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India Tourism Development Corporation Ltd.

BSE: 532189 | NSE: ITDC |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE353K01014 | SECTOR: Hotels

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Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Director’s Report

Dear Shareholders,

The Directors have pleasure in presenting the 51st Annual Report together with the audited accounts of the Corporation for the year ended 31st March, 2016.

Your Corporation has achieved a total turnover of Rs. 465.69 crore during the financial year 2015-16 as against Rs. 504.19 crore in the previous year 2014-15. During the financial year 2015-16, the Corporation has recorded a Net Profit (before tax) of Rs. 32.42 crore as against Net Profit (before tax) of Rs. 38.95 crore in previous year 2014-15.

Performance Highlights

The highlights of the financial results of the Corporation (Standalone) are given below:

(Rs. in crore)







Operating Profit/(Loss)



Less: Depreciation



Less: Prior period adjustments 6t Extra ordinary items and Finance Cost



Profit/(Loss) before Tax



Add: Deferred Tax



Less: Provision for



Income Tax

Less:- Provision for



Wealth Tax

Add: Provision for



Income Tax for earlier

years written back

Profit/(Loss) after Tax



Amount available



for appropriation

Proposed Dividend



Dividend Tax



Equity Capital



Capital Employed



Rate of Return on


Before Tax



After Tax



Rate of Return on

Capital Employed:

Before Tax



After Tax



Operating Ratio

The Operating Ratio has marginally increased by 1.12% in the current year with the overall operating ratio of 90.87% as against 89.75% in the previous year 2014-15.

Division wise Financial Performance

The Division wise financial performance of the Corporation is summarized as under

(i) Hotels Division achieved a turnover of Rs. 277.55 crore during the year 2015-16 as against Rs. 283.90 crore in the previous year 2014-15 and earned the net profit of Rs. 38.90 crore as against the net profit of Rs. 10.81 crore in the previous year.

(ii) The turnover of Ashok International Trade (AIT) Division increased to Rs. 16.23 crore from Rs. 10.96 crore in the previous year. The AIT Division earned Net Profit of Rs. 2.37 crore as compared to net profit of Rs. 0.84 crore.

(iii) The turnover of Ashok Travels 6t Tours Division is Rs. 104.37 crore in the year 2015-16 against Rs. 119.69 crore in the previous year 2014-15. The ATT Division incurred a loss ofRs. 10.37 crore as against net profit of Rs. 0.75 crore in the previous year 2014-15. The loss is due to providing a provision ofRs. 13.14 crore in the ‘L’ Block property case in which ITDC deposited a sum of Rs. 13.14 crore with the Registry of Delhi High Court for filing an appeal before the Division Bench of the High Court.

(iv) The turnover of the Ashok Events Division including Ashok Creatives has been recorded at Rs. 23.66 crore during 2015-16 as against Rs. 12.33 crore in the previous year 2014-15. The Division earned a profit of Rs. 4.01 crore during 2015-16 as against net profit of Rs. 2.11 crore during 2014-15.

(v) The Engineering Division including SEL Projects has achieved a turnover of Rs. 15.31 crore during the year 2015-16 as against Rs. 8.09 crore in the previous year 2014-15 with net loss of Rs. 2.84 crore during 2015-16 as against net loss of Rs. 5.34 crore in previous year 2014-15.

(vi) The Ashok Institute of Hospitality and Tourism Management (AIH&TM) achieved turnover of Rs. 3.28 crore during 2015-16 as against Rs. 18.23 crore in the previous year 2014-15 with net loss of Rs. 1.54 crore during 2015-16 as against a net profit of Rs. 2.79 crore during 2014-15.

(vii) The Corporate HQ being the administrative office earned an income of Rs. 25.30 crore (previous year Rs. 27.72 crore) mainly consisting of income from interest on short term deposits with banks from the surplus funds available with it.

Capital Structure

There is no change in authorized and paid up share capital of the Corporation. The Authorized Share Capital of the Corporation is Rs. 150 crore and the paid up Share Capital is Rs. 85.77 crore as on 31st March, 2016.


The Board of Directors recommended a dividend of 15% for the financial year 2015-16 on the equity share capital of the company.

Transfer to Reserve

An amount of Rs. 7 crore has been transferred to the General Reserves.

