* 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.

** Proposal was received from the State Government to pay ' 79.39 lakh as depreciated cost of building as full and final amount to ITDC against transfer of all rights and ownership of the project to PTDC and other expenses will be borne by both the Joint Venture Partners as per their respective shareholding and will be booked as loss in their books of accounts. The proposal was examined and approved in the ITDC Board. Hence, on a prudent basis, provision for dimunition in value of investment has been created for an amount of ' 48.11 lakh.

*** 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/-, provision has been created against these investments due to non-traceability of the respective share certificates"

Note:

The investment in equity/preference shares in three subsidiary companies viz. Ranchi Ashok Bihar Hotel Corporation Ltd. (RABHCL), Utkal Ashok Hotel Corporation Ltd. (UAHCL) and Pondicherry Ashok Hotel Corporation Ltd. for ' 800.48 lakh included in ' 879.87 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, upto December 28, 2020 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 amount receivables from these three subsidiary companies were also fully settled by them. The process of disinvestment of remaining subsidiary company, i.e., UAHCL & Pondicherry Ashok Hotel Corporation Ltd. are also being carried out on the same principle. Therefore, the investment in the subsidiary company and amount recoverable from them are considered good for recovery and no provision against such investment and recoverable is considered necessary.

In Ashok International Trade Division Unit the sum of ' 160.97 lakh paid in the year 2006-07 as security deposit in the form of fixed deposit (FD) receipt in favour of Delhi International Airport Pvt. Ltd. (DIAL) is being shown as recoverable. Its FD was encashed during 2007-08 by DIAL on account of service- tax charged by DIAL in billing of services provided to the Company. This is being disputed by the Company on the ground that the service was not liable for service-tax. Allowance for credit impairment has been created for ' 160.97 lakh during the F.Y. 2020-21.

(*) Proposal was received from the State Government to pay ' 79.39 lakh as depreciated cost of building as full and final amount to ITDC against transfer of all rights and ownership of the project to PTDC and other expenses will be borne by both the Joint Venture Partners as per their respective shareholding and will be booked as loss in their books of accounts. The proposal was examined and approved in the ITDC Board A letter has been sent to State Government communicating the acceptance of the proposal. It was also informed that the expenses to be shared by both the JV partners in the equity sharing ratio i.e. 51:49. Excess expenditure is incurred by ITDC for which recovery is to be made from PTDC for an amount of ' 3.28 lakh. Hence, on a prudent basis, provision for remaining amount recoverable, i.e., ' 45.18 lakh has been created till the year ended March 31, 2023.

Note:

1. Amount Recoverable include an amount of ' 658.57 lakh (Previous year ' 658.57 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. 16 (a) of Note 39 - General Notes.

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

#Amount Recoverable includes an amount of ' 1,696.42 lakh (Previous Year 1,332.11 lakh) as recoverable from Delhi Development Authority (DDA) on account of supply of Furniture and Fixture

* Includes excess fund in the Gratuity Fund Trust which is utilised for Employee Gratuity dues amounting to ' 107.63 lakh (Previous Year NIL)"

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 in proportion to their shareholding, after distribution of all preferential amounts.

Appropriation of Profit (Dividend)

The Board, in its meeting held on May 24, 2023 has recommended a final dividend of '2.20 per equity share for the financial year ended March 31, 2023. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of ' 1,887.00 lakh and not recognised as liability as at the Balance Sheet date.

1. The disclosure relating to Ind AS-19 - Employees' Benefits:-

a) Provident Fund - 12% of Basic (including dearness pay) plus Dearness Allowance, contributed to Recognised Provident Fund

b) Leave Encashment -Payable on separation to eligible employees who have accumulated earned leave

c) Gratuity- Payable on separation @ 15 days pay for each completed year of service to eligible employees who render continuous service for 5 years or more. Maximum limit is ' 20.00 lakh.

