Steel Company Limited
 Mahindra Logistics Limited
 Mahindra Retail Private Limited
 
 D.  Other entities under the control of the company Mahindra Holidays &
 Resorts India Limited ESOP Trust
 
 E.  Key Management Personnel Ramesh Ramanathan (Managing Director)
 
 6.  In June 2009, the company made an Initial Public Offer of
 5,896,084 equity shares of Rs 10 each for cash at a premium of Rs 290
 per equity share, aggregating to Rs 17,688.25 lacs of which Rs
 11,139.20 lacs have been spent towards the object of the issue (Rs
 9,693.46 lacs were utilised for construction of resorts and Rs 1,445.74
 lacs towards issue expenses) and the balance has been invested in debt
 schemes of mutual funds.
 
 7.  The particulars regarding dues to Micro enterprises and small
 enterprises have been determined to the extent such parties have been
 identified on the basis of information available with the Company. This
 has been relied upon by the auditors.
 
 8.  Previous years figures have been regrouped / recast, wherever
 necessary, to conform to this years classification.