Rating of ITDC vis-a-vis MoU targets

Performance of the Company for the year 2014-15 has been notified as ‘Good’ with Composite Score 2.87 by Department of Public Enterprises (DPE) in terms of the MoU signed with the Government of India.

Management Discussion and Analysis

The report on the Management Discussion and Analysis is placed at Annexure-I.

Plan Schemes

The Revised Capital Budget Estimates towards capital expenditure for 2015-16 was Rs. 38.57 crore which included Rs. 36.67 crore for renovation/improvement on existing hotels and catering units. The capital expenditure during

2015-16 was Rs. 13.82 crore out of which Rs. 6.88 crore was capitalized and Rs. 6.94 crore was charged to revenue.

The Planned Capital outlay for the year

2016-17 is Rs. 57.05 crore out of which Rs. 54.58 crore relates to renovation/improvement in existing hotels and catering units.

Procurement from MSME

The Corporation has complied with guidelines issued by DPE in this regard.

Implementation of Official Language Policy

During the year 2015-16, the Company continued its efforts to give impetus to the use of Hindi in official work through motivation and training. Cash incentives were granted to employees on doing prescribed quantum of work in Hindi. Hindi workshops were organized to provide practical training of noting-drafting and other works in Hindi. Various Hindi competitions were also organized during Hindi Fortnight celebrations for giving impetus to the use of official language in day to day work. Hindi Kavigoshthi, Hindi Natya Manchan and Hindi Prize Distribution Event were also organized to encourage official language in the Corporation.

Conservation of Energy 6t Technology Absorption

Commitment towards energy conservation remains in the units at various stages of operations. Commercial considerations, energy conservation policies and practices play a vital role in the endeavors made in this direction.

Since your Company’s operations do not involve technology absorption, the particulars as per Rule 8(3)(B) of the Companies (Accounts) Rules 2014 regarding technology absorption, are not applicable.

Foreign Exchange Earnings 6t Outgo

The Direct Foreign Exchange Earnings during the year 2015-16 has increased toRs. 17.95 crore from Rs. 12.99 crore in the previous year.

Subsidiary Companies

The Corporation has seven subsidiary companies viz. (i) Donyi Polo Ashok Hotel Corporation Ltd (ii) Assam Ashok Hotel Corporation Ltd (iii) MP Ashok Hotel Corporation Ltd (iv) Pondicherry Ashok Hotel Corporation Ltd v) Ranchi Ashok Bihar Hotel Corporation Limited, (vi) Utkal Ashok Hotel Corporation Ltd, (vii) Punjab Ashok Hotel Company Ltd. The Hotel Units were set up under the aforesaid subsidiary companies at Itanagar, Guwahati, Bhopal, Puducherry and Ranchi respectively. The operation of Hotel unit at Puri is closed since March, 2004 and the Hotel has been planned to be leased out. The Hotel project at Anandpur Sahib is incomplete. Besides, the Corporation has one Associate Company i.e. ITDC Aldeasa India Private Limited.

The Annual Accounts of all the subsidiary companies have been audited and finalized and the Consolidated Annual Accounts have been prepared and presented in this Annual Report. A statement containing the salient features of the subsidiaries in the prescribed format AOC-1 forms part of the Consolidated Annual Accounts 2015-16.

Vigil Mechanism and Whistle Blower Policy

The Corporation has a Whistle Blower Policy which is posted on the website http:// . Being a Central Public Sector Enterprise, the Corporation has a Vigilance Department. Chief Vigilance Officer, the Head of the Vigilance Division, is under the direct control of the Central Vigilance

Commission (CVC), an independent Govt. Agency.

Board of Directors

During the year, six Board meetings held to transact the business of the Company.

During the year under review, following directors were appointed :

i) Shri Umang Narula appointed as Chairman 6t the Managing Director w.e.f. 24.04.2015

ii) Shri Piyush Tiwari, Director (C&M) w.e.f. 28.05.2015

iii) Shri Pradip Kumar Das, Director (Finance) w.e.f. 25.02.2016

iv) Shri Sanjeev Ranjan w.e.f.


v) Shri Suman Billa w.e.f. 01.10.2015

During the year under review, following directors ceased to be on the Board :

i) Shri Girish Shankar, Director w.e.f 01.10.2015

ii) Shri Trinath Behera, Director(Finance) w.e.f 01.07.2015

iii) Dr. (Ms.) T. Kumar, Director w.e.f


The Board appreciated the valuable services rendered by them during their tenure.

