- Tangible Assets other than Leasehold land are owned by the Corporation.

* This represents amortization of leasehold land.

** Includes staff quarters of the value of ' 194.03 lakh ( Previous year ' 194.03 lakh ), however, does not include value of staff quarters at some units as the cost could not be asertained separately. Includes amortisation of leasehold residential flats at Headquarters before their conversion into Freehold.

Notes:-

(a) Terms of purchase/lease of land not having been finalised and registration of title deeds/execution of lease deeds have not been effected, liability towards cost/lease rent, ground rent and registration fee, etc, have not been created in respect of Ashok Institute of Hospitality and Tourism Management(AIH&TM) and Tennis Court at New Delhi.

(b) Lease deeds/title deeds have not yet been executed in favour of the company in respect of land at Hotel Samrat and Office Premises in Scope Complex at New Delhi.

Leasehold land of Hotel Samrat has been depreciated on an estimated life of 99 years.

(c) Lease deed in respect of land of Ashok Hotel, New Delhi is registered in the name of erstwhile Ashoka Hotels Limited, which was merged with the company on 28th March, 1970.

Lease Deed is perpetual, hence amortisation on the leasehold land is not charged.

(d) Registration of title deeds in favour of the company have not been effected in respect of Land & Building of Taj Restaurant.

(e) Pending receipt/ scrutiny of final bills of the contractors/suppliers, settlement of the rates for extra items and escalation etc., the capitalisation and/ or charge to expenditure to the extent of ' 15.00 lakh has been accounted for based on certificates issued by Project Engineers for the work carried out at various projects (previous year ' 87.67 lakhs).

Adjustments, if any, to cost is proposed to be carried out upon final settlement of the bills.

(f) In certain units, reconciliation could not be carried between physical verification report and property, plant & equipment register (FAR).

* The Share are not transferable without the consent of Co-promoters within ten years. Even after ten years Shares can not be transferred to private parties.

** Share in Joint Venture Company - ITDC Aldeasa India Private Limited for an amount of ' 0.50 lakh, for which provision for dimunition in value of investment 0f ' 0.50 lakh was already created. RoC vide Notice No ROC-DEL/248(5)/STK-7/071 dated September 1, 2017, notified that the Joint Venture Company - ITDC Aldeasa India Private Limited, have been struck off from the Register of the Companies and the said is dissolved, w.e.f., August 21, 2017.

*** Investment worth ' 25/- has been taken as NIL due to rounding off (Equity Share Certificate is not traceable).

Note:

The investment in equity/preference shares in three subsidiary companies viz. Ranchi Ashok Bihar Hotel Corporation Ltd. (RABHCL), Punjab Ashok Hotel Company Ltd. (PAHCL) and Utkal Ashok Hotel Corporation Ltd. (UAHCL) for ' 846.38 lakh included in ' 927.98 lakh and amount recoverable from subsidiary - UAHCL are considered good for recovery despite their having incurred significant accumulated losses. As regards RABHCL, outstanding loans with interest and other receivables including price of investment has been received. However, on account of pendency of share transfer formalities amount against investment has been shown as advance of ' 306.00 lakh. During the previous financial years sale proceeds of disinvestment of three other subsidiary companies viz. Assam Ashok Hotel Corporation Ltd. (AAHCL), Madhya Pradesh Ashok Hotel Corporation Ltd. (MPAHCL) and Donyi Polo Ashok Hotel Corporation Ltd. (DPAHCL) were received by ITDC which were much more than the amount originally invested in the said subsidiary companies. Moreover, all other outstanding trade receivables from these three subsidiary companies were also fully settled by them. The process of disinvestment of remaining subsidiary companies including PAHCL and UAHCL is also being carried out on the same principle. Therefore, the investment in these subsidiary companies and amount recoverable from them are considered good for recovery and no provision against such investment and recoverable is considered necessary.

1. Term Deposit includes FDR's of Nil (Previous year ' 7.74 lakh) lodged as security and FDR's at HDFC Bank of ' 300.00 lakh (Previous year ' 300.00 lakh) as collateral for availing Intraday Facility at Hotel Ashok, New Delhi.

2. It also includes FDR of ' 108.38 lakh held for ITDC Aldeasa (Joint Venture). For the last four financial statements, no share with respect to ITDC Aldeasa has been booked as per the MCA Notice No. ROC-DEL/248(5)/STL-7/5071 dtd. September 1, 2017, it has been struck off the register of companies and the said company is dissolved w.e.f August 21, 2017.

1. Amount Recoverable include an amount of ' 644.14 lakh that has been paid to 51 employees of Hotel Janpath, New Delhi for VRS. The same will be adjusted with the compensation amount receivable for loss of business opportunity which is currently under consideration of Ministry of Tourism (MoT). For details refer point no. 18(a) of Note 39 - General Notes.

2. TDS Receivable amount shown above is subject to year wise reconciliation.

B. Rights, preferences and restrictions (including restrictions on distribution of dividends and repayment of capital) attached to the class of shares

The Company has one class of Equity shares having a par value of ' 10/- per share. Each Shareholder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

* Upkeep, Service Cost and Other Operating Expenses includes expenditure towards Contractual Staff (incl. staff engaged through third party) for an amount of ' 3,474.13 lakh (Previous Year ' 4,121.07 lakh)

Contractual Staff payments included an amount of Nil (Previous Year ' 30.92 lakh) towards distribution of Gift Coupons in lieu of ITDC Golden Jubilee Celebration

** Details of expenditure towards Corporate Social Responsibility

a) Gross Amount required to be spent by the company during the year ' 40.78 lakh (Previous Year ' 38.97 lakh)

b) Amount spent during the year on:

Contingent Liabilities, Commitments & Contingent Assets

Notes:-

1. Contingent Liabilities at Sr. No.(A)(a)(i) and (A)(a)(iii) are dependent upon court decision/out of court settlement/disposal of appeal etc.

2. Amount indicated as Contingent liability/ claims against the company only reflect basic value. Legal, Interest and other costs being indeterminable at this stage are not considered.

