report of the board of directors for the financial … · rooms spread over 54 properties of which...

132

fortune park hotels limited

REPORT OF THE BOARD OF DIRECTORS FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 20181. YourBoardofDirectors(‘theBoard’)herebysubmittheirReportforthefinancial

yearended31stMarch,2018.

2. FINANCIAL PERFORMANCE

Duringtheyear,yourCompanyrecordedanOperatingIncomeof` 2,588lakhs(previous year: `2,778lakhs)registeringadeclineof7%.TheOtherIncomeoftheCompanywas`171lakhs(previousyear:` 175lakhs).Profitfortheyearwas `193lakhs(previousyear:`244lakhs).

ThefinancialresultsofyourCompany,summarised,areasunder:

For the year ended 31st

March, 2018(` in lakhs)

For the year ended31st

March,2017(`inlakhs)

Profits

a. ProfitBeforeTax 367.23 607.45

b. Less:TaxExpense

CurrentTax

DeferredTax

236.28

(62.02)

330.29

33.28

c. Profitfortheyear 192.97 243.87

d. OtherComprehensiveIncome 11.66 (5.28)

e. TotalComprehensiveIncome 204.63 238.59

Retained Earnings

a. Atthebeginningoftheyear 2,076.24 1,837.64

b. Add:Profitfortheyear 192.97 243.87

c. Add:OtherComprehensiveIncome 11.66 (5.28)

d. Less:

-DividendPaid

-IncomeTaxonDividendPaid

56.25

11.45

-

-

e. Attheendoftheyear 2,213.17 2,076.24

3. DIVIDEND

TheBoardofDirectorsof theCompanyhas recommendedadividendof `12.50p(previous year: `12.50p)perEquityShareof `10/-each for theyearended31stMarch,2018.Totalcashoutflowinthisregardwillbe` 67.81lakhsincludingDividendDistributionTaxof` 11.56lakhs.

4. OPERATIONAL PERFORMANCE

TheCompany,caterstothe‘Mid-markettoUpscale’segmentthroughachainofFortunehotels.Currently,theCompanyhasanaggregateinventoryofnearly4,200roomsspreadover54propertiesofwhich45areoperatinghotels.Ofthebalance9properties,5hotelsareslatedtobecommissionedintheensuingyearand4hotelprojectsareinvariousstagesofdevelopment.

TheCompanyhasestablished‘Fortune’asthepremier‘value’brandintheIndianhospitalitysector.Thebrandremainsafrontrunnerinitsoperatingsegmentandiswellpositionedtosustainitsleadershippositionintheindustry.

Duringtheyear,theCompanybaggedthe‘Today’sTravellerAward2017’aswellas the ‘Hospitality India&ExploreTheWorldAnnual InternationalTravelAward2017’inthe‘BestFirstClassBusinessHotelChain’category.Itwasalsoawardedthe‘VersatileExcellenceTravelAward(VETA)2018’inthe‘BestBusinessHotelChain’categorybyTravelscapes.

5. DIRECTORS AND KEY MANAGERIAL PERSONNEL

(a) Changes in Directors and Key Managerial Personnel during the year

Duringtheyearunderreview,Mr.SureshKumarsteppeddownasManagingDirector of yourCompanywith effect fromclose ofwork on1st February,2018.YourDirectorsplaceonrecordtheirappreciationforthecontributionmadebyMr.Kumarduringhistenure.

The Board, at the meeting held on 1st February, 2018 appointed Mr. Samir MC (DIN: 08064002) as an Additional Director, and subjectto the approval of the members, also as the Managing Director of theCompany for a period of three years with effect from 2nd February,2018. In accordance with Section 161 of the Companies Act, 2013(‘the Act’) and Article 130 of the Articles of Association of the Company, Mr.SamirwillvacateofficeattheensuingAnnualGeneralMeeting(‘AGM’)andiseligibleforappointmentasaDirectoroftheCompany.TheBoardatthemeetingheldon18thApril,2018recommendedfortheapprovaloftheMembers,theappointmentofMr.SamirasaDirectornotliabletoretirebyrotation andasManagingDirectorof yourCompany for aperiodof threeyearswitheffectfrom2ndFebruary,2018.RequisiteNoticeunderSection160oftheActhasbeenreceivedbytheCompanyforappointmentofMr.Samir,whohasfiledhisconsenttoactasDirectorofyourCompany,ifappointed.Appropriateresolutionseekingyourapproval toMr.Samir’sappointment isappearingintheNoticeconveningtheensuingAGMoftheCompany.

(b) Retirement by Rotation

Inaccordancewith theprovisionsofSection152(6)of theActandArticles143and144oftheArticlesofAssociationoftheCompany,Mr.JagdishSingh(DIN:00042258),Director,willretirebyrotationattheensuingAGMof the Company,andbeingeligible,offershimself forre-appointment.YourBoardhasrecommendedhisre-appointment.

6. BOARD AND BOARD COMMITTEES

TheCompanyhastwoBoardCommitteesanditspresentcompositionisasfollows:

Corporate Social Responsibility Committee New Alliance Approval Committee

Mr.N.Anand – Chairman Mr.J.Singh

Mr.J.Singh – Member Mr.SamirMC

Mr.SamirMC – Member

FivemeetingsoftheBoardwereheldduringtheyearended31stMarch,2018.

7. DIRECTORS’ RESPONSIBILITY STATEMENT

AsrequiredunderSection134oftheAct,yourDirectorsconfirmhaving:-

i) followedinthepreparationoftheAnnualAccounts,theapplicableAccountingStandardswithproperexplanationrelatingtomaterialdepartures,ifany;

ii) selected suchaccountingpolicies andapplied themconsistently andmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitoftheCompanyforthatperiod;

iii) takenproperandsufficientcareforthemaintenanceofadequateaccountingrecords in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting fraud and otherirregularities;

iv) preparedtheAnnualAccountsonagoingconcernbasis;and

v) devised proper systems to ensure compliance with the provisions of allapplicablelawsandthatsuchsystemsareadequateandoperatingeffectively.

8. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

TheCompanydoesnothaveanysubsidiary,associateorjointventure.

9. PARTICULARS OF EMPLOYEES

YourCompanycontinuestoattractandretaintalentofthehighestquality.YourDirectorsplaceonrecordtheirsincereappreciationfortheeffortsmadeandthesupport renderedby the employees of theCompany. TheCompanyprovides agenderfriendlyworkplaceandnocaseofsexualharassmentwasreportedduringthe year.

ThedetailsofemployeesdrawingremunerationmorethanthelimitspecifiedinRule5(2)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014alongwiththedetailsoftoptenemployeesoftheCompanyintermsofremunerationdrawn,asrequiredunderthesaidRule,aregiveninAnnexure 1 to this report.

10. RISK MANAGEMENT

TheCompany’sriskmanagementframework,designedtobringrobustnesstotheriskmanagementprocessesintheCompany,addressesrisksintrinsictooperations,financialsandcompliancesarisingoutoftheoverallstrategyoftheCompany.

Managementofrisksvestwiththeexecutivemanagementwhichisresponsiblefortheday-to-dayconductoftheaffairsoftheCompany,withintheoverallframeworkapprovedbytheBoard.TheInternalAuditDepartmentofITCLimited,periodicallycarriesout,attherequestoftheCompany,riskfocusedauditswiththeobjectiveofidentifyingareaswhereriskmanagementprocessescouldbestrengthened.TheBoardannuallyreviewstheeffectivenessofCompany’sriskmanagementsystemsandpolicies.

11. INTERNAL FINANCIAL CONTROLS

YourCompanyhasinplaceadequateinternalfinancialcontrolswithrespecttothefinancialstatements,commensuratewithitssizeandscaleofoperations.TheBoardwhichprovidesguidanceoninternalcontrols,alsoreviewsinternalauditfindingsandimplementationofinternalauditrecommendations.

During the year, the internal financial controls in theCompanywith respect tothefinancial statementswere tested andnomaterialweakness in thedesignoroperationofsuchcontrolswasobserved.Nonetheless,yourCompanyrecognisesthatany internalfinancialcontrol framework,nomatterhowwelldesigned,hasinherentlimitationsandaccordingly,regularauditandreviewprocessesensurethatsuchsystemsarereinforcedonanongoingbasis.

12. CORPORATE SOCIAL RESPONSIBILITY (CSR)

TheAnnualReportonCSRactivitiesoftheCompanyintermsofSection135oftheActreadwiththeCompanies(CorporateSocialResponsibilityPolicy)Rules,2014isenclosedas Annexure 2 to this Report.

13. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Duringtheyearended31stMarch,2018,theCompanyhasneithergivenanyloanorguaranteenorhasmadeanyinvestmentunderSection186oftheAct.

14. RELATED PARTY TRANSACTIONS

Duringtheyearended31stMarch,2018,theCompanyhasnotenteredintoanycontractorarrangementwithitsrelatedpartieswhichisnotonarm’slengthbasisnor has theCompany entered into anymaterial contract or arrangementswiththem,intermsofSection188oftheAct.

15. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS / COURTS / TRIBUNALS

Duringtheyearunderreview,nosignificantormaterialorderswerepassedbytheRegulators/Courts/TribunalsimpactingthegoingconcernstatusoftheCompanyanditsfutureoperations.

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16. EXTRACT OF ANNUAL RETURN

The extract of Annual Return in theprescribed FormNo.MGT-9 is enclosed asAnnexure 3 to this Report.

17. STATUTORY AUDITORS

TheCompany’sStatutoryAuditors,MessrsPriceWaterhouseCharteredAccountantsLLP (PWC), Chartered Accountants,were appointed at theNineteenth AGM tohold suchoffice till the conclusionof the Twenty-FourthAGM. Your Board, hasrecommendedfortheratificationoftheMembers,appointmentofPWCfromtheconclusionoftheensuingAGMtilltheconclusionoftheTwenty-FourthAGM.TheBoard,hasalsorecommendedfortheapprovaloftheMembers,remunerationofPWCforthefinancialyear2018-19.AppropriateresolutioninrespectoftheaboveisappearingintheNoticeconveningtheensuingAGMoftheCompany.

18. COMPLIANCE WITH SECRETARIAL STANDARDS

TheCompany is in compliancewith the applicable Secretarial Standards issued

by the Institute of Company Secretaries of India and approved by the CentralGovernmentunderSection118(10)oftheAct.

19. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

Conservation of Energy & Technology Absorption

ConsideringthenatureofbusinessofyourCompany,nocommentisrequiredonconservationofenergyandtechnologyabsorption.

Foreign Exchange Earnings and Outgo

During the year there were no foreign exchange earnings (previous year: Nil)whiletherewasaforeignexchangeoutflowaggregating`21lakhs(previousyear: `18lakhs).

On behalf of the Board

Dated : 18th April, 2018 J. Singh DirectorPlace : Gurugram Samir MC Managing Director

Annexure 1 to the Report of the Board of Directorsfor the financial year ended on 31st March, 2018

[Information pursuant to Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial personnel) Rules, 2014]

Names of Employees Age Designation Gross Remuneration

(`)

Net Remuneration

(`)

Qualifications Experience (Years)

Date of Commencement of employment /

deputation

Previous Employment / Position held

1 2 3 4 5 6 7 8 9

Employees employed for a part of the year and in receipt of remuneration aggregating ` 8,50,000/- or more per month.