The present composition of the Board is as under:

i) Shri Umang Narula, Chairman 6t the Managing Director w.e.f.24.04.2015

ii) Shri Piyush Tiwari, Director (C&M) w.e.f. 28.05.2015

iii) Shri Pradip Kumar Das, Director (Finance) w.e.f. 25.02.2016

iv) Shri Sanjeev Ranjan w.e.f 01.10.2015

v) Ms. Meenakshi Sharma w.e.f 11.07.2016

vi) Shri Anugolu Venkata Ratnam w.e.f 07.10.2013

vii) Dr. Usha Kiran Rai w.e.f 10.12.2013

viii) Shri Ajay Swarup w.e.f. 08.08.2016

ix) Shri Patel Karsanbhai Bhikhabhai w.e.f. 08.08.2016

Pursuant to Article 61 of the Article of Association, Shri Piyush Tiwari and Shri Sanjeev Ranjan retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment. Details of profile etc. as required under Regulation 36(3) of SEBI (LODR) Regulations, 2015 in respect of Director liable to retire by rotation and seeking re-appointment and Directors for whose appointment, approval of shareholders is being sought in the ensuing AGM have been given at the end of the Notice of AGM.

Training Policy and the training imparted to the Directors

The Corporation has formulated a training policy for Board Members. As per the policy, ITDC offers training programmes organized by SCOPE and DPE to the Board Members. Further, on induction of non-official Directors, ITDC may also arrange training on the role and responsibilities of Directors from the professional institutes like ICAI, ICSI, ICMA, IIM etc.

During the financial year 2015-16, Non-official Directors did not participate in any training programme through ITDC.

Declaration by Independent Directors

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013, that he/she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement/Listing Regulations.

Board Evaluation

The evaluation of the Board as a whole and the Independent Directors is conducted on the basis of criteria and framework laid down by the Nomination & Remuneration Committee of the Board. Based on the evaluation criteria laid down by the Committee, the performance evaluation of the Board is measured in six areas. The performance evaluation of the Independent Directors is measured also in six areas based on questionnaire designed on a scale of 1 to 5. Independent Directors evaluate performance of the non-independent directors in a separate meeting of the Independent Directors.

None of the independent directors are due for re-appointment in the ensuing Annual General Meeting.

Particulars of loans, guarantee or investments

During the year under review, ITDC released loan of total Rs. 3,52,50,000/- at a rate of interest of 12.5% per annum to M/s Utkal Ashok Hotel Corporation Ltd., a joint venture subsidiary of ITDC for meeting out VRS liability of employees, payment of outstanding salaries of staff, statutory obligations and day-to-day expenditures.

Corporate Governance

As per the requirement of Clause C of Schedule V to SEBI (LODR) Regulations, 2015, a detailed report on Corporate Governance together with the following is given in Annexure-ll which forms part of this Report.

(i) CEO/CFO Certificate [as per Regulation 17(8) of SEBI (LODR) Regulations, 2015 ]; and

(ii) Certificate from the Company’s Auditors as Corporate Governance [Clause E to Schedule V to SEBI (LODR) Regulations, 2015] along with the management reply to observations.

Directors’ Responsibility Statement Pursuant to the requirement under Section 134(5) of the Companies Act, 2013, it is hereby confirmed:-

-that in the preparation of the accounts for the financial year ended 31 st March, 2016, the applicable accounting standards have been followed read along with proper explanation relating to departures;

-that the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review;

-that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

-that the Directors have prepared the accounts for the financial year ended 31st March, 2016 on a ‘going concern’ basis;

-that the Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively;

-that the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Internal Financial Controls

The Corporation has an adequate internal control system commensurate to its nature of business. Board has laid down adequate policies and procedures such as Licensing Procedure, Purchase Procedures, Engineering 6t Works Manual, Delegation of Powers etc. for ensuring the orderly and efficient conduct of business.

Professional services of Chartered Accountant Firms are availed to conduct Internal Audit of all units/verticals of ITDC. A detailed Internal Audit manual duly approved by the Board of Directors has been circulated to all the units.