3. Contingent liabilities at A(a)(i) above includes ' 224.35 (Previous Year ' 224.35 lakh) in respect of matters under arbitration with suppliers in respect of works relating to supply of furniture and furnishing of flats on behalf of Delhi Development Authority(DDA). However, the MoU with DDA indicates that the payments of decreed amounts, if any , as decided by arbitrator , court of law will be made by DDA.

4. Contingent liabilities at A(a)(i) above includes ' 2,340.00 lakh (Previous Year ' 2,280.00 lakh) in respect of 234 cases pertain to service matters i.e. termination / dismissal / suspension / regularization, promotion, fixation of pay, bonus, stoppage of increments, gratuity, supersession, transfer, disciplinary proceedings etc. In service matters, it is difficult to ascertain as to whether what amount shall be awarded in favour of an employee by the court in each case. In some of the cases, the case has been filed by the Unions on behalf of one more number of employees. It is pertinent to mention that the contingent liability of court cases depends upon the award of the Courts. However, as per practice, the company is considering for contingent liability an average amount of ' 10.00 lakh per case.

5. Contingent liabilities at A(a)(i) above includes ' 16,514.74 lakh (Previous Year ' 16,514.74 lakh) in respect of claims against the Company not acknowledged as debts, wherein ITDC has also filed counter claims to the tune of ' 15,343.44 lakh (Previous Year ' 15,343.44 lakh).

1. The Airports Authority of India(AAI) and other private airport operators had levied service tax on their billings for licence fee/royalty for Duty Free Shops at various locations and Ashok Airport Restaurant w.e.f. 10.9.2004. However, the Circular dated 17.9.2004 issued by the Government of India provides that the activity of renting, leasing out part of airport/ civil enclave premises does not amount to rendering of services and the license fee/ royalty payable in this regard is not subject to service tax. M/s Airports Authority of India had filed an appeal in CESTAT interalia to adjudicate if Service tax is chargeable on Appellants revenue from renting/ leasing of space inside Airports Civil Enclave to various persons for their business activities. The CESTAT vide their order date 2.1.2015 had ordered that service tax is chargeable on above renting/ leasing. The AAI has further appealed against the order. Further an amount of ' 160.97 lakh paid by ITDC as security deposit in the form of Fixed Deposit during 2006-07 was encashed by Delhi International Airport Pvt. Ltd.(DIAL) on account of Service tax levied as above. Pending final resolution of the matter the estimated liability of ' 1,723.96 lakh (Previous year ' 1,723.96 lakh) from 10.09.2004 to 31.03.2008 has been included as Contingent Liability at Para A(a)(i). above, and ' 160.97 lakh has been included under Other Financial Assets (Non-Current). However, provision for credit losses have been made for the deposit amount of ' 160.97 lakh during F.Y. 2020-21.

2. The Employees' State Insurance Corporation (ESI) authorities had raised demands (including interest where applicable) totalling ' 632.21 lakh (Previous year ' 620.70 lakh) towards ESI dues in respect of nine hotel/catering units against which the company holds a deposit of ' 279.61 lakh (Previous year ' 279.61 lakh) (included in Loans and Advances) with the said authorities (made up of amounts withdrawn by the authorities after freezing bank accounts ' 254.85 lakh and amount deposited ' 24.76 lakh). Against this the company holds a liability of ' 175.09 lakh (previous year ' 168.58 lakh) towards ESI dues. No provision has been made for the balance of ' 457.12 lakh (Previous year ' 457.12 lakh) as the matter is subjudice and pending finality in the matter, the same has been included under Contingent Liabilities at Sl. No. 1(A)(a)(i) above.

3. Rent of Regional Office (South), Chennai was revised from ' 0.45 lakh to ' 8.81 lakh per month by virtue of small causes court, w.r.t enhancement of Rent Arrears amount of ' 526.62 lakh from April 2013 to June 2018 (63 months). Aggrieved by the fixation of fair rent at ' 8.81 lakh, the Company preferred CRP for stay of the order fixing fair rent. The said CRP is pending before this Hon'ble Court and thus the fixation of fair rent has not reached a finality. An amount of ' 200.00 lakh has been deposited with "The Registrar General,High Court, Chennai 104" as ordered by this Hon'ble Court vide Order dated July 16, 2018. Subsequently, the landlord lady filed a payment out petition in the High Court,

Madras to withdraw the entire ' 200.00 lakh deposited by us in the High Court. After hearing both the sides, the Court vide Order dated September 25, 2019 permitted the applicant/ landlord to withdraw a sum of ' 100.00 lakh deposited by ITDC before the Court along with proportionate accrued interest. The balance amount of deposit with the Court is shown in Financials as "Other Current Assets". And balance amount of ' 426.62 lakh has been considered under Contingent Liability.

4 "The matters, relating to assessment of Property Tax in respect of three Delhi based properties

i.e. Ashok, Samrat and Janpath Hotels, were challenged by the Hotels before the Hon'ble High Court of Delhi. During proceedings before the Hon’ble High Court, NDMC offered a basis for determination of property tax for assessing the hotel properties. The Hon'ble High Court of Delhi vide its orders dated 19.10.2010 disposed of the said petitions by directing NDMC to reassess the property tax due from hotels and hotels to fully cooperate in the matter. Accordingly, the NDMC vide its assessment orders dated March 31, 2013 had made the fresh assessment up to March 31, 2009 and gave a basis of determination of property tax, which was agreed by ITDC and admitted amounts were being paid by ITDC. On February 10, 2016, the NDMC issued notices calculating the value of property as per Unit Area Method (UAM) under bylaws of 2009 for the period 2010-11 to 2015-16 on a much higher Rateable Value than assessed up to the year 2008-09. The Company challenged the assessment made under UAM and filed three separate Writ Petitions before the Hon’ble High Court of Delhi."

"The matter came up for hearing before Division Bench of the Hon'ble High Court of Delhi on March 8, 2016. The Hon'ble Court was pleased to order that subject to ITDC paying the admitted tax , no coercive measures shall be taken by NDMC. Subsequently, the Hon’ble Court by Order dated August 10, 2017 had struck down the NDMC by-laws of 2009, based on which the unit area value method of levying property tax was then brought in operation by the NDMC and also invalidated all the assessments made by the NDMC thereunder.

