MIRA INFORM REPORT

Report Date :

09.11.2011

IDENTIFICATION DETAILS

Name :	TAJ GVK HOTELS AND RESORTS LIMITED
Registered Office :	Taj Krishna, Road No.1, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.02.1995
Com. Reg. No.:	01-19349
Capital Investment/ Paid-up Capital:	Rs. 125.403 Millions
CIN No.: [Company Identification No.]	L40109AP1995PLC019349
TAN No.: [Tax Deduction & Collection Account No.]	HYDT00765C
Legal Form :	Public limited liability company. Company’s Shares are listed on the Stock Exchange.
Line of Business :	Hotel and Motel Chains
No. of Employees:	Approximately 1798

RATING & COMMENTS

MIRA’s Rating :

A (64)

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

Maximum Credit Limit :	USD 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a Joint – Venture between Tata Group and GVK Group; both prominent industrial houses. It is a well – established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Unit 1 :	Taj Krishna, Road No.1, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Tel. No.:	91-40-66662323
Fax No.:	91-40-66625364
E-Mail :	tajgvkshares.hyd@tajhotels.com
Website:	http://www.tajgvk.in
Unit 2 :	Taj Deccan, Road No. 1, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India
Tel. No.:	91-40-66663939
Fax No.:	91-40-23392684
E-Mail :	deccan.hyderbad@tajhotels.com
Unit 3 :	Taj Banjara, Road No. 1, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India
Tel. No.:	91-40-66669999
Fax No.:	91-40-66661919
E-Mail :	banjara.hyderbad@tajhotels.com
Unit 4 :	Taj Chandigarh, Block No. 9, Sector 17A, Chandigarh-160017, India
Tel. No.:	91-172-6613000
Fax No.:	91-172-6614000
E-Mail :	taj.chandigarh@tajhotels.com
Unit 4 :	Taj Club House, Chennai, No. 2, Club House Road, Chennai-600002, Tamilnadu, India
Tel. No.:	91-44-66313131
Fax No.:	91-44-66313030
E-Mail :	clubhouse.chennai@tajhotels.com

DIRECTORS

As on 31.03.2011

Name :	Mr. G V Krishna Reddy
Designation :	Executive Chairman
Qualification :	B. A.
Previous Employment :	GVK Industries Limited
Name :	Mr. G Indira Krishna Reddy
Designation :	Managing Director
Qualification :	B. Sc.
Previous Employment :	Novopan Industries Limited
Name :	Ms. Shalini Bhupal
Designation :	Executive Director
Qualification :	B. A.
Previous Employment :	Orbit Travels and Tours Private Limited
Name :	Mr. G V Sanjay Reddy
Designation :	Director
Name :	Dr. Abid Hussain
Designation :	Director
Name :	Mr. D R Kaarthikeyan
Designation :	Director
Date of Birth/Age :	02.10.1939
Qualification :	B. Sc., BL., IPS
Date of Appointment :	27.04.2001
Previous Employment :	Magus Media Private Limited
Name :	Dr. Raymond N Bickson
Designation :	Director
Name :	Mr. Anil P Goel
Designation :	Director
Date of Birth/Age :	20.05.1957
Qualification :	C. A.
Date of Appointment :	23.10.2004
Previous Employment :	Roots Corporation Limited Piem Hotels Limited Oriental Hotels Limited Indian Resort Hotels Limited Taj Investment and Finance Company Limited Taj Sats Air Catering Limited Taj Kerala Hotels and Resorts Limited
Name :	Dr. Anumolu Ramakrishna
Designation :	Director
Name :	Mr. Ajoy Kumar Misra
Designation :	Director
Date of Birth/Age :	25.04.1957
Qualification :	B. Tech, MBA
Date of Appointment :	23.04.2007
Previous Employment :	Oriental Hotels Limited Piem Hotels Limited Northern India Hotels Limited Taj Karnataka Hotels and Resorts Limited Root Corporation Limited Taj Madras Flight Kitchen Private Limited
Name :	Mr. C D Arha
Designation :	Director
Name :	Mr. Ajit Singh
Designation :	Director
Name :	Mr. P Abraham
Designation :	Director
Name :	Mr. K Jayabharath Reddy
Designation :	Director
Name :	Mr. Krishnaram Bhupal
Designation :	Director
Name :	Mr. M B N Rao
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S B Kamath
Designation :	Financial Controller and Company Secretary
Audit Committee :	Dr. A Ramakrishna (Chairman)
	Dr. Raymond N Bickson
	Mr. Anil P Goel
	Mr. D R Kaarthikeyan
	Mr. C D Arha
	Mr. Ajit Singh
	Dr. Abid Hussain
	Mr. K Jayabharath Reddy
	Mr. M B N Rao
Remuneration Committee :	Dr. A Ramakrishna : Chairman
	Mr. C D Arha
	Mr. Ajit Singh
Shareholders' / Investors' Grievances Committee :	Mr. Ajig Singh (Chairman)
	Mr. G Indira Krishna Reddy
	Mr. Anil P Goel

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	8,779,160	14.00
Bodies Corporate	38,238,646	60.99
Sub Total	47,017,806	74.99
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	47,017,806	74.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3,569,202	5.69
Financial Institutions / Banks	496,605	0.79
Foreign Institutional Investors	200,953	0.32
Sub Total	4,266,760	6.80
(2) Non-Institutions
Bodies Corporate	1,411,598	2.25
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	8,446,571	13.47
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	965,248	1.54
Any Others (Specify)	593,512	0.95
NRIs/OCBs	545,944	0.87
Trusts	9,110	0.01
Clearing Members	34,828	0.06
Directors & their Relatives & Friends	3,630	0.01
Sub Total	11,416,929	18.21
Total Public shareholding (B)	15,683,689	25.01
Total (A)+(B)	62,701,495	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	62,701,495	-