Internal Auditors monitor and evaluate the efficacy and adequacy of the internal checks 6t control systems. Quarterly Internal Audit Reports are submitted by Internal Auditors. Corrective actions, wherever required, are taken by the units/verticals. Significant observations, if any, are reported to the Audit Committee.

Related Party Transactions

There are no materially significant related party transactions reportable under Section 188 of the Companies Act, 2013. The Audit Committee and the Board has approved a policy on materiality of the related party transactions which is posted on the website of the company Investor corner.

Report under Section 22 of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

During 2015-16, one case was filed against an employee in ‘The Ashok’ before the Internal Complaint Committee. The Internal Complaint Committee investigated the case and has submitted its report in the matter to the Delhi Women Commission. The case has been closed.

Corporate Social Responsibility and Sustainable Development

The CSR activities undertaken during the financial year 2015-16 were “Swachh Bharat” and the construction of Toilet Blocks in the backward area in Churu (Rajasthan).

The Annual Report on CSR Activities and the Report on the Sustainable Development Activities are annexed as Annexure III.

Risk Management Policy and its Implementation

ITDC Board in its meeting held on 11 th May, 2010 has laid down the Risk Management Policy laying down a sound process for identification and mitigation of risks. In accordance with the policy, the unit head of all strategic divisions have been nominated as Risk Manager and a committee namely Risk Management Compliance Committee (RMCC) presently headed by Director (C&M) has been constituted to oversee and ensure compliances with the risk management policy of the Corporation.

Company’s specific risks as per the reports submitted by different units/divisions of ITDC during 2015-16 are as under :

Economic Risk : More Dependence on one segment of clients i.e. Government

Industrial Risk : Threat to market share due to new players with wider facilities.

Personnel Risk : Non-availability of adequate skill sets and depleting manpower in Key positions.

Legal Risk : Contractual risk & tax risk

Operational Risk : Ageing properties of Hotels

Auditors and Auditor’s Report

The Comptroller & Auditor General of India have appointed M/s Kishore & Kishore, Chartered Accountants as Statutory Auditors of the Company and also various Branch Auditors for the year 2015-16 under Section 619(2) of the Companies Act, 1956/143(5) of the Companies Act, 2013. The Management’s replies to the comments and observations of the Statutory Auditors on the accounts ( Standalone and the Consolidated) for the year 2015-16 are given in Annexure- IV & V.

Secretarial Auditor and Secretarial Audit Report

ITDC Board in its meeting held on 27th January, 2016 has appointed M/s Chandradip Bharti & Associates, Company Secretaries as the Secretarial Auditors for conducting the Secretarial Audit as required under section 204 of the Companies Act, 2013. The Secretarial Audit Report is placed at Annexure-VI and Management replies to the comments and observation of the Secretarial Auditors on the Secretarial Audit Report for the year 2015-16 are given at Annexure-VII.

Extract of Annual Return

In accordance with Section 134(3) (a) of the Companies Act, 2013, an extract of the Annual Return in the prescribed format is appended as Annexure - VIII to the Board’s Report.

Significant and Material Orders

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company’s operation in future.

Comments of the Comptroller and Auditor General of India

The comments of the Comptroller 6t Auditor General of India, under Section 143(6) of the Companies Act, 2013 on the Accounts of the Company for the financial year ended 31st March, 2016 are set out elsewhere in the Annual Report.

Material changes and commitments affecting the financial position of the Company between the end of the Financial year and the date of the Report

There are no material changes and commitments affecting the financial position of the Company between the end of the financial year and the date of the report.


i. The Board places on records its sincere appreciation towards the Company’s customers/clients for the support and confidence reposed by them in the organization and look forward to the continuance of this relationship in future.

ii. The Board also gratefully acknowledges the support and guidance received from various Ministries of the Government of India particularly the Ministry ofTourism, in Company’s operations and developmental plans. The Board also wishes to record its deep gratitude to all the members of ITDC family whose enthusiasm, dedication and co-operation, put the Company on the path of progress.

For and on behalf of Board of Directors


Date: 12.08.2016 (Umang Narula)

Place: New Delhi Chairman 6t Managing Director

Director’s Report