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You can view full text of the latest Director's Report for the company.

BSE: 500850ISIN: INE053A01029INDUSTRY: Hotels, Resorts & Restaurants

BSE   ` 145.25   Open: 140.95   Today's Range 139.45
145.70
+4.00 (+ 2.75 %) Prev Close: 141.25 52 Week Range 121.15
164.10
Year End :2019-03 

To the Members

The Directors have pleasure in presenting the 118th Annual Report on the performance of your Company together with its Audited Financial Statements for the Financial Year 2018-19:

FINANCIAL RESULTS

Rs. crores

Standalone

Consolidated

Particulars |

2018-19

2017-18

2018-19

2017-18

Total Income

2870.91

2639.34

4595.38

4165.28

Profit before Depreciation, Finance Costs, Tax and Exceptional items and share of equity accounted investees

819.94

684.19

913.11

732.08

Less: Finance Costs

158.64

193.43

190.13

269.04

Less: Depreciation

169.10

151.34

327.85

301.20

Profit before Tax & Exceptional Items and share of equity accounted investees

492.20

339.42

395.13

161.84

Add/(Less): Exceptional Items

(74.66)

(55.19)

6.58

22.45

Profit before Tax

417.54

284.23

401.71

184.29

Less: Provision for Tax

153.84

136.46

157.12

121.06

Profit after Tax, before Non- Controlling interest and share of equity accounted investees

263.70

147.77

244.59

63.23

Add: Share of Profit of Associates and Joint Ventures net of tax

NA

NA

51.53

40.29

Less: Non- Controlling Interest

NA

NA

9.30

2.65

Profits after Tax attributable to Owners of the Company

263.70

147.77

286.82

100.87

Retained earnings: Balance brought forward

411.84

268.71

(56.86)

(193.63)

Other Comprehensive Income attributable to Owners of the Company

(6.53)

(5.80)

(6.56)

(7.11)

Transfer from Reserve Fund

-

42.42

-

42.42

Realised gain on Equity Shares through Other Comprehensive Income

-

0.41

-

42.84

Adjustment on account of Joint Venture

NA

NA

(2.48)

-

Amount Available for Appropriation

669.01

453.51

220.92

(14.61)

Appropriations:

Dividend on equity shares (excluding tax)

47.57

34.62

47.57

34.62

Tax on dividends

5.74

7.05

7.42

7.63

Transfer to Debenture Redemption Reserve

11.93

-

11.93

-

Total Appropriations

65.24

41.67

66.92

42.25

Retained Earnings: Balance carried forward

603.77

411.84

154.00

(56.86)

FINANCIAL HIGHLIGHTS - STANDALONE

IHCL’s operational inventory stands at 149 hotels with 17,888 rooms. During Financial Year 2018-19, three Taj properties in Udaipur, Shimla and Uttarakhand and two Vivanta properties in Katra and Kathmandu were opened. Additionally, your Company re-opened the Taj Connemara, Chennai and successfully retained the iconic Taj Mahal Hotel, Mansingh Road, Delhi through a bidding process. Your Company also launched IHCL’s corporate brand identity, SeleQtions and Ama Trails & Stays brands. The Group’s portfolio includes 46 hotels under the Ginger brand, which has an aggregate inventory of 4,021 rooms. Your Company continues to pursue expansion both in the domestic and international market, and unlocking value by monetizing its assets to achieve sustainable and profitable growth.

Income

The Total Income for the year ended March 31, 2019 at Rs. 2,870.91 crores represents a growth of 9% over Financial Year 2017-18. Within the overall revenue, Room Revenue increased by 6%, driven by improved average rate per room and occupancies. Food and Beverage Revenues increased by 11% over Financial Year 2017-18, aided by growth in restaurant sales and banqueting income. Other Operating Income, Management and Operating Fees also increased by 6% as compared to Financial Year 2017-18.

Dividend Income was higher by Rs. 19.02 crores supplemented by gain from investment in mutual funds of Rs. 11.32 crores and profit on disposal of non-core assets of Rs. 13.70 crores. However, interest income was lower than the Financial Year 2017-18 by Rs. 11.01 crores due to further deployment of temporary surplus from the rights issue proceeds.