SureshKumar* 60 ManagingDirector 1,07,64,444 51,55,811 B.Sc.,AMPfromBondUniversity,Australia

38 01.08.2006 ITCLimited,VicePresident

SamirMecherivalappilChandrasekharan*#

43 ManagingDirector 73,71,708 37,64,657 MBA,Diploma inHotel Management

22 16.10.2017 ITCLimited,ExecutiveVicePresident

VijayJaiswal* 53 GeneralManager-Sales

8,52,895 7,57,273 B.Sc. 29 01.12.2010 ITCLimited,AreaManager–SalesandMarketing

Top 10 employees in terms of Remuneration drawn

SureshKumar* 60 ManagingDirector(upto1stFebruary,2018)

1,07,64,444 51,55,811 B.Sc.,AMPfromBondUniversity,Australia

38 01.08.2006 ITCLimited,VicePresident

SamirMecherivalappilChandrasekharan*

43 ManagingDirector 73,71,708 37,64,657 MBA,Diploma inHotel Management

22 16.10.2017 ITCLimited,ExecutiveVicePresident

JugalKishoreBatra* 47 VicePresident–Finance

46,05,500 29,07,453 M.Com,ACA 22 10.11.2016 ITCLimited,ManagerFinance–Projects

RohitMalhotra 61 VicePresident–Operations

42,70,810 26,56,260 B.Sc.,Diploma inHotel Management

40 01.01.2017 ITCLimited,GeneralManager

RajendraAJGLouzado 58 GeneralManager–OperationsSupport

34,44,802 20,16,445 DiplomainHotelManagement

36 17.03.2008 PrismPropertiesPrivateLimited,Manager

RajKamalChopra* 51 CorporateChef 34,36,720 16,31,799 B.Com(P),DiplomainHotelManagement

31 01.04.2013 ITCLimited,ExecutiveChef

PPSrivastava* 58 EHSManager 32,75,255 15,67,084 B.E. 36 07.11.2015 ITCLimited,ChiefEngineer

AjayJoginderlalSharma 52 GeneralManager 31,13,278 23,05,042 DiplomainHotelManagement

30 19.05.2015 ElixirEnterprisesandHotelsPrivateLimited,Manager

Aseem Varma 48 GeneralManager 29,55,751 22,09,073 DiplomainHotelManagement

26 11.03.2010 HampshirePlaza,GeneralManager

SaravananDhanabhalu 45 GeneralManager 29,21,787 22,45,563 PGCourseinFacilityManagement,B.Sc.(ComputerScience)

24 05.09.2007 AuromatrixHotelsPrivateLimited,Manager

*OndeputationfromITCLimited,theHoldingCompany.#InductedasaChiefOperatingOfficerw.e.f.16thOctober,2017andManagingDirectorw.e.f.2ndFebruary,2018.Notes:a. Inrespectofemployeesondeputation,grossremunerationdisclosedasaboveisthedeputationcostwhichisbornebytheCompany.b. Fortheotheremployees,grossremunerationincludessalary,variablepay,allowances&otherbenefits/applicableperquisitesexceptprovisionsforgratuityandleaveencashment

whichareactuariallydeterminedonanoverallCompanybasis.Theterm‘remuneration’hasthemeaningassignedtoitundertheCompaniesAct,2013.c. Netremunerationcomprisescashincomelessincometax&educationcessdeductedatsourceandemployee’sowncontributiontoprovidentfund.d. EmployeesondeputationfromITCLimited(ITC),theHoldingCompany,havebeengrantedStockOptionsbyITCunderitsEmployeesStockOptionSchemesat‘marketprice’

[withinthemeaningoftheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014].SincesuchOptionsarenottradeable,noperquisiteorbenefitisimmediatelyconferreduponthembysuchgrantofOptions,andaccordinglythesaidgranthasnotbeenconsideredasremuneration.

e. Allappointments(exceptdeputedemployees)are/werecontractualinaccordancewithtermsandconditionsasperCompany’srules.f. TheaforesaidemployeesareneitherrelativeofanyDirectornorholdanyequityshareintheCompany.


Dated : 18th April, 2018 J. Singh Director

Place : Gurugram Samir M C Managing Director

134


Annexure 2 to the Report of the Board of DirectorsAnnual Report on CSR Activities of the Company for the financial year ended 31st March, 2018

[Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014]

1. AbriefoutlineoftheCompany’sCSRPolicyincludingoverviewofprojectsorprogramsproposedtobeundertaken

TheCompany,awhollyownedsubsidiaryofITCLimited(ITC),dischargesitscorporatesocialresponsibilities(CSR)byaligningitselfwiththeCSRPolicyofITC.TheCompanyundertakesitsCSRactivities:l aslistedinScheduleVIItotheCompaniesAct,2013,inlinewiththeCSRinitiativesofITCandasapprovedbytheCSRCommitteeoftheCompany;l directlyorthrougharegisteredtrustoraregisteredsocietyoracompanyestablishedunderSection8oftheCompaniesAct,2013.TheCompanymaycollaboratewithITCorothercompaniesforundertakingCSRactivities.

2. CompositionofCSRCommittee Mr.NakulAnand(Chairman)Mr.SamirMCMr.JagdishSingh

3. AveragenetprofitoftheCompanyforlastthreefinancialyears ` 9,04,44,538/-

4. PrescribedCSRexpenditure(twopercentoftheamountstatedunder3above) ` 18,08,891/-

5. DetailsofCSRspentduringthefinancialyear2017-18

Totalamountspentforthefinancialyear ` 18,09,000/-

TotalAmountunspent NIL

Mannerinwhichtheamountspentduringthefinancialyear2017-18isdetailedbelow:

Sl. No.

CSR Project or activity identified

Sector in which the project is covered

Projects or programs(1) Local area or other(2) Specify the State and

district where projects or programs was undertaken

Amount outlay (Budget) project or program wise

Amount spent on the projects or programsSub heads:1. Direct expenditure on

projects or programs2. Overheads

C u m u l a t i v e expend i tu re upto the r e p o r t i n g period

Amount spent:Direct or through implementing agency

1. ContributiontoITCRuralDevelopmentTrust

Undertakingruraldevelopmentprojects [coveredunderClause(x) of Schedule VII to theCompaniesAct,2013]

Others ` 18,09,000/- ` 18,09,000/- ` 18,09,000/- Implementing Agency - ITC RuralDevelopmentTrust,Kolkata

6. ResponsibilityStatementoftheCSRCommittee:

TheCSRCommitteeaffirmsthattheimplementationandmonitoringoftheCSRPolicyisincompliancewiththeCSRPolicyandobjectivesoftheCompany.


Dated : 18th April, 2018 N. Anand J. Singh Samir MCPlace : Gurugram Chairman - CSR Committee Director Managing Director

Annexure 3 to the Report of the Board of DirectorsFORM NO. MGT-9

EXTRACT OF ANNUAL RETURNas on the financial year ended on 31st March, 2018

[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS

i) CIN : U55101HR1995PLC052281ii) RegistrationDate : 26thJuly1995iii) NameoftheCompany : FortuneParkHotelsLimitediv) Category/Sub-CategoryoftheCompany : UnlistedPublicCompanylimitedbysharesv) AddressoftheRegisteredofficeandcontactdetails : ITCGreenCentre

10,InstitutionalAreaSector32,Gurugram-122001Phone:01244171717e-mail:[email protected]

vi) Whetherlistedcompany(Yes/No) : Novii) Name,AddressandContactdetailsofRegistrarandTransferAgent,ifany : N.A.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY Allthebusinessactivitiescontributing10%ormoreofthetotalturnoveroftheCompanyshallbestated:-

Sl. No.

Name and Description of main products / services NIC Code of the product/ service % to total turnover of the Company

1. Hotelservices 55101 94%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl. No.

Name and Address of the Company

CIN/GLN Holding/ Subsidiary/ Associate % of shares held in the Company Applicable Section

1. ITCLimitedVirginiaHouse37JawaharlalNehruRoadKolkata–700071

L16005WB1910PLC001985 Holdingcompany 100% 2(46)

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IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category-wise Shareholding:

Category of ShareholdersNo. of Shares held at the beginning of the year No. of Shares held at the end of the year

% Change during the year

Demat Physical Total % of Total Shares

Demat Physical Total % of Total Shares

A. Promoters

(1) Indian a)Individual/HUFb)CentralGovt.c)StateGovt.(s)d)BodiesCorp.e)Banks/FIf)AnyOther

––––––

–––

4,50,008––

–––

4,50,008––

–––

100.00––

––––––

–––

4,50,008––

–––

4,50,008––

–––

100.00––

N.A.N.A.N.A.Nil

N.A.N.A.

Sub-total (A)(1) – 4,50,008 4,50,008 100.00 – 4,50,008 4,50,008 100.00 Nil

(2) Foreign a)NRIs-Individualsb)Other–Individualsc)BodiesCorp.d)Banks/FIe)AnyOther

–––––

–––––

–––––

–––––

–––––

–––––

–––––

–––––

N.A.N.A.N.A.N.A.N.A.

Sub-total (A)(2) – – – – – – – – N.A.

Total Shareholding of Promoter (A) = (A)(1)+(A)(2) – 4,50,008 4,50,008 100.00 – 4,50,008 4,50,008 100.00 Nil

B. Public Shareholding

1. Institutions a)MutualFundsb)Banks/FIc)CentralGovt.d)StateGovt.(s)e)VentureCapitalFundsf)InsuranceCompaniesg)FIIsh)ForeignVentureCapitalFundsi)Others(specify)

–––––––––

–––––––––

–––––––––

–––––––––

–––––––––

–––––––––

–––––––––

–––––––––

N.A.N.A.N.A.N.A.N.A.N.A.N.A.N.A.N.A.

Sub-total (B)(1): – – – – – – – – N.A.

2. Non-Institutions a)BodiesCorp.

i)Indianii)Overseas

b)Individualsi)Individualshareholdersholdingnominalsharecapitalupto`1lakh

ii) Individualshareholdersholdingnominalsharecapitalinexcessof`1lakh

c)Others(specify)

–––

–

–––

–

–––

–

–––

–

–––

–

–––

–

–––

–

–––

–

N.A.N.A.N.A.

N.A.

Sub-total (B)(2) – – – – – – – – N.A.

Total Public Shareholding (B)=(B)(1)+ (B)(2) – – – – – – – – N.A.

C. Shares held by Custodian for GDRs & ADRs – – – – – – – – N.A.

Grand Total (A+B+C) – 4,50,008 4,50,008 100.00 – 4,50,008 4,50,008 100.00 Nil

(ii) Shareholding of Promoters:

Sl. No.

Shareholder’s Name

Shareholding at the beginning of the year Shareholding at the end of the year

% change in shareholding

during the yearNo. of Shares % of total Shares of the Company

% of Shares pledged /

encumbered to total Shares

No. of Shares % of total Shares of the Company

% of Shares pledged /

encumbered to total Shares

1. ITCLimited 4,50,008 100.00 Nil 4,50,008 100.00 Nil Nil

(iii) Change in Promoters’ Shareholding (please specify, if there is no change):

Sl. No.

Shareholding at the beginning of the year Cumulative Shareholding during the year



Atthebeginningoftheyear

No change during the yearDatewiseIncrease/DecreaseinPromotersShareholdingduringtheyear

Attheendoftheyear

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):NOTAPPLICABLE(v) Shareholding of Directors and Key Managerial Personnel:NoneoftheDirectorsandKeyManagerialPersonnelholdanyshareintheCompanyintheirindividualcapacity.

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V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding / accrued but not due for payment: NIL

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (Amountin`)

Sl. No. Particulars of Remuneration

Samir MC*(Managing Director)

(refer Note 1)

1. GrossSalary

(a)SalaryasperprovisionscontainedinSection17(1)oftheIncome-taxAct,1961 22,19,568

(b)ValueofperquisitesunderSection17(2)oftheIncome-taxAct,1961 2,97,554

(c)ProfitsinlieuofsalaryunderSection17(3)oftheIncome-taxAct,1961 –

2. StockOption –

3. SweatEquity –

4. Commission-as%ofprofit-others,specify

–

5. Others,pleasespecify –

Total Amount (A) 25,17,122

Ceiling as per the Companies Act, 2013 1,68,00,000 per annum(refer Note 2)

* Appointed with effect from 2nd February, 2018

Note 1: Mr. Samir MC is on deputation from ITC Limited (ITC), the Holding Company, and has been granted Stock Options by ITC under its Employee Stock Option Schemes at ‘market price’ [within the meaning of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014]. Since such Options are not tradeable, no perquisite or benefit is immediately conferred upon him by such grant of Option, and accordingly the said grant has not been considered as remuneration. Further, the appointment of Mr. Samir is governed by the resolution passed by the Board and the shareholders of the Company. The statutory provisions apply with respect to notice period and severance fee.

Note 2: Ceiling as per Part II of Schedule V to the Companies Act, 2013 has been disclosed, considering that the profits of the Company for the financial year ended 31st March, 2018 are inadequate.

B. Remuneration to other Directors: (Amountin`)

Sl. No.

Name of DirectorsParticulars of Remuneration Total Amount

Fee for attending Board and Board Committee meetings

Commission

1. Other Non - Executive Directors

N. Anand Nil Nil Nil

J. Singh

Total Amount (B) Nil

Total Managerial Remuneration (A+B) 25,17,122

OverallceilingaspertheCompaniesAct,2013 1,68,00,000 per annum(refer Note)

Note : Ceiling as per Part II of Schedule V to the Companies Act, 2013 has been disclosed, considering that the profits of the Company for the financial year ended 31st March, 2018 are inadequate.

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD: NOTAPPLICABLE

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES against the Company, Directors and other Officers in Default under the Companies Act, 2013: None


Dated : 18th April, 2018 J. Singh Director

Place : Gurugram Samir MC Managing Director

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF Fortune Park Hotels Limited

Report on the Indian Accounting Standards (Ind AS) Financial Statements

1. WehaveauditedtheaccompanyingfinancialstatementsofFortune Park Hotels Limited(“theCompany”),whichcomprisetheBalanceSheetasatMarch31,2018, theStatementofProfitandLoss (includingOtherComprehensive Income), theCashFlowStatementand theStatementofChanges in Equity for the year then ended, and a summaryof thesignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Ind AS Financial Statements

2. TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespectto the preparation of these IndAS financial statements to give a trueandfairviewofthefinancialposition,financialperformance(includingother comprehensive income), cash flows and changes in equity ofthe Company in accordance with the accounting principles generallyacceptedin India, includingtheIndianAccountingStandardsspecifiedin the Companies (Indian Accounting Standards) Rules, 2015 (asamended)underSection133oftheAct.Thisresponsibilityalsoincludesmaintenance of adequate accounting records in accordance with the

provisionsoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationof appropriateaccountingpolicies;making judgmentsandestimatesthatarereasonableandprudent;anddesign,implementationand maintenance of adequate internal financial controls, that wereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationoftheIndASfinancial statements thatgivea trueand fair viewandare freefrommaterialmisstatement,whetherduetofraudorerror.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these Ind AS financialstatementsbasedonouraudit.

