(2023-24)
Dear Shareholders,
Your Directors have pleasure in presenting the 59th Annual Report together
with the audited accounts of the Corporation for the year ended 31st March,
2024.
1. During the Financial Year 2023-24, your corporation has reached remarkable heights,
achieving its highest-ever profit figures. The corporation has recorded a Revenue from
Operation of Rs. 526.58 crore, reflecting an impressive 16% increase compared to the
previous fiscal year of Rs. 455.31 corre. The Profit Before Tax (PBT) has surged to Rs.
109.93 crore marking a 34% rise over the preceding period, with a Profit After Tax (PAT)
of Rs. 71.86 crore. Increased operational efficiancy in operations and overall growth of
Tourism and Hospitality Sectors are the prime factors behind the impressive performance of
the Corporation during Financial Year 2023-24.
2. Performance Highlights
The highlights of the financial results of the Corporation (Standalone) are given
below:-
(Rs. in Crore)
S Particulars No. |
Audited 2023-24 |
Audited 2022-23 |
1 Revenue from Operations |
526.58 |
455.31 |
2 Total Income |
544.90 |
473.37 |
3 Profit before Tax |
109.93 |
82.08 |
4 Profit after tax |
71.86 |
56.29 |
5 EPS (In Rupees) |
8.38 |
6.56 |
6 Networth |
424.96 |
376.58 |
3. Division wise financial performance :
The Division wise financial performance of the Corporation is summarized as under:-
i) Hotels Division has achieved turnover of Rs. 333.68 crore during the year 2023-24 as
against Rs. 314.48 crore in the previous year, registering an increase of 6.11%. The
Division earned a profit of Rs. 90.85 crore as against a profit of Rs. 68.19 crore during
the previous year 2022-23.
ii) The turnover of Ashok Travels & Tours (ATT) Division during 2023-24 is Rs.
51.28 crore as against Rs. 60.11 crore during the year 2022-23. The ATT Division has
earned profit of Rs. 6.32 crore as against profit of Rs. 8.71 crore in the previous year.
iii) The turnover of the Ashok Events Division increased to Rs. 103.30 crore during
2023-24 from Rs. 51.08 crore during 2022-23 and it has earned a profit of Rs. 11.71 crore
as against profit of Rs. 5.25 crore in the previous year 2022-23.
iv) The turnover of Ashok International Trade Division (AITD) was Rs. 15.41 crore
during the year 2023-24 as against Rs. 15.98 crore in the previous year 2022-23. During
the year 2023-24, 14 duty free shops were in operation at seaports. The AIT division has
earned Profit before Tax (PBT) of Rs. 2.19 crore as compared to PBT of Rs. 2.32 crore in
the previous year.
v) The Engineering Division including SEL Projects achieved a turnover of Rs. 25.40
crore during the year 2023-24 as against the turnover of Rs. 13.71 crore in the previous
year 2022-23. It has incurred loss of Rs. 0.96 crore during 2023-24 against loss of Rs.
2.52 Crore during 2022-23.
vi) The Ashok Institute of Hospitality and Tourism Management (AIH&TM) achieved
turnover of Rs. 3.22 crore during 2023-24 as against a turnover of Rs. 3.85 crore in the
previous year 2022-23.
4. Capital Structure
There is no change in authorized and paid-up share capital of the Corporation. The
Authorized Share Capital of the Corporation is Rs. 150 crore and the paid- up Share
Capital is Rs. 85.77 crore as on 31st March, 2024.
5. Dividend
Board has recommended a dividend of Rs. 2.52 per share i.e. 25.2% on the equity share
capital of the company aggregating to Rs. 21.61 crore approximately.
Corporation's Dividend Distribution Policy is available at the website link https://
itdc.co.in/wp-content/uploads/2019/07/ ITDC-Dividend-Distribution-Policv.pdf
6. Transfer to Reserve
No amount has been transferred to the General Reserves.
7. Rating of ITDC vis-a-vis MoU targets
Performance Evaluation against MoU for F.Y. 2022-23 was done by the DPE. ITDC achieved
79.55 (Very Good) marks out of 100.
8. Management Discussion and Analysis
The report on the Management Discussion and Analysis is placed at Annexure-I.
9. Procurement from MSME
During the financial year 2023-24, the Corporation has procured 61% (previous year
70.72%) of total procurement of goods and services from Micro, Small and Medium
Enterprises (MSMEs) against the prescribed target of 25% as per the procurement policy of
Govt. of India. The procurement from MSMEs owned by SC/ST entrepreneurs is 0.4% while
procurement from MSMEs owned by Women Entrepreneurs is 2.61%. Further all tenders
contained a clause for exemption of tender fee and EMD for MSEs. Tender also contained the
clause for due preference to MSEs as per Gol guidelines. Continuous Vendor Registration
for MSEs is allowed through our websites and Vendor Development Programmes are conducted
at regular intervals for the MSEs.
10. Implementation of official language policy
During the year, the Corporation continued its efforts to promote the use of Hindi in
official work through promotion and training. Cash prizes were given to the
employees/Divisions under O.L. Incentive Award Schemes for doing prescribed quantity of
work in Hindi, for performing in Hindi through Unicode etc. Hindi Workshops were organized
to provide practical training in noting-drafting, Unicode, Google Voice Type and other
tasks in Hindi. Besides, the Corporation bagged consolation prize for the 2nd time for
“Best Implementation of O.L under the aegis of NARAKAS (Undertakings-1), Delhi. Hindi
Parv was celebrated from 14th-29th Sept, 2023 in Corporate Headquarters and all the Hotel
Units of ITDC. During this period, series of activities including various Hindi
competitions, quiz and workshops, etc. were conducted for creating an encouraging
environment to propagate and promote the use of Hindi language. Online Hindi Sangoshthi
was also held during Hindi Parv. Besides, banners, standees and posters were prepared
displaying quotations in Hindi.