BUSINESS DETAILS

Line of Business :

Hotel and Motel Chains

Products :

Product Description	Item Code No.
Hotel	591001006
Restaurant	390001002

GENERAL INFORMATION

No. of Employees :

Approximately 1798

Bankers :

• IDBI Bank Limited
• The Hong Kong and Shanghai Banking Corporation Limited
• State Bank of India
• HDFC Bank Limited
• Bank of Nova Scotia
• HDFC Limited

Facilities :

SECURED LOAN	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Term Loan
Housing Development Finance Corporation Limited (Secured by first charge on all assets of Taj Krishna and Taj Deccan)	900.000	0.000
The Hongkong and Shanghai Banking Corporation Limited (Secured by first charge on all assets of Taj Chandigarh)	0.000	500.000
HDFC Bank Limited (Secured by first charge on all assets of Taj Club House, Chennai)	395.000	693.750
Bank Overdraft
(Secured by hypothecation of operational supplies, stores, beverages and receivables)	16.374	9.551
Total	1311.374	1203.301

UNSECURED LOANS	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Short Term Loans
The Bank of Nova Scotia	50.000	0.000
Indian Hotels Company Limited	50.000	50.000
Total	100.000	50.000

Banking Relations :

Satisfactory

Auditors :

Name :

Statutory Auditors:

Brahmayya and Company

Chartered Accountant

Address:

Flat No.403 and 404, Golden Green Apartments, Irrum Manzil Colony, Hyderabad 500 082., Andhra Pradesh, India

Internal Auditors

A F Ferguson and Company

Chartered Accountant

Address:

Coromandel House, 1-2-10, Sardar Patel Road, Secunderabad 500 003, Andhra Pradesh, India

Secretarial Auditors

P S Rao and Associates

Company Secretaries

Joint Venture :

The Indian Motels Company Limited

Companies/ Firms / Trust in Which the key management and their relatives are interested:

· Constructions (Private) Limited

· JK Operation and Maintainance (Private) Limited

· Accura Estates (Private) Limited

· KR Bhupal Land Holdings (Private) Limited

· Alaknanda Hydro Power Co Limited (*)

· KRAMB Land Holdings (Private) Limited

· Allied Estates (Private) Limited

· KRBSB Estates Private Limited

· Altitude Design and Development (Private) Limited

· KRGV Land Holdings (Private) Limited

· Amtran Constructions (Private) Limited

· Krishna Enterprises

· Anchor Estates (Private) Limited

· Lakshmi Enterprises

· Appease Estates Private Limited

· Lepus Land Holdings (Private) Limited

· Bengaluru Airport and Infrastructure Developers Private Limited (*)

· Mallikarjuna Estates (Private) Limited

· Bengaluru International Airport Limited (*)

· Mallikarjuna Finance (Private) Limited

· Blue Streak Consultants (Private) Limited

· Marine Developers

· Blue Streak Land Holdings (Private) Limited

· Marine Enterprises

· Bonanza Real Estates (Private) Limited

· Marine Estates

· Caspian Capital and Finance (Private) Limited

· Marriot Land Holdings (Private) Limited

· Casuarina Capital and Finance (Private) Limited

· Marwell Architects and Contractors (Private) Limited

· Classic Land Holdings (Private) Limited

· Metro Architects and Contractors (Private) Limited

· Consolidated Real Estates (Private) Limited

· Midas Estates (Private) Limited

· Cygnus Real Estates (Private) Limited

· MMR Constructions

· Delta Land Holdings (Private) Limited

· MR Constructions

· Dhaulasidh Power (Private) Limited

· MRK Constructions

· Eagle Land Holdings (Private) Limited

· Mumbai Airport Developers (Private) Limited

· Fair Value Land Holdings (Private) Limited

· Mumbai Aviation Fuel Form Facility (Private) Limited

· Fortune Real Estates (Private) Limited

· Mumbai International Airport (Private) Limited (*)

· Fresenius Intraven (Private) Limited

· Mystique Jewellery and Accessories P Limited

· Gautami Power Limited (*)

· Novopan Industries Limited (*)

· Genesis Realtors (Private) Limited

· Orbit Travel and Tours (Private) Limited (*)

· GIKR Land Holdings (Private) Limited

· Oxford Land Holdings (Private) Limited

· Goldgreen Land Holdings (Private) Limited

· Pace Constructions (Private) Limited

· Goriganga Hydro Power Company (Private) Limited

· Pace Estates (Private) Limited

· Greenridge Hotels and Resorts(Private)Limited

· Paigah House Hotel (Private )Limited

· GSR Land Holdings (Private) Limited

· Parthasarathy A/c Tourists (Private) Limited

· GVK Airport Developers (Private) Limited

· Patikari Power Private Limited

· GVK Airport Holdings (Private) Limited

· Pinakini Share and Stock Brokers Limited

· GVK Biosciences (Private) Limited (*)

· Pinnacle Land Holdings (Private) Limited

· GVK Cements Private Limited (*)

· Plateau Construction and Engg.(Private) Limited

· GVK City (Private) Limited

· Plateau Land Holdings (Private) Limited

· GVK Coal (Tokisud) Company(Private) Limited (*)

· Raghavendra Finance (Private) Limited

· GVK Davix Research (Private) Limited

· Raghavendra Land Holdings (Private) Limited

· GVK Davix Technologies (Private) Limited

· Regulus Estates (Private) Limited

· GVK Developmental Projects (Private) Limited

· Revatha Aqua Mineral (Private) Limited

· GVK Foundation (*)

· RK Estates

· GVK Energy Holdings (Private) Limited

· S.Bhupal and Others

· GVK Energy Limited (*)

· SBSR Land Holdings (Private) Limited

· GVK Enterprises Sheraton Estates (Private) Limited (*)