4. We have taken into account the provisions of the Act and the RulesmadethereunderincludingtheaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

5. WeconductedourauditoftheIndASfinancialstatementsinaccordancewith the Standards on Auditing specified under Section 143(10) of

137


Annexure A to Independent Auditors’ Report

Referredtoinparagraph10(f)oftheIndependentAuditors’ReportofevendatetothemembersofFortuneParkHotelsLimitedonthefinancialstatementsfortheyearendedMarch31,2018

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act

1. WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofFortune Park Hotels Limited (“theCompany”)asofMarch31,2018inconjunctionwithourauditofthefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

2. The Company’s management is responsible for establishing andmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancial reporting criteria established by the Company considering theessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstitute of Chartered Accountants of India (ICAI). These responsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficient conductof itsbusiness, includingadherence to company’spolicies, the safeguarding of its assets, the prevention and detection offrauds and errors, the accuracy and completeness of the accountingrecords, and the timely preparation of reliable financial information, asrequiredundertheAct.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company’s internalfinancial controls over financial reporting based on our audit. Weconductedouraudit inaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)and the Standards on Auditing deemed to be prescribed under section143(10)oftheActtotheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofinternalfinancialcontrolsandbothissuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtain reasonable assurance about whether adequate internal financialcontrols over financial reportingwas established andmaintained and ifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

4. Ourauditinvolvesperformingprocedurestoobtainauditevidenceaboutthe adequacy of the internal financial controls system over financialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancial reporting includedobtaininganunderstandingofinternalfinancialcontrolsoverfinancial reporting,assessing the risk thata material weakness exists, and testing and evaluating the design andoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theprocedures selected depend on the auditor’s judgement, including theassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

5. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on theCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. Acompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesigned to provide reasonable assurance regarding the reliability offinancialreportingandthepreparationoffinancialstatementsforexternalpurposes in accordance with generally accepted accounting principles.A company’s internal financial control over financial reporting includesthose policies and procedures that (1) pertain to the maintenanceof records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonly in accordancewithauthorisationsofmanagementand directors of the company; and (3) provide reasonable assuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls overfinancial reporting, including the possibility of collusion or impropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsare

the Act and other applicable authoritative pronouncements issued bythe Institute of Chartered Accountants of India. Those Standards andpronouncementsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhethertheIndASfinancialstatementsarefreefrommaterialmisstatement.

6. Anauditinvolvesperformingprocedurestoobtainauditevidenceaboutthe amounts and the disclosures in the Ind AS financial statements.Theprocedures selecteddependon theauditors’ judgment, includingthe assessment of the risks of material misstatement of the Ind ASfinancial statements, whether due to fraud or error. In making thoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevantto theCompany’s preparation of the Ind AS financial statements thatgivea trueand fairview, inorder todesignauditprocedures thatareappropriateinthecircumstances.AnauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationoftheIndASfinancialstatements.

7. Webelieve that theaudit evidencewehaveobtained is sufficient andappropriate to provide a basis for our audit opinion on the Ind ASfinancialstatements.

Opinion

8. Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidIndASfinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyaccepted in India, of the state of affairs of theCompany as atMarch31,2018,anditstotalcomprehensiveincome(comprisingofprofitandothercomprehensiveincome),itscashflowsandthechangesinequityfortheyearendedonthatdate.

Report on Other Legal and Regulatory Requirements

9. AsrequiredbytheCompanies(Auditor’sReport)Order,2016,issuedbytheCentralGovernmentofIndiaintermsofsub-section(11)ofsection143of theAct (“theOrder”), andon thebasis of such checks of thebooksandrecordsof theCompanyasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous,wegiveintheAnnexureBastatementonthemattersspecifiedinparagraphs3and4oftheOrder.

10. AsrequiredbySection143(3)oftheAct,wereportthat:

a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthe purposes of our audit.

b) In our opinion, proper books of account as required by law

have been kept by the Company so far as it appears from ourexaminationofthosebooks.

c) The Balance Sheet, the Statement of Profit and Loss (includingothercomprehensiveincome),theCashFlowStatementandtheStatementofChanges inEquitydealtwithby thisReportare inagreementwiththebooksofaccount.

d) Inouropinion,theaforesaidIndASfinancialstatementscomplywiththeIndianAccountingStandardsspecifiedunderSection133of the Act.

e) On the basis of the written representations received from thedirectorsasonMarch31,2018takenonrecordbytheBoardofDirectors, none of the directors is disqualified as onMarch 31,2018frombeingappointedasadirectorintermsofSection164(2) of the Act.

f) With respect to the adequacy of the internal financial controlswith reference to financial statements of theCompany and theoperating effectiveness of such controls, refer to our separateReportinAnnexureA.

g) WithrespecttotheothermatterstobeincludedintheAuditors’Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules, 2014, in our opinion and to the best ofourknowledgeandbeliefandaccordingtothe informationandexplanationsgiventous:

i. TheCompanyhasdisclosedtheimpact,ifany,ofpendinglitigationsasatMarch31,2018onitsfinancialpositioninitsIndASfinancialstatements–ReferNote24;

ii. The Company does not have derivative contracts and inrespectofother long-termcontractstherearenomaterialforeseeablelossesasatMarch31,2018;

iii. There were no amounts which were required to betransferred to the InvestorEducationandProtectionFundbytheCompanyduringtheyearendedMarch31,2018.

iv. The reporting on disclosures relating to Specified BankNotesisnotapplicabletotheCompanyfortheyearendedMarch31,2018.

For Price Waterhouse Chartered Accountant LLP Firm Registration Number: 012754N/N500016 Chartered Accountants

Ashok Narayanaswamy Place: Gurugram Partner Date: April 18, 2018 Membership Number : 095665

138


Referredtoinparagraph9oftheIndependentAuditors’Reportofevendate to the members of Fortune Park Hotels Limited on the financialstatementsasofandfortheyearendedMarch31,2018

i. (a) The Company is maintaining proper records showing fullparticulars, including quantitative details and situation, ofProperty,plantandequipment.

(b) ThefixedassetsoftheCompanyhavebeenphysicallyverifiedbytheManagementduringtheyearandnomaterialdiscrepancieshave been noticed on such verification. In our opinion, thefrequencyofverificationisreasonable.

(c) The Company does not own any immovable properties asdisclosed in Note 3 on Property, plant and equipment to thefinancialstatements.Therefore,theprovisionsofClause3(i)(c)ofthesaidOrderarenotapplicabletotheCompany.

ii. The Company is in the business of rendering services, andconsequently, does not hold any inventory. Therefore, theprovisionsofClause3(ii)ofthesaidOrderarenotapplicabletotheCompany.

iii.TheCompanyhasnotgrantedanyloans,securedorunsecured,tocompanies,firms,LimitedLiabilityPartnershipsorotherpartiescoveredintheregistermaintainedunderSection189oftheAct.Therefore,theprovisionsofClause3(iii),(iii)(a),(iii)(b)and(iii)(c)ofthesaidOrderarenotapplicabletotheCompany.

iv. TheCompanyhasnotgrantedanyloansormadeanyinvestments,or provided any guarantees or security to the parties coveredunderSection185and186.Therefore,theprovisionsofClause3(iv)ofthesaidOrderarenotapplicabletotheCompany.

v. The Company has not accepted any deposits from the publicwithinthemeaningofSections73,74,75and76oftheActandtheRulesframedthereundertotheextentnotified.

vi. The Central Government of India has not specified themaintenanceofcostrecordsundersub-section(1)ofSection148oftheActforanyoftheproductsoftheCompany.

vii.(a) Accordingtothe informationandexplanationsgiventousandtherecordsoftheCompanyexaminedbyus,inouropinion,theCompanyisregularindepositingtheundisputedstatutoryduesincluding provident fund, employees’ state insurance, incometax,salestax,servicetax,dutyofcustoms,dutyofexcise,valueadded tax, cess,goodsand service taxwitheffect from July1,2017andothermaterialstatutorydues,asapplicable,withtheappropriate authorities.

(b) Accordingtothe informationandexplanationsgiventousandtherecordsoftheCompanyexaminedbyus,therearenoduesof sales-tax, service-tax, duty of customs, duty of excise, valueadded tax which have not been deposited on account of anydispute.Theparticularsofduesof income taxasatMarch31,2018whichhavenotbeendepositedonaccountofadispute,areasfollows:

Nameofthe statute

Natureofdues Amount

(`)

Periodtowhichtheamountrelates

Forumwherethe dispute is pending

IncomeTaxAct,1961

Demandu/s143 (3)

67,57,173 AssessmentYear2012-13

CommissionerofIncomeTax(Appeals)

Annexure B to Independent Auditors’ Report

viii. As theCompanydoesnothaveanyloansorborrowingsfromany

financial institutionsorbanksorGovernment,norhas it issued

anydebentures as at thebalance sheet date, theprovisions of

Clause3(viii)oftheOrderarenotapplicabletotheCompany.

ix. TheCompanyhasnotraisedanymoneysbywayofinitialpublic

offer,furtherpublicoffer(includingdebtinstruments)andterm

loans.Accordingly,theprovisionsofClause3(ix)oftheOrderare

notapplicabletotheCompany.

x. Duringthecourseofourexaminationofthebooksandrecords

of the Company, carried out in accordancewith the generally

accepted auditing practices in India, and according to the

informationandexplanationsgiventous,wehaveneithercome

acrossanyinstanceofmaterialfraudbytheCompanyoronthe

Companybyitsofficersoremployees,noticedorreportedduring

the year, nor havewebeen informedof any such case by the

Management.

xi. TheCompanyhaspaid/providedformanagerialremuneration

in accordance with the requisite approvals mandated by the

provisionsofSection197readwithScheduleVtotheAct.

xii.As theCompany isnotaNidhiCompanyand theNidhiRules,

2014arenotapplicabletoit,theprovisionsofClause3(xii)ofthe

OrderarenotapplicabletotheCompany.

xiii. TheCompanyhasenteredintotransactionswithrelatedparties

incompliancewiththeprovisionsofSection188oftheAct.The

detailsofsuchrelatedpartytransactionshavebeendisclosedin

thefinancialstatementsasrequiredunderAccountingStandard

(AS) 18, Related Party Disclosures specified under Section 133

oftheAct,readwithRule7oftheCompanies(Accounts)Rules,

2014. Further, the Company is not required to constitute an

AuditCommitteeunderSection177oftheAct,andaccordingly,

tothisextent,theprovisionsofClause3(xiii)oftheOrderarenot

applicabletotheCompany.

xiv. TheCompanyhasnotmadeanypreferentialallotmentorprivate

placement of shares or fully or partly convertible debentures

during the year under review. Accordingly, the provisions of

Clause3(xiv)oftheOrderarenotapplicabletotheCompany.

xv. The Company has not entered into any non cash transactions

with itsdirectorsorpersonsconnectedwithhim. Accordingly,

theprovisionsofClause3(xv)oftheOrderarenotapplicableto

theCompany.

xvi. The Company is not required to be registered under Section

45-IAof theReserveBankof IndiaAct,1934. Accordingly, the

provisionsofClause3(xvi)oftheOrderarenotapplicabletothe

Company.

ForPriceWaterhouseCharteredAccountantLLP

FirmRegistrationNumber:012754N/N500016

CharteredAccountants

AshokNarayanaswamy

Place:Gurugram Partner

Date:April18,2018 MembershipNumber:095665

subjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmay become inadequate because of changes in conditions, or that thedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

8. In our opinion, the Company has, in allmaterial respects, an adequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch 31, 2018, based on the internal control over financial reportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsof internal control stated in the Guidance Note on Audit of Internal

Financial Controls Over Financial Reporting issued by the Institute ofCharteredAccountantsofIndia.

ForPriceWaterhouseCharteredAccountantLLP FirmRegistrationNumber:012754N/N500016 CharteredAccountants

AshokNarayanaswamyPlace:Gurugram PartnerDate:April18,2018 MembershipNumber:095665

139


Balance Sheet

(Allamountsinrupeesunlessotherwisestated)

Notes As at March 31, 2018 AsatMarch31,2017

ASSETS

Non-current assets

Property,plantandequipment 3 32,46,519 46,19,764

Deferredtaxassets(net) 4 2,33,19,271 1,75,66,767

Othernon-currentassets 5 4,24,51,240 3,06,05,770

Total non-current assets 6,90,17,030 5,27,92,301

Current assets

Financial assets

i. Investments 6(a) 9,95,15,133 20,12,75,112

ii. Tradereceivables 6(b) 10,03,15,314 9,97,38,642

iii. Cashandcashequivalents 6(c) 60,32,846 1,75,21,447

iv. Otherfinancialassets 6(d) 5,78,54,872 4,66,32,869

Othercurrentassets 7 25,19,528 12,92,357

Total current assets 26,62,37,693 36,64,60,427

Total assets 33,52,54,723 41,92,52,728

EQUITY AND LIABILITIES

Equity share capital 8 45,00,080 45,00,080

Otherequity 25,80,64,943 24,43,71,705

Total equity 26,25,65,023 24,88,71,785

LIABILITIES

Non-current liabilities

Provisions 9(a) 1,04,15,736 1,66,28,388

Total non-current liabilities 1,04,15,736 1,66,28,388

Current liabilities

Financial liabilities

i. Tradepayables 10(a) 1,64,62,523 1,74,71,889

ii. Otherfinancialliabilities 10(b) 55,09,031 9,70,99,219

Othercurrentliabilities 11 3,02,47,011 3,17,19,284

Provisions 9(b) 1,00,55,399 74,62,163

Total current liabilities 6,22,73,964 15,37,52,555

Total liabilities 7,26,89,700 17,03,80,943

Total equity and liabilities 33,52,54,723 41,92,52,728

Theaccompanyingnotes1to26areanintegralpartofthefinancialstatements.