11. Conservation of Energy & Technology Absorption
Commitment towards energy conservation remains in the units at various stages of
operations. Commercial considerations, energy conservation policies and practices play a
vital role in the endeavors made in this direction.
Since your Company's operations do not involve technology absorption, the particulars
as per Rule 8(3)(B) of the Companies (Accounts) Rules 2014 regarding technology absorption
are not applicable.
12. Foreign Exchange Earnings & Outgo
The Direct Foreign Exchange Earnings during the year 2023-24 is Rs. 15.40 crore against
Rs. 16.14 crore in the previous financial year 2022-23.
13. Subsidiary Companies
As on 31.03.2024, the Corporation has four subsidiary Companies, viz.
(i) Pondicherry Ashok Hotel Corporation Ltd.
(ii) Ranchi Ashok Bihar Hotel Corporation Ltd.
(iii) Utkal Ashok Hotel Corporation Ltd.
(iv) Punjab Ashok Hotel Company Ltd.
The Hotel Units were set up under the aforesaid subsidiary Companies at Puducherry,
Ranchi and Puri respectively. The Hotel project at Anandpur Sahib is incomplete.
The operation of Hotel unit at Puri is closed since March, 2004. Process for its
disinvestment has been started. Status of disinvestment has been given elsewhere in the
report.
Regarding incomplete project at Anandpur Sahib, Inter Ministerial Group (IMG) set up by
the Ministry of Tourism in its meeting held on 29.11.2018 has approved the transfer of the
incomplete project to the Government of Punjab. Status of disinvestment has been given
elsewhere in the report.
Operations of Hotel Ranchi Ashok have been closed w.e.f. 29.03.2018. IMG in its meeting
held on 13.09.2018 has accorded approval for sale of equity of ITDC in the JV Company to
the Government of Jharkhand. Status of disinvestment has been given elsewhere in the
report.
Hotel Pondicherry Ashok under Pondicherry Ashok Hotel Corporation Limited is also under
disinvestments process. All the subsidiary companies are under disinvestment process, the
status of disinvestment has been given elsewhere in the report.
The Annual Accounts of all the subsidiary companies have been audited and finalized and
the Consolidated Annual Accounts have been prepared and presented in this Annual Report. A
statement containing the salient features of the subsidiary companies forms part of the
Consolidated Annual Accounts 2023-24.
14. Vigil Mechanism and Whistle Blower Policy
The Corporation has a Whistle Blower Policy which is posted on the website https://
itdc.co.in/wp-content/uploads/2019/07/ Whistle-Blower-Policv.pdf. Being a Central
Public Sector Enterprise, the Corporation has a Vigilance Department. Chief Vigilance
Officer, the Head of the Vigilance Division, is under the direct control of the Central
Vigilance Commission (CVC), an independent Govt. Agency. During 2023-24, no employee
approached the Audit Committee through Whistle Blower Mechanism.
15. Board of Directors
During the year, Eight Board meetings were held to transact the business of the
Company.
The Board presently (on date of this report) comprises of five directors i.e. Managing
Director, Director (Finance), one Government Nominee Director and two Independent
Directors including one woman Independent Director as given below. Further, as on the date
of this Report, the post of Director (Commercial & Marketing) and one Independent
Director are vacant.
A) Non-Executive Chairman
Dr. Sambit Patra, Part Time NonExecutive Director and Chairman w.e.f. 02.12.2021 and
ceased to be the director w.e.f. 28.03.2024.
B) Executive Directors
1. Shri Piyush Tiwari, Director (Commercial & Marketing) w.e.f. 28.05.2015 to
30.06.2023. During the financial year he held the additional charge of Managing Director
w.e.f 03.02.2023 to 02.05.2023. He ceased to be the director w.e.f. 01.07.2023.
2. Shri Lokesh Kumar Aggarwal, appointed as Director (Finance) w.e.f. 24.08.2022.
During the financial year 2023-24, he has been given the additional charge of Director
(Commercial & Marketing) from 03.07.2023 to 02.10.2023.
3. Shri M.R. Synrem appointed as Managing Director w.e.f. 11.10.2023.
C) Other Part time Non-Executive Directors
(a) Part-time Government Nominee Directors:
1. Ms. Ranjana Chopra, AS&FA (Tourism) appointed as Government Nominee Director
w.e.f. 28.11.2022
(b) Independent part time Directors:
1. Dr. Manan Kaushal appointed as Independent Director w.e.f. 24.01.2022
2. Dr. Anju Bajpai appointed as Woman Independent Director w.e.f. 24.01.2022
During the financial year 2023-24, following directors were appointed/ ceased to be
appointed :
Shri Piyush Tiwari, Director (Commercial & Marketing) ceased to be director w.e.f.
01.07.2023.
Shri M.R. Synrem appointed as Managing Director w.e.f. 11.10.2023.
Dr. Sambit Patra ceased to be the Director/ Chairman w.e.f. 28.03.2024.
As per disclosure received from the Directors, the Directors are not related to one
another.
Pursuant to Article 61 of the Article of Association, Shri Lokesh Kumar Aggarwal and
Ms. Ranjana Chopra retire by rotation at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment. Details of profile etc. as required under
Regulation 36(3) of SEBI (LODR) Regulations, 2015 in respect of Directors liable to retire
by rotation and seeking re-appointment have been given at the end of the Notice of AGM.