Contingent Liabilities & Commitments

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 ' 1,013.20 lakh (Prev'ous Year ' 224.35 lakh) in respect of matters under litigation 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. Note no (4): Contingent liabilities at A(a)(i) above includes ' 2,790.00 lakh (Prev'ous Year ' 2,520.00 lakh) in respect of 279 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. Note no (5): Contingent liabilities at A(a)(i) above includes ' 27,428.87 lakh (Prev'ous Year ' 16,075.73 lakh) in respect of claims against the Company not acknowledged as debts, wherein ITDC has also filed claims to the tune of ' 66,290.85 lakh (Prev'ous Year ' 15,404.63 lakh). Further, compensation is pending to be received against Hotel Janpath (loss of business opportunity) amounting to ' 15,340.00 lakh, pending before IMG.

6. Note no (6): Indemnity Bond have been entered with Custom Authorities for operations of Duty Free Shops for total ' 4,950.00 lakh (Prev'ous Year ' 4,950.00 lakh). Contingent Liability above does not consist of this indemnity bond value.

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. Rent of Regional Office (South), Chennai was revised from ' 0.45 lakh to ' 8.81 lakh fixed the fair rent per month by The Rent Controler Appellate Tribunal vide order dated 01.09.2018. An amount of ' 200.00 lakh has been deposited with "The Registrar General, High Court, Chennai 104" as ordered by this Hon'ble Court order. 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. Further ITDC has deposited 288.75 lakh as per Hon'ble Court Order dated 31.10.2022. ITDC Filled a SLP to the Hon'ble Court and The Court grant interim stay ib order passed by the High Court of Madras vide order dated 29.09.2022. The balance amount of deposit with the Court is shown in Financials as "Other Current Assets" , and balance amount of ' 388.75 lakh has been considered under Contingent Liability.

3. There is a dispute about Property tax assessment by NDMC up to FY 2008-09 for The Ashok, Hotel Samrat and erstwhile Hotel Janpath. The assessments were challenged by the hotels before the Hon’ble High Court of Delhi. The Hon’ble High Court of Delhi disposed of the said petitions by directing NDMC to reassess the property tax due from hotels and hotels to fully co-operate in this matter. Accordingly, NDMC vide its assessment order dated March 31, 2013 had made fresh assessment up to March 2009 which was agreed by ITDC and subsequently paid by ITDC.

Subsequently, during the year 2016 NDMC issued notices for Property Tax as per UAM (Unit Area Method) under by laws 2009 for the FY 2010-11 to 2015-16. Being aggrieved by the much higher assessment in comparison with earlier assessment ITDC challenged the assessment and filed three Writ Petitions before the Hon’ble High Court of Delhi. On August 10, 2017, Hon’ble High Court of Delhi struck down the NDMC By laws 2009 and also invalidated all the assessment made by the NDMC thereunder. Subsequently, NDMC challenged the order of Hon’ble High Court of Delhi before the Hon’ble Supreme Court of India which was dismissed by Hon’ble Supreme Court of India vide its order dated January 27, 2019.

Despite dismissal of appeal of NDMC by the Hon’ble Supreme Court of India, NDMC vide order dated February 10, 2021 raised demand of ' 36,272.02 (' 22,290.02 lakh for The Ashok, ' 9,598.00 for Hotel Samrat and ' 4,384.00 lakh for erstwhile Hotel Janpath). The orders were challenged by ITDC filling writ petitions with the Hon’ble High Court of Delhi which was heard on Septembber 25, 2020. Despite the orders of Court, NDMC issued demand cum attachment notices from time to time which all are challenged by ITDC before the Hon’ble High Court of Delhi and hearings taken place before the Hon’ble High Court of Delhi. The matter was last listed on April 20, 2023. Upon the submission from NDMC, the Court was inclined to direct that competent official of ITDC should meet the

NDMC officials to make a suitable proposal in the interest of amicable solutions. The next date of hearing is fixed at November 8, 2023.