· GVK Estates Private Limited

· SHSB Land Holdings (Private) Limited

· GVK Hydel (Private) Limited

· Siregraha Mines Limited

· GVK Industries Limited (*)

· SOMKRB Land Holdings (Private) Limited

· GVK Jaipur Expressway Private Limited (*)

· SR Finance and Others

· GVK Power (Jegurupadu) Private Limited

· SR Finance (Private) Limited

· GVK Oil and Gas Limited (*)

· Sri Hari Developers

· GVK Perambalur SEZ (Private) Limited

· Sri Hari Enterprises

· GVK Power and Infrastructure Limited (*)

· Sri Hari Estates

· GVK Power (Goindwal Sahib) Limited (*)

· Sri Lakshmi Enterprises

· GVK Power (Krishnapatnam) (Private) Limited

· Sri Parvathi Enterprises

· GVK Power (Ratlam) Private Limited

· Sri Shiva Enterprises

· GVK Properties and Management Company(Private) Limited (*)

· Sri Venkateswara Enterprises

· GVK Projects and Technical Services Limited

· Sri Vishnu Enterprises

· GVK Technical and Consultancy Private Limited

· Starlet Land Holdings (Private) Limited

· GVK Transportation (Private) Limited

· Sunshine Properties (Private) Limited

· GVK Virudhnagar Sez (Private) Limited

· Suphala Real Estates (Private) Limited

· IKR Land Holdings (Private) Limited

· TRG Constructions

· Inc GVK Bio (Private) Limited

· Trinity Advisors (Private) Limited

· Indigo Enterprises

· Ubiquitous Infratech (Private) Limited

· Indigo Estates Verdura

· Indira Constructions

· Vertex Infratech (Private) Limited

· Indira Enterprises

· Vertex Projects Limited

· Innovative Land Holdings (Private) Limited

· Volantis Land Holdings (Private) Limited

· Inogent Laboratories (Private) Limited (*)

· Vulcon Constructions (Private) Limited

· ISR Infrastructure Zinger Investments (Private) Limited

(* Companies with which there are transactions during the year)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
170500000	Equity Shares	Rs. 2/- each	Rs. 341.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
62701495	Equity Shares	Rs. 2/- each	Rs. 125.403 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		125.403	125.403	125.402
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3088.973	2801.314	2584.856
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3214.376	2926.717	2710.258
LOAN FUNDS
1] Secured Loans		1311.374	1203.301	1089.917
2] Unsecured Loans		100.000	50.000	300.000
TOTAL BORROWING		1411.374	1253.301	1389.917
DEFERRED TAX LIABILITIES		192.625	160.764	122.321
Long Term Trade Deposits		19.630	8.743	10.417
TOTAL		4838.005	4349.525	4232.913
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3681.762	3754.787	3740.067
Capital work-in-progress		1204.265	842.942	693.656
INVESTMENTS		0.180	0.180	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	46.762	44.096	44.897
	Sundry Debtors	97.377	68.393	63.550
	Cash & Bank Balances	49.522	28.866	21.339
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	264.341	216.840	197.167
Total Current Assets		458.002	358.195	326.953
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.445	322.437	309.119
	Other Current Liabilities	318.584	112.364	85.838
	Provisions	180.590	186.798	149.432
Total Current Liabilities		519.619	621.599	544.389
Net Current Assets		(61.617)	(263.404)	(217.436)
MISCELLANEOUS EXPENSES		13.415	15.020	16.626
TOTAL		4838.005	4349.525	4232.913

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Rooms, Restaurants, Banquets	2592.843	2282.546	2374.844
		Other Income	13.802	9.957	7.272
		TOTAL (A)	2606.645	2292.503	2382.116
Less	EXPENSES
		Operating and General Expenses	1630.166	1421.853	1509.549
		Extraordinary Items	0.000	0.000	8.559
		Prior Period Adjustments	0.040	3.313	2.772
		Expenditure Capitalised	0.000	0.000	(153.797)
		TOTAL (B)	1630.206	1425.166	1367.083
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		976.439	867.337	1015.033
Less	FINANCIAL EXPENSES (D)		113.022	121.671	61.646
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		863.417	745.666	953.387
Less/ Add	DEPRECIATION/ AMORTISATION (F)		206.112	196.085	136.501
	PROFIT BEFORE TAX (E-F) (G)		657.305	549.581	816.886
Less	TAX (H)		223.899	186.892	289.231
	PROFIT AFTER TAX (G-H) (I)		433.406	362.689	527.655
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1591.183	1474.725	1166.785
Add	Withdrawal of Foreign Exchange		0.000	0.000	27.000
Less	APPROPRIATIONS
		Transfer to General Reserve	100.000	100.000	100.000
		Proposed Dividend	125.403	125.403	125.403
		Tax on Dividend	20.344	20.828	21.312
	BALANCE CARRIED TO THE B/S		1778.842	1591.183	1474.925
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	720.071	725.842	667.224
	TOTAL EARNINGS		720.071	725.842	667.224
	Earnings Per Share (Rs.)		6.91	5.78	8.42

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter	30.09.2011 2^nd Quarter
Net Sales	589.270	592.090
Total Expenditure	384.070	396.940
PBIDT (Excl OI)	205.200	195.150
Other Income	0.000	0.000
Operating Profit	205.200	195.150
Interest	29.140	31.750
Exceptional Items	0.000	0.000
PBDT	176.060	163.400
Depreciation	50.180	49.950
Profit Before Tax	125.880	113.450
Tax	5.710	70.290
Provisions and contingencies	0.000	0.000
Profit After Tax	120.170	43.160
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	120.170	43.160