ThisistheBalanceSheetreferredtoinourreportofevendate. For Price Waterhouse Chartered Accountants LLP OnbehalfoftheBoardofDirectors FirmRegistrationNo.:012754N/N500016 AshokNarayanaswamy SamirMecherivalappiChandrasekharan JagdishSinghPartner ManagingDirector DirectorMembershipNumber:095665 DIN08064002 DIN00042258Place:Gurugram Place:Gurugram Place:GurugramDate:April18,2018 Date:April18,2018 Date:April18,2018

140


Statement of Profit and Loss (Allamountsinrupeesunlessotherwisestated)

Notes For the year ended Fortheyearended March 31, 2018 March31,2017Revenuefromoperations 12 25,88,03,180 27,78,36,811Otherincome 13 1,71,27,801 1,74,68,810Total income 27,59,30,981 29,53,05,621

Expenses Employeebenefitsexpense 14 15,44,94,076 16,42,48,735Depreciationexpense 3 14,85,210 16,22,746Otherexpenses 15 8,32,28,701 6,86,89,204Total expenses 23,92,07,987 23,45,60,685

Profit before tax 3,67,22,994 6,07,44,936Income tax expense - Currenttax 16 2,36,28,000 3,30,29,000 - Deferredtax 16 (62,02,069 ) 33,28,474Total tax expense 1,74,25,931 3,63,57,474Profit for the year 1,92,97,063 2,43,87,462

Other comprehensive incomeItems that will not be reclassified to profit or loss - Remeasurementsofpost-employmentbenefitobligations 16,15,979 (7,29,054) - Incometaxrelatingtotheseitems (4,49,565 ) 2,00,873Othercomprehensiveincomefortheyear,netoftax 11,66,414 (5,28,181)Total comprehensive income for the year 2,04,63,477 2,38,59,281Earnings per equity share Basicearningspershare 17 42.88 54.19 Dilutedearningspershare 17 42.88 54.19Theaccompanyingnotes1to26areanintegralpartofthefinancialstatements.ThisistheStatementofProfitandLossreferredtoinourreportofevendate.For Price Waterhouse Chartered Accountants LLP OnbehalfoftheBoardofDirectors FirmRegistrationNo.:012754N/N500016 AshokNarayanaswamy SamirMecherivalappiChandrasekharan JagdishSinghPartner ManagingDirector DirectorMembershipNumber:095665 DIN08064002 DIN00042258Place:Gurugram Place:Gurugram Place:GurugramDate:April18,2018 Date:April18,2018 Date:April18,2018

Statement of changes in equity (Allamountsinrupeesunlessotherwisestated)

A. Equity Share Capital

Balance as at April 01, 2016 45,00,080 ChangesinEquityShareCapital – Balance as at March 31, 2017 45,00,080 ChangesinEquityShareCapital – Balance at March 31, 2018 45,00,080

B. Other Equity

Reserves and Surplus Total

CapitalReserve RetainedEarnings CapitalContribution GeneralReserve forsharebasedpayments

Balance as at April 1, 2016 30,00,000 18,37,64,425 4,27,27,652 3,37,47,999 26,32,40,076 Profitfortheyear - 2,43,87,462 - - 2,43,87,462 Othercomprehensiveincome(netoftax) - (5,28,181) - - (5,28,181) Total comprehensive income - 2,38,59,281 - - 2,38,59,281 Less:Valueofsharebasedpaymentsreimbursabletoparentcompany - - (4,27,27,652) - (4,27,27,652) Balance as at March 31, 2017 30,00,000 20,76,23,706 - 3,37,47,999 24,43,71,705 Profitfortheyear - 1,92,97,063 - - 1,92,97,063 Othercomprehensiveincome(netoftax) - 11,66,414 - - 11,66,414 Total comprehensive income - 2,04,63,477 - - 2,04,63,477 Dividendpaid* - (56,25,100) - - (56,25,100) Incometaxondividendpaid - (11,45,139) - - (11,45,139) Balance as at March 31, 2018 30,00,000 22,13,16,944 - 3,37,47,999 25,80,64,943

* TheCompanyhadpaidafinaldividendof`12.50pershareonequitysharesof`10/-each,aggregatingto`56,25,100fortheyearendedMarch31,2017.Thetaximpactofdividendis`11,45,138.

Thedirectorshaverecommendedthepaymentofafinaldividendof`12.50perfullypaidequityshareof`10/-each,aggregatingto`56,25,100subsequenttotheyearend.Thisproposeddividendissubjecttotheapprovalofshareholdersintheensuingannualgeneralmeeting.Thetaximpactofdividendis`11,56,127.

-CapitalReserverepresentsamountreceivedascompensationofrightsundercontract. -Retainedearningsrepresentsthecumulativeprofitaswellasremeasurementofdefinedbenefitplans,distributionasperprovisionsofCompaniesAct,2013. -Capitalcontributionforsharebasedpayments:representsfairvalueofequitysettledsharebasedpaymentsissuedtodeputedemployeesunderEmployeeStockOptionSchemegrantedbyholdingcompany,netofreimbursements,ifany. -Generalreserveisusedforstrengtheningthefinancialpositionandmeetingfuturecontingenciesandlosses. Theaccompanyingnotes1to26areanintegralpartofthefinancialstatements. ThisistheStatementofchangesinequityreferredtoinourreportofevendate.

For Price Waterhouse Chartered Accountants LLP OnbehalfoftheBoardofDirectors FirmRegistrationNo.:012754N/N500016 AshokNarayanaswamy SamirMecherivalappiChandrasekharan JagdishSinghPartner ManagingDirector DirectorMembershipNumber:095665 DIN08064002 DIN00042258Place:Gurugram Place:Gurugram Place:GurugramDate:April18,2018 Date:April18,2018 Date:April18,2018

141


Cash Flow Statement(allamountsinrupeesunlessotherwisestated)

For the Year ended ForthYearended March 31, 2018 March31,2017

Cash flow from operating activities

Profit before tax 3,67,22,994 6,07,44,936

Adjustmentsfor:

Depreciationexpense 14,85,210 16,22,746

Netlossondisposalofproperty,plantandequipment 44,467 1,31,961

Provisionsfordoubtfuldebtsandotherfinancialassets 2,39,76,456 65,32,336

Baddebtswrittenoff 9,76,995 39,33,332

Profitonsale/redemptionofcurrentinvestment (91,78,316) (1,17,26,922)

InterestIncome (6,01,590) (6,10,812)

Valueofsharebasedpaymentsrecognisedascapitalcontribution - 3,49,61,484

Valueofsharebasedpaymentsreimbursabletoholdingcompany - (4,27,27,652)

Remeasurementsofpost-employmentbenefitobligations 16,15,979 (7,29,054)

Operatingprofitbeforeworkingcapitalchanges 5,50,42,195 5,21,32,355

Change in operating assets and liabilities

(Increase)/decreaseintradereceivables (2,15,10,099) 65,40,557

Increase/(decrease)intradepayables (10,09,366) 94,01,195

(Increase)/decreaseinothercurrentfinancialassets (1,52,42,027) (2,28,41,261)

Increase/(decrease)inotherfinancialliabilities (9,15,90,188) 3,48,73,197

Increase/(decrease)inothernon-currentliabilities - (2,11,86,886)

Increase/(decrease)innoncurrentprovisions (62,12,652) (12,05,980)

(Increase)/decreaseinothercurrentassets (12,27,171) 83,768

Increase/(decrease)incurrentprovisions 25,93,236 9,25,832

Increase/(decrease)inothercurrentliabilities (14,72,273) 2,06,29,426

Cash generated from operations (8,06,28,345) 7,93,52,203

Incometaxespaid (3,54,73,470) (3,81,74,286)

Net cash inflow from operating activities (11,61,01,815) 4,11,77,917

Cash flows from investing activities

Paymentsforproperty,plantandequipment (1,65,080) (29,26,217)

Proceedsfromsaleofproperty,plantandequipment 8,648 12,625

Purchasesofcurrentinvestments (86,27,00,000) (79,90,75,000)

Sale/redemptionofcurrentinvestments 97,36,38,295 70,21,25,100

Interestreceived 6,01,590 40,48,441

Proceedsfrom/(investmentin)bankdeposits - 4,00,00,000

Net cash (outflow)/inflow from investing activities 11,13,83,453 (5,58,15,051)

Cash flows from financing activities

Dividendspaid (56,25,100) -

Dividendtax (11,45,139) -

Net cash (outflow) from financing activities (67,70,239)

Net increase (decrease) in cash and cash equivalents (1,14,88,601) (1,46,37,134)

Cashandcashequivalentsatthebeginningofthefinancialyear 1,75,21,447 3,21,58,581

Cash and cash equivalents at end of the year 60,32,846 1,75,21,447

Cash and cash equivalents comprise of :

BalanceswithBanks 59,71,586 1,73,66,747

Cashinhand 61,260 1,54,700

Cash and cash equivalents at the end of the year [Refer note 6(c)] 60,32,846 1,75,21,447

Theabovecashflowstatementhasbeenpreparedunderthe“IndirectMethod”assetoutinIndianAccountingStandard7StatementofCashflows.

Theaccompanyingnotes1to26areanintegralpartofthefinancialstatements.

Thisisthecashflowstatementreferredtoinourreportofevendate

For Price Waterhouse Chartered Accountants LLP OnbehalfoftheBoardofDirectors FirmRegistrationNo.:012754N/N500016 AshokNarayanaswamy SamirMecherivalappiChandrasekharan JagdishSinghPartner ManagingDirector DirectorMembershipNumber:095665 DIN08064002 DIN00042258Place:Gurugram Place:Gurugram Place:GurugramDate:April18,2018 Date:April18,2018 Date:April18,2018

142


Notes forming part of the financial statements

BACKGROUND OF THE COMPANY

FortuneParkHotelsLimited,a100%subsidiaryof ITCLimited is in thebusinessofoperatinghotelsinthemid–markettoupscalesegmentunder‘Fortune’Brands.Itcurrentlyoperates45hotels.

Note 1: SIGNIFICANT ACCOUNTING POLICIES

Thisnoteprovidesa listof the significantaccountingpoliciesadoptedinthepreparationofthesefinancialstatements.Thesepolicies have been applied to all the years presented, unlessotherwisestated.

a) BASIS OF PREPARATION

(i) Compliance with IND AS

The financial statements comply in all material aspects withIndian Accounting Standards (Ind AS) notified under section133oftheCompaniesAct,2013(theAct)[Companies(IndianAccounting Standards) Rules, 2015] and other relevantprovisionsoftheact.

(ii) Historical Cost Convention

Thefinancialstatementshavebeenpreparedonahistoricalcostbasis,exceptforthefollowing:

• certain financial assets and liabilities are measured at fairvalue;

• definedbenefitplans–planassetsmeasuredatfairvalue.

Allassetsandliabilitieshavebeenclassifiedascurrentornon-currentaspertheCompany’snormaloperatingcycleandothercriteriasetoutintheScheduleIIItotheCompaniesAct,2013basedonthenatureofservices,theCompanyhasascertaineditsoperatingcycleastwelvemonthsforthepurposeofcurrentandnon-currentclassificationofassetsandliabilities.

b) PROPERTY, PLANT AND EQUIPMENT

Property,plantandequipmentarestatedatcostofacquisitionorconstructionlessaccumulateddepreciationandimpairment,ifany.

Cost is inclusive of inward freight, duties and taxes andincidental expenses related to acquisition. Subsequent costsare included in the asset’s carrying amount only when it isprobable that future economic benefits associated with theitemwillbe realised.Thecarryingamountof a replacedpartisderecognised.Allupgradations/enhancementsarechargedoffasrevenueexpenditureunlesstheybringsimilarsignificantadditionalbenefits.

On transition to IndAS, ithasbeenelected tocontinuewiththe carrying value of all the tangible assets recognised as at1stApril, 2015measured asperpreviousGAAPanduse thatcarryingvalueasthedeemedcostofthetangibleasset.

Lossesarisingfromtheretirementof,andgainsorlossesarisingfromdisposalofProperty,plantandequipmentarerecognisedintheStatementofProfitandLoss.

c) DEPRECIATION

Depreciation of these assets commences when the assetsare ready for their intended use which is generally oncommissioning. Items of Property, plant and equipment aredepreciated inamanner thatamortises thecostof theassetsaftercommissioning(orotheramountsubstitutedforcost),lessitsresidualvalue,overtheirusefullivesasspecifiedinScheduleII of the Companies Act, 2013 on a straight line basis. TheestimatedusefullivesofProperty,plantandequipmentoftheCompanyareasfollows:

CategoryofProperty,plantandequipment Usefullife

Officeequipment 5Years

Computersendusersdevices 3Years

Computer,networkandservers 6Years

Furnitureandfixtures 10Years

Vehicle 8Years

d) IMPAIRMENT OF ASSETS

Impairmentlossisprovided,ifany,totheextent,thecarryingamountofassetsexceedtheirrecoverableamount.