Further pursuant to Regulation 17 (1C) of SEBI (LODR) Regulations and Section 152, 196 and
203 of Companies Act 2013, approval of shareholders through ordinary resolution will be
sought for appointment of Shri M.R. Synrem as Director and Managing Director.
16. Training Policy and the training imparted to the directors
The Corporation has formulated a training policy for Board Members. As per the policy,
ITDC offers training programmes organized by Standing Conference on Public Enterprises
(SCOPE), Department of Public Enterprises (DPE) and Indian Institute of Corporate Affairs
(IICA) to the Board Members. Further, on induction of nonofficial Directors, ITDC may also
arrange training on the role and responsibilities of Directors from the professional
institutes like ICAI, ICSI, ICMAI, IIM, SCOPE etc.
During the Financial Year 2023-2024, Familirization programme conducted by Indian
Institute of Corporate Affairs in November, 2023 was attended by Dr. Manan Kaushal and Dr.
Anju Bajpai Independent Directors. Further Dr. Manan Kaushal Independent Director attended
Orientation Programme organized by Department of Public Enterprises, Govt. of India in
March, 2024. Details are given in the website https://itdc.
co.in/wp-content/uploads/2022/03/ Familiarization-Programme- -2021-2022. pdf
17. Declaration by Independent Directors
The Company has received necessary declaration from each independent director under
Section 149(7) of the Companies Act, 2013, that they meet the criteria of independence
laid down in Section 149(6) of the Companies Act, 2013 and Regulation 16(1 )(b) of SEBI
(LODR) Regulations, 2015. The declaration were placed before the Board.
18. Board Evaluation
The evaluation of the Board including its committees as a whole and the Independent
Directors is conducted on the basis of criteria and framework laid down by the Nomination
& Remuneration Committee of the Board. Based on the evaluation criteria laid down by
the Committee, the performance evaluation of the Board is measured in six areas. The
performance evaluation of the Independent Directors is measured also in six areas based on
questionnaire designed on a scale of 1 to 5.
ITDC is a Government Company under the administrative control of Ministry of Tourism.
The functional directors including Chairman and Managing Director/Managing Director
(CMD/MD) are selected on the recommendations of Public Enterprises Selection Board (PESB)/
Appointments Committee of the Cabinet (ACC) in accordance with the procedure and
guidelines laid down by Government of India.
The Company enters into Memorandum of Understanding (MoU) with the Administrative
Ministry, i.e., Ministry of Tourism, Government of India every year, containing key
performance parameters for the company. The performance of the Company is evaluated by
Department of Public Enterprise vis-a-vis MoU entered into with the Ministry of Tourism,
Government of India.
The performance evaluation of CMD/ MD includes self evaluation and final evaluation by
the Ministry of Tourism (based on the MoU rating received). The evaluation of performance
of Functional Directors includes self-evaluation by the respective functional directors
and subsequent assessment by CMD/MD (on the basis of achievement of MoU targets and MoU
rating received), with final evaluation by the Ministry of Tourism (the administrative
ministry).
In respect of Government nominee directors, their evaluation is done by the Ministry of
Tourism as per the procedure laid down by the Government of India.
The independent directors are appointed by the administrative ministry, their
evaluation is also done by the Ministry of Tourism and Department of Public Enterprises as
per the procedure defined DPE DO dated 08.05.2018, DPE OM No. 9(14)/2009-GM-Part
3/FTS-9036 dated 22.04.2022 and 30.05.2022.
It is also submitted that Ministry of Corporate Affairs (MCA) vide its circular dated
June 5, 2015 had exempted Government Companies from the provisions of section 178(2) of
the Companies Act, 2013, which requires performance evaluation of every director by the
Nomination & Remuneration Committee. The circular further exempted Govt. Companies
from the provisions of Section 134 (3) (p) of Companies Act 2013, which provide about
manner of formal evaluation of its own performance by the Board and that of its Committees
and Individual Director in Board's Report, if directors are evaluated by the Ministry
which is administratively in-charge of the Company as per its own evaluation methodology.
Further, Ministry of Corporate Affairs vide its notification dated 5th July, 2017 has
exempted the provisions relating to review of performance of Chairperson and
non-independent directors and the Board as a whole and evaluation mechanism, prescribed in
Schedule IV of the Companies Act, 2013, for Government Companies.
19. Particulars of loans, guarantee or investments
Extracts of the Register of Loans, Guarantee and Investments during the financial
2023-24 are as under :
During the year under review, ITDC Board approved following loans to its Joint Venture
Subsidiary companies:
• Ranchi Ashok Bihar Hotel Corporation Ltd. : ITDC Board approved loan of Rs.
19,32,000/- in its meeting held on 08.08.2023 for payment of Security Expenses @ rate of
interest of 9% per annum. The loan was disbursed on 23.08.2023.
• Punjab Ashok Hotel Company Ltd.: ITDC Board approved loan of Rs. 51,000/- in its
meeting held on 07.11.2023 for payment of statutory / professional fee to auditors and for
routine matters @ rate of interest of 9% per annum. The loan was disbursed on 21.12.2023.
• Utkal Ashok Hotel Corporation Ltd. : ITDC Board approved loan of Rs. 6,21,042/-
in its meeting held on 08.08.2023 for meeting security expenses and miscellaneous
expenditures such as Statutory/ Legal charges etc. @ rate of interest of 9% per annum. The
loan was disbursed on 10.10.2023.
20. Corporate Governance
As per the requirement of Clause C of Schedule V to SEBI (LODR) Regulations, 2015, a
detailed report on Corporate Governance together with the following is given in Annexure-II
which forms part of this Report.