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	16.63	15.82	22.15
Net Profit Margin (PBT/Sales)	(%)	25.35	24.08	34.40
Return on Total Assets (PBT/Total Assets}	(%)	15.88	13.36	20.09
Return on Investment (ROI) (PBT/Networth)		0.20	0.19	0.30
Debt Equity Ratio (Total Liability/Networth)		0.60	0.64	0.71
Current Ratio (Current Asset/Current Liability)		0.88	0.58	0.60

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS / PERFORMANCE

The year 2010-11 saw a slight improvement in the GDP growth in the country. The Indian economy grew at 8.5%

during the year 2010-11. The last two quarters of the fiscal saw the revival in growth rates across all sectors. During the year 2010-11 the Company's turnover increased by 13.70% from Rs. 2292.500 Millions to Rs. 2606.600 Millions. The gross operating profit (PBDIT) was higher by 12.57% at Rs. 976.400 Millions from the previous year's Rs. 867.400 Millions and the net profit was higher by 19.49% in the current year at Rs. 433.400 Millions compared to Rs. 362.700 Millions of the previous year.

EXPANSIONS AT HYDERABAD

The civil works and interiors for the new five star hotel project site at Begumpet, Hyderabad is in advanced stages. As per asset light strategy of the Company, the owner of land has put up the structure and the Company is doing the interiors.

The project would consist of around 181 rooms with cost of interiors estimated at around Rs. 1000.000 Millions, and is expected to be operational in 2011.

The Company is proposing the construction of a 12000 sq ft spa and an additional Car parking facility along-with

enhanced landscaping and connecting bridges at the existing premises of Taj Krishna, at an estimated cost of Rs. 200.000 Millions. The excavation works have been completed and the construction work on the car-parking facility has commenced.

The Company is also planning to enter the value for money segment through the 'Ginger' brand in Andhra Pradesh. The excavation works on the first Ginger hotel on a site located near the Shamshabad International Airport have been completed. The hotel is expected to be completed over the next two years.

AWARDS

During the year 2011, the Company's Executive Chairman Dr. G V Krishna Reddy was conferred the prestigious 'Padma Bhushan' award by the Government of India in the discipline of Trade and Industry from Andhra Pradesh. He has been a pioneer in private participation in infrastructure development, mainly in power, roads and urban landscape.

The "Padma Bhushan" award is the third highest civilian award in the Republic of India. Dr G V Krishna Reddy is the Chairman of the diversified GVK Group, which operates also the Mumbai and Bengaluru Airports.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW:

Indian Economy growth in 2010-11 has been swift and broad-based. The economy is back to its pre-crisis growth trajectory. Services sector continues its near double digit run. With the institutional reforms the economy's growth is expected to be in double digits in the near future.

Despite the fact that this was a period of the Global financial crisis, in 2010-11 the economy has enjoyed an unprecedented 8.5 per cent growth. This was composed of 5.4 per cent in agriculture, 8.1 per cent in industries and 9.6 per cent in services, but high inflation remains an area of concern.

The government assessed that the Indian economy would grow at 9% in 2011-12 as compared to 8.5% in the previous year and has expressed a commitment to fiscal stimulus in 2011, and to deficit reduction the following two years. It has proposed limited privatization of government-owned industries, in part to offset the deficit. It is estimated that, in four years, economic growth could hit ten percent, making India the fastest growing economy in the world.

One of the biggest challenges that India has faced on it path to economic development is the poor state of its infrastructure. The latest budget has stressed the requirement for improved infrastructure and has proposed several measures that will increase the investment in this sector and accelerate growth. With an improved network of highways, railways and airports visitors and tourists will be able to explore the country and visit places that might have been inaccessible or left out, thus providing impetus to the hospitality industry too.

HOSPITALITY and TOURISM INDUSTRY OVERVIEW:

Tourism in India is the largest service industry, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India. Indian Tourism and Hospitality sector has reached new heights and travellers are taking new interest in the country, which leads to upgrading the hospitality sector. Even an increase in business travel has driven the hospitality sector to serve their guests better. Visiting foreigners has reached a record 3.92 million and consequently International Tourism receipts have also risen to US $ 5.7 billion.

The World Travel and Tourism Council (WTTC) have named India along with China as one of the fastest growing tourism industries for the next 10 to 15 years.

The Indian hospitality sector is expected to show a healthy growth and according to the Ministry of Tourism, the contribution of tourism to India's GDP is 5.9 per cent as compared to worldwide average of 11 percent.

By 2020 the tourism industry in India is expected to increase to US$ 275.5 billion at a 9.4% annual growth rate and also expects travel and tourism to contribute Rs. 8500 billion GDP, almost 4 times the value in 2005.

Hospitality industry closely linked with travel and tourism industry and India is experiencing huge footfalls as a favorite vacation destination of foreigners and natives and the hospitality industry is going into a tizzy working towards improving itself. The Indian tourism industry has outperformed the global tourism industry in terms of growth in the volume of international tourists as well as in terms of revenue.

As they enter the new decade, it would help to recollect the evolution of the Indian hospitality industry over the last ten years. At the beginning of the previous decade India was a country with only limited number of international brands and had hotels mainly concentrated in the major metros and predominantly in the luxury segment. The hotel industry in the country has undergone significant changes and has reinvented itself to benefit the industry as well as the guest base. The hotels today are no longer restricted to the major cities but are aggressively marking their presence in tier two and tier three cities. Guests today have a wide range of choices extending from the luxury, upscale, leisure to the budget segment. India has now become an attractive destination for any global hotel company which is evidenced from the entry of a slew of international hotel brands in the country and others plotting their strategies for entry. Also, what is remarkable to note is that inspite of the intense competition from international brands, the Indian brands have held their turf and thrived.

MARKET OVERVIEW

Hyderabad

Hyderabad has traditionally been a major centre for the IT and ITeS sectors. However, with the recent economic downturn, these sectors saw declines while new sectors such as finance and biotechnology have become more active in Hyderabad. Until the downturn, Hyderabad saw significant levels of economic development in the form of a new international airport, extensive improvements in road infrastructure, and announcements of new industrial parks and SEZs proposed for development across the city, especially in Gachibowli, HITEC City, and Shamshabad.