Recoverableamountishigherofanasset’snetsellingpriceanditsvalue inuse.Value inuse isthepresentvalueofestimatedfuturecashflowsexpectedtoarisefromthecontinuinguseofanassetandfromitsdisposalattheendofitsusefullife.

Impairmentlossesrecognisedinprioryearsarereversedwhenthereisanindicationthattheimpairmentlossesrecognisednolonger existorhavedecreased. Such reversals are recognisedasanincreaseincarryingamountsofassetstotheextentthatit does not exceed the carrying amounts that would havebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedinpreviousyears.

Changesintheexpectedusefullifeortheexpectedpatternofconsumptionoffutureeconomicbenefitsembodiedintheassetareconsidered tomodify theamortisationperiodormethod,as appropriate, and are treated as changes in accountingestimates.

e) FOREIGN CURRENCY TRANSACTIONS

TheCompanyaccount for transactions in foreigncurrencyattheexchangerateprevailingonthedateoftransactions.Gains/Losses arising on settlement of such transactions as also thetranslationofmonetaryitemsatperiodendsduetofluctuationsintheexchangeratesarerecognizedintheStatementofProfitandLoss.

f) FINANCIAL INSTRUMENT, FINANCIAL ASSETS, FINANCIAL LIABILITIES AND EQUITY INSTRUMENTS

FINANCIAL ASSETS AND LIABILITIES

Financial assets and financial liabilities are recognised whentheCompanybecomesapartytothecontractualprovisionsoftherelevantinstrumentandareinitiallymeasuredatfairvalue.Transactioncoststhataredirectlyattributabletotheacquisitionor issue of financial assets and financial liabilities (other thanfinancial assets and financial liabilities measured at fair valuethrough profit or loss) are added to or deducted from thefair value on initial recognition of financial assets or financialliabilities. Purchase or sale of financial assets that requiredeliveryofassetswithinatimeframeestablishedbyregulationor convention in the market place (regular way trades) arerecognisedonthetradedate,i.e.,thedatewhentheCompanycommitstopurchaseorselltheasset.

Financial Assets

Recognition: Financial assets include Investments, TradeReceivables, Advances, Security Deposits, Cash and cashequivalents. Such assets are initially recognised at transactionprice when the Company becomes party to contractualobligations. The transaction price includes transaction costsunlesstheasset isbeingfairvaluedthroughtheStatementofProfitandLoss.

Classification: Management determines the classification ofan asset at initial recognition depending on the purpose forwhichtheassetswereacquired.Thesubsequentmeasurementoffinancialassetsdependsonsuchclassification.

Financialassetsareclassifiedasthosemeasuredat:

(a)amortisedcost,wherethefinancialassetsareheldsolelyforcollectionofcashflowsarisingfrompaymentsofprincipaland/orinterest.

(b)fair value throughothercomprehensive income (FVTOCI),where the financial assets are held not only for collectionof cash flows arising from payments of principal andinterest but also from the sale of such assets. Such assetsare subsequently measured at fair value, with unrealisedgainsandlossesarisingfromchangesinthefairvaluebeingrecognisedinothercomprehensiveincome.

143


(c)fair value throughprofit or loss (FVTPL),where the assetsaremanaged in accordancewithanapproved investmentstrategythattriggerspurchaseandsaledecisionsbasedonthe fair valueof suchassets. Suchassets are subsequentlymeasured at fair value, with unrealised gains and lossesarising fromchanges in the fair valuebeing recognised intheStatementofProfitandLossintheperiodinwhichtheyarise.

Tradereceivables,Advances,SecurityDeposits,Cashandcashequivalents etc. are classified for measurement at amortisedcost while investments may fall under any of the aforesaidclasses. However, in respect of particular investments inequity instruments thatwould otherwise bemeasured at fairvalue through profit or loss, an irrevocable election at initialrecognitionmaybemadetopresentsubsequentchangesinfairvaluethroughothercomprehensiveincome.

Impairment: The Company assesses at each reporting datewhetherafinancialasset(oragroupoffinancialassets)suchasinvestments,tradereceivables,advancesandsecuritydepositsheldatamortisedcostandfinancial assets thataremeasuredat fair value throughother comprehensive income are testedfor impairment based on evidence or information that isavailablewithout undue cost or effort. Expected credit lossesareassessedandlossallowancesrecognisedifthecreditqualityof thefinancialassethasdeterioratedsignificantlysince initialrecognition.

Reclassification: When and only when the business modelis changed, the Company shall reclassify all affectedfinancial assets prospectively from the reclassification date assubsequentlymeasured at amortised cost, fair value throughothercomprehensive income, fairvaluethroughprofitor losswithout restating the previously recognised gains, losses orinterestandintermsofthereclassificationprincipleslaiddownintheIndASrelatingtoFinancialInstruments.

De-recognition: Financial assets are derecognised when therighttoreceivecashflowsfromtheassetshasexpired,orhasbeentransferred,andtheCompanyhastransferredsubstantiallyalloftherisksandrewardsofownership.Concomitantly,iftheassetisonethatismeasuredat:

(a)amortised cost, the gain or loss is recognised in theStatementofProfitandLoss;

(b)fair value through other comprehensive income, thecumulative fair value adjustments previously taken toreservesarereclassifiedtotheStatementofProfitandLossunless the asset represents an equity investment inwhichcasethecumulativefairvalueadjustmentspreviouslytakentoreservesisreclassifiedwithinequity.

Income Recognition: Interest income is recognised in theStatementofProfitandLossusingtheeffectiveinterestmethod.Dividend income is recognised in theStatementofProfitandLosswhentherighttoreceivedividendisestablished.

Financial Liabilities

Borrowings, trade payables and other financial liabilities areinitially recognised at the value of the respective contractualobligations. They are subsequently measured at amortisedcost.Anydiscountorpremiumonredemption/settlement isrecognisedintheStatementofProfitandLossasfinancecostoverthelifeoftheliabilityusingtheeffectiveinterestmethodand adjusted to the liability figure disclosed in the BalanceSheet.

Financial liabilities are derecognised when the liability isextinguished, that is, when the contractual obligation isdischarged,cancelledandonexpiry.

Offsetting Financial Instruments

Financialassetsandliabilitiesareoffsetandthenetamountis

includedintheBalanceSheetwherethereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasisorrealisetheassetandsettletheliabilitysimultaneously.

Equity Instruments

Equityinstrumentsarerecognisedatthevalueoftheproceeds,netofdirectcostsofthecapitalissue.

g) REVENUE

Revenue is measured at the fair value of the considerationreceivedorreceivableforservicesrendered,netofdiscountstocustomers.RevenueexcludesServiceTaxorGoodsandServicesTax(GST).

Revenuefromservicesisrecognisedintheperiodsinwhichtheservicesarerendered.

h) DIVIDEND DISTRIBUTION

Dividends paid (including income tax thereon) is recognisedintheperiod inwhichthe interimdividendsareapprovedbytheBoardofDirectors,orinrespectofthefinaldividendwhenapprovedbyshareholders.

i) EMPLOYEE BENEFITS

TheCompanymakescontributionstobothdefinedbenefitanddefinedcontributionschemes.

Contributions to Provident Fund are in thenature of definedcontribution scheme and such paid/payable amounts arerecognised as employee benefit expense. The contributionsinrespectofprovidentfundarestatutorilydepositedwiththeGovernment.

The contributions in respect of defined benefit gratuity planaremadetoLife InsuranceCorporation(LIC)under itsGroupGratuity Scheme. The cost of providing benefits under thedefinedbenefitobligationiscalculatedbyindependentactuaryusingtheprojectedunitcreditmethod.Servicecostsandnetinterest expense or income is reflected in the Statement ofProfitandLoss.GainorlossonaccountofremeasurementsarerecognizedimmediatelythroughOtherComprehensiveIncomeintheperiodinwhichtheyoccur.

The employees of the Company are also entitled tocompensatedleaveforwhichtheCompanyrecordstheliabilitybased on actuarial valuation computed under projected unitcreditmethodsimilar tobenefitsofgratuityexplainedabove.Service costs and net interest expense or income is reflectedin theStatementof Profit and Loss.Gainor LossonaccountofremeasurementsarerecognizedimmediatelythroughOtherComprehensive Income in the period in which they occur.Thesebenefitsareunfunded.

Theeligibleemployeesarealsoentitledtootherbenefitssuchasloyaltyplan,whichareinthenatureofLongTermBenefits,and are estimated based on variable elements affecting thecomputationsincludingperformanceratingsinthesubsequentappraisalcycle.SuchplansareunfundedandarerecognizedintheStatementofProfitandLoss.

j) EMPLOYEE SHARE BASED COMPENSATION

Equity-settled share-based payments pertaining to theemployees/deputedemployeesofITCLimitedwithrespecttoEmployeesStockOptionsofITCLimited,theholdingcompany,grantedtotheentitledemployeesaremeasuredatthefairvalueoftheequityinstrumentsoftheholdingcompanyatthegrantdateovervesting/serviceperiodonstraightlinebasis.Thefairvalue of equity-settled share-based payment transactions arerecognisedinthestatementofprofitandloss.

k) LEASES

Leases are recognised as a finance leasewhenever the termsof the lease transfer substantially all the risks and rewardsof ownership to the lessee. All other leases are classified asoperatingleases.

Notes forming part of the financial statements (Contd.)

144


Notes forming part of the financial statements (Contd.)

Lease payables under operating leases are charged to theStatement of Profit and Loss on a straight-line basis over thetermoftherelevantleaseunlessthepaymentstothelessorarestructuredtoincreaseinlinewithexpectedgeneralinflationtocompensateforthelessor’sexpectedinflationarycostincreases.

l) TAXES ON INCOME

Taxesonincomecomprisesofcurrenttaxesanddeferredtaxes.Currenttax intheStatementofProfitandLoss isprovidedasthe amount of tax payable in respect of taxable income fortheperiodusingtaxratesenactedduringtheperiod,togetherwithanyadjustmenttotaxpayableinrespectofpreviousyears.Incometax,insofarasitrelatestoitemsdisclosedunderOtherComprehensive Income,aredisclosed separatelyunderOtherComprehensiveIncome,asapplicable.

Deferred tax is recognisedon temporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesandtheamountsusedfortaxationpurposes(taxbase),atthetaxratesandtaxlawsenactedorsubstantivelyenactedbytheendoftheperiod.

Deferred tax assets are recognised for the future taxconsequences to the extent it is probable that future taxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilised.

Deferredtaxassetsandliabilitiesareoffsetwhenthereislegallyenforceablerighttooffsetcurrenttaxassetsandliabilitiesandwhen the deferred tax balances related to the same taxationauthority.Currenttaxassetsandtaxliabilitiesareoffsetwheretheentityhasalegallyenforceablerighttooffsetandintendseithertosettleonnetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.

m) CLAIMS

Claims against theCompany not acknowledged as debts aredisclosedafteracarefulevaluationoffactsandlegalaspectsofthematterinvolved.

n) PROVISIONS

Provisionsarerecognisedwhen,asaresultofapastevent,theCompanyhasalegalorconstructiveobligation; it isprobablethat an outflow of resources will be required to settle theobligation; and the amount can be reliably estimated. Theamount so recognised is abest estimateof the considerationrequired to settle theobligationat the reportingdate, takinginto account the risks and uncertainties surrounding theobligation. In an event when the time value of money ismaterial,theprovisioniscarriedatthepresentvalueofthecashflowsestimatedtosettletheobligation.

o) CASH AND CASH EQUIVALENTS

Forthepurposeofpresentationinthecashflowstatement,cashand cash equivalents include cash in hand, demanddepositswith banks, other short-term highly liquid investments withoriginal maturities of three months or less that are readilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalue.

p) EARNINGS PER SHARE

Basic earningsper share computedbydividing thenetprofitorlossfortheperiodattributabletoequityshareholdersbytheweightedaveragenumberofequitysharesoutstandingduringthe period.

Forthepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheperiodattributabletoequityshareholdersandtheweightedaveragenumberofsharesoutstandingduringthe period is adjusted for the effects of all dilutive potentialequityshares.

q) SEGMENT REPORTING

Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtothechiefoperatingdecision-maker(CODM).TheCODM,whoisresponsibleforallocatingresourcesandassessingperformanceoftheoperatingsegments,hasbeenidentifiedastheManagementCommitteeheadedbytheManagingDirector.

Note 2: Use of critical estimates and judgements

The preparation of financial statements in conformity withgenerallyacceptedaccountingprinciplesrequiresmanagementto make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingentliabilitiesatthedateofthefinancialstatementsandtheresultsofoperationsduringthereportingperiodend.Althoughtheseestimates are based upon management’s best knowledge ofcurrenteventsandaction,actualresultscoulddeferfromtheseestimates.

Theestimatesandunderlyingassumptionarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedin theperiod inwhich the estimates is revised if the revisionaffects only that period, or in the period of the revision andfuture periods if the revision affects both current and futureperiods.