(i) CEO/CFO Certificate [as per Regulation 17(8) of SEBI (LODR) Regulations, 2015]; and
(ii) Certificate from the Practicing Company Secretary [Clause E to Schedule V to SEBI
(LODR) Regulations, 2015] along with the management reply to observations.
21. Directors' Responsibility Statement
Pursuant to the requirement under Section 134(5) of the Companies Act, 2013, it is
hereby confirmed: -
• that in the preparation of the accounts for the financial year ended 31st
March, 2024, the applicable accounting standards have been followed read along with proper
explanation relating to departures;
• that the Directors have selected such accounting policies and applied them
consistently and made judgments and estimates that were reasonable and prudent so as to
give a true and fair view of state of affairs of the Company at the end of the financial
year and of the profit of the Company for the year under review;
• that the Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 2013
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
• that the Directors have prepared the accounts for the financial year ended 31st
March 2024 on a ‘going oncern' basis;
• that the Directors had laid down internal financial controls to be followed by
the company and that such internal financial controls are adequate and were operating
effectively;
• that the Directors had devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating
effectively.
22. Internal Financial Controls
The Corporation has adequate internal controls system commensurate to its nature of
business. Board in its meeting held on 19.01.2024 has resolved to appoint the Internal
Financial Control (IFC) Auditors. The Auditors were appointed and the audit was completed
in March, 2024.
Board has laid down adequate policies and procedures such as Licensing Procedure,
Purchase Procedures, Engineering & Works Manual, SoP for Cash & Bank Transactions,
Internal Financial Control Policy, Risk Control Mechanism, Delegation of Powers etc. for
ensuring the orderly and efficient conduct of business.
Professional services of Chartered Accountant Firms are availed to conduct Internal
Audit of all units/verticals of ITDC. A detailed Internal Audit manual duly approved by
the Board of Directors has been circulated to all the units.
Internal Auditors monitor and evaluate the efficacy and adequacy of the internal checks
& control systems. Quarterly Internal Audit Reports are submitted by Internal
Auditors. Corrective actions, wherever required, are taken by the units/ verticals.
Significant observations, if any, are reported to the Audit Committee.
23. Related Party Transactions
There are no materially significant related party transactions reportable under Section
188 of the Companies Act, 2013. The Audit Committee and the Board has approved a policy on
materiality of the related party transactions, which is posted on the website of the
company https:// itdc.co.in/wp-content/uploads/2019/03/ Revised-RPT-Policv.pdf.
24. Disclosure as per OM of Ministry of Parliamentary Affairs
In compliance with the OM F.No. 28(1 )/2016-Leg.I dated 24.01.2018 of Ministry of
Parliamentary Affairs, Government of India on the recommendations made by the Committee on
Papers Laid on the Table (Rajya Sabha), details related to vigilances, Audit Objections
and RTI matters etc. are required to be included in the Annual Report of the Company. The
relevant details are as under :
i) Vigilance cases:
Number of Vigilance cases disposed off during the FY 2023-24 (i.e., from 01.04.2023 to
31.03.2024) are 23 (Twenty Three) whereas the pending Vigilance cases are 08(Eight) as on
31.03.2024. The pending disciplinary cases are 07(Seven) as on 31.03.2024.
The gist of nature of such cases pertaining to are non-finalization of tenders,
recovery of outstanding payments & SEL projects matters, etc.
ii) Number of Directors/KMPs/employees/ workers against whom disciplinary action was
taken by law enforcement agency for charges of bribery/corruption:
|
FY 20232024 (Current Financial Year) |
FY 2022-2023 (Previous Financial Year) |
Directors |
Nil |
Nil |
KMPs |
Nil |
Nil |
Employees |
Nil |
Nil |
Workers |
NA |
NA |
Audit Objections
There are total outstanding 191 para pending for resolution with CAG for Transaction
Audit as on 31.03.2024.
RTI Matters
The Corporation is a Public Authority under clause (h) of Section 2 of Right to
Information Act, 2005. The Corporation has taken necessary steps for the implementation of
the Right to Information Act, 2005. The Corporation is in compliance with the RTI Act,
2005.
25. Report under section 22 of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013
The Corporation has constituted necessary Internal Committee under the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
During 2023-24, three complaints were received and two complaints were pending at the
end of the year 2023-24.
26. Corporate Social Responsibility and Sustainable Development
Pursuant to the recommendation of the CSR Committee, Board resolved to give two
Ambulances in the Aspirational Districts (i.e. Chitrakoot (U.P.) and Ribhoi (Meghalaya) as
per DPE guidelines. The CSR expenditures of Rs. 46.51 lakh against the budget of Rs. 44.32
lakhs were incurred. The CSR project was extended beyond the financial year 2023-24 due to
General Elections and non-finalization of GeM tender.
The Annual Report on CSR Activities and the Report on the Sustainable Development
Activities are annexed as Annexure III.
27. Risk Management Policy and its implementation
ITDC has a Board approved Risk Management Policy laying down a sound process for
identification and mitigation of risks. In accordance with the policy, the heads of all
strategic divisions/units have been nominated as Risk Manager and a committee namely Risk
Management Compliance Committee (RMCC) presently headed by VP (Security) and after his
superannuation GM (Hotels) has been constituted to oversee and ensure compliances with the
risk management policy of the Corporation.
During the Financial Year 2023-24, two meetings of the Risk Management Compliance
Committee were held on 31.07.2023 and 02.02.2024.