The order dated August 10, 2017 as passed by the Hon’ble High Court of Delhi was challenged by the NDMC before the Hon’ble Supreme Court of India and the Hon’ble Supreme Court of India vide order dated January 22, 2019 dismissed the said petition. Despite the dismissal of appeal of NDMC by the Hon'ble Supreme Court, NDMC vide order dated February 12, 2020, raised demand of ' 32,802.64 lakh, against three Delhi based properties of ITDC, including Hotel Ashok, Hotel Samrat and discontinued/ handedover Hotel Janpath. The company has challenged the demand order by filing writ petition with the Hon'ble High Court in relation to Hotel Ashok, Hotel Samrat and erstwhile Hotel Janpath. The Company has already deposited its admitted tax liability based upon assessment made vide order dated March 31, 2013 and an additional amount of ' 1,000.00 lakh on March 18, 2021 which is to be adjusted against the balance disputed amount of ' 35,837.93 lakh has been included in the contingent Liability A(a)(i) above subject to final resolution of the matter by Hon'ble Court."

5 M/s Good Times Restaurant Private Limited has filed claimed before the sole arbitrator claiming a total sum of ' 1,400.00 lakh (approx.) towards refund of license fee. Arbitator has passed an award of ' 1,169.59 lakh with interest 18% and cost of ' 5.00 lakh against Hotel Samrat on March 30, 2019. ITDC (Hotel Samrat) has filed an appeal against the arbitration award before High Court and matter has been heard and directed by the Hon'ble High Court to deposit the amount of ' 904.16 lakh inclusive of interest as per arbitration order. Accordingly, ' 904.16

lakh has been deposited with High Court for admission of appeal (shown under Note 13 -Other Current Asets - Amount Recoverable) and matter to be heard before the Hon'ble High Court as the company has challenged arbitraion award. And Contingent liability has been considered for an amount of ' 1,169.59 lakh.

1. "Balances shown under debtors, creditors are subject to confirmation/ reconciliation/ adjustment, if any. The Company has been sending letters for confirmation to parties. However, the Company does not expect any material dispute w.r.t the recoverability/ payment of the same.

In the opinion of the management, the value of current assets, loans and advances on realization in the ordinary course of business, will not be less than the value at which they are stated in the Financial Statement."

2. The net accumulated amount of losses -' 3,734.73 lakh (Previous year ' 3,422.74 lakh) of subsidiary companies so far as it concerns the company, not dealt with in the accounts is as under:-

There is no change in the % of sharing @ Non-operational from 2018-19 @ Non-operational from 2003-04

# AGM is yet to be convened

* Process of disinvestment to Govt. of Jharkhand

is pending execution of share transfer formalities for which consideration has been received.

3. Following the past practice, consumption of Stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting therefrom closing balance based on physical inventories valued as per the accounting policy.

4. Impairment of Financial Assets (Provisioning of Trade Receivables and Other Receivables)

Expected credit losses are recognized for all financial subsequent to initial recognition other than financial assets in FVTPL category. For receivables and contract assets, the Company applies the simplified approach permitted by Ind AS 109 - Financial

Instruments which requires expected lifetime losses to be recognized of the trade receivables and contract assets. Hence, company is complying to the requirements of Ind AS. Under the simplified approach company is following the below

rxti k~\ rl rvm/'ti Ý

a. Impairment/ Provision is being created 100% -on the Receivables Ageing more than 3 years

b. Impairment/ Provision is being created 100% - on Receivables Ageing below 3 years where party has filed a legal suite/ litigation against the company

c. After providing impairment/ provision as per above 2 steps, company assesses its total impairment during the year in comparison to the estimated provisioning of the past trend. Shortfall (if any) is created as an additional impairment/ provision for the year. On the analysis of past trend of provisioning an estimated impairment/ provisioning of 3% is derived on the total trade and other receivables of the Company. The same would be followed for the coming years as well, unless there are exceptional changes or circumstances.

5. Company entered into an Agreement dated February 19, 2002 with M/s. Maruti Udyog Ltd. (now Maruti Suzuki India Limited - MSIL) for renewal of Sub-Lease from February 1, 2002 to January 31,2011 and another period of nine years thereafter subject to enhancement of rent in respect of the property comprising of workshop cum Depot constructed on Plot No.C-119, Naraina Industrial Area, Phase-I, New Delhi. As per terms of agreement the entire rent for a period of 9 years was paid by Maruti Udyog Ltd in advance. During the currency of the sub lease period, MSIL carried out additional construction in the said premises and in the process, the Workshop cum depot that had been let out was demolished and rendered extinct which was neither envisaged nor intended in the Sub- Lease agreement. Therefore, a legal notice dated June 14, 2010 was given to MSIL to vacate the premises w.e.f. July 1, 2010. The balance amount of advance rent lying with ITDC amounting to ' 25.02 lakh was accordingly returned to MSIL which has not been encashed by MSIL. Applications dated July 1, 2010 were filed by ITDC for eviction of of premises and recovery of damages under Public Premises [Eviction of Unauthorized Occupants] Act, 1971 before the Estate Officer. In the meanwhile, being aggrieved MSIL filed a writ petition in Hon'ble High Court of Delhi against the eviction and recovery applications of ITDC which has been dismissed the Hon'ble High Court. Against the order of Hon'ble High Court MSIL had filed an appeal before the Division Bench of Hon'ble High Court of Delhi which was also dismissed vide order dt. April 29, 2013. MSIL filed an SLP challenging the orders of Hon'ble High Court of Delhi. The said SLP was disposed off with a direction to Estate Officer to decide the Jurisdiction.