Theareasinvolvingcriticalestimatesorjudgementsare:

- EstimationofdefinedbenefitobligationsNote9and14

- ContingentliabilitiesNote24

- Impairment of trade receivables and other financial assetsNote6(b)and6(d)

145


Notes forming part of the financial statements (Contd.)(allamountsinrupeesunlessotherwisestated)

Note 3 : Property Plant & Equipment

Furnitureandfixture

Vehicles Office equipment

Computersendusers devices

Computer,net-workandservers

Total

Year ended March 31, 2017Gross carrying amountOpeninggrosscarryingamountAdditionsDisposals

3,72,69058,134

-

46,069 - -

4,38,342 - -

34,29,94512,01,333(2,16,197)

5,56,84816,66,750

-

48,43,89429,26,217(2,16,197)

Closing gross carrying amount 4,30,824 46,069 4,38,342 44,15,081 22,23,598 75,53,914

Accumulated depreciationOpeningaccumulateddepreciationDepreciationchargeduringtheyearDisposals

1,64,34227,048

-

6,0156,015

-

67,5672,47,865

-

10,32,02012,02,718(71,612)

1,13,0721,39,100

-

13,83,01616,22,746(71,612)

Closing accumulated depreciation 1,91,390 12,030 3,15,432 21,63,126 2,52,172 29,34,150

Net carrying amount 2,39,434 34,039 1,22,910 22,51,955 19,71,426 46,19,764

Year ended March 31, 2018Gross carrying amountOpeninggrosscarryingamountAdditionsDisposals

4,30,824 - -

46,069 - -

4,38,34249,800

(23,831)

44,15,0811,15,280(1,02,681)

22,23,598 - -

75,53,9141,65,080(1,26,512)

Closing gross carrying amount 4,30,824 46,069 4,64,311 44,27,680 22,23,598 75,92,482

Accumulated depreciationOpeningaccumulateddepreciationDepreciationchargeduringtheyearDisposals

1,91,39027,740

-

12,0306,015

-

3,15,43235,103(20,987)

21,63,12610,39,477(52,410)

2,52,1723,76,875

-

29,34,15014,85,210(73,397)

Closing accumulated depreciation 2,19,130 18,045 3,29,548 31,50,193 6,29,047 43,45,963

Net carrying amount 2,11,694 28,024 1,34,763 12,77,487 15,94,551 32,46,519

Note 4: Deferred tax assets (net)

Deferredtaxassets Deferredtaxliabilities

NetDeferredTaxAssets

(A-B)

Onemploy-eebenefit

Onallowancesfordoubtfultradeand

otherfinancialassets

Othertiming

differences

Deferredtaxassets

(A)

Property,plantandequip-

ment

Financialassetsatfairvalue

throughprofitorloss

Deferredtaxliabilities

(B)

AtApril1,2016(Charged)/credited:-toprofitorloss-toothercomprehensiveincome

96,74,663

(30,42,254)2,00,873

1,13,39,373

(5,11,925) -

2,42,667

3,63,816 -

2,12,56,703

(31,90,363)2,00,873

(3,25,527)

56,539 -

(2,36,808)

(1,94,650) -

(5,62,335)

(1,38,111) -

2,06,94,368

(33,28,474)2,00,873

At March 31, 2017 68,33,282 1,08,27,448 6,06,483 1,82,67,213 (2,68,988) (4,31,458) (7,00,446) 1,75,66,767

(Charged)/credited:-toprofitorloss-toothercomprehensiveincome

(6,61,006)(4,49,565)

67,75,371 -

(1,88,852) -

59,25,513(4,49,565)

99,688–

1,76,868–

2,76,556–

62,02,069(4,49,565)

At March 31, 2018 57,22,711 1,76,02,819 4,17,631 2,37,43,161 (1,69,300) (2,54,590) (4,23,890) 2,33,19,271

Note 5: Other non - current assets

As atMarch 31, 2018

As at March31,2017

Advancetax[Netofprovisions`11,18,90,229(Previousyear`88,26,229)] 4,24,51,240 3,06,05,770

Total other non - current assets 4,24,51,240 3,06,05,770

146



Note 6: Financial assets

Note 6(a): Investments

As at March 31, 2018 AsatMarch31,2017

Quoted Unquoted Quoted Unquoted

Current

Investment in mutual funds measured at FVTPL

DHFLPramericaFixedMaturityPlanSeries62[Nilunits:Previousyear(916.15units)]of` 10/-each

- - 11,778 -

TATAMoneyMarketFundDirectPlan[Nilunits:Previousyear(19,403.357units)]of`1,000/-each - - - 4,97,31,555

UTI-Money Market Fund-Institutional Plan [25,945.237 units: Previous year (27,844.425units)]of`1,000/-each

- 5,05,86,588 - 5,07,94,435

AxisLiquidFund[Nilunits:Previousyear(28,119.615units)]of`1,000/-each - - - 5,07,06,038

SBIPremierLiquidFund[Nilunits:Previousyear(19,602.305units)]of`1,000/-each - - - 5,00,31,306

RelianceLiquidFund-TreasuryPlan[8,975.975units:Previousyear(Nilunits)]of`1,000/-each - 3,80,57,617 - -

AdityaBirlaSunLifeFloatingRateFundShortTermPlan[46,860.356units:Previousyear(Nilunits)]of`100/-each - 1,08,70,928 - -

Aggregate amount of quoted and unquoted investments - 9,95,15,133 11,778 20,12,63,334

Total investments 9,95,15,133 20,12,75,112

Note 6(b): Trade receivables


CurrentUnsecured,ConsideredGood(Refernote21)ConsideredDoubtful

Less:Allowancefordoubtfuldebts

10,03,15,314 4,86,82,503 (4,86,82,503)

9,97,38,6422,87,26,071(2,87,26,071)

Total trade receivables 10,03,15,314 9,97,38,642

Note 6(c): Cash and cash equivalents


Balanceswithbanks-incurrentaccounts

Cashonhand

59,71,586

61,260 1,73,66,747

1,54,700

Total cash and cash equivalents 60,32,846 1,75,21,447

DisclosureforSpecifiedBankNotes(SBN’s)asrequiredbynotificationno.G.S.R.308(E)issuedbyMinistryofCorporateAffairsisnotapplicabletotheCompanyfortheyearended31March2018. Note 6(d) Other Financial assets


CurrentOther Financial assets - Unsecured unless stated otherwise

-Contractuallyreimbursablecost-consideredGood-Contractuallyreimbursablecost-considereddoubtfulLess:Allowancefordoubtfulcontractuallyreimbursablecost-Securitydeposits-Unbilledrevenue

5,73,92,872 1,45,91,467 (1,45,91,467)

4,62,000 -

4,48,18,9471,05,71,443(1,05,71,443)

5,33,10012,80,822

Totalotherfinancialassets 5,78,54,872 4,66,32,869 Note 7: Other current assets


PrepaymentexpensesAdvancestoemployeesandvendorsGST/Servicetaxrecoverable

3,99,659 55,264

20,64,605

5,51,38562,225

6,78,747

Total other current assets 25,19,528 12,92,357

147


Notes forming part of the financial statements (Contd.)(allamountsinrupeesunlessotherwisestated)Note 8: Equity share capital

Particulars As at March 31, 2018 AsatMarch31,2017

Authorised

20,00,000(Previousyear20,00,000)equitysharesof`10each 2,00,00,000 2,00,00,000

Total 2,00,00,000 2,00,00,000

Issued, subscribed and paid up 4,50,008(Previousyear4,50,008)equitysharesof`10each 45,00,080 45,00,080

Total 45,00,080 45,00,080

(i) Movements in equity share capital

Particulars Number of shares Amount

As at April 1, 2016 4,50,008 45,00,080

Add:Increase/lesschangesduringtheyear – –

As at March 31, 2017 4,50,008 45,00,080

Add:Increase/lesschangesduringtheyear – –

As at March 31, 2018 4,50,008 45,00,080

TheCompanyhasoneclassofequityshareshavingaparvalueofRs.10pershare.Eachshareholderiseligibleforonevotepershareheld.ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.Intheeventofliquidation,theequityshareholdersareeligibletoreceivetheremainingassetsoftheCompanyafterdistributionofallpreferentialamounts,inproportiontotheirshareholding.

(ii) Shares held by holding company


EquitySharesof`10eachfullypaidupheldby: ITCLimited,theholdingCompany 4,50,002 4,50,002 HeldbymanagementpersonnelasnomineesofITCLimited 6 6

(iii)Details of shareholders holding more than 5% shares in the Company


Number of shares % holding Numberofshares %holding

ITCLimited,theholdingcompany 4,50,002 99.98% 4,50,002 99.98%

HeldbymanagementpersonnelasnomineesofITCLimited 6 0.02% 6 0.02%

Note 9(a): Provisions


Non-current

Provision for employee benefits (Refer Note 14)

Retirementbenefits

Otherbenefits

57,23,136

46,92,600

80,65,195

85,63,193Total provision 1,04,15,736 1,66,28,388

Note 9(b): Provisions


Current

Provision for employee benefits (Refer Note 14)

Retirementbenefits

Otherbenefits

57,75,899

42,79,500

34,22,078

40,40,085Total provision 1,00,55,399 74,62,163

Note 10(b) : Other financial liabilities


CurrentEmployeebenefitspayablePayabletoholdingCompany(ReferNote21)

39,24,775 15,84,256

1,94,10,0837,76,89,136

Total other financial liabilities 55,09,031 9,70,99,219

Note 10: Financial liabilities

Note 10(a) : Trade payables


CurrentTotaloutstandingduesofmicroandsmallenterprises#Totaloutstandingduesofcreditorsotherthanmicroandsmallenterprises

–

1,64,62,523 –

1,74,71,889

Total trade payables 1,64,62,523 1,74,71,889

#TheCompany,basedontheinformationavailableonthestatusofthesuppliers,doesnothaveanyduestoenterprisescoveredundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.

148



Note 14: Employee benefits expense

For the year ended March 31, 2018

Fortheyearended March31,2017

Salary,wagesandbonusReimbursementofremunerationofdeputedmanagersSharebasedpaymentsexpensefordeputedmanagersContributiontoemployeesprovidentandotherfundsStaffwelfareexpenses

19,68,49,269 3,39,76,528 2,64,74,501 1,28,16,556 1,15,74,171

21,24,70,2233,64,68,8483,49,61,48492,63,438

1,33,73,802

Less:Recoveries*28,16,91,025

12,71,96,94930,65,37,79514,22,89,060

Total employee benefit expense 15,44,94,076 16,42,48,735 *Recoveriesofsalarycostofdeputedpersonnelfromalliances.TheCompanyhasaccountedforthedefinedbenefitandretirementbenefitplanandcontributionschemeasunder:[a] Defined benefit plan / long term compensated absences Gratuity : The employees are entitled to gratuity that is computed as half-month’s salary, for every completed year of service and is payable on retirement

termination.TheCompanymakesprovisionofsuchgratuityliabilityinthebooksofaccountsonthebasisofactuarialvaluation.TheCompanypayscontributiontoLifeInsuranceCorporationtofunditsplan.

Leaveencashment:Theemployeesareentitledforleaveforeachyearofserviceandpartthereofandsubjecttothelimitsspecified,theunavailedportionofsuchleavescanbeaccumulatedorencashedduring/attheendoftheserviceperiod.Theplanisunfunded.

a) Thereconciliationofopeningandclosingbalancesofthepresentvalueofdefinedbenefitobligationsareasunder:

Gratuity

Presentvalueofobligation

Fairvalueofplanassets

Netamount

April 01, 2016 1,12,60,214 (1,30,12,152) (17,51,938)Currentservicecost 29,57,246 - 29,57,246Pastservicecost - - - Interestexpense/(income) 7,37,192 (9,09,089) (1,71,897)Total amount recognised in profit or loss 36,94,438 (9,09,089) 27,85,349 RemeasurementsReturnonplanassets,excludingamountsincludedininterestexpense/(income) - 29,048 29,048(Gain)/lossfromchangeindemographicassumptions - - - (Gain)/lossfromchangeinfinancialassumptions 2,19,600 - 2,19,600Experience(gains)/losses 1,86,142 - 1,86,142Changeinassetceiling,excludingamountsincludedininterestexpense - - - Total amount recognised in other comprehensive income 4,05,742 29,048 4,34,790 Contributions:EmployersPlanparticipants - (2,00,000) (2,00,000)Benefitpayments (28,61,968) 28,61,968 - March 31, 2017 1,24,98,426 (1,12,30,225) 12,68,201

Note 11: Other current liabilities


DeferredrevenuereceivedinadvanceAdvancefromcustomersStatutoryduesincludingprovidentfundandtaxdeductedatsource

47,04,531 1,44,84,460 1,10,58,020

79,33,0311,89,42,53548,43,718

Total other current liabilities 3,02,47,011 3,17,19,284

Note 12: Revenue from operations


FortheyearendedMarch31,2017

Rendering of services

-Operatingandmarketingservices

25,88,03,180 27,78,36,811Total revenue 25,88,03,180 27,78,36,811

Note 13 : Other income



Interestincomefromfinancialassetsatamortisedcost-Onfixeddeposits-OnincometaxrefundNetgainonfinancialassetsmandatorilymeasuredatfairvaluethroughprofitorlossNetgainonsaleofinvestmentsLiabilitiesnolongerrequiredwritten-backNetforeignexchangegainsMiscellaneousincome