As per clause 21 of SEBI (Listing Obligation and Disclosure Requirement) Regulation,
2015, a Board level Risk Management Committee has been constituted. Present constitution
of the committee is as under:
i) Shri Lokesh Kumar - Chairman Aggarwal, Director (F)
ii) Dr. Manan Kaushal, - Member Independent Director
iii) Dr. Anju Bajpai, - Member Independent Diector
iv) GM (Hotels) - Member
v) VP (F&A), HOD - Member The role and responsibilities of the Risk Management
Committee is defined in Part D of the Schedule II to SEBI (LODR) Regulations which is duly
approved by the Board.
During the financial year 2023-24, two meetings of the Board Level Risk Management
Committee were held on 03.08.2023 and 05.02.2024.
Summary of Critical Risks requiring immediate action and medium risks not requiring
immediate action having combined score of 6 and above as per new format and Risks in the
category of Likely and Almost Certain as per old format as presented in the Board Level
Risk Management Committee Meeting held on 05.02.2024 were as under :
Economic Risks : Emergence of new Hotels, Dependence on Govt. Business
Industrial Risks : Threat to Market share, Dependence on outside vendors for transport
business
Management & Operational Risk : Change in Technology/Upgradation, Low IT
environment, Lack of Specialized manpower, Risk of Poor Brand Perception
Credit Risk & Liquidity Risk: Loss due to non-payment of dues by clients
Legal Risk : Various cases pending with appellant Custom Authorities in respect of
erstwhile Duty Free Shops at Airports.
28. Auditors and Auditor's Report
The Comptroller & Auditor General of India have appointed M/s HDSG &
Associates, Chartered Accountants the Statutory Auditors for entire ITDC including its
divisions/units under section 134(5) of the Companies Act, 2013.
Management Reply to the Qualifications given by the Auditors Report (Standalone and
Consolidated) are placed at Annexure-IV.
29. Secretarial Auditor and Secretarial Audit Report
ITDC Board in its meeting held on 29th March, 2023 appointed M/s P.C. Jain
& Company, Company Secretaries as the Secretarial Auditors for conducting the
Secretarial Audit as required under Section 204 of the Companies Act, 2013 for a period of
three years. The Secretarial Audit Report is placed at Annexure-V and Certificate
of Non-Disqualification of Directors given by the Secretarial Auditor is placed at Annexure-VI
and management replies to the comments and observations of the Secretarial Auditors on the
report are given at Annexure VII.
30. Cost Records
Corporation is not required to maintain cost records in accordance with Section 148 of
the Act read with Rule 3 of the Companies (Cost Record and Audit) Rules, 2014 as the
service of the Company are not covered under the said rules.
31. Extract of Annual Return
In accordance with Section 134(3)(a) and Section 92 of the Companies Act, 2013, the
annual return of company is available on the website and can be accessed at https://itdc.co.in/wp-content/
uploads/2021/08/Annual-Return MGT- 7 2019-2020.pdf
32. Significant and material orders
There are no significant and material orders passed by the regulators or courts or
tribunals impacting the going concern status and company's operation in future.
33. Comments of the Comptroller and Auditor General of India
‘Nil' Comments received from the Comptroller & Auditor General of India, under
Section 143(6) of the Companies Act, 2013 on the Accounts (Standalone and Consolidated) of
the Company for the financial year ended 31st March, 2024 (enclosed at the end
of the Annual Report).
34. Material changes and commitments affecting the financial position of the Company
between the end of the Financial year and the date of the Report
Status of Disinvestment of properties of ITDC and its JV Subsidiaries:
No. of hotels disinvested during 2023-24 (Upto the date of Report) : Nil
Status of disinvestment of Properties of ITDC and its JV companies as on date is as
under :
S. No. Name of Property |
Current Status |
1 Hotel Pondicherry |
• M/s CBRE South Asia Pvt. Ltd. appointed as Transaction
Advisor (TA). |
Ashok, Puducherry |
• TA submitted the Inception Report and Draft Valuation
Report. M/s CBRE also gave an option of selling the vacant land and giving existing hotel
on O & M to third party in PPP mode. |
|
• IMG in the meeting held on 04.03.2021 decided to give the
existing Hotel along with 8 acres of land for development on O & M basis for 50 years
and remaining land of Hotel Pondicherry Ashok will be monetized through DIPAM. IMG
directed the ITDC officials for roadshow. |
|
• Roadshow conducted by ITDC officials along with State
Government officials from 15th March, 2021 to 19th March, 2021. Participants in the
roadshow gave various suggestions including the option of lease in place of O & M as
in case of O & M, additional construction is not allowed. Report of Roadshow was
presented to the IMG in the meeting held on 07.09.2021. IMG directed M/s CBRE to do the
analysis on various options viz. O&M/Lease/Licensing including its tenure and place
their analysis report along with recommendations in the next IMG meeting. |
|
• The analysis report received from the CBRE. State Government
gave some observations which are yet to be resolved by M/s CBRE. |
|
• Joint Secretary-(UT)-MHA held a meeting on 12.04.2022 with
the office of the Chief Secretary, Govt. of Puducherry. It was discussed that the current
law in Puducherry allows lease of 19 years only and any lease can be given under the
extant law of the State. |
|
• In the IMG meeting held on 02.05.2022, IMG discussed that if
permission for leasing beyond 19 years is not possible, we may propose to the State
Government for buying out the equity stake of ITDC in the JV Company. Letter sent from
Secretary (Tourism), GoI to the Chief Secretary on 10.06.2022 offering to buy out the 51%