The city of Hyderabad has witnessed one of the highest growths in demand in the country as compared to 2009-

10. The city's mid-market occupancy levels were one of the most severely affected in 2009-10 owing partially to the ripple effects of global recession along with the persisting Telangana issue. The strong recovery witnessed in 2010-11 highlights the city's potential for growth and resilience. The RPDs in the luxury segment has been more or less stable as compared to the previous year.

The city has witnessed addition of new inventory of more than 500 rooms during the year, which were however absorbed by the addition in demand and hence not affecting the occupancies of the existing hotels in any substantial way.

However, with a continued focus on economic development by planning authorities, the high level of optimism among companies based in the city, and assuming there is a timely resolution to the Telangana issue, Hyderabad's hotel market is expected to see improvements in the future. The Greater Hyderabad Municipal Corporation has also initiated checks on the star hotels in the city on various parameters ranging from cleanliness, hygiene, parking facilities, statutory compliances to green initiatives like reduction in usage of plastic so as to spur confidence in vacationers as well as corporates to choose Hyderabad as a favoured destination.

Chandigarh

The city of Chandigarh has always been a hub for film shootings with its scenic landscapes and plush gardens. Cricket has also been a mainstay with the Mohali cricket stadium forming a permanent venue in any cricket series

that is played in the country. The Mohali cricket ground witnessed a historic event in 2010-11 in the form of the Indo-Pak ICC Cricket World Cup semi-final which provided lot of visibility as well as business to the Company's property at Chandigarh.

Further, with more international flights slated to operate from the city, sanction for the Metro project and the growth of the IT industry in and around Chandigarh, the hospitality industry is bound to get a boost from the corporate as well as tourist activity. The occupancy levels and the average room rates in the city did see a rise in

the year 2010-11. However, the next two years are bound to see new room inventory coming into Chandigarh with brands like Marriott, Aloft and Sheraton slated to open up hotels.

Chennai

Similar to most major cities, Chennai also witnessed significant rate corrections in 2010-11. However, the city-wide occupancy increased over the last year, owing to improved performance in the second half of 2010- 11. Although the hotels witnessed a decline in demand from the IT/ITeS industry concentrated on the OMR, the fast-developing industrial regions of Sriperumbudur, Ambattur, and Egmore helped in sustaining occupancies. The delay in hotel openings of large hotel projects also helped in maintaining stable occupancy levels. The diverse nature of demand in Chennai, comprising of IT/ITeS, automotive industry, as well as other manufacturing industries located in Sriperumbudur will sustain the growth in demand going forward. The expansion of existing manufacturing facilities and setting up of new plants is responsible for attracting extended stay demand to the city, and is also responsible for travel by foreign corporate guests with high paying propensity.

However, a significant increase in supply of branded hotels with sizeable inventories, especially in the upscale and luxury segments is expected over the next few years.

FUTURE EXPANSION PLANS

In Hyderabad region Begumpet

The civil works and interiors for the new five star hotel project site at Begumpet, Hyderabad is progressing as per schedule. As per asset light strategy of the Company, the owner of land has put up the structure and the Company is doing the interiors. The project would consist of around 181rooms with cost of interiors estimated at around Rs. 1000.000 Millions, and is expected to be operational in 2011.

Taj Krishna

The Company is proposing the construction of a 12000 sq ft spa and an additional Car parking facility alongwith

enhanced landscaping and connecting bridges at the existing premises of Taj Krishna, at an estimated cost of Rs 200.000 Millions. The excavation works have been completed and the construction work on the car-parking facility has commenced.

Other plans

The company has been allotted around 6 acres of land at Yelahanka near Bangaluru for hotel projects. The Company is also planning to enter the value for money segment through the 'Ginger' brand in Andhra Pradesh.

The excavation works on the first Ginger hotel on a site located near the Shamshabad International Airport have

been completed.

Outlook:

According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC), the demand for travel and tourism in India is expected to grow by 8.2 % between 2011 and 2020. This will place India at the third position in the world. India's travel and tourism sector is expected to be the second largest employer in the world. Capital investment in India's travel and tourism sector is expected to grow at 8.8 % over the next decade. The report forecasts India to get more capital investment in the travel and tourism sector and is projected to become the fifth fastest growing business travel destination from 2010 through 2020.

India currently has over 200,000 hotel rooms spread across hotel categories and guest-houses and is still facing a

shortfall of over 100,000 rooms and is far below the number of hotel rooms available in Shanghai or Manhattan.

The earlier setbacks in global tourism have strengthened the Department of Tourism's resolve to promote India's

tourism through aggressive marketing strategies through its campaign 'Incredible India'. The 'marketing mantra' for the Department of Tourism is to position India as a global brand to take advantage of the burgeoning global travel and trade and the vast untapped potential of India as a destination. With events like Aeroshow, Indian Premier League and Formula One Grand Prix happening in the country, it gives a shot in the arm for the local tourism industry.

Inspite of the rise in costs and the existing inflationary trends, the country is witnessing an unprecedented growth in hotel constructions and will be adding almost 114,000 hotel guest rooms to its inventory over the next five years. As the Indian hospitality sector grows, it will begin to see more differentiation in the present hotel positioning.

While it is fair to assert that hotels in India are currently witnessing several overlaps between the Budget and Mid-Market segments and then again between the Mid- Market and Upscale segments, it is likely that the picture will become clearer with time. They anticipate that as the industry matures, each segment will carve its niche in terms of the product as well as service deliverables and there will thus be a rationalisation of development costs, which will be in line with their respective market positioning.

