1. The figures have been recast wherever necessary.

2. The above results have been taken on record by the Board of Directors in their meeting held on April 24, 2009.

3. Capital Employed includes Rs 73 crore received towards Share Application Money from GOI.

4. Above results are without inclusion of provision of increased gratuity from Rs 3.50 lakh to Rs 10 lakh as orders from DPE are still awaited (Estimated Impact Rs 7 Crore).

5. During the quarter about Rs 15.92 Crore have been charged towards arrears/ provisions of wage revision.

6. Disclosure pursuant to clause 41 (IV) b & c are stated here-in-below:

Auditors qualification of audited accounts of previous accounting year having financial impact (Net of Tax) on the profit and management reply are as under:

a) Amount of Rs 1326.12 lakh (previous year 1326.12 lakh) shown as recoverable from demerged units for the period from April 01, 2001 till the date of physical transfer on account of funds transferred and expenses incurred on behalf of the said units. but not received till date, has been considered good for recovery by the management

As per the Share purchase Agreement 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 basis of audited accounts of disinvested units as of March 31, 2001. Therefore the amount of Rs 1326.12 lakh (Previous year Rs 1326.12 (comprising of transfer of funds from Corporate office/remittances made and expenses incurred by Headquarter and other units on behalf of disinvested units and net of other transactions) has been shown as recoverable from the respected 15 transferee companies on accounts of carrying on the business of disinvested units for and on account of carrying on the business of disinvested units for and on account of and in trust for transferee companies during the period from April 01, 2001 upto date of handing over of the respective units in terms of the provisions of the Scheme of Demerger duly approved by the Department of Company Affairs, is included in Loans and Advances. The claims have been lodged with the Department of Tourism, Government of India and the decision of the Government on these claims is awaited. The disclosure to this effect has already been made in the notes to Accounts of the earlier year.

b) Impairment in the value of assets / Partly completed assets aggregating to Rs 206.29 lakh (Previous year Rs 206.09 lakh) included under capital work in progress has not been provided.

The physical inspection of the incomplete hotel project at Gulmarg since 1984-85 has been carried out by the Corporations engineers who have opned that the expected realizable value of the assets will be more than the amount invested upto March 31, 2008 of Rs 206.29 lakh and consequently no provision for impairment has been considered necessary.

P P Singh
Director (Finance)