The Directors have pleasure in presenting the Forty First Annual Report
 of the Company together with its Audited Statement of Accounts for the
 year ended March 31, 2011
 
 Financial Results:                                          Rs. in Lakhs
 
                                               Year ended March 31, 2011
 
                                                        2011       2010
 
 1.  Profit before tax amounted to                      3206       3537
 
     Deducting therefrom : 
     Provision for tax
 
     - Current                                           948       1280
 
     - Deferred                                           29       (58) 
 
     -Fringe Benefit Tax                                  -          -
 
                                                        2229       2315
 
      Profit after tax
 
      Add:   Utilised amount transferred from 
      Foreign Exchange
 
      Earnings Reserve                                   -         125
 
      Balance brought forward from previous year        6469       6091
 
      The distributable profit amounted to              8698       8531
 
 2.   Dividend
 
      (a) The Board of Directors has recommended 
          payment of Divident of Rs. 0.80 (80%) per 
          Equity Share of Rs. 1/- each (Previous year 
          - a Divident of Rs. 7.50 (75%) per Equity 
          Share of Rs. 10 /- each was declared and 
          paid).                                        1429       1340
 
      (b) Tax on dividend                                232        222
 
 3.    Amount transferred to General Reserve             500        500
 
 4.    Balance carried forward                          6537       6469
 
 5.    Earnings per share (Equity shares par 
       value Rs. 1/- each)                                1.25      1.30*
 
 Operating Results:
 
 Average Room Rates across the key domestic markets grew by 9% during
 2010-11 as compared to the
 
 previous year mainly due to the increase in ARR in the second half of
 the year. While Chennai and
 
 Trivandrum continued to face the pressure on ARRs and showed a marginal
 decline, all other hotels
 
 showed a growth in ARRs.
 
 Occupancies across the hotel units of the Company grew by 9% to 68%
 against 62% last year. Almost all
 
 cities except Mangalore showed a healthy growth in occupancies.
 
 The Chennai market has reported occupancies of 67% and ARR ofRs. 6,844
 for the year 2010-11. IT, Auto,
 
 Financial Sectors were the key growth segments.
 
 The Company recorded 18% increase in turnover at Rs. 23904 lakhs during
 the year ended March 31, 2011,
 
 as compared to the revenue earned during the previous year. Room Income
 improved by 23% over the
 
 previous year. The occupancy increased from 62% to 68% and the ARR
 increased by 9% over the previous
 
 year. Food and Beverage Income was 22% higher than that of the previous
 year. Increase in room and F
 
 & B income was also due to income from Vivanta by Taj, Trivandrum for
 the full year.
 
 Profit before tax at Rs. 3206 lakhs was 9% lower than that of the
 previous year and profit after tax at Rs. 2229 lakhs was 4% lower than 
 that of the previous year.
 
 Consolidated Financial Results:
 
 The consolidated turnover of the Company for the year ended March
 31,2011 aggregated to Rs. 28286 lakhs as against Rs. 22934 lakhs for the
 previous year. The profit after tax aggregated to Rs. 2976 lakhs as
 against Rs. 1991 lakhs for the previous year.
 
 Sub-division of Equity Shares:
 
 Pursuant to the Members approval through postal ballot, the Equity
 Shares of the Company were subdivided from a face value ofRs. 10/- each
 to a face value ofRs. 1/- each, with effect from November 12, 2010.
 
 Dividend:
 
 Your Directors recommend a dividend ofRs. 0.80 (80%) per equity share ofRs.
 1/- each for the financial year ended March 31,2011. The total amount
 of dividend outgo will be Rs. 1661 lakhs which includes the tax on
 dividend amounting to Rs. 232 lakhs as against Rs. 1340 lakhs as dividend
 and Rs. 222 lakhs as tax on dividend for the previous year. The Dividend,
 if approved by the Members at the forthcoming Annual General Meeting,
 will be paid within 30 days thereof i.e. on or before August 26, 2011
 to the shareholders/ beneficial holders whose names appear on the
 Register of Members/ Beneficial Holders list as on July 28, 2011. The
 dividend income is not taxable in the hands of the shareholders.
 
 Borrowings:
 
 Total borrowings stood at Rs. 21668 lakhs as at March 31, 2011 as against
 Rs. 19066 lakhs as on March 31, 2010 for the standalone entity. The
 consolidated debt stood at Rs. 24848 lakhs as on March 31, 2011 as
 againstRs. 21501 lakhs as on March 31, 2010.
 