Depreciation and Finance Costs

Depreciation at Rs. 169.10 crores was higher than Financial Year 2017-18 mainly due to depreciation on capitalisation arising from renovations at hotels and new hotel openings. Finance costs for the year ended March 31, 2019 at Rs. 158.64 crores was lower than Financial Year 2017-18 cost of Rs. 193.43 crores mainly due to repayment of debt out of rights issue proceeds.

Profit before Tax and Exceptional Items

Profit before Tax and Exceptional Items stood at Rs. 492.20 crores, which represents an increase of 45%, as compared to the Financial Year 2017-18 .

Exceptional Items

Exceptional Items include exchange loss on change in Fair value of Cross currency swap derivative contracts Rs. 41.03 crores and a provision for impairment due to losses in an overseas subsidiary of Rs. 31.71 crores. Corresponding figures for Financial Year 2017-18 were a gain of Rs. 25.51 crores and impairment of Rs. 80.50 crores.

Borrowings

The total borrowings stood at Rs. 1,784.05 crores as on March 31, 2019 as against Rs. 1,783.88 crores as on March 31, 2018.

Profit before and after tax

The Profit before Tax for the Financial Year 2018-19 was at Rs. 417.54 crores, as compared to Rs. 284.23 crores for Financial Year 2017-18. The Profit after Tax for the year under review was at Rs. 263.70 crores, as compared to Rs. 147.77 crores for Financial Year 2017-18 .

FINANCIAL HIGHLIGHTS - CONSOLIDATED

The consolidated income of your Company for the year ended March 31, 2019 aggregated Rs. 4,595.38 crores as against Rs. 4,165.28 crores for Financial Year 2017-18. Revenue from operations increased by 10% from Rs. 4,103.55 crores to Rs. 4,512.00 crores, primarily driven by improved business performance in the domestic as well as international portfolio.

Profit before Tax and Exceptional Items and share of profits of equity accounted investees stood at Rs. 395.13 crores as compared to Rs. 161.84 crores in Financial Year 2017-18.

Profit after Tax attributable to Owners of the Company aggregated to Rs. 286.82 crores for the year significantly improved when compared to previous year’s figure of Rs. 100.87 crores. The improvement was on account of improved business, margins, and lower finance costs.

APPROPRIATIONS

Dividend

Board of Directors recommend a dividend at the rate of 50% i.e. Rs. 0.50 per share (Previous Year Rs. 0.40 per share). The dividend on Equity Shares, if approved by the Members would involve a cash payout of Rs. 71.69 crores, including dividend distribution tax of Rs. 12.22 crores.

Pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), the Company has adopted the Dividend Distribution Policy which is attached as Annexure-I. Payment of Dividend is as per the said Policy.

Debentures

During Financial Year 2018-19, neither the Company raised any debt by way of Debentures, nor were any debentures redeemed.

Capital Expenditure

During Financial Year 2018-19, your Company incurred Rs. 246.88 crores towards capital expenditure, a majority of which was towards the Taj Exotica Resort & Spa, Andaman and Taj Connemara, Chennai projects, as well as renovations at certain hotels.

Fixed Deposits

Your Company does not accept and/or renew Fixed Deposits from the general public and shareholders. There were no over dues on account of principal or interest on public deposits other than the unclaimed deposits at the end of Financial Year 2018-19 which is Rs. 0.39 crore (Previous year Rs. 0.69 crore).

Loans, Guarantees or Investments

Your Company falls within the scope of the definition “infrastructure company” as provided by the Companies Act, 2013 (‘Act’). Accordingly, the Company is exempt from the provisions of Section 186 of the Act with regards to Loans, Guarantees and Investments.

Transfer to reserves

An amount of Rs. 11.93 crores has been transferred from Retained Earnings to Debenture Redemption Reserve in order to allocate sufficient funds towards future redemption of debentures. Further the Board has decided to retain the entire amount of profits for Financial Year 2018-19 in the profit and loss account.

