The Directors have pleasure in presenting the Sixteenth Annual Report
 of the Company together with the Audited Accounts for the year ended
 31st March 2011.
 
 FINANCIAL RESULTS
 
 The performance of the Company for the financial year ended 31st March
 2011 is summarised below:
 
                                                      (Rs. in Crores)
 
 Particulars                            2010/11              2009/10
 
 Turnover                                260.66               229.25 
 Profit before Depreciation,
 
 Interest & Tax (PBDIT)                   97.64                86.74
 
 Less: Depreciation                       20.61                19.61
 
 Profit Before Interest & Tax             77.03                67.13
 
 Less: Interest                           11.30                12.17
 
 Profit Before Tax                        65.73                54.96 
 
 Less: Provision for
 
 - Current Tax & Wealth Tax               19.22                15.02
 
 - Deferred Tax                            3.19                 3.84
 
 - Short provision for earlier years      (0.02)               (0.17)
 
 Profit After Tax                         43.34                36.27
 
 Balance brought forward from
 previous year                           159.12               147.47
 
 Profit available for appropriation      202.46               183.74
 
 Less: Proposed Dividend                  12.54                12.54
 
 Dividend Tax on the above                 2.03                 2.08
 
 Transfer to General Reserve              10.00                10.00
 
 Balance carried over to balance sheet   177.88               159.12
 
 Earnings per Share (Rs.)                    6.91                 5.78
 
 OPERATIONS / PERFORMANCE
 
 The year 2010-11 saw a slight improvement in the GDP growth in the
 country. The Indian economy grew at 8.5% during the year 2010-11. The
 last two quarters of the fiscal saw the revival in growth rates across
 all sectors.
 
 During the year 2010-11 your Companys turnover increased by 13.70%
 from Rs. 229.25 crores to Rs. 260.66 crores. The gross operating profit
 (PBDIT) was higher by 12.57% at Rs. 97.64 crores from the previous years
 Rs. 86.74 crores and the net profit was higher by 19.49% in the current
 year at Rs. 43.34 crores compared to Rs. 36.27 crores of the previous year.
 
 DIVIDEND
 
 Your Directors are pleased to recommend a dividend of 100% (Rs. 2.00 per
 equity share) on the Equity Shares of the Company for the financial
 year 2010/11. The outflow on account of the dividend would be Rs. 14.57
 crores including tax on Dividend.
 
 EXPANSIONS AT HYDERABAD
 
 The civil works and interiors for the new five star hotel project site
 at Begumpet, Hyderabad is in advanced stages. As per asset light
 strategy of the Company, the owner of land has put up the structure and
 the Company is doing the interiors.  The project would consist of
 around 181 rooms with cost of interiors estimated at around Rs. 100
 crores, and is expected to be operational in 2011.
 
 The Company is proposing the construction of a 12000 sq ft spa and an
 additional Car parking facility along-with enhanced landscaping and
 connecting bridges at the existing premises of Taj Krishna, at an
 estimated cost of Rs. 20 Crores.  The excavation works have been
 completed and the construction work on the car-parking facility has
 commenced.
 
 The Company is also planning to enter the value for money segment
 through the Ginger brand in Andhra Pradesh. The excavation works on
 the first Ginger hotel on a site located near the Shamshabad
 International Airport have been completed. The hotel is expected to be
 completed over the next two years.
 
 HUMAN RESOURCES
 
 Your Company, growing in a competitive and dynamic environment, places
 great importance in the overall training and development of its
 employees, who make the decisive difference in the hotel industry.
 
 The total strength of employees of your Company for the year under
 review was about 1798, which included executives, bargainable staff,
 probationers, trainees, apprentices and contract employees.
 
 Industrial Relations throughout the year continued to remain cordial.
 
 QUALITY
 
 The three properties at Hyderabad and the property at Chandigarh are
 HACCP (Hazard Analysis Critical Control Points) certified by the
 international certification agency BVQI. The 3 properties at Hyderabad
 are also ISO 22000:2005 compliant by maintaining the desired norms for
 Food Safety Management Systems in Food & Beverage operations.
 
 LISTING
 
 The Equity Shares of your Company are listed on Bombay Stock Exchange
 Limited and The National Stock Exchange of India Limited. It may be
 noted that there are no payments outstanding to the Stock Exchanges by
 way of Listing Fees, etc.
 
