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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 52nd Annual Report together with the audited accounts of the Corporation for the year ended 31st March, 2017.

Turnover and Profitability

Your Corporation has achieved a total turnover of Rs, 495.14 crore during the financial year 2016-17 as against Rs, 465.69 crore in the previous year 2015-16. During the financial year 2016-17, the Corporation has recorded a Net Profit (before tax) of Rs, 17.52 crore as against Net Profit (before tax) of Rs, 32.42 crore in previous year 2015-16.

Performance Highlights

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

(Rs, in crore)






Income from Operations



Operating Expenses



Operating Profit/Loss



Other Income



Profit / Loss before

Depreciation, Finance

Cost, Exceptional Items

and Prior Period







Finance Cost



Profit / Loss before

Exceptional Items and

Prior Period Adjustments



Exceptional Items



Profit / Loss before Prior

Period Adjustments



Prior Period Adjustments



Profit / Loss before Tax



Provision for Income Tax



Deferred Tax



Provision for Income Tax

for earlier years

written back



Profit / Loss after 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 3.72% in the current year with the overall operating ratio of 94.59% as against 90.87% in the previous year 2015-16.

Division wise Financial Performance

The Division wise financial performance of

the Corporation is summarized as under :-

(i) Hotels Division has achieved a turnover of Rs, 282.51 crore during the year as against Rs, 277.55 crore in the previous year and earned the net profit of Rs, 34.47 crore as against the net profit of Rs, 38.90 crore in the previous year.

ii) The turnover of AIT Division has increased to Rs, 18.36 crore from Rs, 16.23 crore in the previous year. During the year 2016-17, there are 11 Duty Free Shops in operation i.e. at Goa Seaport, Coimbatore, Haldia Port, Kolkata Port, Chennai Port and Mangalore Port, Visakhapatnam, Mumbai Seaport, Paradip Sea Port, Kakinada, Krishnapatnam. The AIT Division has earned a Net Profit of Rs, 3.31 crore as compared to Net Profit of Rs, 2.37 crore in the previous year.

iii) Further, the turnover of ATT Division has increased to Rs, 123.06 crore from Rs, 104.37 crore in the previous year, an increase by 17.91 %. The ATT Division has incurred a loss of Rs, 18.08 crore as against the Net Loss of Rs, 10.37 crore in the previous year. The loss is due to the deposit of demand of Rs, 14.99 crore in the ‘L’ Block property case where the appeal of ITDC before the High Court has been dismissed and the demand has been paid in full.

iv) The turnover of the Ashok Events Division been recorded at Rs, 36.38 crore (previous year Rs, 23.66 crore) and has earned a Profit of Rs, 6.00 crore as against net profit of Rs, 4.01 crore during FY 2015-16.

v) The Engineering Division Including SEL Projects has achieved a turnover of Rs, 11.04 crore during the year 2016-17 (previous year Rs, 15.31 crore) with net loss of Rs, 2.97crore as against net loss of Rs, 2.84 crore in the last financial year.

vi) The Ashok Institute of Hospitality and Tourism Management (AIH&TM) has achieved a turnover of Rs, 2.99 crore as against Rs, 3.28 crore in the previous year with net Loss of Rs, 0.21 crore (previous year net loss of Rs, 1.54 crore).

vii) The Corporate HQ being the administrative office has earned an income of Rs, 20.81 crore (previous year Rs, 25.30 crore) mainly constituting 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, 2017.


The Board of Directors recommended a dividend of 13.30% for the financial year 201617 on the equity share capital of the Company

Transfer to Reserve

No amount has been transferred to the General Reserves.

Rating of ITDC vis-a-vis MoU targets

Performance of the Company for the year 2015-16 has been notified as ‘Good’ with Composite Score 55.53 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.

Procurement from MSME

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

Implementation of Official Language Policy

During the year 2016-17, 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. A cultural program was organized at Hotel the Ashok on 28th September, 2016 to celebrate “Hindi Pakhwada” which included performances by prominent Hindi Poets as well as various performances like songs, drama, etc. by ITDC’s own employees.

Conservation of Energy & 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. Hotel The Ashok was awarded with prestigious LEED’s gold certificate in the month of January 2017.

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 & Outgo

The Direct Foreign Exchange Earnings during the year 2016-17 has decreased to Rs, 15.19 crore from Rs, 17.95 crore in the previous year.

Subsidiary Companies

The Corporation has seven subsidiary companies as on 31.03.2017 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 which is under process of striking off.

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 2016-17.

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, eight Board Meetings were held to transact the business of the Company.