The Estate Officer vide its order dt. March 23, 2013 held that the Estate Officer has the jurisdiction to entertain the application filed by ITDC. Another Arbitration Petition had been filed by MSIL before Hon'ble High Court for appointment of Arbitrator. Hon'ble High Court vide its order dt.May 23, 2011 directed to appoint two Arbitrators who may proceed to appoint Presiding Arbitrator. ITDC preferred an application for recalling the order of Hon'ble Delhi High Court. The Hon'ble Court vide its order dt. September 29, 2011 sustained the order dt May 23, 2011 with modification that the

only issue the Arbitral Tribunal will determine is whether ITDC violated terms of Sub Lease dt February 19th, 2002 & MSIL suffered any losses/ harassment. The rest of the issues will be determined under Public Premises Act. MSIL filed SLP against the order dt September 29, 2011 and the same was dismissed vide order dt.May 6, 2011 by Hon'ble Supreme Court.

The Applications filed by ITDC for Eviction and Recovery of compensation/ damage for the use and occupation/ mesne profits at the rate of ' 75.00 Lakh per month from July 1, 2010 till the date of vacation and possession have been disposed of by the Ld Estate Officer by Order dated December 31, 2018 whereby MSIL has been directed to vacate the premises and pay ' 60 lakh per month from July 2010 till July 2011. Thereafter, 20% enhancement per annum from July 2011 till the date of handing over of the vacation along with simple interest @ 9% per annum. Total amount payable to ITDC as per order of the Ld Estate Officer is approx. ' 30,373.80 lakh (upto March, 2021).

MSIL has challenged the orders of the Estate Officer by way of Appeal under Section 9 of the PPE Act before the District Judge, New Delhi. The Additional District Judge-01, New Delhi by interim Order dated January 14, 2019 has ordered that “no coercive action should be taken by the respondent ITDC against the appellant.

ITDC filed an application before the Hon'ble High Court of Delhi seeking vacation of interim protection granted to MSIL. It was also submitted that the sub lease deed had expired on January 31, 2020 by efflux of time. The writ petition was disposed with the observation that the trial Court shall endeavour to expedite the proceedings.

Arguments on behalf of MSIL have been concluded and ITDC has commenced its arguments. Due to suspension of work because of COVID-19, the date of April 26, 2021 was adjourned en-bloc to May 19, 2021. Matter was taken up through video conferencing on June 16, 2021, as May 17, 2021 to June 3, 2021, was declared as summer vacation by Hon’ble High Court vide order no. 06/R/RG/DHC-202021 dated May 14, 2021. The next date of hearing is August 21, 2021 for arguments.

6. Below mentioned are the disclosures as per requirements to Ind AS 115 - Revenue from Contracts with Customers:

a. Contract Balances (' in lakh)

Contract assets is recognised over the period in which services are performed to represent the Company's

i.

Contract liabilities balances due to customers, these arise when a particular milestone payment exceeds the revenue recognised to date under the input method and advance received in long term construction

contracts gets adjusted over the construction (' in lakh)

period as and when invoicing is made to the

customer.

c. Other disclosure are as tabulated below: (' in lakh)

7. Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 on Segment Reporting is given in Annexure A to this note.

8. Disclosure of transactions with related parties as per Indian Accounting Standard -24, to the extent applicable, is as under:

Key Management Personnels:

1. Shri G Kamala Vardhana Rao, Chairman & Managing Director w.e.f. November 11,

2019 to till date

2. Shri Piyush Tiwari, Director (Commercial & Marketing) w.e.f. May 28, 2015 to till date

3. Shri Pradip Kumar Das , Director (Finance) & CFO w.e.f. February 25, 2016 to May 06,

2020

4. Shri Subhadeepta Paul, V.P. (F&A) & CFO (Additional Charge) w.e.f. May 27, 2020

5. Shri. V. K. Jain, Company Secretary w.e.f 15.12.2008 to till date

Director Sitting Fees paid to Independent Directors is amounting to ' 4.35 lakh (previous Year ' 2.95 lakh)

9. Risk Management :

The company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

a. Credit Risk: Credit Risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Primarily exposure to the credit risk is from trade receivables amounting to ' 12,520.08 lakhs (previous year ' 14,870.25 lakhs) and unbilled revenue amounting to ' 438.24 lakhs (previous year ' 363.23 lakhs) which are typically unsecured. Credit risk is being managed by continuously monitoring the outstanding dues from the customers.

Further, most of the clients of the company are Government or

Government Undertakings; hence credit risk is bare minimum. Company has impaired, as a prudent measure, the trade receivables towards expected credit loss as per company accounting policy to the extent of ' 5,856.02 lakhs (previous year ' 5,080.43 lakhs). Keeping in view the nature of business expected credit loss is provided as per the policy on impairment of financial assets.

No significant credit risk on cash and bank balances amounting to ' 2,117.53 lakhs (previous year ' 2,326.93 lakhs) is expected as company parks surplus funds with Schedule Banks having good credit adequacy ratio and least NPA as determined by RBI and guidelines of the company. Company has parked its owned funds in fixed deposits of ' 21,050.15 lakhs (previous year ' 23,790.80 lakhs) with Schedule banks with negligible credit risks.

The Company has also provided House Building Loan, Vehicle Loan and Computer Loan to the employees amounting to ' 2.88 lakhs (previous year ' 2.89 lakhs), these loans are secured and the Company does not envisage any risk from the same in nearby future.

The Company has granted interest bearing loans to its subsidiaries amounting to ' 712.57 lakh (previous year ' 800.87 lakh).

b. Liquidity risk: Company's principal source of liquidity are "cash and bank balances" and the cash flow that is generated from the operations. The Company has no bank borrowings and is an unleveraged entity.

The Company has a working capital of ' 26,889.49 lakh (previous year

' 30,956.84 lakh) including cash and bank balances of ' 2,117.53 lakhs (previous year ' 2,326.93 lakhs). Fund flow statement and investment of surplus funds is also reported in the audit committee meetings held from time to time.

Company believes that the working capital is sufficient to meet its requirements and to discharge its

liabilities towards trade payables and other current liabilities as and when they fall due, accordingly no liquidity risk is being perceived by the Company.

c. Market Risk:

• Interest rate risk: The company is exposed to interest rate risk to the extent of its investments in fixed deposits with banks. The company also invested in preference share capital of its subsidiary company Utkal Ashok Hotel Corporation limited (unit is nonoperative since 31.03.2004).