CORPORATE SOCIAL RESPONSIBILITIES (‘CSR’)

The brief outline of the CSR policy of the Company and the initiatives undertaken by the Company on CSR activities during the year under review are set out in Annexure II of this Report in the format prescribed under the Companies (Corporate Social Responsibility Policy) Rules, 2014. The CSR policy is also available on the website of your Company at https://www.ihcltata.com/investors/. For other details regarding the CSR Committee please refer to the Corporate Governance Report, which is a part of the Annual Report.

INTERNAL FINANCIAL CONTROL SYSTEM AND ADEQUACY

According to Section 134(5)(e) of the Act, the term Internal Financial Control (‘IFC’) means the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

The Company’s internal control systems are commensurate with its size and the nature of its operations. The Company has a strong and independent in-house Internal Audit (‘IA’) department. The Audit Committee also deliberates with the members of the management, considers the systems as laid down and meets the internal auditors and statutory auditors to ascertain their views on the internal financial control systems. Further details are provided in the Management Discussion and Analysis Report which forms a part of the Annual Report.

VIGIL MECHANISM

Your Company’s Vigil Mechanism provides a formal mechanism to the Directors and Employees to report their concerns about unethical behaviour, actual or suspected fraud or violation of the Company’s Code of Conduct or ethics policy. The Policy provides for adequate safeguards against victimization of Directors and Employees who avail of the mechanism and also have provided them direct access to the Chairman of the Audit Committee. It is affirmed that no personnel of the Company has been denied access to the Audit Committee.

The Company has revised the Whistle-Blower policy to insert “reporting of incidents of leak or suspected leak of Unpublished Price Sensitive Information (UPSI)” in terms of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, as amended from time to time and the revised policy was approved by the Audit Committee and the Board. The said policy is available on the Company’s website at https://www.ihcltata.com/investors/.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in Form No. MGT-9 as per Sections 92(3) and 134(3) of the Act read with the Rules framed thereunder are given as Annexure III, which forms part of this Report. The Annual Return for Financial Year 2017-18 is also available on the Company’s website at www.ihcltata.com

AUDIT COMMITTEE

The details pertaining to the composition of the Audit Committee, number of meetings etc. are included in the Corporate Governance Report, which forms part of the Annual Report.

RELATED PARTY TRANSACTIONS

In line with the requirements of the Act and the Listing Regulations, your Company has formulated a policy on dealing with Related Party Transactions (‘RPTs’) which inter alia provides for the parameters to grant omnibus approval(s) by the Audit Committee. The Policy is available on the Company’s website at https://www.ihcltata.com/investors/.

The Policy intends to ensure that proper reporting, approval and disclosure processes are in place for all transactions between the Company and Related Parties. A statement on RPT’s specifying the details of the transactions, pursuant to each omnibus approval granted, has been placed on a quarterly basis for review by the Audit Committee.

All contracts/arrangements/transactions entered by the Company during the year under review with related parties were on an arm’s length basis, in the ordinary course of business and were in compliance with the applicable provisions of the Act.

Further, in Financial Year 2018-19, there were no material transactions of the Company with any of its related parties.

Accordingly, the Company has not provided Form No. AOC-2. RISK MANAGEMENT

The Risk Management Committee (‘RMC’) is entrusted with the responsibility to frame, implement and monitor the Risk Management plan and also ensure its effectiveness. The Company has a Risk Management Policy in accordance with the provisions of the Act and the Listing Regulations. The Audit Committee has an oversight in the area of financial risk and controls. Other details including details pertaining to various risks faced by your Company, and also development and implementation of risk management policy are provided in the Management Discussion and Analysis Report which forms part of this Report.

CONSOLIDATED FINANCIAL STATEMENTS

Your Company announces its consolidated financial statements on a quarterly basis. As required under the Listing Regulations, consolidated financial statements of the Company and its Subsidiaries, prepared in accordance with the Accounting Standards, duly audited by the Statutory Auditors, form a part of the Annual Report and are reflected in the consolidated financial statements of the Company.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

Your Company has 21 Subsidiaries, 8 Joint Ventures and 6 Associates as on March 31, 2019.

During Financial Year 2018-19, there has been no change in the Company’s subsidiary / associates / joint ventures.

The Company has adopted a Policy for determining Material Subsidiaries in line with Regulation 16 of the SEBI Listing Regulations. The Policy, as approved by the Board, is uploaded on the Company’s website which can be accessed at https://www.ihcltata.com/investors/.