– 6,01,590 9,15,133

82,63,183 54,00,537

– 19,47,358

5,52,42658,386

15,65,9501,01,60,97224,63,036

6,86526,61,175

Total other income 1,71,27,801 1,74,68,810

149



Presentvalueofobligation


Netamount

April 01, 2017 1,24,98,426 (1,12,30,225) 12,68,201

Currentservicecost 26,24,749 - 26,24,749

Pastservicecost - - -

Interestexpense/(income) 7,48,318 (7,30,576) 17,742

Total amount recognised in profit or loss 33,73,067 (7,30,576) 26,42,491

Remeasurements

Returnonplanassets,excludingamountsincludedininterestexpense/(income) - (80,127) (80,127)

(Gain)/lossfromchangeindemographicassumptions (1,37,089) - (1,37,089)

(Gain)/lossfromchangeinfinancialassumptions (4,61,860) - (4,61,860)

Experience(gains)/losses (6,25,861) - (6,25,861)

Changeinassetceiling,excludingamountsincludedininterestexpense - - -

Total amount recognised in other comprehensive income (12,24,810) (80,127) (13,04,937)

Contributions:

Employers

Planparticipants - (12,00,000) (12,00,000)

Benefitpayments (28,24,464) 28,24,464 -

March 31, 2018 1,18,22,218 (1,04,16,464) 14,05,754

The net liability disclosed above relates to funded and unfunded plans are as follows:

March 31, 2018 March31,2017

Presentvalueoffundedobligations 1,18,22,218 1,24,98,426

Fairvalueofplanassets (1,04,16,464) (1,12,30,225)

Fundedstatus 14,05,755 12,68,201

Effectofassetceiling - -

Netdefinedbenefitliability(asset) 14,05,755 12,68,201

Major Category of Plan Assets as a % of the Total Plan Assets

LifeInsuranceCorporationofIndia 100% 100%

Significantestimates:actuarialassumptionsandsensitivity

Thesignificantactuarialassumptionswereasfollows:

March 31, 2018 March31,2017

Discountrate 7.50% p.a. 6.75%p.a.

SalaryGrowthRate 5.00% p.a. 6.00%p.a.

AttritionRate 38.00% p.a. 25.00%p.a.

Sensitivity Analysis

Thesensitivityanalysisbelowhasbeendeterminedbasedonreasonablypossiblechangeoftherespectiveassumptionsoccurringattheendofthereportingperiod,

whileholdingallotherassumptionsconstant.Thesesensitivitiesshowthehypotheticalimpactofachangeineachofthelistedassumptionsinisolation.Whileeach

ofthesesensitivitiesholdsallotherassumptionsconstant,inpracticesuchassumptionsrarelychangeinisolationandtheassetvaluechangesmayoffsettheimpact

tosomeextent.Forpresentingthesensitivities,thepresentvalueofthedefinedbenefitobligationhasbeencalculatedusingtheprojectedunitcreditmethodatthe

endofthereportingperiod,whichisthesameasthatappliedincalculatingtheDefinedBenefitObligationpresentedabove.Therewasnochangeinthemethods

andassumptionsusedinthepreparationofsensitivityanalysisfrompreviousyear.

DefinedBenefitObligation

As AtMarch 31, 2018

`

As AtMarch31,2017

`

DiscountRate+100basispoints 1,16,07,387 1,21,35,084

DiscountRate-100basispoints 1,20,46,883 1,28,86,657

SalaryIncreaseRate+1% 1,19,93,160 1,28,24,742

SalaryIncreaseRate–1% 1,16,55,959 1,21,86,953

AttritionRate+1% 1,18,09,091 1,24,64,133

AttritionRate–1% 1,18,35,089 1,25,32,801

150



Leave encashment

Presentvalueof obligation


Netamount

April 01, 2016 1,14,33,189 - 1,14,33,189

Currentservicecost 14,13,584 14,13,584

Pastservicecost - -

Interestexpense/(income) 7,51,006 7,51,006

Total amount recognised in profit or loss 21,64,590 - 21,64,590

Remeasurements

Returnonplanassets,excludingamountsincludedininterestexpense/(income) - - -

(Gain)/lossfromchangeindemographicassumptions - - -

(Gain)/lossfromchangeinfinancialassumptions 2,12,904 - 2,12,904

Experience(gains)/losses 5,16,150 - 5,16,150


Total amount recognised in other comprehensive income 7,29,054 - 7,29,054

Contributions:

Employers

Planparticipants - - -

Benefitpayments (28,39,560) - (28,39,560)

March 31, 2017 1,14,87,273 - 1,14,87,273

Presentvalueof obligation


Netamount

April 01, 2017 1,14,87,273 - 1,14,87,273

Currentservicecost 12,37,993 - 12,37,993

Pastservicecost - - -

Interestexpense/(income) 6,74,301 - 6,74,301

Total amount recognised in profit or loss 19,12,294 - 19,12,294

Remeasurements

Returnonplanassets,excludingamountsincludedininterestexpense/(income) - - -

(Gain)/lossfromchangeindemographicassumptions 2,22,709 - 2,22,709

(Gain)/lossfromchangeinfinancialassumptions (3,93,680) - (3,93,680)

Experience(gains)/losses (1,40,071) - (1,40,071)


Total amount recognised in other comprehensive income (3,11,042) - (3,11,042)

Contributions:

Employers

Planparticipants - - -

Benefitpayments (29,95,244) - (29,95,244)

March 31, 2018 1,00,93,281 - 1,00,93,281 Thesignificantactuarialassumptionswereasfollows:

March 31, 2018 March31,2017

Discountrate 7.50% p.a. 6.75%p.a.

SalaryGrowthRate 5.00% p.a. 6.00%p.a.

AttritionRate 38.00% p.a. 25.00%p.a. Sensitivity Analysis

DefinedBenefitObligation

As AtMarch 31, 2018

`

As AtMarch31,2017

`

DiscountRate+100basispoints 99,21,740 1,11,07,162

DiscountRate-100basispoints 1,02,72,413 1,17,34,434

SalaryIncreaseRate+1% 1,02,26,423 1,16,81,026

SalaryIncreaseRate–1% 99,63,653 1,11,52,890

AttritionRate+1% 1,01,06,347 1,14,29,592

AttritionRate–1% 1,00,79,616 1,13,91,014 [b] State plans (contribution scheme)

TheCompanydeposits anamountdeterminedat afixedpercentageofbasicpayeverymonth to theStateadministeredProvident Fund for thebenefitof theemployees.Accordingly,theCompany’scontributionduringtheyearthathasbeenchargedtorevenueamountsto` 78,94,415/-(Previousyear`87,97,537/-)

151


Note 17: Earnings per equity share

March 31, 2018 March31,2017ProfitaftertaxWeightedaveragenumberofsharesoutstanding

1,92,97,063 4,50,008

2,43,87,4624,50,008

Basic and diluted earnings per share 42.88 54.19

Note:Therearenodilutiveinstruments.

Notes forming part of the financial statements (Contd.)(allamountsinrupeesunlessotherwisestated)Note 15: Other expense



Repairsandmaintenance-othersPowerandfuelRatesandtaxesRent(Refernote22)PrintingandstationeryTravellingandconveyanceAdvertisement/salespromotionLegalexpensesConsultancy/professionalfeesPostageandtelephoneInsuranceInformationtechnologyservicesBaddebtswritten-offProvisionsfordoubtfuldebtsandotherfinancialassetsNetlossondisposalofproperty,plantandequipmentPaymenttotheauditors[Refernote15(a)]Expendituretowardscorporatesocialresponsibilityactivities[Refernote15(b)]Miscellaneous

35,05,408 6,98,114

55,660 50,44,788 4,04,183

1,59,04,562 1,43,47,910

36,73,751 39,62,276 21,23,348 2,53,536

48,50,508 9,76,995

2,39,76,456 44,467

5,49,123 18,09,000 10,48,616

29,30,50313,46,146

15,31568,35,372452,253

1,45,84,3561,14,00,35212,80,43161,20,79429,25,3412,11,029

55,73,81639,33,33265,32,3361,31,9614,69,207

19,20,00020,26,660

Total other expenses 8,32,28,701 6,86,89,204

Note 15 (a): Details of payments to auditors



Payment to auditors (excluding GST / service tax)As auditor:

Audit feesTaxauditfees

Fees for other servicesRe-imbursementofexpenses

3,50,000 1,00,000

50,000 49,123

3,50,00050,000

- 69,207

Total payments to auditors 5,49,123 4,69,207

Note 15 (b): Corporate social responsibility expenditure



ContributiontoITCRuralDevelopmentTrust 18,09,000 19,20,000Total 18,09,000 19,20,000AmountrequiredtobespentasperSection135oftheActAmountspentduringtheyearon

(i)Construction/acquisitionofanasset(ii)Onpurposesotherthan(i)above

18,08,891

- 18,09,000

19,18,759

-19,20,000

Note 16: Income tax expense (a) Income tax expense



Current taxCurrenttaxonprofitsfortheyearTotal current tax expenseDeferred taxDecrease/(increase)indeferredtaxassets(Decrease)/increaseindeferredtaxliabilitiesTotal deferred tax expense/(benefit)

2,36,28,000 2,36,28,000

(59,25,513) (2,76,556)

(62,02,069)

3,30,29,0003,30,29,000

31,90,3631,38,11133,28,474

Income tax expense 1,74,25,931 3,63,57,474

(b) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate

March 31, 2018 March31,2017ProfitbeforeincometaxexpensesIndiantaxrateTaxbasedonnormaltaxrateItemsnotconsideredwhiledeterminingtaxableprofitsEffectofdeferredtaxbalancesduetochangesinincometaxratenotifiedunderIncomeTaxAct,1961

3,67,22,994 27.55%

1,01,33,632 75,20,845 (2,28,546)

6,07,44,93633.06%

2,00,84,0981,18,76,72043,96,656

Total tax expense 1,74,25,931 3,63,57,474

152



Note 18: Financial Instruments and Fair Value Disclosures

Particulars Notes As at March 31, 2018 AsatMarch31,2017

Carrying value Fair value Carryingvalue Fairvalue

A. Financial assets

a)Measuredatamortisedcost

i)Tradereceivables(netofallowances) 6(b) 10,03,15,314 10,03,15,314 9,97,38,642 9,97,38,642

ii)Cashandcashequivalents 6(c) 60,32,846 60,32,846 1,75,21,447 1,75,21,447

iii)Otherfinancialassets 6(d) 5,78,54,872 5,78,54,872 4,66,32,869 4,66,32,869

Sub-total 16,42,03,032 16,42,03,032 16,38,92,958 16,38,59,858

b)Measuredatfairvaluethroughprofitorloss

i)Investmentsinmutualfunds 6(a) 9,95,15,133 9,95,15,133 20,12,75,112 20,12,75,112

Sub-total 9,95,15,133 9,95,15,133 20,12,75,112 20,12,75,112

Total financial assets 26,37,18,165 26,37,18,165 36,51,68,070 36,51,68,070

B. Financial liabilities

a)Measuredatamortisedcost

i)Tradepayable 10(a) 1,64,62,523 1,64,62,523 1,74,71,889 1,74,71,889

ii)Otherfinancialliabilities 10(b) 55,09,031 55,09,031 9,70,99,219 9,70,99,219

Total financial liabilities 2,19,71,554 2,19,71,554 11,45,71,108 11,45,71,108

Fair value hierarchy

Fairvalueofthefinancialinstrumentsisclassifiedinvariousfairvaluehierarchiesbasedonthefollowingthreelevels:

Level 1:Quotedprices(unadjusted)inactivemarketforidenticalassetsorliabilities.TheMutualFundsarevaluedusingtheclosingNAV.

Level 2: Inputsotherthanquotedpriceincludingwithinlevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices).

Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarketisdeterminedusingvaluationtechniqueswhichmaximizetheuseofobservablemarketdataandrelyaslittleaspossibleonentity-specificestimates.Ifsignificantinputsrequiredtofairvalueaninstrumentareobservable,theinstrumentisincludedinLevel2.

Level 3:Inputsfortheassetsorliabilitiesthatarenotbasedonobservablemarketdata(unobservableinputs)

Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theinstrumentisincludedinlevel3.Thisisthecasewithlistedinstrumentswheremarketisnotliquidandforunlistedinstruments.

Thefairvalueoftradereceivablesandpayablesisconsideredtobeequaltothecarryingamountsoftheseitemsduetotheirshort–termnature.

Thefollowingtablepresentsthefairvaluehierarchyofassetsandliabilitiesmeasuredatfairvalueonarecurringbasis.

Particulars FairValueHierarchy(Level) As at March 31, 2018 AsatMarch31,2017

Fairvalue Fairvalue

AFinancialAssetsa)Measuredatfairvaluethroughprofitorlossi)Investmentinmutualfunds 1 9,95,15,133 20,12,75,112

Totalfinancialassets 9,95,15,133 20,12,75,112

TherearenotransfersbetweenLevel1,Level2andLevel3duringtheyear.