Therefore, in the long term, the prospects of the Indian hospitality industry look bright, with adequate infrastructure support, rise in inward bound travel complemented by robust domestic travel with higher propensity to spend of the domestic clientele.

FIXED ASSETS

• Land and Land
• Freehold Land
• Buildings
• Plant and Machinery
• Furniture and Fixture
• Vehicles

 
 
 
Business Description
 

Subject is engaged in the hospitality industry. TAJGVK operates Taj Krishna, Taj Banjara, Taj Deccan in Hyderabad and Taj Chandigarh in Chandigarh. The Company also operates a Taj Chennai in Chennai. Taj Banjara presents both modern amenities and comfort. This business class hotel offers facilities, including some of the restaurants in the city. Taj Krishna is the flagship hotel of TAJGVK. Taj Krishna has 260 rooms. Taj Deccan is the process of being upgraded to a super deluxe luxury category. Taj Chandigarh provides a brand of service to a host of business, luxury and non-resident Indian (NRI) travelers in Chandigarh. Taj Chennai has a capacity of 200 guest’s room. For the nine months ended 31 December 2010, Taj GVK Hotels and Resorts Limited's revenue increased 15% to RS1.91B. Net income increased 26% to RS304.6M. Revenues reflect an increase in income from operations and higher other operating income. Net income also reflects a decrease in interest expense and higher operating profit margin of the company. The company is engaged in the hospitality and tourism industry.

MANAGEMENT:

G. Indira Krishna Reddy Managing Director, Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Mr. P. Abraham has been appointed as Independent Non-Executive Director of Taj Gvk Hotels and Resorts Limited with effect from April 30, 2009. Mr. P. Abraham's specific functional areas includes Administration and Power Sector. His other Directorships includes: JSW Power Limited, Lanco Infratech Limited, Nagarjuna Construction CompanyLimited, PTC Limited, Uflex Industries Limited, JSW Energy Limited, Vijay Electricals Limited, Maharashtra State Power Generation Company Limited, PTC Financial Services Limited, Global Heavy Electricals. Limited, Visaka Industries Limited, GVKPower and Infrastructure Limited

C. D. Arha- Independent Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Mr.C. D. Arha is Independent Non-Executive Director of Taj Gvk Hotels and Resorts Limited His Experience in specific functional areas inlcudes Finance and Administration. His Directorship inlcudes Anand Rathi Financial Services Limited, Emami Cement Limited

Krishnaram Bhupal - Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Mr. Krishnaram Bhupal is Non-Executive Director of Taj GVK Hotels and Resorts Limited He has experience in Finance and Accounts

Shalini Bhupal- Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Smt. Shalini Bhupal is Executive Director of Taj Gvk Hotels and Resorts Limited Shalini Bhupal's experience in specific functional areas inlcudes Interior designing, Administration and . General Management. Her Other Directorships include: Orbit Travels and Tours Private Limited, Casuarina Capital and Finance Private Limited,Caspian Capital and Finance Limited, Pinakini Share and Stock Brokers Limited and GVK Airport Developers (Private) Limited

Anil P. Goel- Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Mr. Anil P. Goel is Non-Executive Director of Taj Gvk Hotels and Resorts Limited He holds C.A. He has experience in Finance. His other Directorship includes: The Indian Hotels Company Limited, TIFCO Holdings Limited, Taj Kerala Hotels and Resorts Limited, Piem Hotels Limited, Roots Corporation Limited, Taj SATS Air Catering Limited

Abid Hussain- Independent Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Dr. Abid Hussain is an Independent Non-Executive Director of Taj Gvk Hotels and Resorts Limited He is Retired Officer From Indian Administrative Service. He Has held various senior positions in the State and Central Government as also in various Overseas Development Bodies.

D. R. Kaarthikeyan- Independent Non-Executive Director

Mr. Devarayapuram R. Kaarthikeyan is Independent Non-Executive Director of Taj Gvk Hotels and Resorts Limited He is B.Sc., BL, I P S (Retd.). His Experience in specific functional areas include: Retired Officer from Indian Police Service and has held multifarious positions of the police department, Ministry of External affairs, etc. His other Directorship include: Star Health and Allied Insurance Company Limited, Raj Television Limited, Lotus Eye Care Hospitals Limited, Syenergy Environics Limited, Oriental Hotels Limited, Roots Industries India Limited.

Ajoy Kumar Misra- Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Mr. Ajoy Kumar Misra is Non-Executive Director of Taj GVK Hotels and Resorts Limited. He holds a degree in Civil Engineering from BITS Pilani, and an MBA from The Faculty of Management Studies, Delhi University. His other Directorship includes: Mount Everest Mineral Water Limited, Northern India Hotels Limited, Roots Corporation Limited, Piem Hotels Limited, Nourishco Beverages Limited

Anumolu Ramakrishna- Independent Non-Executive Director

PHD , Jawaharlal Nehru Technological University

DS , Andhra University

M. B. N. Rao- Independent Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Shri. M. B. N. Rao is Independent Non-Executive Director of Taj GVK Hotels and Resorts Limited He has experience in Banking.

K. Jayabharath Reddy-Independent Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Mr. K. Jayabharath Reddy is Independent Non-Executive Director of Taj GVK Hotels and Resorts Limited He has experience in General and Public Administration, Financial and Industrial Management.

G.V. Sanjay Reddy- Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Mr. G V Sanjay Reddy is Non-Executive Director of Taj GVK Hotels and Resorts Limited He is in Hotel operations, Power Plant operations and Biotechnology.