During this period, ITDC already deposited its admitted liability based upon assessment made vide order dated 31st March, 2013 and also paid ' 2,919.00 lakh (' 1,000.00 lakh in F.Y. 2020-21, ' 500.00 lakh in F.Y. 2021-22 & ' 1,419.00 lakh in F.Y. 2022-23) which will be adjusted after final resolution. As per the latest communication letter received from NDMC dated March 28, 2023, demand has been raised for an amount of ' 31,185.28 lakh (incl. Hotel Ashok ' 21,173.09 lakh & Hotel Samrat ' 10,012.19 lakh). For erstwhile Hotel Janpath contingent liability has been considered at ' 5,253.94 lakh. Hence, total contingent liability has been considered ' 36,439.22 lakh and included in the contingent Liability A(a)(i) above subject to final resolution of the matter by Hon'ble Court.

4. 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. Arbitrator 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 challenged an award and filed an appeal against the arbitration award before the Delhi High Court under relevant and Applicable law and after hearing the matter the operation of the award has been stayed by the Hon’ble Delhi High Court vide order dated November 23, 2020 subject to deposit the amount of ' 904.16 lakh inclusive of interest as per arbitration order. Accordingly, 904.16 lakh has been deposited with the High Court for admission of appeal (shown under Note 13 - Other Current Assets - Amount Recoverable) and matter to be heard before the Hon'ble High Court as the company has challenged the arbitration award. M/s Good Times Restaurant Privtae Limited has also files an execution petition, the matter is listed on July 12, 2023. Contingent liability has been considered for an amount of ' 1,169.59 lakh (Previous Year ' 1,169.59 lakh).

C. Contingent Assets

1. System has been developed for obtaining confirmation from Debtors. Multiple confirmation letters have been sent to parties and kept on record. The Company does not expect any material variation w.r.t the recoverability/ payment of the same.

Also, confirmation letters have been sent to Creditors.

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 -' 3,987.48 lakh (Previous year ' 3,846.92 lakh) of subsidiary companies so far as it concerns the company, not dealt with in the accounts is as under:-

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.

Valuation of stock of crockery, cutlery, glassware and linen, etc. in circulation, items are to written off/ amortized as per the same accounting practice followed over the years (applicable for Hotel Units), i.e., as a total % of items in circulation. Item wise amortization rate is detailed below:

a. Crockery & Cutlery (Brass Items) - 20.00%.

b. Crockery & Cutlery (Other Items) - 33.33%

c. Linen Items - 50.00%

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 mentioned practice:

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 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

Arguments on behalf of MSIL have been concluded before the Trial Court (Appellate Court) in Public Premises Appeal cases whereby MSIL has challenged the 2 separate orders of the Ld. Estate Officer, ITDC both dated December 31, 2018 by way of filing 2 separate PP Appeals No.03 & 04 of 2019 under section 9 of the PP Act, 1971 (amended time to time) and both the Appeals were pending before the Hon’ble Additional District Judge, Patiala House District Courts, New Delhi for the final arguments.

ITDC has commenced its arguments in the above noted cases. Matter was last heard on May 6, 2023 and the same was conclusively argued by Sr. Advocate engaged by ITDC. ITDC also filed written submissions vetted by engaged Sr. Advocate. During the same hearing, the Appellant Maruti has also made rejoinder arguments and completed the argument on appeal on the order on Section 4.

The matter is listed for hearing on May 29, 2023 for further arguments, if the Court after going through the file and record feels to seek clarification on any specific points.

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

i. Contract assets is recognised over the period in which services are performed to represent the Company's right to consideration in exchange for goods or services transferred to the customer. It includes balances due from customers under construction contracts that arise when the Company receives payments

from customers as per terms of the contracts however the revenue is recognised over the period under input method. Any amount previously recognised as a contract asset is reclassified to trade receivables on satisfaction of the condition attached i.e. future service which is necessary to achieve the billing milestone.