Pursuant to the provisions of Section 129(3) of the Act and the Rules framed thereunder, a statement containing the salient features of the financial statements of the subsidiaries, is attached to the Financial Statements in Form No. AOC-1 which forms part of this Report.

Pursuant to the provisions of Section 136 of the Act, the Company will make available the said financial statements and related detailed information of the Subsidiary Companies upon the request by any Member of the Company or its Subsidiary. The Financial Statements of the Company and its subsidiaries will also be kept open for inspection by any Member at the Registered Office of the Company and the Subsidiary Companies on all working days (i.e. Monday to Friday) during the business hours and also at the venue of the AGM till the time the meeting is in process. The separate audited accounts in respect of subsidiaries are also available on the website of your Company at https://www.ihcltata.com/investors/.

DIRECTORS AND KEY MANAGERIAL PERSONNEL (‘KMP’)

Appointments

The Company has on the recommendations of the Nomination and Remuneration Committee (‘NRC’) and in accordance with the provisions of the Act and the Listing Regulations, appointed Mr. Mehernosh Kapadia, who retired as an Executive Director of the Company on May 23, 2018 and Mr. Venu Srinivasan as Additional Directors of the Company with effect from August 10, 2018, subject to approval of the Members at the Annual General Meeting (‘AGM’). They shall hold office as Additional Directors upto the date of the forthcoming AGM. Pursuant to Section 152 and other applicable provisions of the Act, and the Articles of Association of your Company, one-third of the Directors (other than Independent Directors) as are liable to retire by rotation, shall retire every year and, if eligible, offer themselves for re-appointment at every AGM. Consequently, Mr. Puneet Chhatwal retires by rotation and being eligible, offers himself for re-appointment in accordance with provisions of the Act.

The approval of the shareholders for their appointments/ re-appointment as Directors has been sought in the Notice convening the AGM of your Company. The disclosures pertaining to Directors being appointed/ re-appointed as required pursuant to Regulation 36 of the Listing Regulations, Clause 1.2.5 of the Secretarial Standards 2 are given in the explanatory statement to the Notice convening the AGM, forming part of the Annual Report.

Further during the year under review, the non-executive directors of the Company had no pecuniary relationship or transactions with the Company, other than sitting fees, commission and reimbursement of expenses incurred by them for the purpose of attending meetings of the Board/ Committee of the Company.

Independent Directors

In terms of Section 149 of the Act, and Regulation 16(1) of the Listing Regulations Mr. Deepak Parekh, Mr. Nadir Godrej, Ms. Ireena Vittal, Mr. Gautam Banerjee and Ms. Vibha Paul Rishi are the Independent Directors of the Company as on March 31, 2019. The Independent Directors have submitted a declaration that each of them meet the criteria for independence as laid down under Section 149(6) of the Act read with Rules framed thereunder and Regulation 16 of the Listing Regulations and that they are not aware of any circumstance or situation, which exists or is anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence as required under Regulation 25 of Listing Regulations.

Key Managerial Personnel (KMP)

Pursuant to the provisions of Section 203 of the Act, the KMP’s of your Company for Financial Year 2018-19 were Mr. Puneet Chhatwal, Managing Director & CEO, Mr. Mehernosh Kapadia, Executive Director - Coporate Affairs (Retired as Non- Executive Director w.e.f. May 23, 2018) Mr. Giridhar Sanjeevi, Executive Vice President & CFO, and Mr. Beejal Desai, Senior Vice President - Legal & Company Secretary.

BOARD MEETINGS

During the year under review, five Board Meetings were held and the intervening gap between the meetings did not exceed the period of one hundred and twenty days, the details of which are given in the Corporate Governance Report.

BOARD EVALUATION

The annual evaluation process of the Board of Directors, individual Directors and Committees was conducted in accordance with the provisions of the Act and the Listing Regulations.

At a separate meeting of Independent Directors, performance of Non-Independent Directors and the Board as a whole was evaluated. The Independent Directors in the said meeting also evaluated the quality, quantity and timeliness of flow of information between the company management and the Board that is necessary for the Board to effectively and reasonably perform their duties. Additionally, the Chairman of the Board was also evaluated after taking into account the views of Executive Directors and Non-Executive Directors in the aforesaid meeting.