stake of ITDC in the PAHCL. |
|
• In the IMG meeting held on 22.09.2022, MD-Pondicherry
Industrial Promotion and Development Investment Corporation (PIPDIC) apprised that the
PIPDIC Board had accorded approval to buy out the 51% equity of ITDC in the Pondicherry
Ashok Hotel Corporation Limited. PIPDIC vide letter dated 03.11.2022 forwarded the
resolution of the PIPDIC Board conveying the acceptance of the proposal in principle
subject to State Government approval. Reply from the State Govt. is awaited. Reminder
letter sent by the Secretary (Tourism) to Chief Secretary on 23.11.2022. |
|
• Reply dated 18.07.2024 from the State Government received
regarding mode of valuation to be decided. |
2 Hotel Kalinga Ashok, Bhubaneswar |
• RFP floated in 2017, 2018 and 2019 but remained
unsuccessful. IMG in the meeting held on 06.03.2020 decided to retender with revised
selection criteria. |
|
• In the IMG meeting held on 04.03.2021, TA presented the
revised selection criteria. |
|
• Roadshows were conducted from 15th March, 2021 to
19th March, 2021. Participants in the roadshow gave various suggestions
including the option of lease in place of O & M as in case of O & M, additional
construction is not allowed. Report of Roadshow was presented to the IMG in the meeting
held on 07.09.2021. IMG decided that a letter may be sent to the State Government seeking
permission for sub-leasing of property and for increasing the lease tenure for developing
the property on PPP model. Letter accordingly sent by Secretary (Tourism), GoI to the
Chief Secretary, Govt. of Odisha on 12.10.2021. Reminder was sent on 27.12.2021. |
|
• On 22.04.2022, a meeting of DG (Tourism)/MD-ITDC was held
with the Chief Secretary-Odisha and Principal Secretary (Tourism), Govt. of Odisha
regarding request of Secretary (Tourism)-GoI vide letter dated 12.10.2021 and 27.12.2021
for allowing ITDC to sub-lease the property of Hotel Kalinga Ashok and for increasing the
lease tenure of the property. |
|
Regarding sub-leasing of the property, officials of Odisha Govt.
apprised that as per the extant laws of the Odisha Govt., for allowing sub-leasing a
consent fee of Rs.15 crore per acre is charged and needs to be paid by the Concessionaire.
Regarding increasing the lease tenure, officials of the Odisha Govt. apprised that
property has still left 50 years of remaining lease tenure. For increasing/ extension of
the lease tenure, GA Department has to move fresh proposal, the premium is to be charged
de novo. Govt. of Odisha was requested to send the reply of the letter sent by
the Secretary (Tourism), GoI on 12.10.2021 and 27.12.2021. |
|
• 38th IMG meeting was held on 02.05.2022 in which IMG
discussed that since State Government has reiterated the consent fee for subleasing
permission, property can be tendered for O & M for 30+20 years instead of sub-leasing
as approximately 52 years lease period is left. IMG decided that if State Government is
interested to take back the property, the matter may be discussed with the State
Government along with Hotel Nilachal Ashok, Puri. IMG directed that a clear reply of the
State Government should be obtained before the next IMG meeting. Letter sent from
Secretary (Tourism), GoI to the Chief Secretary, Odisha on 10.06.2022. Reply of the State
Govt. is awaited. |
|
• IMG in the meeting held on 22.09.2022 was apprised that in
the meeting held on 06.09.2022 between the Chief Secretary, Odisha and MD-ITDC,
ITDC was requested to send the terms & conditions for transfer of land and building of
Hotel Kalinga Ashok to the Govt. of Odisha. IMG directed ITDC to send the reply to the
Odisha Government at the earliest. Director (Tourism), Govt. of Odisha was also requested
to send the reply of the letter dated 10.06.2022 sent by Secretary (Tourism), GoI to the
Chief Secretary, Odisha. IMG directed that Govt. of Odisha and ITDC to discuss mutually on
the terms of transfer and apprise the result to the IMG in the next meeting. Regarding
detailed proposal from ITDC side to Odisha Govt, this was discussed that consultant
appointed for Hotel Kalinga Ashok would be asked to work out a proposal on behalf of ITDC
considering all the aspects to safeguard interest of ITDC. |
|
• Proposal from M/s CBRE received and placed before the ITDC
Board in the meeting held on 29.03.2023. Board approved the proposal. Letter dated
30.07.2024 sent from the Secretary (Tourism) to the Chief Secretary (Odisha). |
|
• Regarding owned land, proposal was sent to DIPAM for
monetization of land. DIPAM asked to send estimated value of land and circle rate of
property. Letters/Reminders sent to Collector/DM with a copy to Sec.(T), Odisha requesting
to inform the circle rate, registry value and estimated market value of land. Reply is
awaited. |
|
• In the IMG meeting held on 22.09.2022, the official of the
GA Department present apprised that the circle rate is Rs.15 crore per acre in the area of
Hotel Kalinga Ashok for the vacant land. The same was apprised to DIPAM vide email dated
28.11.2022. |
|
• In a meeting held with DIPAM on 18.03.2024, DIPAM apprised
that now DIPAM does not deal with the proposal of monetization of land. Accordingly, the
email was sent to DIPAM on 01.04.2024 for responding back in this regard. Reply is
awaited. |
3 Hotel Ranchi |
• Operations of the Hotel is closed since 29.04.2018. |
Ashok, Ranchi |
• IMG in its meeting on 13-09-2018 had approved the valuation
of RABHCL on “as is where is basis” for the purpose of transfer of equity. |
|
• VRS was offered thrice. Presently, there are six employees
who have not accepted the VRS so far. VRS dues were funded by ITDC by way of loan to
Ranchi Ashok Bihar Hotel Corporation Ltd. (RABHCL) |
|
• MoU for transfer of 51% equity stake of ITDC in RABHCL to
Govt. of Jharkhand signed on 24.11.2020. Consideration against the equity shares and dues