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, Managing Director w.e.f. December 2, 2021 to February 3, 2023

2 Shri Piyush Tiwari, Director (Commercial & Marketing) w.e.f. May 28, 2015 to till date Managing Director (additional Charge) w.e.f. February 3, 2023 to May 2, 2023

3 Shri Lokesh Kumar Aggarwal , Director (Finance) & CFO w.e.f. August 24, 2022 to till date

4 Shri Subhadeepta Paul, V.P. (F&A) & CFO (Additional Charge) w.e.f. May 27, 2020 to August 24, 2022

5 Shri. V. K. Jain, Company Secretary w.e.f December 15, 2008 to till date

10. 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 ' 15,975.15 lakhs (previous year ' 14,821.81 lakhs) and unbilled revenue amounting to ' 1,283.48 lakhs (previous year ' 913.08 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 ' 8,068.06 lakhs (previous year ' 7,641.80 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 ' 2,318.41 lakhs (previous year ' 4,172.09 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 ' 17,871.05 lakhs (previous year ' 17,675.14 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 ' 2.58 lakhs (previous year ' 2.75 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 (incl. interest) amounting to ' 2,741.74 lakh (previous year ' 1,928.44 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 ' 32,246.86 lakh (previous year

' 24,779.71 lakh) including cash

and bank balances of ' 2,318.41 lakhs (previous year ' 4,172.09

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 non-operative 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 Foreign currency exposure in the company is not material.

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.

11. COVID-19 pandemic

The consequences of the COVID-19 outbreak on the Company's business for the year ended March 31, 2022 and March 31, 2021, had been severe. However, with vaccination programs being implemented in India and across the globe, both business and leisure travel resumed, resulting in strong rebound in the business during the F.Y. 2022-23. The Company will continue to closely monitor any material

changes to future economic conditions on account of COVID-19 to assess any possible impact on the Company.

12. Private Licensees 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.

The matter has been submitted before the Board of ITDC. Keeping in mind the business scenario and considering the impact on cash flow, bills were not generated against most of the Private Licensees for the lockdown period amounting to ' 1,292.59 lakh upto September, 2020 and hence, not considered in the Financial Results. ITDC Board discussed that the grievances of Licences are genuine but it is also a fact that ITDC is a commercial organization and has been paying taxes, charges etc. despite lockdown without any exemption being granted to ITDC by any Statutory Organization. The matter is under consideration of Board of ITDC.

13. Prior to Ind AS transition, 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 ' 312.46 lakh.

14. Impact of Fire accident and Theft at DFS Mumbai Unit

a. 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. Claim for an amount of ' 48.30 lakh is submitted to the Insurer (National Insurance Company Limited) dated March 30, 2021. The same is under process.

b. After the fire accident, shop remained closed due to refurbishment, electrical work and required permission from the custom authorities. During the physical verification of inventory conducted on March 31, 2022, 436 bottles were found missing (CIF plus Custom Duty ' 11.21 lakh). Insurance claim has been filed and the same is under process. Shop operations resumed during November, 2022.

15. 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 201617 the unaudited financial statement was prepared. From F.Y. 2017-18 to 2022-23, 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 struk off by the registrar of companies and the said company is dissolved, w.e.f., August 21, 2017. As at March 31, 2023, an amount of ' 226.51 lakh (Previous year ' 226.51 lakh), liability is outstanding towards ITDC Aldeasa (JV).

16. 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.

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 December 4, 2017, it was 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 December 27, 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 December 4, 2017.

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.

MoT constituted Valuation Committee to determine the amount of compensation which will be payable to ITDC and sorting of disputed liability. The first meeting of the reconstituted valuation committee was held on September 16, 2021. Valuation Committee, after deliberation, recommended to IMG the valuation of ' 15,340.00 lakh based on average (PBT Depreciation) of F.Y. 2012 to 2016 and compounded annual growth rate (CAGR) of last 29 years’ profit before tax which comes to 9.51%.

Recommendation of Valuation Committee was placed before IMG. IMG directed to put up the comments of JS-DIPAM and L&DO on file. L&DO has raised certain demands against CPWD dues, difference of premium, damage charges

inclduing unauthorised construction. Breakup of the damage charges is being collected from L&DO. After receipt of requisite details, further meeting of the valuation committee will be called.