 Capital Expenditure:
 
 During the year under review, the Company incurred Rs. 8717 lakhs towards
 capital expenditure. Major expenditure was incurred for the ongoing
 construction of a hotel in Coimbatore, expansion of Vivanta by
 Taj-Fishermans Cove and renovation activities at Taj Coromandel.
 
 Business overview:
 
 The recovery in economic activity witnessed in 2009/10 was sustained
 during the year 2010/11. Gross Domestic Product (GDP) increased by 8.6%
 in 2010/11 compared to a growth of 8% during 2009/10.  Industrial
 growth remained strong during the first half of 2010/11 with the Index
 for Industrial Production (IIP) recording an average growth of over
 10%. However, there was some moderation during the subsequent months,
 partly due to an adverse base effect.
 
 Inflationary pressures continued to persist through 2010/11 with an
 increase in the latter part of the year due to higher than anticipated
 rise in food and oil prices. Inflation, measured by the Wholesale Price
 Index (WPI), after declining from a high of 11% at the beginning of the
 year to about 8.1% in November 2010 continued to remain at elevated
 levels of about 8% for the remaining part of the year. Inflationary
 pressures, though largely emanating from food and fuel prices, became
 broad based as manufactured products inflation showed an increase from
 February 2011.
 
 According to the Tourism Satellite Accounting (TSA) research released
 in March 2011 by World Travel and Tourism Council (WTTC) and its
 research partner Oxford Economics, the direct contribution of travel
 
 and tourism to GDP is expected to grow by 8. lper cent per annum (p.a)
 to US$ 76.65 billion (2 per cent of GDP) for 2011-2021 period, while
 the total contribution is expected to be US$ 82.61 billion in 2011 (4.5
 per cent of GDP). It is forecasted to rise by 8.8 per cent per annum
 for 2011-21, accounting for 4.9 per cent of GDP.
 
 The hotel and tourism industrys contribution to the Indian economy by
 way of foreign direct investments (FDI) inflows were pegged at US$ 2.35
 billion from April 2000 to February 2011, {source: Department of
 Industrial Policy and Promotion (DIPP)}. Indias hotel pipeline is the
 second largest in the Asia-Pacific region and Indian hospitality
 industry is expected to grow at a rate of 8.8 per cent during 2007-16,
 making the country as the second-fastest growing tourism market in the
 world. The domestic hospitality sector is expected to see investments
 of over US$ 11 billion by 2012, with 40 international brands making
 their presence in the country in the next few years.
 
 2010 saw a revival in foreign tourist arrivals after the slump in 2009
 on account of the slow down. FT As in India during 2010 were 5.58
 million with a growth rate of 8.1% as compared to the FTAs of 5.17
 million versus de-growth of 2.2% in 2009.
 
 Subsidiary Company:
 
 Your Company has obtained an exemption from the Ministry of Corporate
 Affairs, (MCA), Government of India, vide its letter No.
 47/44/2011-CL-III dated January 28, 2011 from publication of the
 accounts of its Subsidiary, OHL International (HK) Limited, under the
 provisions of Section 212 of the Companies Act, 1956 and hence the the
 Balance Sheet, Profit and Loss Account and other documents of the
 Subsidiary Company are not appended to the Annual Report. However, the
 Consolidated Financial Statement of its Subsidiary, Joint Ventures and
 Associates prepared in strict compliance with Accounting Standard 21
 and the Listing agreement, duly audited by the Statutory Auditors form
 part of the Annual Report.
 
 The Financial Statements of the subsidiary company and other related
 detailed information are available at the office of the Company
 Secretary at any point of time. The Annual Accounts of the subsidiary
 company will also be available for inspection at the office of the
 Company Secretary and the office of the Subsidiary Company.
 
 Listing:
 
 The Equity Shares of your Company are listed on Madras Stock Exchange
 Limited, Chennai, Bombay Stock Exchange Limited, Mumbai, and National
 Stock Exchange of India Limited, Mumbai and the Global Depositary
 Receipts (GDRs) are listed on Luxembourg Stock Exchange. Listing fees
 to the Stock Exchanges have been paid for the year 2011 /12.
 
 Fixed Deposits:
 
 The Company discontinued acceptance of fixed deposits effective from
 February 17, 2003. The Company also discontinued renewal of existing
 deposits with effect from July 2009. Liability on account of Fixed
 Deposits amounted to Rs. 8.30 lakhs (Previous year Rs. 14.89 lakhs) which
 includes 34 deposits amounting to Rs. 5.40 lakhs which remained unclaimed
 as on March 31, 2011 for want of instructions from the depositors.
 