Ajit Singh- Independent Non-Executive Director

Reuters Biography (Taj GVK Hotels and Resorts Limited) Mr. Ajit Singh is Independent Non-Executive Director of Taj Gvk Hotels and Resorts Limited His other Directorship inlcudes GVK Industries Limited

Raymond N. Bickson- Chief Executive Officer and Managing Director

Dr. Raymond N. Bickson is Non-Executive Director of Taj GVK Hotels and Resorts Limited He has a Versatile experience in the hotel operations. Worked in different continents and has global experience in hoteliering. Raymond N. Bickson his Qualifications inlcudes Advanced Management Program at Harvard Business School in Boston. Studied at the Goethe Institute in Berlin, the Alliance Francaise in Paris, the Universite' de Sorbonne in Paris, L'ecole Hotelier, Lausanne, and Cornell University in New York. His in specific functional areas includes Versatile experience in the hotel operations. Worked in different continents and has global experience in hoteliering. He was awarded an honorary doctorate in Hospitality management by Johnson and wales University, rhode island, USA. His Directorship inlcudes The Indian Hotels Company Limited, Oriental Hotels Limited, Benaras Hotels Limited, Taj Trade and Transport Company Limited,Roots Corporation Limited, Taj Safaris Limited, Taj SATS Air Catering Limited, Taj Hotels and Resorts Limited, United Hotels Limited, St. James Court Hotel Limited

AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER 2011

(RS. In Millions)

Particulars			Quarter Ended		Half Year Ended
			As on 30.09.2011		As on 30.09.2011
(a) Net Sales/Income from Operations			3575.600		7271.000
(b)Other Operating Income			--		--
Total Income			3575.600		7271.000
Expenditure
(a)	Consumption of raw materials		333.100		646.900
(b)	Staff Costs		1166.700		2269.100
(c)	Licence Fees		223.900		440.100
(d)	Fuel, Power and Light		332.500		654.300
(e)	Depreciation		279.200		555.000
(f )	Other Expenditure		1132.400		2192.700
(g)	Total Expenditure		3467.800		6758.100
	Profit from operation before other income, interest and other exceptional items		107.800		512.900
	Other Income		176.500		312.300
	profit before interest and exceptional items(3+4)		284.300		825.200
Interest			247.200		458.400
Profit after interest but before exceptional items(5-6)			37.100		366.800
Exceptional Items – Notional Exchange Gain/ Loss			[10.600]		[10.600]
Exceptional Item – Others			106.400		106.400
Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)			132.900		462.600
Tax Expenses			--		--
Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10)			81.200		294.300
Paid-up Equity Share Capital Rs.2/ per share			759.500		759.500
Reserves excluding revaluation reserves
Earning Per Share
Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		0.11		0.39
Debt Service Coverage ratio		--		0.64
Interest Service Coverage Ratio		--		4.21
Average Public Shareholding
Number of Shares		504406671		504406671
Percentage of Shareholding		66.42		69.72
Promoters and Promoter group
a) Pledged/Encumbered
Number of shares		--		--
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		--		--
Percentage of Shares (as a % of the total share capital of the Company)		--		--
b) Non-encumbered
Number of shares		255066116		255066116
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100.00		100.00
Percentage of Shares (as a % of the total share capital of the Company)		33.58		33.58

STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2011

(Rs. In Millions)

ITEM	SEPTEMBER 30, 2011
Shareholders’ Funds:
a) Share Capital	759.500
b) Warrants	1243.700
c) Reserve and Surplus	31457.200
Loan Funds	23307.800
Long Term Trade Deposits	131.200
Deferred Tax Liability	588.200
Foreign Currency Monetary Item Transactions Difference Account	--
Total	57487.600
Fixed Assets (including capital work in progress)	20424.500
Investments	24419.600
Long Term Deposits	17295.200
Foreign Currency Monetary Item Transaction Difference Account	10.700
Deferred Tax Assets	--
Current Assets, Loans and Advances
a) Inventories	343.400
b) Sundry Debtors	1172.200
c) Cash and Bank Balance	243.000
d) Loans and Advances	4307.100
Less: Current Liabilities and provisions
a) Liabilities	4507.900
b) Provisions	6221.500
Net Current Assets/ Liabilities	(4663.700)
Miscellaneous Expenditure (to the extent not adjusted or written off)	1.300
Total	57487.600

Notes:

1. Net Sales/Income from Operations for the half year ended September 30, 2011, improved by 11 ‘Yo over the corresponding period of the previous year, driven by improved occupancy and some improvement in average room rates as well during what is essentially an off season time for the sector. During the quarter, the Company launched a new 327 rooms Vivanta by Ta; hotel at Bengaluru. In view of the seasonality of the sector, the financial results for the quarter and half year ended September 30, 2011, are not indicative of the full year’s expected performance.

2. Exceptional Item — Others, for the quarter and half year ended September 30, 2011, includes 30.800 Millions, being the charge in respect of accumulated capital expenditure on a project since discontinued for commercial reasons and interest income of 137.200 Millions on a deposit refund received consequent to surrender of leasehold land in terms of a Supreme Court Order on the disputed allotment. Figures for the corresponding previous quarter and half year, relate to a provision for diminution in the value of an investment in a subsidiary for 0.858 Million and profit on sale of a hotel property for 0.429 Million.

3. During the quarter, with effect from April 1, 2011, the Company has adopted hedge accounting principles to account for hedging of loans extended to subsidiaries forming a part of the Company’s net investment in non-integral foreign operations. Effectively, the Company had partially converted its rupee borrowings into foreign currency borrowings, using cross-currency swap derivative instruments, so as to progressively balance on its books its net investments in overseas subsidiaries with foreign currency borrowings.

On application of the hedge accounting policy, the foreign currency translation differences of both, the hedging instrument (i.e. the borrowings) and the hedged item (i.e. the net investment in non- integral foreign operations), are recognised under Reserves and Surplus having due consideration to hedge effectiveness. Accordingly, the translation difference on the borrowings amounting to 517.700 Millions (net of tax) for the half year (including 507.400 Millions (net of tax) for the current quarter) forming the effective portion of the hedge has been recognised in the Hedge Reserve Account in the Balance Sheet, whilst the corresponding translation differences of the net investment in non-integral foreign operations of 1403.300 Millions for the half ycr (including 1386.400 Millions for the current quarter) has been recognised under Foreign Currency Translation Reserve Account in the Balance Sheet.