Note 19: Financial risk management

TheCompany’sactivitiesexposeittoprimarilyCreditRiskandLiquidityRisk,whicharenotmaterialgiventhenatureofbusinessandlimitedriskundertakenbytheCompany.

TheCompany’sriskmanagementframeworkisdesignedtobringrobustnesstotheriskmanagementprocesseswithintheCompanyandtoaddresstherisksintrinsictooperations,financialsandcompliancesarisingoutoftheoverallstrategyoftheCompany.

a) Liquidity risk

Liquidity risk isdefinedas the risk that theCompanywillnotbeable to settleormeet itsobligationsas theybecomedue.TheCompany’s investmentdecisions relating todeploymentof surplus liquidityareguidedby the tenetsof safety, liquidityandreturn.TheCompanymanages its liquidity riskbyensuringthat itwillalwayshavesufficientliquiditytomeetitsliabilitieswhendue.Investmentsaremadewitharangeofmaturities,generallymatchingtheprojectedcashflowsandspreadingthesameacrosswiderangeofcounterparties.

Thetablebelowprovidesdetailsregardingtheremainingcontractualmaturitiesofsignificantfinancialliabilitiesatthereportingdate.

Particulars As at March 31, 2018

Contractual cash flows *

Carrying value 0 - 1 month 1 - 3 months More than 3 months Total

Tradepayable 1,64,62,523 1,64,62,523 – – 1,64,62,523

Otherfinancialliabilities 55,09,031 55,09,031 – – 55,09,031

Total 2,19,71,554 2,19,71,554 – – 2,19,71,554

Particulars AsatMarch31,2017

Contractualcashflows*

Carryingvalue 0-1month 1-3months Morethan3months Total

Tradepayable 1,74,71,889 1,74,71,889 – – 1,74,71,889

Otherfinancialliabilities 9,70,99,219 9,70,99,219 – – 9,70,99,219

Total 11,45,71,108 11,45,71,108 – – 11,45,71,108

* ThetablehasbeendrawnupbasedonundiscountedcashflowsoffinancialliabilitiesbasedontheearliestdateonwhichtheCompanycanberequiredtopay.Thetableincludesbothinterestandprincipalcashflows.

153



b) Credit risk CreditriskistheriskthatcounterpartywillnotmeetitsobligationsunderacontractwhichmayleadtoafinanciallosstotheCompany.TheCompanyisexposedtocreditriskfrom

itsoperatingactivities(primarilytradereceivables).

TheCompanyhasapolicyofextendingcreditonlyafterdueapprovalsandevaluationintermsoftheagreedterms.Basedonnegotiations,bankguaranteeisalsotakenfromsomeofthecustomerstowhomcreditisextended,butadjustmenttothesamearemadeonlybasedonmutualagreement.Suchcreditlimitsextendedtotradereceivablesaremonitoredbythemanagementcommitteeandprotectiveactioninitiatedtorecovertheamount.Inviewoftheshortnatureofitstradereceivables,theCompanymakesprovisionforbadanddoubtfuldebtsonanindividualbasis.WriteoffsaremadewiththeapprovaloftheBoardofDirectors.

Tradereceivablesareinitiallymeasuredattransactionvalue,whichisthefairvalueandsubsequentlyretainedatcostlessprovisionforimpairment.ImpairmentlossesarerecognisedintheprofitorlosswherethereisobjectiveevidencethattheCompanywillnotbeabletocollectallthedueamounts.

Interestisgenerallynotchargedand/orpaidoncustomerbalances.

Therearenosignificantconcentrationsofcreditriskwithrespecttotradereceivablesduetothediversecustomerbase.Ourhistoricalexperienceofcollectingreceivables,supportedbythelevelofdefault,sotradereceivablesareconsideredtobeasingleclassoffinancialassets.AllCustomerbalanceswhichareoverdueformorethan180daysareevaluatedforprovisionandconsideredforexpectedcreditlossprovisiononanindividualbasis.Basedonthehistorictrendandexpectedperformanceofthecustomers,theCompany,hascomputedexpectedcreditlossallowancesfordoubtfulreceivables.

Movementintheprovisionsforimpairmentoftradereceivablesisasfollows:

AsatMarch31,2018 AsAtMarch31,2017

Balanceatthebeginningoftheyear (3,92,97,514) (3,27,65,178)

Providedduringtheyear (2,51,00,000) (2,54,28,362)

Adjustedduringtheyear 11,23,544 1,88,96,026

Balanceattheendoftheyear (6,32,73,970) (3,92,97,514)

Note 20: Capital Management

Risk Management

TheCompany’sfinancialstrategyaimstoprovideadequatecapitalforitsgrowthplansin‘upscaletomidmarketsegment’forgeneratingsuperiorreturnsandsustainedstakeholdervalue.TheCompanyfundsitsoperationsmainlythroughinternalaccruals.TheCompanydoesnothaveborrowingsandcontinuestoinvestitssurplusfundsforitsfuturegrowthasagoingconcernwithinthetenetsofSafety,LiquidityandReturns.

Note 21: Related party disclosures

a) Names of related parties and nature of relationship:

i) Wherecontrolexists: HoldingCompany ITCLimited

ii) Key Management Personnel:

SureshKumar ManagingDirector(uptoFebruary1,2018)

SamirMecherivalappilChandrasekharan# ManagingDirector(w.e.f.February02,2018)

NakulAnand Director

JagdishSingh Director

iii) Other related parties with whom transactions have taken place during the year :

Associates InternationalTravelHouseLimited

EntityundercontroloftheITCGroup ITCInfotechIndiaLimited

JointVenture MaharajaHeritageResortsLimited

b) Summary of transactions / balances :

Transactions/balances HoldingCompany OtherRelatedParties KeyManagementPersonnel

March31,2018 March31,2017 March31,2018 March31,2017 March31,2018 March31,2017

1 Operatingandmarketingfees* 1,30,56,284 2,43,43,399 - - - -

2 Purchaseofservices-ITCLimited-InternationalTravelHouseLimited-ITCInfotechIndiaLimited

3,82,305 - -

4,72,006 - -

- 32,84,8807,03,500

- 25,02,4618,51,250

- - -

- - -

3 Rent* 17,44,117 17,09,408 - - - -

4 Remunerationofmanagers/staffondeputationrecovered*-ITCLimited 1,57,25,255 2,05,22,588 - - - -

5 Remuneration of managers on deputation reimbursed ((includingremunerationof-ManagingDirector)` 94,41,869/-(Previousyear- `65,17,833/-)asdisclosedbelow)

6,08,24,904 7,14,51,899 - - - -

6 Dividendpayments 56,25,100 - - - - -

7 Expense recovered during the year (amount due on account ofpaymentsmadeonbehalfofrelatedparties)-ITCLimited-MaharajaHeritageResortsLimited

92,45,587 -

29,70,981 -

- 12,636

- 34,729

- -

- -

154



Transactions/balances HoldingCompany OtherRelatedParties KeyManagementPersonnel

March31,2018 March31,2017 March31,2018 March31,2017 March31,2018 March31,2017

8 Expensereimbursedduringtheyear(amountduetorelatedpartiesonaccountofpaymentsmadebythemonbehalfoftheCompany)-ITCLimited(including remuneration of Suresh Kumar - Managing Director ` 5,00,000/-(Previousyear-` 600,000/-))-InternationalTravelHouseLimited

3,46,69,790

-

1,78,87,831

-

-

84,569

-

89,159

-

-

-

-

9 RemunerationtoKeyManagementPersonnel-SureshKumar-SamirMecherivalappilChandrasekharan

- -

- -

- -

- -

80,94,15529,30,116

74,20,374 -

10 ClosingBalances:(i)Tradereceivables

-ITCLimited(ii)Othercurrentassets

-ITCLimited(iii)Tradepayables

-ITCLimited-InternationalTravelHouseLimited

(iv)Otherfinancialliabilities-ITCLimited

3,74,139

7,79,804

48,62,790 -

15,84,256

13,72,356

11,77,233

43,44,754 -

7,76,89,136

-

-

- 4,48,256

-

-

-

- 1,40,666

-

-

-

- -

-

-

-

- -

-

* IncludesGST/Servicetax

# TheremunerationissubjecttotheapprovalofshareholdersintheensuingAnnualGeneralMeetingoftheCompany.

Note:TheremunerationpaidtotheManagingDirectorduetotheinadequacyofprofits,issubjecttotheapprovalofshareholdersbyspecialresolutionintheensuingAnnualGeneralMeetingoftheCompany.

Note 22: Lease arrangements

TheCompany’ssignificantleasingarrangementsareinrespectofoperatingleasesforpremises(residential,officeetc.).Theseleasingarrangementswhicharecancellablerangebetween11monthsand2yearsgenerally,orlonger,andareusuallyrenewablebymutualconsentonmutuallyagreeableterms.TheaggregateleaserentalspayablearechargedasrentunderNote15.

Note 23: Segment reporting

TheoperatingsegmentoftheCompanyhasbeenidentifiedinamannerconsistentwiththeinternalreportingprovidedtotheManagementCommitteeheadedbytheManagingDirector.TheCommitteeisthechiefoperatingdecisionmakerbasedonwhichthereisonlyoneoperatingsegmentinwhichtheCompanyoperatesi.e.operatinghotelsinthemid-markettoupscalesegmentandwithinonegeographicalsegmenti.e.India.TheCompanyisnotreliantonrevenuesfromoperationswithanysingleoperatinghotel,customeranddoesnotreceive10%ormoreofit’srevenuefromoperatingfeefromanysingleexternaloperatinghotel.Allthenon-currentassetarelocatedinIndia.

Note 24: Contingent Liability

As at March 31 , 2018 AsatMarch31,2017

ClaimsagainsttheCompanynotacknowledgedasdebts

IncometaxDemandsfromincometaxauthoritiesunderappealforassessmentyear2012-13 67,57,173 67,57,173

ItisnotpracticablefortheCompanytoestimatethetimingsoramountofcashoutflows,ifany,inrespectoftheabovependingresolutionoftheproceedings.

Note 25: Employee stock option

InformationinrespectofOptionsgrantedundertheITCEmployeeStockOptionSchemes(‘Schemes’):

TheeligibleemployeesdeputedfromITCLimited(ITC),havebeengrantedstockoptionsbyITCundertheITCEmployeeStockOptionSchemes(ITCESOS).Theseoptionsvestoveraperiodofthreeyearsfromthedateofgrantandareexercisablewithinaperiodoffiveyearsfromthedateofvesting.EachoptionentitlestheholderthereoftoapplyforandbeallottedtenOrdinarySharesofITCof`1.00eachuponpaymentofexerciseprice.

Theseoptionshavebeengrantedat‘marketprice’withinthemeaningoftheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014.ThefairvalueoftheoptionsgrantedisdeterminedbyITC,usingtheBlackScholesOptionPricingModel,foralltheOptioneescoveredundertheITCESOSasawhole.

TheCompanyhasrecognizedthecostofoptionsgranted,asstatedabove,asequitysettledsharebasedpaymentschemeinaccordancewithIndAS102–ShareBasedPayment,andtheCompany’sshareofthecostoffairvalueofsuchoptionshasbeenaccountedforbasedontheadvice/on-chargebyITC.

ThesummaryofmovementofsuchoptionsgrantedbyITCandstatusoftheoutstandingoptionsisasunder:


No. of Options No.ofOptions

Outstandingatthebeginningoftheyear 3,11,986 2,27,957

Add:Grantedduringtheyear* 27,815 37,800

Add:EffectofBonus - 1,06,681

Less:Lapsedduringtheyear 2,68,725 10,585

Less:Exercisedduringtheyear 6,747 49,867

Outstandingattheendoftheyear 64,329 3,11,986

Optionsexercisableattheendoftheyear 41,506 1,96,813

OptionsVestedandExercisableduringtheyear 13,036 1,29,128

TheWeightedaverageexercisepriceoftheoptionsgrantedundertheITCESOSiscomputedbyITCLimitedforthegroupasawhole.

*Includes17,750(Previousyear17,750)optionsgrantedtotheKeyManagementPersonneloftheCompany.Sincesuchoptionsarenottradeable,noperquisiteorbenefitisimmediatelyconferreduponanemployeebysuchgrant.

155



InaccordancewithIndAS102,theCompanyhasrecognisedanamountof` 2,64,74,501(PreviousYear`3,49,61,484)(ReferNote14)bywayofsharebasedpayments.SuchchargehasbeenrecognisedasemployeebenefitsexpensewithcorrespondingcredittoPayables.Outoftheabove,`1,86,74,326(PreviousYear`1,61,63,505)isattributabletokeymanagementpersonnel[Mr.SureshKumar`1,86,74,326(PreviousYear`1,61,63,505)]

Note 26: The Financial statements were authorised for issue by the directors on April 18, 2018

For Price Waterhouse Chartered Accountants LLP OnbehalfoftheBoardofDirectorsFirmRegistrationNo.:012754N/N500016 AshokNarayanaswamy SamirMecherivalappiChandrasekharan JagdishSinghPartner ManagingDirector DirectorMembershipNumber:095665 DIN08064002 DIN00042258Place:Gurugram Place:Gurugram Place:GurugramDate:April18,2018 Date:April18,2018 Date:April18,2018

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