The Board evaluated its performance after seeking inputs from all the directors on the basis of criteria such as the Board composition and structure, effectiveness of Board processes, information and functioning, etc. Further, the performance of the Committees was evaluated by the Board after seeking inputs from the committee members on the basis of criteria such as the composition of committees, effectiveness of committee meetings, etc. The above criteria are in line with the Guidance Note on Board Evaluation issued by SEBI on January 5, 2017.

The Board and the NRC reviewed the performance of individual Directors on the basis of criteria such as the contribution of the individual Director to the Board and Committee Meeting like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc.

In the Board meeting that followed the meeting of the Independent Directors and the meeting of NRC, performance of the Board, its Committees, and individual Directors was also discussed. Performance evaluation of Independent Directors was done by the entire Board, excluding the Independent Director being evaluated.

CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR

The NRC has formulated the criteria for determining qualifications, positive attributes and independence of Directors in terms of provisions of Section 178 (3) of the Act and the Listing Regulations as stated under:

Independence: A Director will be considered as an ‘Independent Director’ if he/she meets with the criteria for ‘Independence’ as laid down in the Act and the Rules frame thereunder Listing Regulations.

Qualifications: A transparent Board nomination process is in place that encourages diversity of thought, experience, knowledge, perspective, age and gender. It is ensured that the Board comprises a mix of members with different educational qualifications, knowledge, age, gender and who possesses adequate experiance in banking and finance, accounting and taxation, ecomonics, legal and regulatory matters, consumer industry, hospitality sector and other disciplines related to the Company’s business.

Positive Attributes: Apart from the duties of Directors as prescribed under the Act, the Directors are expected to abide by the respective code of conduct as applicable to them.

POLICY ON REMUNERATION OF DIRECTORS

Your Company has adopted a Remuneration Policy for the Directors, KMP, Senior Management and other employees, pursuant to the provisions of the Act and the Listing Regulations.

The key principles governing your Company’s Remuneration Policy and connected matter as provided in section 178(3) of the Act has been disclosed in the Corporate Governance Report which forms part of this Report.

It is affirmed that the remuneration paid to Directors, KMP and all other employees is as per the Remuneration Policy of your Company. The Remuneration Policy for Directors, KMP and other Employees is uploaded on the website of your Company at https://www.ihcltata.com/investors/.

PARTICULARS OF EMPLOYEES

The disclosure pertaining to remuneration and other details as required to be furnished pursuant to Section 197 (12) read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is appended as Annexure V to this Report.

The statement containing particulars of top 10 employees and the employees drawing remuneration in excess of limits prescribed under Section 197 (12) of the Act read with Rule 5 (2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in a separate Annexure forming part of the Report. In terms of proviso to Section 136(1) of the Act, the Report along with Accounts are being sent to the shareholders excluding the aforesaid Annexure. The said Annexure is open for inspection at the Registered Office of the Company. Any member interested in obtaining a copy of the same may write to the Company Secretary at the Registered Office.

MATERIAL CHANGES AND COMMITMENT AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There are no material changes affecting the financial position of the Company subsequent to the close of Financial Year 2018-19 till the date of this Report.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS

During the year under review, no significant material orders were passed by the Regulators or Courts or Tribunals impacting the going concern status and your Company’s operations. However, Members attention is drawn to the Statement on Contingent Liabilities and Commitments in the Notes forming part of the Financial Statement.

STATUTORY AUDIT

At the 116th AGM of the Company held on August 21, 2017, B S R & Co LLP (‘BSR’), Chartered Accountants (Firm Registration No. 101248W/W-100022), were appointed as the Statutory Auditors of the Company by the Members for a term of five consecutive years effective from August 21, 2017. BSR has furnished a certificate of their eligibility and consent under Sections 139(1) and 141 of the Act and the Rules framed thereunder for their continuance as Statutory Auditors of the Company for Financial Year 2019-20.

The Report of the Statutory Auditors along with the Notes to Schedules forms part of the Annual Report and contains an Unmodified Opinion without any qualification, reservation, disclaimer or adverse remark.