Under the previous accounting policy, the translation differences in respect of the borrowings were being amortised by way of a charge to the Profit and Loss Account. If the Company had continued with the previous accounting policy, an amount of 313.100 Millions for the half year (including 310.000 Millions for the current quarter) would have been reflected as Notional Exchange Loss in the Profit and Loss Account and an amount of 453.300 Millions would have been deferred and recognised as an asset under “Foreign Currency Monetary Item Translation Difference Account” (FCMITDA).

4. The formulae used for calculation of Debt Service Coverage Ratio and Interest Service Coverage Ratio are as follows:

a. Debt Service Coverage Ratio = Profit before Interest (Net), Depreciation and Tax /(Interest (Net) + Principal Repayment).

b. Interest Service Coverage Ratio = Profit before Interest (Net), Depreciation and Tax / Interest (Net).

c. While calculating the above ratios, debt which has been re-financed has not been considered as repayment of Principal and the ratios have been computed on a trailing twelve months basis.

5. The auditors in their report have invited attention to the Company’s exposures in long-term investments and advances (including through wholly-owned subsidiaries) given to certain companies aggregating 1,404 50 lakhs, wherein the carrying costs of these investments as at September 30, 2011, significantly exceed their book/market values as on that date. In view of the strategic nature of the investments and the Company’s long term commitment and strategies, in the opinion of the Management there is no diminution, other than temporary , in the value of the afore said investments.

6. Disclosure of segment-wise information is not applicable, as hotehering is the Company’s only reportable business segment.

7. Disclosure on Investors’ complaints:

Complaints outstanding at the beginning of the quarter	Received during the quarter	Disposed off during the quarter	Unresolved as on 30.09.2011
--	3	3	--

 
8. Figures for the previous year and periods have been regrouped, wherever necessary, to conform to the current period’s presentation.
 
9. The aforementioned results were reviewed by the Audit Committee of the Board, subsequently approved by the Board of Directors at its meeting held on October 28, 2011 and have been audited by the Statutory Auditors of the Company.
 

PRESS RELEASE:

Hotel companies: Higher occupancy, room rates to drive growth

Economic Times (India)

15 June 2011

By By Rajesh Naidu, The Economic Times, India

June 15--With rising real estate prices, hotel companies in India are increasing presence in tier-II and tier-III cities through midmarket and budget segments.

Low-cost hotels in smaller cities will see a growth of about 50 percent in the next four years, consulting and research firm HVS said in a report. The average per key cost of budget and mid-market hotels are about Rs 3.000 Millions to 5.000 Millions compared with Rs 8.500 Millions Rs 10.000 Millins for first class and luxury hotels.

Budget hotels break-even and turn profitable faster than their peers in the luxury space. Such an arrangement works better not only in terms of investment, but also in terms of returns. The return on capital employed (RoCE) of mid-sized hotels was more than 15 percent in the past five fiscals while larger peers such as Indian Hotels, EIH, and Hotel Leela Venture had RoCE of below 15 percent.

To tap the growth opportunity in the budget hotels space in smaller cities, several foreign players have tied up with local hotels to increase presence in India. Intercontinental Hotel Group recently signed a joint venture with India'sDuet Hotels to launch the Holiday Inn brand.

It would develop 19 properties in the initial phase. On the domestic front, segment leader Indian Hotels would have an inventory of about 48 percent in the mid-market and the budget hotels segment in the next 2-3 years. Mid-segment hotels companies such as Royal Orchid Hotels, Kamat Hotels, and Taj GVK Hotels and Resorts are also expanding presence in tier-II and tier-III cities.

High occupancy rates and revenue per room and low debt will drive growth of mid-sized hotels in the coming years. Mid-sized hotels have an average occupancy rate of 68 percent and revenue per room of Rs 4,624. Most of these companies are operating at low debt helped by a new business model and restructuring exercises.

Also, the rise in foreign tourist arrival in India will boost revenues for budget hotels in smaller towns. Foreign tourist arrivals in May were up 7 percent from the previous month, government data showed.

BOOK CLOSURE

Accord Fintech (India)

30 April 2011

India, April 30 -- Taj Gvk Hotels and Resorts Limited has informed the Exchange that the Register of Members and Share Transfer Books of the Company shall remain closed from July 22, 2011 to July 26, 2011 (both days inclusive) for the purpose of Annual General Meeting of the Company and for payment of dividend subject to approval of the share holders in the ensuing Annual General Meeting. Published by HT Syndication with permission from Accord Fintech.

FINANCIAL RESULT UPDATES

Accord Fintech (India)

02 November 2011

India, Nov. 02 -- Taj GVK Hotels and Resorts Limited has submitted to the Exchange the Standalone Financial Results for the period ended September 30,2011. Published by HT Syndication with permission from Accord Fintech.

REVISED FINANCIAL RESULTS FOR SEP 30, 2011

Accord Fintech (India)

03 November 2011

India, Nov. 03 -- Taj Gvk Hotels and Resorts Limited has submitted to BSE a Copy of the Revised Financial Results for the period ended September 30, 2011. Published by HT Syndication with permission from ACCORD FINTECH BSE

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.38
UK Pound	1	Rs.79.20
Euro	1	Rs.67.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	----
DEMERIT POINTS
--BANK CHARGES	YES/NO	Yes
--LITIGATION	YES/NO	No
--OTHER ADVERSE INFORMATION	YES/NO	No
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	No
--EXPORT ACTIVITIES	YES/NO	No
--AFFILIATION	YES/NO	Yes
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		64

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.