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 ' 658.57 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 2022-23.

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.

Road show was conducted to obtain the views of the market players/potential bidders on the models suggested in the feasibility report. 23 Companies participated in the roadshow physically and 10 parties participated online. Minutes of the roadshow and feedbacks from the potential market players have been received from the Consultant. Recently meeting was held with Niti Aayog wherein it was discussed to go through PPPAC route.

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, by submitting a plan and to indicate feasibility and viability of the project. Meanwhile, notice was received from the office of Ziledaar, Apar Khand Agra Naher, Mathura stating that Department of Irrigation, Mathura is the owner of the land on which ITDC was running Kosi Restaurant. In view of

the aforesaid notice and non-availability of any lease documents either with ITDC or MoT pertaining to land, it was not prudent to proceed with the process of appointing the Consultant and getting the DPR prepared. Hence, MoT has been requested to initiate necessary action for surrendering back the land to State Govt.

d. Hotel Kalinga Ashok, Bhubaneswar

RFP floated in 2017, 2018 and 2019 but remained unsuccessful. IMG in the meeting held on March 6, 2020 decided to retender 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 was presented to the IMG in the meeting held on September 7, 2021. IMG decided that a letter may be sent to the State Government seeking permission for subleasing of property and for increasing the lease tenure for developing the property on PPP model. Meeting was held with State Govt. and State Govt. reiterated the concerned fee for sub leasing permission. The IMG decided that if State Govt. is interested to take back the property, the matter may be discussed with the State Govt.

IMG was apprised that in the meeting held on September 6, 2022 between the Chief Secretary, Odisha and MD-ITDC, ITDC was requested to send the terms & conditions for transfer of land and building of Hotel Kalinga Ashok to the Govt. of Odisha. IMG directed that Govt. of Odisha and ITDC to discuss mutually on the terms of transfer and apprise the result to the IMG in the next meeting.

Proposal from TA (M/s CBRE) regarding terms of transfer of property were approved by ITDC Board in its meeting and a letter from Secretary (Tourism) to Chief Secretary (Odisha) is under submission.

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.In the IMG meeting held on September 22, 2022, the official of the GA Department apprised that the circle rate is ' 1,500.00 lakh per acre in the area of Hotel Kalinga Ashok for the vacant land. The same was apprised to DIPAM vide email dated November 28, 2022.

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 existing Hotel along with 8 acres of land for development on O&M basis for 50 years and remaining land will be monetized through DIPAM. Meeting was held with MHA and State Govt. and it was discussed that as per the current laws in State of Pondicherry, max. leasing is allowed for a term of 19 years only.

In the IMG meeting held May 2, 2022, it was decided that if permission for leasing beyond 19 years is not possible, State Govt. may be offered buyout for the equity stake of ITDC in the JV Company.

In IMG meeting held on September 22, 2022, MD-Pondicherry Industrial Promotion and Development Investment Corporation (PIPDIC) apprised that the PIPDIC Board had accorded approval to buy out the 51% equity of ITDC in the Pondicherry Ashok Hotel Corporation Limited.

PIPDIC vide letter dated November 3, 2022, forwarded the resolution of the

PIPDIC Board conveying the acceptance of the proposal in principle subject to State Government approval. Reply from the State Govt. is awaited.

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. Proposal was received from the State Government dated August 25, 2021, to pay ' 79.39 lakh as depreciated cost of building as full and final amount to ITDC against transfer of all rights and ownership of the project to PTDC. The proposal was approved in the ITDC Board Meeting held on March 28, 2022.

IMG in meeting dated September, 22, 2022, approved the Valuation of ' 79.39 lakh for transfer 51% equity of ITDC in the Punjab Ashok Hotel Company Limited to the PTDC/Govt. of Punjab. Share Transfer Agreement will be executed after the CCEA approval and receipt of funds from the Punjab Government. MoU signed on February 14, 2023.