The Board presently comprises of seven Directors i.e. Chairperson & Managing Director, Director (C&M), Director (Finance), two Government Nominee Directors and two Independent Directors as under:

A) Executive Directors

1. Smt. Ravneet Kaur, (IAS) has been appointed as Chairperson & Managing Director w.e.f. 24.07.2017

2. Shri Piyush Tiwari, Director (C&M)

3. Shri Pradip Kumar Das, Director (Finance)

B) Non-Executive Directors

(a) Part-time Government Nominee Directors:

1. Smt Meenakshi Sharma (IA&AS), from 11.07.2016

2. Smt. Leena Nandan, (IAS), from


(b) Independent Part time Directors:

1. Shri Ajay Swarup from 08.08.2016

2. Shri Patel Karsanbhai Bhikhabhai from 08.08.2016

As per disclosure received from the Directors, the Directors are not related to one another.

Pursuant to Article 61 of the Article of Association, Shri Piyush Tiwari and Shri Pradip Kumar Das retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. Details of profile etc. as required under Regulation 36(3) of SEBI (LODR) Regulations, 2015 in respect of Directors liable to retire by rotation and seeking re-appointment, 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 2016-17, Nonofficial Directors participated in one training programme organized by DPE.

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 Regulation 25 of SEBI (LODR) Regulations, 2015.

Board Evaluation

The evaluation of the Board as a whole and the Independent Directors is exempt for Government Companies vide MCA Notification dated June 05, 2015.

Particulars of loans, guarantee or investments

During the year under review, ITDC released loan of Rs, 13,50,000/- on 08.04.2016 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 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-II 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 [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 31st March, 2017, 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 2017 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 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 & 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 & 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 2016-17, no case was filed.

Corporate Social Responsibility and Sustainable Development

The CSR activities undertaken during the financial year 2016-17 are as follows:

(i) Red Fort and Old Fort were adopted in addition to Qutub Minar under CSR activities to maintain cleanliness and to educate visitors about importance of cleanliness.

(ii) Contribution to Swachh Bharat Kosh.

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 11th 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 2016-17 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

Others: Disinvestment/ Divestment of ITDC properties

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 2016-17 under Section 134(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 2016-17 are given in Annexure IV & V(i) and V(ii).

Secretarial Auditor and Secretarial Audit Report

ITDC Board in its meeting held on February

14, 2017 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 2016-17 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 & Auditor General of India, under Section 134(6) of the Companies Act, 2013 on the Accounts of the Company for the financial year ended 31st March, 2017 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

Status of Disinvestment / Divestment of properties of ITDC and its JV Subsidiaries:

- As per decision dated May 24, 201 7 of the Cabinet Committee of Economic Affairs, property of Hotel Janpath is to be handed back to the Ministry of Urban Development. ITDC is to be compensated for loss of business opportunity with disputed liability to be sorted out. The exact financial implication of the project would be worked out in accordance with all stakeholders including the Ministry of Tourism, Ministry of Urban Development, NDMC and L&DO etc.

- As per MoU signed on April 27, 2017 Hotel Bharatpur Ashok, being a managed property of ITDC, was transferred to Rajasthan Government on April 30, 2017 (Transfer Agreement is to be executed shortly). The carrying amount of assets as on 31.03.2017 of Hotel Bharatpur Ashok was Rs, 55.51 lakh, liabilities of Rs, 76.69 lakh, Revenue of Rs, 110.10 lakh and net loss of Rs, 21.17 lakh.

- ITDC has transferred its Non Current Investments - Equity Shares of Subsidiary Companies - Assam Ashok Hotel Corporation Limited (AAHCL 51% Equity) and Madhya Pradesh Ashok Hotel Corporation Limited (MPAHCL 51% Equity) on June 29, 2017 to their respective State Government. The Investments have been transferred at a consideration of: AAHCL Rs, 214.00 lakh (Profit Rs, 163.00 lakh) and MPAHCL Rs, 1,259.00 lakh (Profit Rs, 1,177.40 lakh).

- The process of disinvestment is going on in respect of: Hotel Pondicherry Ashok, Hotel Jaipur Ashok, Hotel Lalitha Mahal Palace, Hotel Kalinga Ashok, Hotel Donyi Polo Ashok, Hotel Patliputra Ashok, Hotel Ranchi Ashok, Hotel Nilachal Ashok and incomplete Hotel Projects - Hotel Anandpur Sahib and Hotel Gulmarg Ashok.

Registrar of Companies has issued a public notice dated 27.04.2017 pursuant to section 248 of Companies Act 2013 proposing to remove /strike off the name of Joint Venture “ITDC Aldeasa India Private Limited” from the Register of Companies. ITDC as a Joint Venture partner has submitted to the Registrar of Companies that the company i.e. “ITDC Aldeasa India Private Limited” is not doing any business.


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 of Tourism, 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


(Ravneet Kaur)

Date: 28.08.2017 Chairperson &

Place: New Delhi Managing Director

Director’s Report