The Statutory Auditors of the Company have not reported any fraud as specified in Section 143(12) of the Act.

COST AUDIT

The Company is not required to maintain cost records as specified by the Central Government under Section 148(1) of the Act.

SECRETARIAL AUDIT

Pursuant to the provisions of the Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors had appointed M/S Neville Daroga & Associates, Company Secretaries to undertake the Secretarial Audit of your Company for the Financial Year 2018-19. The Secretarial Audit Report is annexed herewith as Annexure IV. The Report does not contain any qualifications, reservation or adverse remarks or disclaimers.

COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD MEETINGS AND GENERAL MEETINGS

During Financial Year 2018-19, the Company has complied with the relevant provisions of Secretarial Standards issued by the Institute of Company Secretaries of India on Board Meetings and General Meetings.

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

A. Conservation of Energy: The Company has a longstanding history of stewardship through efficient management of all its assets and resources. The Company’s conscious efforts are aligned with the Tata ethos of keeping communities and environment at the heart of doing business. In line with IHCL’s commitment to safeguard the environment, we have been the flagbearers of responsible tourism through elimination of two million plastic straws accross all our properties. Our renewable energy proportion has taken a leap of 23% from 7% in the past three years. In this rapidly transforming world, our sustainability goals will certainly evolve as our industry grow and as per the needs arising in the society.

B. Technology Absorption: Nil

C. Foreign Exchange Earnings and Outgo:

- Earnings : Rs. 732.47 crores

- Outgo : Rs. 84.31 crores

DIRECTORS’ RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls and compliance systems established and maintained by your Company, work performed by the Internal, Statutory and Secretarial Auditors including audit of internal financial controls over financial reporting by the Statutory Auditors and reviews performed by the Management and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that your Company’s internal financial controls were adequate and effective during Financial Year 2018-19.

Accordingly, pursuant to Section 134(5) of the Act, the Board of Directors, to the best of their knowledge and ability, confirm that:

(i) in the preparation of the annual accounts for the year ended March 31, 2019, the applicable accounting standards have been followed and that there are no material departures;

(ii) they have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent in order to give a true and fair view of the state of affairs of your Company at the end of the financial year and of the profit of your Company for that period;

(iii) they have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance within the provisions of the Act, for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities;

(iv) they have prepared the annual accounts for the Financial Year ended March 31, 2019 on a ‘going concern’ basis;

(v) they have laid down internal financial controls for the Company which are adequate and are operating effectively;

(vi) they have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and are operating effectively.

PREVENTION OF SEXUAL HARASSMENT

Your Company has zero tolerance for sexual harassment at its workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at the workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (‘POSH Act’) and the Rules framed thereunder for prevention and redressal of complaints of sexual harassment at workplace.

An Internal Committee (IC) has been constituted in accordance with the provisions of the POSH Act to redress complaints received regarding sexual harassment and all the provisions regarding the constitution are complied with.

INTEGRATED REPORTING

IHCL has embarked on the journey of the Integrated Reporting framework prescribed by the International Integrated Reporting Council (‘IIRC’). This is the first year of our journey on Integrated Reporting. Through this Report, we aspire to provide to our stakeholders an all-inclusive depiction of the organisation’s value creation using both financial and non-financial resources. The Report strives to provide insights into our key strategies, operating environment, the operating risks and opportunities, governance structure and the Company’s approach towards long-term sustainability.

ACKNOWLEDGEMENT

The Directors thank the Company’s employees, customers, business partners, vendors, investors and lenders for their continuous support.

The Directors also thank the Government of India, Government of various states in India, Government of various countries and concerned Government departments and agencies for their co-operation.

The Directors appreciate and value the contribution made by every member of the IHCL family.

On behalf of the Board of Directors

N. Chandrasekaran

Chairman

Mumbai, April 30, 2019

Registered Office:

Mandlik House, Mandlik Road,

Mumbai 400 001.

CIN: L74999MH1902PLC000183

Tel.: 022 66395515 Fax: 022 22027442

Email: investorrelations@tajhotels.com

Website: www.ihcltata.com