• Foreign currency risk: The Company has duty free shops at major sea ports in India. The foreign currency is being collected against the sale proceeds from customers at these shops. The duty free goods for the same are purchased centrally for these shops. The exchange rates between the rupee and foreign currencies have fluctuated substantially in recent years and may also fluctuate substantially in the near future. However the Company has a currency risk monitoring policy in place wherein the risk is managed by advanced planning for payment for purchases in foreign currency on due date by holding back the foreign currency sale proceeds in bank keeping in view the credit period/ payment date of purchases.

The above foreign currency exposure is unhedged as these are covered through foreign currency risk management policy.

d. Capital Management:

The Company’s capital management objectives are : - to ensure the Company’s ability to continue as a going concern - to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet. Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. The Company manages the capital

structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to avoid debt.

10. COVID-19 pandemic

The World Health Organization declared the Covid-19 outbreak as a pandemic on 11th March 2020, leading to series of measures by countries across the world to contain the spread of the virus. India responded by imposing a nationwide-lockdown on March 24, 2020. The process of lifting of lockdown in various states has since started in phases, effective June 1, 2020, guided by the decision of individual states. Permission for re-opening of Hotels has been given, w.e.f, August 21, 2020 by the State Government of Delhi.

During the period March 2020 to August 2020 there were no operational activity in hotel, flight & cargo operations, duty free shops, event management, hospitality institute etc., which affected business at our hotels and others operations across India.

During this Covid period, ITDC provided 1,800 food packets per day (approx.) to Delhi Administration, AIIMS and other hospitals under CSR activity amounting to ' 63.27 Lakhs. ITDC also provided accommodation facility to guests during the month of May 2020 and June 2020 under Vande Bharat Scheme as per the Government guidelines and generated revenue amounting to ' 18.70 Lakhs.

Contributing in the fight towards this pandemic, ITDC has provided support through our Hotel premises being used as quarantine facility at Hotel Kalinga Ashok since the inception of lockdown. Also, Hotel Samrat, New Delhi has also been offering 50 rooms for the purpose of quarantine facility.

During the major part of this period, hotel, flight & cargo operations, duty free shops, event management, hospitality institute were mandated to remain non-operational, which affected business at our hotels and other operations across India.

The Management's priority in dealing with the exceptional challenges posed by COVID-19 has

been to ensure the safety of its guests and employees, support suppliers, keep the supply chain operational for essential supplies.

In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Management has considered the impact from a prolonged lock-down situation; travel restrictions being continued to be imposed by India and other countries even after lifting of the lockdown, guests postponing their discretionary spending, continued restrictions on the number of domestic and international flights, internal and external information available up to the date of approval of these financial statements including credit reports and economic forecasts.

The Management has also assessed the potential impact of Covid-19 on the carrying value of property, plant & equipment, intangible assets, investments, trade receivables, inventories, and other current assets appearing in the financial statements of the Company as on 31st March, 2021 and has performed sensitivity analysis on the assumptions used and based on current indicators of future economic conditions, expects to recover the carrying amounts of these assets. The impact of COVID-19 may be different from that estimated on the date of approval of these financial statements and the Management will continue to closely monitor any material changes to future economic conditions.

With respect to business in financial year 2021-22, the start has been difficult due to the second wave of COVID-19 pandemic in India. The impact on revenue from various business verticals could also come from a prolonged lock-down situation; travel restrictions being continued to be imposed by Government of India and other countries even after lifting of the lockdown and guests postponing their discretionary spending.

Based on enquiries received, assessments performed and analysis of market trends, the Management expects demand to gradually pick for Domestic leisure and business travel, social events within prescribed norms, and limited international travel once international airlines are allowed to commence operations.

11. Private Licencees of Hotel and Catering Units of ITDC, i.e., Hotel Ashok (New Delhi), Hotel Samrat (New Delhi) and Taj Restaurant (Agra) had made request for waiver of licence fees for the lockdown period.

Keeping in mind the business scenario and considering the impact on cash flow, bills were not generated against most of the Private Licensees amounting to ' 1,292.59 lakh upto September, 2020 and hence, not considered in the Financial Results.

12. Turnover of ITDC Unit - Hyderabad House (Catering Unit)

In case of ITDC Unit - Hyderabad House (Catering Unit), turnover was being shown to the extent of supervision charges received over and above the cost of material supplied and service rendered. On review of accounting practice, changes have been made from F.Y. 2020-21, i.e., the total amount of material supplied, services rendered and supervision charges has been shown as turnover and expenditure have been shown under relevant heads. Regrouping have been made during the corresponding previous year. However, there will be no impact on the profitability of the Unit/ Company.

13. In case of Loans&Advances and Management Fees due to be received from Susbidiary Companies, company has reviewed its accounting practice and has accounted for the Interest and Management Fees for the period starting from April 1, 2016, i.e. date of transition to Ind AS Financial Statement upto March 31, 2020.

- Management Fees for an amount of ' 59.60 lakh (excl. GST) has been booked as an Income due from Pondicherry Ashok Hotel Corporation Limited and Utkal Ashok Hotel Corporation Limited.

- Interest on Loans have been booked for amount of ' 266.46 lakh from Utkal Ashok Hotel Corporation Limited.

However, prior to Ind AS transtion, i.e., before April 1, 2016, old recoverable dues from Subsidiary Companies (UAHCL & PAHCL) in the nature of Management Fees and Interest on Loan has not been recognized to the extent of ' 65.50 lakh and 255.40 lakh.

14. Impact of Fire accident at DFS Chennai Unit

A fire accident occurred at Unit of ITDC, DFS Chennai on April 27, 2020. Company filed an Insurance claim for the loss of stock and property, plant & equipment at the site, cause was stated as electrical short circuit. Proclaim surveyors and loss adjusters were appointed as surveyors by the Insurer (National Insurance Company Limited). Claim settlement is under process.