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, 201 8 with the approval of Inter-Ministerial Group of Ministry of

Tourism. It has been decided by MOT that the ITDC’s equity stake 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 including settled price of ' 306.00 lakh, against investment in shares.

Employees of Hotel Ranchi Ashok had been repeatedly threatening of self immolation with their families if their dues towards salary, etc. were not cleared immediately.

Upon request from Subsidiary company, ITDC has disbursed loan of ' 613.44 lakhs to clear the outstanding dues of employees. Dues upto June 2022 have been cleared. A proposal for the fourth time VRS for remaining employees of RABHCL has been sent to the MoT vide letter dated February 23, 2023 for approval. Loan and other dues of ' 870.34 lakh are receivable upto March 31, 2023.

Property will be transferred after CCEA approval and after receiving all residual dues from Jharkhand Govt. The financial statements of RABHCL have been incorporated treating the same as Subsidiary for the year ended March 31, 2023.

h. Utkal Ashok Hotel Corporation Limited

(UAHCL):

Property was tendered out for subleasing. Letter of Intent (LoI) issued to successful bidder, M/s Paulmech Infrastructure Pvt. Ltd. (PIPL) in 2010. M/s PIPL could not fulfill the terms of the LoI. LoI was cancelled. M/s PIPL went to the Court. Supreme Court on October 4, 2021 dismissed the appeal of M/s PIPL and pronounced judgement in favour of ITDC. Supreme Court has directed ITDC to refund the amount of ' 411.00 lakh to the appellant and for the balance amount of ' 441.00 crore, M/s PIPL has been given liberty to file a civil suit for recovery of ' 441.00 lakh and all contentions of the parties

in that regard are left open. Supreme Court in its judgement has also observed that pendency of the Civil Suit that may be filed by M/s PIPL shall not be an impediment for UAHCL to deal with the property or to re tender the same in any manner. As per the direction of the Supreme Court, ' 441.00 lakh has been refunded to the Appellant M/s PIPL.

"UAHCL Board in its meeting held on January 6, 2022 approved that proposal of initiating disinvestment process of Hotel Nilachal Ashok, Puri be sent to IMG.

In the IMG meeting held on May 02, 2022, IMG decided that State Government must be involved in the matter. All options such as taking back of the property by the State Govt. or sub-leasing of the property or O&M/ licensing out of the property, etc. to be discussed with the State Government and the views of the State Government should be taken in writing. After having taken the views of the State Government, financial and legal pros and cons of all the options to be analyzed and the report to be put up to the IMG in the next meeting for taking a decision.

Letter sent on June 8, 2022 from DG (Tourism), GoI to the Chief Secretary, Odisha in this regard. Reply is awaited.

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.

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.

19. In Ashok Consultancy and Engineering Services Unit, out of total 78 projects, 53 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 ' 422.83 lakh (Previous Year ' 425.38 lakh) and amount due to customer includes ' 1,475.98 lakh (Previous Year ' 1,488.08 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.

20. Dues recoverable from DDA by Ashok Consultancy & Engineering Services (ACES)

MOU was signed between DDA and ITDC, as a special business dealing for furnishing DDA flats (Akshardham & Vasant Kunj) with furniture and fixtures during Commonwelath Games (2010). As per MOU, ITDC shall procure the material from suppliers/ vendors as per standard guidelines of Govt. of India and shall procure and install the furniture fixtures at the said locations. Accordingly, ITDC procured the materials and payments were made to the Vendors initially. However, the work could not completed in line with the work order, due to some unforeseen circumstances from the part of DDA.

As the orders were placed with the vendors as per the MOU requirement, disputes were raised by the parties/ vendors and parties went to Arbitration/ Court. In the cases where there were orders passed in the favour of vendor, payments were released by ITDC over the last few years. These payments were made as per the conditions of the MOU entered with DDA. Recovery proceedings were initiated by ITDC from DDA as per the MoU. Total amount recoverable from DDA is ' 1,696.42 lakh.

The matter is under dispute between ITDC and DDA, and as per the prescribed mechanism for settlement of disputes between CPSE'S, the matter has been referred to Administrative Mechanism for Resolution of CPSE'S Disputes

(AMRCD). Committee has been formed by the AMRCD consisting of Secretary (Ministy of Tourism), Secretary (Ministry of Housing & Urban Affairs) and Secretary (D/o Legal Affairs) on February 10, 2023 to settlement of dispute between ITDC and DDA. The management is very hopeful of recovery of the amount involved.

21. Provision for Bad & Doubtful Debts (Credit Impairment) has been created in case of private licencee parties, where ageing is less than 3 years, for total amount of ' 1,872.28 lakh (Previous Year ' 1,284.60 lakh). These cases have been specifically assessed by the management as exceptional scenarios on account of legal notice/ cases.

22. Paintings/ Antiques in Hotel Ashok, New Delhi

Exclusive paintings and antiques are placed in Hotel Ashok, New Delhi. The same have been physically identified and the items have been listed. These items have been accumulated over the 6 decades of operations of Hotel Ashok, and have been mostly gifted by various artists. Although, the Company is not in the business of trading in paintings and such antiques but is holding them for aesthetic purpose which is considered to be administrative in nature. No valuation is considered necessary, however, such items are disclosed as a separate class of asset at a nominal value of Rupee One per item, i.e. total value of ' 0.02 lakh for entire such items.

23. 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 on the same has been grouped under Revenue from Operations. The rental income during the current year is amounting to '39.66 lakh (Previous Year '36.67 lakh).

24. As per DPE Guideline, subsiquent to implementation of Pay revision, the

profitability of CPSE would be reviewed after every three years. Accordingly ITDC Management has reviewed the profitability and ITDC Board has approved on dated May 18, 2022 the revised perk and allowance from 27% to 35 % with effect from January 1, 2020, subject to the presidential approval given by the administrative ministry i.e Ministry of Tourism. Total estimated financial implication of the revised perk and allowance for ' 1,197.00 lakh. The same has been accounted for during the current financial year.

25. Impairment of Assets

Impairment of Property, Plant & 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 March 31, 2023, 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 ' 857.18 lakh which is almost equal to the outstanding amount (after adjusting the existing security deposit of ' 201.67 lakh). 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. Hotel Samrat has prayed for recovery of damages of Rs 48,578.85 lakh quantified as on June 20, 2022 for illegal occupation by Kayo from May 15, 2020 till the date of handing over of the possession before the Ld. Estate Officer under provisions of the PP Act,1972.

27. The receivables pertaining to Ticketing Business (Ashok Travels & Tour Division) are reclassified from Trade Receivables to Other

29. Pursuant to Taxation (Amendment) Ordinance 2019 (Ordinance), the domestic companies have the option to pay corporate income tax @ 22% plus applicable surcharge and cess (New Tax Rate) subject to certain conditions w.e.f. financial year commencing from April 1, 2019

and thereafter. Company has opted for New Tax Rate from the F.Y. 2022-23, i.e., 22% plus applicable surcharge and cess u/s 115BAA (Effective Tax Rate @ 25.63%).

Note: The above disclosure is presented to the extent information available

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 Of ' 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

Disclosure as per Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

"Recent Accounting Pronouncements (Standards/ amendments issued but not yet effective)

The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

a. IndAS 1 - Presentation of Financial Statements

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

b. Ind AS 8 - Accounting Policies, Changes

in Accounting Estimates and Errors

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

c. Ind AS 12 - Income Taxes This amendment

has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statement.

Change in Accounting Policy

a. Modification in Accounting Policy No. 5 -"Inventories" as per Ind AS 2, i.e., "Inventories" No financial impact, modification has been done for better understanding and compliance purposes.

35. Previous years' figures have been re-grouped / re-classified wherever necessary to correspond with the figures of the current reporting period.