 Product up gradation and expansion:
 
 Construction of the 180-room Vivanta by Taj hotel in Coimbatore is
 progressing as planned. 50 of the 64 rooms in the expansion block in
 Vivanta by Taj-Fishermans Cove have been completed while work on
 the balance 14 rooms is currently underway. A comprehensive renovation
 plan at Taj Coromandel has been under implementation for the past few
 years. A new swimming pool has been completed, retail shops are ready
 for handing over to lessees, lobby, reception and lounge, entrance
 areas of the hotel, including the entry driveway and porte cochere,
 have recently been renovated.
 
 Donation:
 
 Donations and contributions to social causes amounted to Rs. 9 lakhs
 during the year under report.  Directors:
 
 Mr. Ramesh D Hariani who was appointed as a Director of the Company in
 the casual vacancy caused by the resignation of Mr. Anil P Goel to hold
 office up to the date of the forthcoming Annual General Meeting, being
 eligible, seeks appointment by the Members at the forthcoming Annual
 General Meeting.
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company, Mr. Raymond N Bickson, Mr. D R
 Kaarthikeyan and Mr. D Vijayagopal Reddy, Directors, retire by rotation
 and being eligible have offered themselves for reappointment.
 
 Directors Responsibility Statement:
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
 based on the representations received from the Operating Management,
 confirm:-
 
 a.  that in the preparation of the annual accounts, the applicable
 accounting standards have been followed and that there are no material
 departures;
 
 b.  that they have selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company at March 31,2011 and of the profit of the Company for the
 financial year ended on March 31,2011;
 
 c.  that they have taken proper and sufficient care to the best of
 their knowledge and ability 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; and
 
 d.  that they have prepared the annual accounts on a going concern
 basis.  Auditors:
 
 The Auditors Messrs. Brahmayya & Co., Chartered Accountants and Messrs.
 SNB Associates, Chartered Accountants, Chennai retire at the
 forthcoming Annual General Meeting and are eligible for reappointment.
 The Members are requested to re-appoint M/s. Brahmayya & Co., Chartered
 Accountants and SNB Associates, Chartered Accountants as Joint
 Statutory Auditors of the Company to hold office until the conclusion
 of the next Annual General Meeting of the Company and authorize the
 Board of Directors to fix their remuneration.
 
 Energy conversion, Technology Transfer and Foreign Exchange Earnings
 and outgo:
 
 The information required under Section 217(l)(e) of the Companies Act,
 1956 read with Rule 2 of the Companies (Disclosure of Particulars in
 the Report of Board of Directors) Rules, 1988 is furnished here- under
 :
 
 a.  Electricity, furnace oil, diesel, petrol and cooking gas are
 purchased at the prevailing market rates from the Government Agencies
 at Chennai, Kochi, Trivandrum, Madurai, Coonoor, Mangalore and
 Visakhapatnam. To meet its energy requirements, the Company has entered
 into a power purchase agreement for purchase of green power. As a step
 towards energy conservation, the Company had installed solar water
 heating systems at some of its hotels to reduce power consumption and
 also initiated several other measures including conduct of an Energy
 Audit. The recommendations for conservation of energy based on the
 Audit have been implemented in all the Companys hotel units so as to
 derive maximum benefit in terms of reduction in the consumption of
 energy and thereby reduce the power cost in the long run.
 
 b.  The activity of the Company is not covered under the list of
 specified industries in the Schedule to the Rules as stated above.
 
 c.  The details on foreign exchange earnings and outgo are furnished in
 Notes to the Accounts (Refer Item Nos. 9 and 10)
 
 Particulars of employees:
 
 The particulars of employees required to be furnished under section
 217(2A) of the Companies Act, 1956, read with Companies (Particulars of
 Employees) Rules, 1975, forms part of this Report. However, as per the
 provisions of Section 219(l)(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 Corporate Office of the Company.
 
 The Directors express their appreciation for the contribution made by
 all the employees of the Company who, through their unstinted
 cooperation have enabled the Company to achieve sustained operational
 performance during the year.
 
 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 on the compliance of
 Corporate Governance, form part of the Annual Report.
 
 Acknowledgements:
 
 Your Directors thank the Companys clientele, vendors, investors and
 bankers for their continued support during the year.
 
                             For and on behalf of the Board of Directors
 
 Place: Mumbai                                        R K Krishna Kumar
 
 Date : 13.05.2011                                           CHAIRMAN