15. Incident of Theft at Hotel Jammu Ashok, Jammu

There has been an incidence of theft at the hotel premises on May 9, 2020 (during lockdown). FIR was filed dated May 11, 2020 wherein shortage of Stock Items, i.e., 57 packets of Cigarettes and 64.04 Litres of Liquor, estimated value of ' 0.71 lakh was reported in the FIR. In relation to the theft, recovery of ' 0.71 lakh has been made from the Security Agency at the Unit - Darbari Lal Badyal Security Agency.

16. Impact of Fire accident at DFS Mumbai Unit

A fire accident occurred at Unit of ITDC, DFS Mumbai on March 30, 2021. Company filed an Insurance claim for the loss of stock and property, plant & equipment at the site, cause was stated as electrical short circuit. The same is under investigation. Claim for an amount of ' 48.30 lakh is estimated.

17. In 2007 ITDC formed a Joint Venture Company (JV) in collaboration with M/s Aldeasa of Spain. After incorporation, no business was carried on. On the basis draft financial statements of F.Y. 2009-10 of the JV company and concept of prudence Corporation’s share of loss

amounting to ' 245.52 Lakh in connection with running the JV has been accounted for based on the ratification of expenditure by JV Board & subsequent acceptance by ITDC. Since the F.Y. 2007-08 to 2013-14 the Financial Statement were prepared and audited and thereafter, i.e., for the F.Y. 2014-15 to 2016-17 the unaudited financial statement was prepared. During F.Y. 2017-18, 2018-19, 2019-20 and 2020-21, no share of profit/ loss with respect to ITDC Aldeasa has been booked as per the MCA Notice No. ROC-DEL/248(5)/ STL-7/5071 dated September 1, 2017 and it has been stricked off by the registrar of companies and the said company is dissolved, w.e.f., August 21, 2017. As at March 31, 2021, an amount of ' 226.51 lakh (Previous year ' 226.51 lakh), liability is outstanding towards ITDC Aldeasa (JV).

18. Pursuant to a decision of the Government of India, it was decided that the Ministry of Tourism will examine the proposal for Sale/ Lease of Hotel Properties of the Company including Properties of Subsidiary Companies. In the cases where Hotel properties are located on State Govt. Leased Land and the State is reluctant to extend the lease and allow it to be sub-leased to the private party, then the property may be offered to the State Govt. at its officially valued price. According to this decision the process of disinvestment is carried on as under:

a. HotelJanpath:

Ministry of Tourism (MoT) communicated vide their letter dtd. June 14, 2017 the in-principle approval of the government for transferring the property of Hotel Janpath to the Ministry of Urban Development (MoUD) and for compensating ITDC for loss of business opportunity with disputed liability to be sorted out. The ministry had proposed that “a tentative valuation of the business of ITDC has been calculated on the basis of Discounted Cash Flow assuming cash flows for 30 years on the basis of average net profit for 5 years and discount factor of 11% p.a. and a rough estimation was made for ' 5,772.00 Lakh (net profit depreciation). Value of land is not being considered.

Subsequently it was decided by the government to close the operations of Janpath Hotel, New Delhi and to handover the land & building of Janpath Hotel to L&DO, MoHUA (erstwhile MoUD). Accordingly, the Land & Building was technically handed over to L&DO, MoHUA on October 31, 2017.

The matter was also discussed inter alia in 26th & 27th Inter Ministerial Group (IMG) meetings as under: - In the 26th meeting of IMG dated 04.12.2017, it was deliberated that earlier the figure of ' 5,772.00 lakh was mentioned on the basis of calculation of NPV at a discounting factor of 11% on average profit before depreciation of last 5 years as per the audited annual accounts of 2011-12 to 2015-16 of Hotel Janpath for a period of 30 years without applying any growth rate. Therefore, IMG decided that compounded annual growth rate (CAGR) of last 10 years i.e. from 2006-07 to 2015-16 of profit before depreciation may be applied on above said average profit of last 5 years before depreciation. IMG directed that ITDC may get the valuation done on this basis and obtain approval through circulation for the same.

In minutes of the 27th meeting of IMG held on 27-12-2017 it was recorded that “The valuation of loss of business opportunity of Hotel Janpath was decided by the IMG in its meeting held on 04-12-2017. In this regard, DIPAM vide its letter dated 21-12-2017 has submitted that under the DCF methodology for calculation of NPV, Profit After Tax (PAT) is what is normally considered."

The Company requested the Ministry to convey the amount of compensation to be considered by ITDC in its Financial Statement. The working of the amount of compensation based on PBT as well as PAT was also communicated to MoT. The amount of compensation based on PAT was ' 14,981.00 lakh and on PBT was ' 19,303.00 lakh.

In response to the above letter, the Ministry conveyed that the amount of '5,772.00 lakh was only an estimated figure and did not take into account the

liabilities which are yet to be firmed up. Further, the amount incurred towards VRS of employees due to closure of Janpath Hotel is to be kept under recoverables to be adjusted from the value when the same is finalised. The estimated compensation amount due to ITDC on account of loss of business opportunity in respect of Hotel Janpath, New Delhi, may therefore not be taken into account while finalising accounts of ITDC for the current financial year 201718 and may be included in the accounts for the financial year 2018-19.

The compensation for Loss of Business Opportunity was calculated on the basis of the IMG decision taken in its meeting dated 04.12.2017 and placed before the IMG in its meeting held on 4.2.2019.

“The IMG observed that the valuation based upon compounded annual growth rate (CAGR) of last 10 years i.e. from 2006-07 to 2015-16 of average profit (before depreciation) of last five years which comes to ' 193.03 crores is also on higher side. It was suggested to also have the option of calculating the valuation based upon compounded annual growth rate (CAGR) of last 30 years’ profit before tax and if the financials of last 30 years are not available, information available for maximum period may be taken. Another option may be valuation based upon compounded annual growth rate (CAGR) of last 30 years’ profit before tax but excluding depreciation and if the financials of last 30 years are not available, information available for maximum period may be taken. It was also directed by IMG that all options may be considered by the Committee constituted for computing the Loss of Business Opportunity.”