of ITDC have been received on 28.12.2020.Dues like VRS dues and outstanding dues of
employees remained pending. |
|
• Draft Cabinet Note for taking approval of CCEA in this
regard was sent to Ministry of Tourism for taking necessary action for taking approval of
CCEA. Revised Draft CCEA Note was sent in August, 2022. |
|
• Proposal for fourth time VRS was also approved by the Board
and is pending for approval by the MoT. |
|
• In view of dire threats by employees of Hotel Ranchi Ashok
due to non-payment of their dues, ITDC disbursed loan of Rs. 6.13 crore to RABHCL to clear
the outstanding dues of employees up to June 2022. BSTDC did not extend their share
towards the same. |
|
• ITDC has also been extending loans regularly to meet
statutory and security expenses. Present outstanding payable to ITDC is Rs.9.72 crores as
on 31.05.2024. |
|
• DIPAM has advised for taking approval of Alternative
Mechanism instead of CCEA route in the case of transfer of shareholding in Punjab Ashok
Hotel Company Ltd. (PAHCL). |
|
• MoT vide email dated 01.04.2024 has been requested to
consider the Alternative Mechanism route for Ranchi Ashok also. |
4 Hotel Nilachal Ashok, Puri |
• Property was tendered out for sub-leasing. LoI issued to
successful bidder in 2010. The bidder could not fulfill the terms of the LoI. LoI was
cancelled. Bidder went to the Court. Supreme Court on 04.10.2021 dismissed the appeal of
bidder and pronounced judgement in favour of ITDC. Supreme Court has directed ITDC to
refund the amount of Rs.4.11 crore to the appellant and for the balace amount of Rs.4.41
crore, M/s Paulmech has been given liberty to file a civil suit for recovery of Rs.4.41
crores and all contentions of the parties in that regard are left open. Supreme Court in
its judgement has also observed that pendency of the Civil Suit that may be filed by M/s
Paulmech shall not be an impediment for UAHCL to deal with the property or to re tender
the same in any manner. |
|
• As per the order of the Supreme Court, ITDC refunded the
amount of Rs.4.11 crore to the Appellant. |
|
• UAHCL Board in its meeting held on 06.01.2022 approved that
proposal of initiating disinvestment process of Hotel Nilachal Ashok, Puri be sent to IMG
for taking a decision. |
|
• IMG in its meeting held on 02.05.2022 decided that State
Government must be involved in the matter. All options viz. |
|
i. Taking back of the property by the State Government if they pay
JV dues towards ITDC & equity valuation; or |
|
ii. Sub-leasing of the property as per the sub-leasing permission
given by the State Government in 2007; or |
|
iii.O & M/Licensing out of the property in case State
Government insists consent fee to be paid for sub-leasing of property etc. to be discussed
with the State Government and the views of the State Government should be taken in
writing. After having taken the views of the State Government, financial and legal pros
and cons of all the options to be analyzed and if needed, opinion of outside legal expert
may be taken and the report to be put up to the IMG in the next meeting for taking a
decision. |
|
• Letter sent on 08.06.2022 from DG (Tourism), GoI to the
Chief Secretary, Odisha in this regard, reply is awaited. Reminder letter sent on
02.12.2022 and 13.03.2023. |
5 Incomplete Project of |
• In the IMG meeting held on 29.11.2018, it was decided to
handover the incomplete project to the State Government. |
Anandpur Sahib |
• In the IMG held on 06.03.2020, representative of Govt. of
Punjab proposed for sharing depreciated cost of building and actual cost of other
expenditure being incurred by the company. IMG directed Punjab Govt. to send the proposal
to ITDC for bringing the same before IMG after its approval from the JV Board and ITDC
Board. |
|
• Additional Chief Secretary, Govt. of Punjab vide its D.O.
letter dated 25.08.2021 sent the proposal to ITDC to pay Rs.79,39,257/- as depreciated
cost of building as full and final amount to ITDC against transfer of all rights and
ownership of the project to PTDC and other expenses will be borne by both the Joint
Venture Partners as per their respective shareholding and will be booked as loss in their
books of accounts. The proposal was examined and placed in the ITDC Board Meeting held on
28.03.2022 for approval. Board approved the proposal. |
|
• In the IMG meeting held on 22.09.2022, IMG approved the
Valuation of Rs.79,39,257/- for transfer 51% equity of ITDC in the Punjab Ashok Hotel
Company Limited to the PTDC/Govt. of Punjab. The Share Transfer Agreement will be executed
after the CCEA approval and receipt of funds from the Punjab Government. IMG also directed
to send the Draft MoU to the Govt. of Punjab. |
|
• MoU signed on 14.02.2023. Draft CCEA Note sent to the MoT on
17.02.2023 for further action. |
|
• CCEA Note was circulated by the MoT for inter ministerial
consultations. DIPAM advised for taking approval of Alternative Mechanism instead of CCEA
Note. Accordingly the note for Alternative Mechanism has been sent to MoT on 28.03.2024. |
6 Hotel The Ashok, New Delhi |
M/s Feedback Infra appointed as Transaction Advisor by DIPAM, MoF,
GoI on 14.01.2020 for studying lease terms & conditions of land, O & M/Sub-leasing
of Hotel Ashok and utilization of vacant land in Hotel Ashok-Hotel Samrat Complex. M/s
Feedback submitted the report to DIPAM which was discussed in the IMG on 20.07.2020 held
by DIPAM. Consultant recommended dividing the site into 4 land parcels as under: |
|
Parcel 1- Samrat Hotel : Samrat Hotel will be retained by ITDC. |
|
Parcel 2 - Ashok Hotel : Consultant has recommended licensing out
of Ashok Hotel for (30+30) years on Operation, Management and Development (OMD) model. |
|
Parcel 3 : Commercial Development -spare land (1.83 acres) |
|
Parcel 4- Hotel/Serviced apartments development - spare land (6.3
acres) |
|
The recommendations of the Consultant was discussed in the Inter