 AWARDS
 
 During the year 2011, your Companys Executive Chairman Dr. G V Krishna
 Reddy was conferred the prestigious Padma Bhushan award by the
 Government of India in the discipline of Trade and Industry from Andhra
 Pradesh. He has been a pioneer in private participation in
 infrastructure development, mainly in power, roads and urban landscape.
 The Padma Bhushan award is the third highest civilian award in the
 Republic of India. Dr G V Krishna Reddy is the Chairman of the
 diversified GVK Group, which operates also the Mumbai and Bengaluru
 Airports.
 
 INTERNAL AUDIT
 
 M/s. A F Fergusson & Company, Chartered Accountants, Hyderabad acting
 as the internal auditors, have been conducting periodic audit of the
 operations of the Company, and the Audit Committee has reviewed their
 findings.
 
 AUDITORS
 
 The Statutory Auditors, M/s. Brahmayya & Co., Chartered Accountants,
 Hyderabad, retire at the ensuing Annual General Meeting and have
 confirmed their eligibility and willingness to accept office, if
 reappointed. Your Directors propose the re-appointment of M/s Brahmayya
 & Co., as Statutory Auditors to hold office until the conclusion of the
 next Annual General Meeting of the Company.
 
 PUBLIC DEPOSITS
 
 During the year under review, your company has neither invited nor
 accepted any deposits from the public.
 
 PARTICULARS OF EMPLOYEES
 
 Information as required under section 217(2A) of the Companies Act,
 1956 read with the Companies (Particulars of Employees) Rules, 1975
 will be made available on request by the Members.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of section 217(2AA) of the Companies Act,
 1956, the Board of Directors, based on the representations received
 from the Operations Management, hereby confirms that:
 
 i. In the preparation of the annual accounts, the applicable accounting
 standards have been followed and that there are no material departures.
 
 ii. It has in the selection of the accounting policies, consulted the
 Statutory Auditors and has applied them consistently and made
 judgements and estimates that are reasonable and prudent so as to give
 a true and fair view of the state of affairs of the Company as at 31st
 March 2011 and of the profit of the Company for that period.
 
 iii. It has taken proper and sufficient care 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, to the best of its knowledge
 and ability. There are however, inherent limitations, which should be
 recognised while relying on any system of internal control and records.
 
 iv. It has prepared the annual accounts on a going concern basis.
 
 CORPORATE GOVERNANCE
 
 Your Company is committed to maintain the highest standards of
 Corporate Governance. As required under 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 are annexed and form part of
 the Annual Report.
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 Management discussion and analysis of the financial condition and
 results of operations of the Company for the period under review as
 required under Clause 49 of the Listing Agreement with the Stock
 Exchanges, is given in a separate statement in the Annual Report.
 
 IMPACT ON HOSPITALITY BUSINESS
 
 The hospitality business has revived riding on the booming Indian
 economy and improving Global economic factors.
 
 OTHER INFORMATION
 
 Disclosure of quantitative data details under section 211(4) of the
 Companies Act, 1956 has been notified under general exemption with
 effect from for the Financial Year 2010-11.
 
 The Audit Committee of the Company reviewed the financial statements
 for the year under review at its meeting held on 28th April 2011 and
 recommended the same for the approval of the Board of Directors.
 
 Your Companys effort towards conservation of energy, which results in
 savings in consumption of electricity, a significant component of the
 energy cost, is an ongoing process.
 
 The Company continues to absorb and upgrade modern technologies and
 advanced hotel management techniques in various guest contact areas,
 which includes wireless internet connectivity in all the hotels.
 
 FOREIGN EXCHANGE EARNINGS AND OUTGO
 
 As required under Section 217(1)(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,
 
 the information relating to foreign exchange earnings and outgo is in
 Note Nos.11 (iii) and (iv) of the Notes to Balance Sheet and Profit and
 Loss Account.
 
 ACKNOWLEDGEMENTS
 
 Your Directors would like to express their grateful appreciation for
 the assistance and co-operation received from customers, banks,
 suppliers, shareholders, Central and State Governments and other
 statutory authorities and others associated with the Company. Your
 directors also wish to place on record their deep sense of appreciation
 for the excellent contribution made by employees at all levels, which
 enabled the Company to achieve sustained growth in the operational
 performance during the year under review.
 
                                  By Order and on behalf of the Board
 
 Place  : Hyderabad                                 G V Krishna Reddy
 
 Date   : 28th April 2011                          Executive Chairman
 
 Registered Office:
 
 Taj Krishna, Road No.1
 
 Banjara Hills
 
 Hyderabad - 500 034.