Fresh calculations have been undertaken in accordance with the decision of the IMG dated 4.2.2019 on the basis of financial data for 29 years (From FY 2015-16 to FY 1987-88). As per the same, the valuation based upon Profit before Tax excluding Depreciation works out to ' 155.48 crores approx. In case, valuation is undertaken on PBT basis, the compensation for Loss of Business Opportunity works out to ' 123.68 crores approx.

Further, meeting of the Valuation Committee was held on February 12, 2020 and Committee desired the consultant to make presentation on the valuation of ' 206.93 crore. Based on consultant's presentation in next meeting, they were asked to give further valuation based on IMG decision dated February 4, 2019. Consultant submitted the valuation on March 2, 2020 which shall be put up to the Valuation Committee in the next meeting. Due to the COVID-19 pandemic, meeting is yet to be conducted.

Since, the approval of amount of compensation due on account of loss of business opportunity is still awaited from MoT therefore, the VRS amount of ' 644.14 lakh has been kept under recoverable and nothing towards compensation for loss of business opportunity has been considered in the Financial Statements for the Financial Year 2020-21.

b. Hotel Ashok:

DIPAM has appointed Transaction Advisor for studying lease terms & conditions of land, explore the possibilities of giving Hotel Ashok on operation & management (O&M)/ Sub-leasing and optimum utilisation of vacant/ unused land in Hotel Ashok-Samrat Complex.

c. Kosi Restaurant:

The operation of Kosi Restaurant, a unit managed by the Company had been closed on October 31,2017. The Ministry of Tourism has been requested to take possession of the Restaurant building. In response MoT vide letter dated November 11, 2019, requested ITDC for exploring possibilities for making it operational. ITDC responded indicating the requirement for engagement of consultant for the same. ITDC has been asked to submit a plan and to indicate feasibility and viability in of the project. ITDC Board decided to engage the consultant through Limited Tender from the DIPAM’s list of empanelled consultants. List of Consultants received from DIPAM. Matter is under process.

d. Hotel Kalinga Ashok, Bhubaneswar

RFP has been floated for giving Hotel Kalinga Ashok, Bhubaneswar on O&M contract. Evaluation report received from the transaction advisor was placed in the IMG meeting held on March 6, 2020. IMG decided to retender. ITDC was directed to issue fresh tender with revised selection criteria. In the IMG meeting held on March 4, 2021, TA presented the revised selection criteria. IMG directed the ITDC officials to do the road show with the revised parameters and apprise of the result/ inputs. Roadshow has been conducted and report from TA has been received which will be presented in the next IMG meeting.

For Freehold Land ITDC Board in its meeting dated February 25, 2020 and IMG in the meeting dated March 6, 2020 directed ITDC for outright sale of land through DIPAM. Proposal was sent to DIPAM for monetization of land. DIPAM requested to submit estimated value of land and circle rate of property. The same details have been requested from local authorities, for which the details are awaited.

e. Pondicherry Ashok Hotel Corporation Limited:

Transaction Advisors (TA) for Pondicherry Ashok Hotel Corporation Limited have already been appointed. TA are engaged for doing the entire exercise of valuation of the properties, devising framework for transfer/ exit of ITDC, documentation, etc. as applicable. TA submitted their report which had some concerns from State Govt., Subsidiary Board and ITDC. TA has been asked to submit revised DPR.

IMG in the meeting on March 4, 2021 decided to give the exisiting Hotel along with 8 acres of land for development on O&M basis for 50 years and remaining land will be monetized through DIPAM. IMG directed the ITDC officials for roadshow. Roadshow has been conducted and report from TA has been received which will be presented in the next IMG meeting.

f. Punjab Ashok Hotel

Company Limited, Punjab: In the IMG meeting held on November 29, 2018, it was decided that the incomplete project may be handed over to the State Government with transfer of 51% of equity of ITDC in the JV Company to the State Government, on cost basis. A letter dated March 28, 2019 has been sent from Secretary (Tourism), MoT to the Chief Secretary, Govt. of Punjab for exploring options other than tourism for utilization of land & building.

In the IMG meeting held on March 6,

2020, Representative of Government of Punjab proposed for sharing depreciated cost of building and actual cost of other expenditure being incurred by the company. IMG directed the representative of Government of Punjab to send the proposal to ITDC for bringing the same before the IMG after its approval from the JV Board and ITDC Board. Letters/ reminders were send to the authorities at Govt. of Punjab for sending the proposal. In the IMG meeting held on March 4,

2021, representative of Punjab Govt. apprised that the matter is pending at their Finance Department.

g. Ranchi Ashok Bihar Hotel Corporation Limited:

In case of Ranchi Ashok Bihar Hotel Corporation Limited, operations of the Hotel have been closed w.e.f. March 29, 2018 with the approval of InterMinisterial Group of Ministry of Tourism. It has been decided by MOT that the ITDC’s Non-Current Investments (51% Equity of RABHCL) will be transferred to the Jharkhand State Government.

MoU for transfer of 51% equity stake of ITDC in RABHCL to Govt. of Jharkhand signed on November 24, 2020.

Consideration for an amount of ' 942.51 lakh has been received on December 28, 2020, however the VRS amount and outstanding dues of employees of RABHCL are yet to be received. On receipt of consideration of ' 942.51 lakh, company has recognized its Income towards Management Fees and Interest on Loan from the Subsidiary

during the F.Y. 2020-21 for an amount of ' 175.36 lakh.

The company has received loan & other outstandings including settled price of ' 306.00 lakh, against investment in shares. Due to the pending formalities for share transfer and continuation of Directors of ITDC on the Board of Subsidiary (substantial control), the financial statements of RABHCL have been incorporated treating the same as Subsidiary.

h. Utkal Ashok Hotel Corporation Limited (UAHCL):

In case of Utkal Ashok Hotel Corporation Limited (UAHCL) the Letter of Intent (LoI) for long-term lease of the hotel property was issued to the bidder M/s Paulmech Infrastructure Pvt. Ltd. (PIPL) on January 19,2010 and was subsequently cancelled on December 10, 2013 due to non-adherence of terms of LoI by PIPL. The PIPL filed a petition praying inter alia for quashing of ITDC’s letter cancelling LoI which was dismissed by the High Court. PIPL further filed a Special Leave Petition before the Hon’ble Supreme Court of India challenging the High Court Judgement. On September 18, 2017, the Supreme Court has stayed the termination of LoI. Hon’ble Supreme Court in its hearing on April 15, 2019 extended the date of FDs deposited by M/s. Paulmech for another 6 months. Letter has been sent to MoT for obtaining legal opinion on initiation of dialogue with the successful bidder when the LoI has been terminated. MoT has directed to take legal opinion directly from the Ministry of Law.