Ministerial Group (IMG) meetings held on 20.07.2020, 06.01.2021 and Core Group of
Disinvestment (CGD) meetings held on 27.10.2020 and 15.03.2021. |
|
Last CGD meeting was held on 15.03.2021 in which the
recommendations of IMG meeting held on 06.01.2021 were upheld. |
|
DIPAM asked the Ministry of Tourism to take the approval of the
Cabinet Committee on Economic Affairs (CCEA) for the recommendations of the CGD and for
conducting roadshows. |
|
Draft CCEA Note was issued by the Ministry of Tourism on 11.01.2022
for further actions. |
|
Ministry of Tourism has forwarded a note dated 31.05.2022 in which
following observations were given : |
|
“Since there are restrictions for making changes in the
existing building of Hotel Ashok, the concessionaire may need flexibility of space to
create an entire experience of luxury, essential for developing a hotel of this class. To
the extent, the land is required functionally, it will become a Core Asset and not handled
as a separate Parcel. Therefore a clarification is required, whether this requirement has
been appropriately taken into consideration before carving out these two Land Parcels
(Parcel 3 and Parcel 4). Inputs from the market players/potential bidders may also be
taken in this regard. |
|
Further, in order to form a view on the relative pros and cons
of various options worked out by the Consultants, inputs from the market players/potential
bidders would be required. |
|
Further a clarification is also sought from the Ministry as to
whether these parcels can be considered as ‘core' assets as far as financial
rationale is concerned.” |
|
With regard to above observations, matter was discussed with the
Consultant. A roadshow was held on 22nd August, 2022 at Ashok to obtain the views of
market players/potential bidders on the models suggested in the feasibility report. |
|
The Consultant has arrived at the at two options of reconfigured
proposition, |
|
a) Since the vision is to upgrade and modernize Hotel Ashok,
combining Parcel 3 with Hotel Ashok with limitation on development on parcel 3 (to
maintain view of the hotel and green areas which are essential part of a five star hotel)
and development of parcel 4 being undertaken at a subsequent stage. This will enable the
project to remain Hotel centric and retain the legacy. |
|
b) Bidding the entire land parcel of 19 acres including Hotel Ashok
as a one block with limitation on utilization of the balance built up area on demarcated
portion of the land parcel (on the back side- parcel 4 in the current context). |
|
Accordingly, the reply was sent to the Ministry of Tourism with
reference to the note dated 31.05.2022. |
|
A meeting of the Secretary (Tourism), GoI with the official of Niti
Aayog was held on 27.01.2023 in which the official of ITDC were present wherein the
modalities for going through PPPAC mode was discussed. |
|
Further based on the observations of the MoT Note and discussions
with Niti Aayog, the Consultant has worked out different alternatives (Revised Options)
for Monetisation of Hotel Ashok. The Consultant has suggested bidding for the entire land
parcel of 19 acre including Hotel Ashok as one block. For development of unutilised land
parcel of 6.3 acres, the consultant has worked out three options with financial viability
of two options. |
|
Further meetings held with the official of Niti Aayog and as per
the advice, IIT Roorkee has been engaged for structural study of the hotel building. The
report is expected to be received in August, 2024. |
|
Meanwhile the Consultant has submitted the Draft Concessionaire
Agreement which has been sent to the MoT and Neeti Aayog for comments, if any. |
|
Final Concessionaire Agreement will be sent to the PPPAC through
MoT after approval from the ITDC Board. |
6 Hotel Jammu Ashok, Jammu |
• 40 years lease period of the land expired in January 2010.
ITDC had first requested for an extension in February 2007. ITDC repeatedly requested
State Government for renewal but the renewal of land lease remained pending with the State
Government. |
|
• Govt. of J & K vide letter dated 20.03.2020 informed
about nonrenewal of lease and resumption of land by the State Govt. |
|
• Pursuant to the Board decision, Operation of Hotel closed on
17.06.2020 and employees were offered VRS. Those who did not opt VRS, were adjusted in
other units of ITDC. |
|
• Matter was pursued with the State Govt. for taking
possession of the Hotel after payment of compensation in accordance with clause 3 (ii) of
the lease deed. |
|
• In the IMG meeting held on 22.09.2022, IMG approved the
Valuation of Rs. 11,09,75,370/- for transfer of all property, Plant and Equipment items
constructed by ITDC on the leased land such as Building, Plant & Machinery, Furniture,
Fixtures, Office Equipment and Inventory including Capital WIP etc. on “As is where
is basis”. |
|
• MoU signed on 09.02.2023. Draft CCEA Note sent to the
Ministry of Tourism for further action. |
Acknowledgement
i. The Board places on record its sincere appreciation towards all the stakeholders of
the Company including customers/ clients, suppliers/vendors/service providers for the
support and confidence reposed by them in the organization and look forward to the
continuance of this relationship in future.
ii. The Board gratefully acknowledges the support and guidance received from various
Ministries of the Government of India particularly the Ministry of Tourism, in Company's
operations and developmental plans.
iii. The Board also wishes to record its deep gratitude to all the members of ITDC
family whose enthusiasm, dedication and co-operation, put the Company on the path of
progress.
For and on behalf of Board of Directors |
Sd/- |
Sd/- |
|
M.R. Synrem |
Lokesh Kumar Aggarwal |
Date : 13.08.2024 |
Managing Director |
Director (Finance) |
Place : New Delhi |
DIN: 03619409 |
DIN: 09714805 |