Hon'ble Supreme Court directed parties to appear before the Supreme Court Mediation Centre for negotiation. Matter was with the Ld. Mediator, however on hearing date October 27, 2020, the private party did not agree to the mediation terms proposal put up by the ITDC. As a result, the Mediation stands concluded in the matter sans any settlement between the parties and matter would now come up for hearing before the Hon'ble Court. The matter was listed on July 13, 2021 on which the date was adjourned for 4 weeks.

In the process of disinvestment of various ITDC Subsidiary companies properties which is currently going on, the ITDC shareholding of three of the Subsidiary companies viz. Assam Ashok Hotel Corporation Ltd.; Madhya Pradesh Ashok Hotel Corporation Ltd. and Donyi Polo Ashok Hotel Corporation Limited had been already transferred to the their respective State Governments, and the sales proceeds as worked out by the Transaction Advisor on the basis of valuation of available business opportunity etc. which had been received by ITDC is more than the amount originally invested by ITDC in respective subsidiary companies. Moreover all outstanding trade receivables from these three Subsidiary Companies have also been fully cleared by them.

On the same analogy, the process of disinvestment / divestment of Utkal Ashok Hotel Corporation Limited and Punjab Ashok Hotel Company Limited is also being carried out and as ITDC’s equity / preference shares investment are considered good for recovery, no provision is considered necessary.

19. Hotel Jammu Ashok, Jammu:

Hotel Jammu Ashok, one of the Hotel Unit of ITDC was on the land leased out by the Government of J&K which expired in 2010. ITDC had been following up the State Government for renewal of lease. ITDC had received letter dated March 20, 2020 from the Government of J&K informing non-renewal of lease in favour of ITDC and to resume the land. ITDC Board in the meeting dated May 27, 2020 has decided to close the operations of the Hotel Jammu Ashok. The operations of the hotel was closed w.e.f. June 17, 2020.

Matter was pursued with the State Govt. for taking possession of the Hotel after payment of compensation in accordance with terms of the lease deed. A Committee has been formed by ITDC and a tender to be floated for appointing an approved valuer for determining amount of compensation.

The unit results had been considered as a part of discontinued operations in the financial statements for the year ended March 31, 2021 and March 31, 2020.

20. Ashok Travels & Tour Operations

The operations of the Units, i.e., ATT Mumbai have been suspended w.e.f. June 1, 2020, ATT Patna have been suspended w.e.f. March 31, 2021 and accordingly considered a part of Discontinued Operations.

21. Merger of Kumarakruppa Frontier

Hotels Pvt. Ltd. (KFHPL) with ITDC ITDC Board in its meeting held on December 12, 2019 has accorded in-principal approval to the merger of Kumarakruppa Frontier Hotels Pvt. Ltd. (KFHPL) with ITDC. ITDC has requested Ministry of Tourism (MoT) vide letter dated December 30, 2019 to consider the proposal for onward approvals from DIPAM, Ministry of Finance/ CCEA, etc. MoT vide letter dated September 14, 2020 requested DIPAM, Ministry of Finance to grant approval in connection with merger of KFHPL with ITDC. The Matter is still under consideration at end of MoT/DIPAM.

22. In Ashok Consultancy and Engineering Services Unit, out of total 68 projects, 52 projects were completed/ closed but not closed in the books of accounts as final bills were reportedly not received/ settled. Amount due from customers includes ' 424.93 lakh and amount due to customer includes ' 1,523.99 lakh which pertains to completed projects. Exercise is in progress to reconcile the work done, provision for liability for work done and finalisation of final bill payment.

23. Paintings/ Antiques in Hotel Ashok, New Delhi

Some exclusive paintings and antiques are placed in Hotel Ashok, New Delhi. During the F.Y. 2020-21, the same were identified and listed. The process of valuation of these items is under process.

24. Leases Company as lessee

The company has adopted Ind AS- 116 w.e.f. 01.04.2019, and has elected certain available practical expedients. Thus, the company has no significant impact of the same in it's financial statements.

Company as lessor

The Company has given certain portion of office premises at Corporate Office on cancellable operating lease. The rent received received on the same has been grouped under Revenue from Operations. The rental income during

the current year is amounting to ' 36.67 lakhs (Previous Year ' 33.27 lakh).

25. Impairment of Assets

Impairment of Property, Pant & Equipment/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Indian Accounting Standard (Ind AS) 36-'Impairment of Assets' is recognised. As on 31st March, 2021, in the opinion of the Management the impairment loss has been recognised in respect of assets not in active use.

26. M/s Kayo Enterprises Pvt Ltd has entered into a License Agreement dated January 06, 2018 with Hotel Samrat - a unit of ITDC, for occupying space in Hotel Samrat for running restaurant on license fees basis for a period of five years. M/s Kayo Enterprises (Licensee) has failed to make the payment of license

fees on regular basis. Due to non-payment of license fees, the license agreement has been terminated on May 14, 2020 and Hotel Samrat has filed cases under section 138/ 141 to the tune of ' 850.00 lakh (approx.) which is almost equal to the outstanding amount (after adjusting the existing security deposit of ' 201.67 lakh. Also the bank guarantee of ' 201.67 lakh has been encashed in subsequent year. Further the fixed assets and equipments are lying in the premises of Hotel Samrat which is under lien to Hotel Samrat as per the agreement and can be auctioned as per direction of Estate Office, ITDC under PPE Act. Since the management is confident of recovering the said amount, therefore, no provision is required/made against the same.

27. Disclosure in pursuance to Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent Liabilities and Contingent Assets: