India Tourism Development Corporation Ltd Management Discussions.

Global and Indian Scenario

The global economy witnessed a marked slowdown in 2019 with growth softening to 2.9% in 2019 from 3.6% in 2018 and 3.9% in 2017. The GDP growth in India settled at 4.2% in 2019-20. According to Ministry of Statistic, in the fourth quarter of the Financial Year 2019-20, Indias growth dropped by 3.1% due to widespread presence of COVID-19. The coronavirus pandemic (COVID-19) poses unprecedented health, economic and financial stability challenges. Govt. of India has announced a series of fiscal stimulus packages and subsidies to support small and medium sized enterprises, farmers and migrant labour, etc. The growth in the tourism sector decelerated in 2019-20 with marginal growth in foreign tourist arrivals and consequently dip in foreign exchange earnings from tourism especially on account of COVID-19 impact in the last quarter. Tourism, Travel and Hospitality sector has emerged as First hit, Worst hit and Longest hit sector is likely to take considerably long period to reach pre-COVID level. Ministry of Tourism has recommended Protocols covering all service providers and their related activities in tourism and hospitality sector, to ensure a safe and prepared approach for a post COVID-19 revival. ITDC is committed to placing health and safety on top priority, while retaining traditional hospitality. An Advisory Board has been formed by ITDC in tie up with AIIMS to design and develop health and safety protocols and for providing ongoing, real time guidance for ITDC hotels and offices. Besides ITDC has done a rigorous training intervention on health and safety protocols at its hotel properties for all the employees in different divisions. Segment wise performance including financial performance with respect to operational performance

A. Hotels Division

The Ashok, New Delhi played host to various prestigious functions and conferences some of which were organised by Delhi Ophthalmologic Society, National Mission for Clean Ganga, Ministry of Environment, Ministry of Commerce & Industry, NTPC Ltd, Kendriya Vidyalaya Sangathan, IASOWA, Ministry of Youth Affairs & Sports, Cardiology Society of India (Delhi Branch) CSI 2019, Ministry of Women & Child Development Beti Bachao Beti Padhao, Ministry of Jal Shakti, Sports Authority of India, Institute of Directors, National Teachers Awardees, Directorate General of Foreign Trade, Indian Council of Agricultural Research-

Indian Agricultural Statistics Research Institute

(ICAR-IASRI), Association of Physicians of India-Delhi State Chapter, Launch of multi-lingual Incredible India website in Arabic, Chinese and Spanish languages by Honble Minister of State for Tourism & Culture, Ministry of Tourism.

The Ministry of Tourism along with

Federation of Associations of India Tourism &

Hospitality (FAITH) organized the Second India Tourism Mart (ITM) which was inaugurated by

Honble Union Minister of State for Tourism & Culture (IC) while Honble Union Minister for Road Transport and Highways was the Chief Guest at the event. The major stakeholders/ buyers from India and International Tourism market participated and some of them stayed in the hotel. The objective of the mart was to have B2B (Business to Business) meetings between Indian and foreign tour operators. Cultural Activity - Parangat Prayag Kala Kendra in association with ITDC/The Ashok organized a Traditional Cultural Event for revival of Indian Traditions at the Amphitheatre which was well appreciated by the audience. An educational exhibition was organized by India Didactics Association and a painting exhibition was organized by Red Orange.

Up-gradation/Renovation - Four new elevators were installed & commissioned and installation work is in progress for another six elevators. Ashok Events Office located near Sagar Ratna restaurant was renovated. Repair and upgradation work of Cooling Tower and DG Room structure was done. Strengthening work of ledge canapes on the terrace was completed. Fabrication work of water tank base on the main building terrace has been undertaken. Upholstery of Coffee Shop furniture and sofas of banquet section has been done. New carpet has been fixed on the ramp near Convention Hall. The ISO 50001:2018 Stage I and Stage II Audit was done and subsequently the certificate of ISO:50001:2018 for the implementation of Energy Management System under BEE-QCI has been awarded.

During the period, e-tendering was done for the vacant F&B outlets/spaces and were successfully licensed out. Discotheque was licensed out to and operating under the name and style of "SOUL - CLUB:KITCHEN". Two shops no.30 & 31 licensed were licensed out as office space. An office space was licensed out the Ministry of Defence. Offices in Shop 30 &31 and 101, 109-110 were licensed out.

Hotel Samrat, New Delhi hosted / associated in various important events some of which were organised by DOSCON 2019, VSY Biotechnology, ASSOCHAM, Educational Publishers Conference, All India Achievers award function, ADTOI, Ministry of Tourism, Kendriya Vidyalaya Sangathan, Directorate General of Vigilance, ICPB, ONGC, SAIL, BIS, CSIR, NITS, Ministry of Youth Affairs, Ministry of Law & Justice, Iconic Achievers Council of India, NDMA, Coal India Ltd, etc. Packed meals of Hotel Samrat remained popular during the period. Also, Hotel Samrat provided venue to a large number of inhouse training programmes conducted by the HRD Division for employees of ITDC.

Since Occupancy level of Hotels are likely to remain low on account of COVID-19 situation, renovation work of 48 Guest Rooms and lobby area of Hotel Samrat would be taken up during this financial year.

Hyderabad House catered to many prestigious events among which the Honble

Prime Minister of India hosted State dignitaries from various countries such as Honble Presidents of Zambia, Portugal, USA, Brazil, Sri

Lanka, Myanmar and Honble Prime Ministers of Bangladesh, Netherlands, German Chancellor, Sri Lanka, Portugal, BIMSTEC countries and King & Queen of Sweden. In addition, Hyderabad House also made catering arrangements for many VIP events at Jawaharlal Nehru Bhawan, Pravasi Bharatiya Kendra etc. Hyderabad House has also earned great appreciation in terms of continued upgradation in variety of food, presentation and service.

Vigyan Bhawan Catering Unit catered to many important conferences. Some of the conferences were also attended by Honble President of India and Honble Prime Minister of India. The Unit has received FSSAI license issued by Department of Food Safety, Govt. of Delhi valid till November 2021. During this period Vigyan

Bhawan catered to many important national conferences such as "Construction Technology

India" by MoHUA, Swachhta Sarvekshan Award by MoHUA, PNB Foundation Day, M/s Outlook Group, GM Modi Science Foundation, UNESCO, Ministry of AYUSH, National Teachers Award, National Youth Awareness Mission, National Water Development Agency, CSIR Award, National Health Authority, Institute of Company Secretaries of India, Indian Nursing Council, ASSOCHAM, WAPCOS Ltd etc.

Hotel Jammu Ashok, Jammu remained a venue of choice for wedding functions and social events.

Hotel Kalinga Ashok, Bhubaneswar remained a venue of choice for various conferences and events for National Health Mission, State Institute of Health & Family

Welfare, Directorate of Science & Technology, Gopal Industries, Himalaya, RCFC, Association of Surgeons of India (ASICON), Indian Institute of Public Administration, Sahitya Akademi and many others.

The Chefs of ITDC participated in International Food Festivals hosted abroad by various Ministries/Missions. The IFF at Ankara, Turkey was successfully conducted and Diplomats from The Indian embassy Ankara, Media personnel, Turkish people and the international community appreciated the team for authentic taste and flavours of Indian food. Another IFF was organized in Brunei, Darussalam to showcase Lucknowi/Awadhi cuisine. The Brunei elite, the Diplomatic Corps, senior Government officials, prominent members of local and Indian community as well as other dignitaries relished and appreciated the delicacies. The High Commissioner of India commended the efforts of both the chefs in promoting the Lucknowi/Awadhi cuisine in

Brunei Darussalam.

Food Festivals and Promotions were organised in ITDC hotels to exhibit the richness of the regional cuisines of our country and to display the fineries of gastronomy. Some of these were:

Navratra Thali, Easter Special Goodies, Ramzan-ul-Mubarak, Mango Mania festival, Kabab with Cocktails, Happy Hours, Rakhi

& Independence Day Celebration, GQ

Man of the Year, Daawat-e-Oudh, World Tourism Day "Gastronomical Exploration", Childrens Day Celebration, Christmas &

New Year Eve, Valentines week, Arunachal Food Festival, A super celebration for all the super women on Intl Womens Day are some of the Food Festivals organised at The Ashok, New Delhi

Summer Coolers promotion and Holi celebrations at Hotel Kalinga Ashok, Bhubaneswar.

The Ashok Hotel, Samrat Hotel, Hyderabad House and Vigyan Bhawan were awarded ISO 22000:2005 for Food

Safety Management System for a period of three years till June 2021.

The Ashok Group of Hotels won accolades:

National Tourism Award - Best Hotel Based Meeting Venue 2017-18 to the Ashok

TRAV TOUR MICE GUIDE - India MICE Award "Kaustubh 2019" presented to The Ashok for Best Convention Hotel North India

Safari India - South Asia Travel Awards for Best MICE Hotel 2019, The Ashok

PATWA International award - Best Organisation Tourism & Hospitality at ITB Berlin, 2019

14TH Hospitality India Travel Award - Best MICE & host hotel in 5* Deluxe Category presented to General Manger, The Ashok, 2019

Professionals of The Ashok Group of Hotels have been accredited with various awards:

16th ICF Annual Chef Awards - Golden Hat Award to Exec. Chef, Ashok Hotel

• Safari India - Best Professional for MICE

2019 to F&B Manager, The Ashok

School of Hotel Management - Chef Achievers Award to Chef, The Ashok Technical Campus on 1st Intl Hospitality Conclave & Awards 2020

Indian Culinary Forum - Silver, Main course

Young Chef Culinary challenge 2019

Bronze, Main course Enthusiastic hobby cooks Bronze, Live Rice cooking Bronze, Main course Bronze, Main course

As per Disinvestment Policy of the

Government of India, 9 hotel properties including 3 Joint Venture Hotel properties (viz Hotel Lake View Ashok, Bhopal; Hotel Brahmaputra Ashok, Guwahati, Hotel Bharatpur Ashok, Bharatpur, incomplete hotel project at Gulmarg, Hotel Janpath, New Delhi, Hotel Jaipur Ashok, Jaipur, Lalitha Mahal Palace Hotel, Mysore, Hotel Pataliputra Ashok, Patna and Hotel Donyi Polo Ashok, Itanagar) have been transferred/handed over to the respective State Governments so far.

Disinvestment/Divestment process of remaining properties i.e. Process for joint leasing in respect of Hotel Pondicherry Ashok, Puducherry; process for giving Hotel Kalinga Ashok, Bhubaneswar on Operation & Maintenance Contract is underway. Hotel operations at Hotel Ranchi Ashok, Ranchi and Hotel Nilachal Ashok Puri are closed. Incomplete Project at Anandupr Sahib, is under way to be transferred to State Government. Disinvestment process of Hotel Nilachal Ashok, Puri is stayed as the matter is subjudice and pending with the Honble Supreme Court. M/s Feedback Infra appointed as Transaction Advisor by DIPAM 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-Samrat Complex. M/s Feedback submitted its report to DIPAM. Last IMG was held by DIPAM on 20th July, 2020 to discuss the feasibility report.

The lease for the land for Hotel Jammu Ashok which was allotted in January 1970 to ITDC for a period of 40 years expired in January 2010. ITDC had been persistently following up for renewal of lease even prior to the expiry of the lease period. Now the J & K Government vide letter dated 20.03.2020 has informed about non-renewal of lease agreement. Accordingly, the operations of Hotel Jammu Ashok have been closed on 17.06.2020. Matter is being taken up with J & K Government for further settlement. With the ongoing process of disinvestment/ divestment of hotels and to look into the business in the core expertise, ITDC Board appointed M/s Deloitte to advise ITDC to expand its existing business and to tap the potential business related with Tourism & Hospitality Sector.

ITDC has also been entrusted responsibilities of setting up and running a Catering Unit in Parliament House. B. Ashok Events Division

Recovery in the global economy and a sectorally booming Indian economy was leading to a robust tourism & MICE industry in 2019-

2020, but both sectors have been hit adversely by the impact of Covid-19/Lockdown since

March 2020.

The overall focus of the governments both Central & State in India on aggressively organizing and promoting various schemes and achievements had led to a greater demand for events and conferences in 2019-2020, but has been put on hold by various Government directives/guidelines on account of Covid-19/ Lockdown now.

Once the prevailing situation improves in the medium term and Government allows holding of events/conferences, demand for tourism related services including events should be on the increase in the long term because of:

1. Incredible India Campaign and mega events like Bharat Parv of Ministry of Tourism, Govt. of India.

2. India perceived as a major tourist destination includes MICE and Health & Wellness Tourism.

3. Foreign Direct Investment and major reforms in the Civil Aviation sector.

4. Major boost to Religious sector Tourism In the Risk Management Compliance Committee Meeting held on 5th May, 2020, it was discussed that Ashoks Conventional hall may be advantageous for hybrid meeting concept during COVID 19 situation owing to its size however the same will further depend upon the further guidelines from the government.

The Ashok Events manages events, conferences and exhibitions both at national and International level for Ministries and various Government Bodies. It provides designing and printing solutions (Coffee Table book, guide books, diaries, posters, brochures, folders etc.). The Ashok Events Division is the designated agency to manage events on behalf of the Ministry of

Tourism. Ashok Events is managing the Literature Distribution Centre, located at Palam, on behalf of Ministry of Tourism.

The major events handled by the division during 2019-20 include :-

Certificate of and Maharishi Badarayan Vyas Samman at

Convention Hall, The Ashok, New Delhi on 4th April 2019 organized by Rashtriya

Sanskrit Sansthan. Chief Guest- Honble Vice President of India

India Rankings 2019 NIRF & ARIIA organized by National Board of Accreditation (NBA), Ministry of Human Resource Development, Government of India at Vigyan Bhawan, New Delhi on 8th April, 2019. Chief Guest- Honble President of India

• 2nd Convocation of National Institute of

Technology, Delhi held on 5th May 2019 at Plenary Hall, Vigyan Bhawan, New

Delhi organized by National Institute of

Technology, Delhi. Chief Guest- Honble Union Minister for Human Resource

Development

• Fabrication of NMCG Pavilion at Pragati

Maidan, New Delhi from 22nd to 24th May 2019. Chief Guest- Honble Union Minister for Jal Shakti

• National Mission on Clean Ganga

Exhibition, organized by NMCG during ‘Thai Water Week at BITEC, at Bangkok,

Thailand from 2nd to 8th June, 2019. Chief Guest- Honble Union Minister for Housing & Urban Affairs

• National Mission on Clean Ganga

Conference cum Exhibition at Convention Hall, The Ashok Hotel, New Delhi on 5th June, 2019. Chief Guest- Honble Union Minister for Jal Shakti

World Environment Day 2019 Celebration Honour toEminentScholars organized by Ministry of Environment,

Forests & Climate Change at Convention

Hall, The Ashok Hotel, New Delhi on 6th June, 2019. Chief Guest- Honble Union Minister for Environment, Forests &

Climate Change.

TEAM INDIA Fifth Meeting of the

Governing Council organized by NITI Aayog at Rashtrapati Bhawan Cultural Centre (RBCC) on 15th June, 2019. Chief Guest- Honble Prime Minister of India.

‘World Statistics Day scheduled for 29th June 2019 at Plenary Hall, Vigyan Bhawan, New Delhi being organized by Ministry of

Statistics and Program Implementation.

Chief Guest- Union Minister of Statistics &

Program Implementation.

National Thermal Power Corporation (NTPC) event at Convention Hall, The Ashok Hotel, New Delhi on 1st July, 2019 and NTPC Board Meeting at Suite 294, The Ashok Hotel, New Delhi.

Interaction of Honble President of India with Divyangjan at Deen Dayal Upadhyay Institute of Persons with Physical Disabilities (Divyangjan) organized by

Ministry of Social Justice & Empowerment, Government of India on 24th July, 2019. Chief Guest- Honble President of India

Ministry of Jal Shakti event on 2nd August, 2019 at Plenary Hall, Vigyan Bhawan, New Delhi. Chief Guest- Honble Union Minister for Jal Shakti

• Dr. N Seshagiri Memorial Lecture held at

Plenary Hall, Vigyan Bhawan on 5th August 2019. Accommodation and Air Tickets provided for Dr. N Seshagiri Memorial

Lecture held at Plenary Hall, Vigyan Bhawan on 5th August 2019. Chief Guest- Honble Union Minister for Electronics &

Information Technology

Ministry of Housing & Urban Affairs Event on 19/08/2019 at Plenary Hall, Vigyan Bhawan, New Delhi. Chief Guest- Honble Union Minister for Housing & Urban Affairs

• National Tourism Ministers Conference organized by Ministry of Tourism at

Convention Hall, The Ashok Hotel, New Delhi on 20th August, 2019. Chief Guest: Honble Minister of State (Independent

Charge) for Tourism & Culture

Poshan Abhiyaan Awards 2018-19 organized by Ministry of Women and Child Development, Government of India at Convention Hall, Hotel Ashok, New Delhi on 23rd August, 2019. Chief Guest- Honble Union Minister for Women & Child

Development

Fabrication of NMCG Pavilion at Stockholm Sweden during World water Week 2019 from 22nd to 31st August 2019. Chief

Guest- Honble Union Minister for Jal Shakti

Event organized by Ministry of Jal Shakti on 06/09/2019 at Plenary Hall, Vigyan Bhawan, New Delhi. Chief Guest- Honble

President of India

NMCG Event (India Water Week) from 24th to 28th September 2019 at IGNCA, New Delhi. Chief Guest- Honble Union Minister for Jal Shakti

World Tourism Day 2019 Celebrations & National Tourism Awards, 2017-2018 organised by Ministry of Tourism at Vigyan

Bhawan, New Delhi on 27th September, 2019. Chief Guest- Honble Vice President of India

• President Visit to National Institute for

Locomotors Disabilities held at Kolkata on 1st October 2019. Chief Guest- Honble

President of India

• Paryatan Parv 2019 organised by Ministry of Tourism held at India Gate Lawns from 2nd to 6th October 2019. Chief Guest- Honble Minister of State (Independent

Charge) for Tourism & Culture.

• Vayosreshtha Samman 2019 organised by

Ministry of Social Justice & Empowerment held at Plenary Hall, Vigyan Bhawan on 3rd October 2019. Chief Guest- Honble Union Minister for Women & Child Development

• 8th International Tourism Mart for the North Eastern Region organized by Ministry of Tourism at Imphal, Manipur from 23-25 November, 2019. Chief Guest- Honble

Minister of State (Independent Charge) for Tourism & Culture

• Aadi Mahotsav organized by TRIFED at Dilli

Haat, New Delhi from 16-30 November, 2019. Chief Guest- Honble Home Minister

National Awards for Divyangjan organized by Ministry of Social Justice & Empowerment at Vigyan Bhawan, New Delhi on 3rd December, 2019. Chief Guest- Honble Vice President of India

• National Mission for Clean Ganga Pavilion during "GEO Smart India" at HICC, Hyderabad from 3rd to 5th December, 2019. Chief Guest- Honble Union Minister for Jal Shakti

National Human Rights Commission (NHRC) organized their Foundation Day on 12th December 2019 at Vigyan Bhawan. Chief Guest- Honble President of India

Kala Utsav organized by NCERT from 2nd to 5th January, 2020 at Shamla Hills, Bhopal. Chief Guest- Honble Union Minister for Human Resource Development

Honble Prime Ministers Interaction with

Economists organized by NITI Aayog on 9th

January, 2020 at NITI Aayog, New Delhi. Chief Guest- Honble Prime Minister of

India

"Bharat Parv 2020" event being organized by Ministry of Tourism at Red Fort, Delhi from 26th January, 2020 to 31st January, 2020. Chief Guest- Honble Minister of

State (Independent Charge) for Tourism & Culture

• Namami Gange Pavilion by NMCG at Abu

Dhabi from 8th to 13th February, 2020 during World Urban Forum - 2020. Chief Guest- Honble Union Minister for Jal Shakti.

• Transformation of Aspirational Districts

CSR Initiative by CPSEs, organized by

Department of Public Enterprises on

3rd March 2020 at Convention Hall, The Ashok Hotel, New Delhi. Chief Guest- Honble Union Minister for Heavy Industries

& Public Enterprises

Through its Event Management activities

Ashok Events also generated business for other verticals of ITDC including Hotels (Ashok, Samrat, Vigyan Bhawan), and

Travels & Tours (ATT).

C. Ashok International Trade Division a) Number of Operational Duty-Free Shops at Seaports

1. Kolkata Seaport

2. Haldia Seaport

3. Chennai Seaport

4. Goa Seaport

5. New Mangalore Seaport

6. Vizag Seaport

7. Mumbai Seaport

8. Paradip Seaport

9. Kakinada Seaport 10. Krishnapatnam Seaport

11. Cochin Seaport 12. Tuticorin Seaport

13. Kamarajar Seaport 14. Jawaharlal Nehru Port Trust b) Number of Duty-Free Shops which have commenced operations during the current year

1. Jawaharlal Nehru Port Trust c) Number of Duty-Free Shops expected to start operation during current year

1. Deendayal (Kandla) Seaport

Earlier port had allotted open space after looking into various aspects ITDC has convinced the port authority to offer a covered space closer to the berthing area.

Divisions Future Plan:

Covid 19 Pandemic has severely impacted the business due to drop in passengers and restrictions on the movement of the passengers/ crew members within the port. In view of the ongoing Pandemic situation, the division foremost efforts are on ensuring commencement of operations at all its shops post lockdown and also ensuring the uninterrupted operations at all these shops in such a critical time.

AITD is targeting earliest commencement of Duty-Free operations at Deendayal Seaport in Gujarat. Efforts for earliest resumption of operations at Chennai ports are also underway as this shop was gutted in an fire incident during the period of lockdown.

AITD has taken following steps to increase AITD especially theturnover and profitability in view of COVID-19

Customers confidence building is essentials - SOPs devised for ensuring

Customers confidence and maintaining safety protocol in the times of ongoing pandemic

• Leveraging technology to reach out to customers e.g. listing on Google Map

Maintaining Continuity in stock supply chain

Dynamic flexi pricing, feasible price correction undertaken from time to time basis feedback of the shops/team to align with the market trends.

Encouraged volume sales by offering special prices.

Continuously Back-end operations being streamlined to minimize response time for front operation needs.

Constant Product promotions with support of suppliers to improve both footfalls & conversion rate.

D. Ashok Travels and Tours Division Ashok Travels and Tours, the in-house

Travel Division of ITDC has been providing all Travel related services like Air Ticketing, Car and Coach Rentals, Hotel Bookings, Tour Packages, LTC Packages etc to various Ministries, Government Departments, public sectors,

Government schools and also to general public for last 48 years. ATT had also ventured into Cargo operations lately and has already handled some important and sensitive Cargo through Sea, Air and Surface successfully.

During the year, ATTs travel division deployed ITDC owned ten Toyota Innova Crysta cars to Lok Sabha on monthly fee basis. ATT also started Implant offices at Indian Institute of Science, Bangalore. Airline ticketing was started from ATTs Hyderabad office.

Daily Tirupathi tours started once again from ATTs Chennai office in addition to tours already operating from ATTs Bangalore office. Educational school tours for Delhi were conducted by ATT for Department of Education,

Delhi Government amongst students of Delhi Government schools. Fresh empanelment processes of General

Sales Agents and Cargo Agents were completed during the year.

Many new accounts were added during the year covering Ministries, PSUs and other

Government bodies.

The plan of expanding the transport operations is expected to continue in the coming year for achieving larger footprint in the business.

Training of ticketing staff for upgrading their skills for handling GDS (Global Distribution System) more efficiently multiple workshops.

The outstanding position of ATT Division improved over last year, reducing the outstanding by 9% as on 31st March 2020 as compared to last year due to continued efforts.

Likely future impact during 2020-21 due to COVID-19 as discussed in Risk Management

Compliance Committee Meeting held on

05.05.2020:

Airline Industry is shut down. Both domestic and international travel (Ticket Bookings) affected.

International Travel (Ticket booking) may not resume shortly. However domestic travel may be resumed. The travel industry however is likely to take a long time before normalization.

Once resumed, seat inventory is likely to be low due to social distancing. However, there is likely to be an increase in tariffs which may mitigate loss of commission to some extent since the commission is calculated as a percentage of base fare.

Regarding tour packages, Tirupati package may be started post lockdown. However, the movement is likely to be limited for some time, affecting collection.

Amongst the revenue streams, Cargo business is likely to take least hit and will recover fastest. ATT needs to focus on this business. was conducted in

• ATT has proposed for ATT travel portal with the support of Railtel. If approved, it is likely to result into larger catchment and increased reach of ATT. Through the portal, ATT may implement a Debit Card payment system for Credit business, improving liquidity. (ITDC Board in its meeting held on 27.05.2020 has accorded in-principal approval for ATT travel portal with the support of Railtel. Matter is under discussion with Railtel at present).

E. Ashok Institute of Hospitality & Tourism

Management

Ashok Institute of Hospitality & Tourism Management (AIH&TM) is the Human Resource

Development Division of India Tourism Development Corporation Ltd. The institute came into existence in 1971 for in-house training of staff and executives in ITDC hotels. Skill development in Hospitality sector is a major need of the nation.

Due to the wide gap between the availability and requirement of skilled manpower, the focus of AIH&TM is towards reducing the gap between demand and supply and providing skilled manpower to the Hospitality industry through the various training programmes of Ministry of

Tourism, in accordance with Skill India Mission of Honble Prime Minister.

ITDC has set up a Centre of Excellence and Hospitality Education at Hotel Samrat, New Delhi. The Centre of Excellence is National Council for Hotel Management and

Technology for conducting various educational courses and has commenced the academic session from 2015-16.

AIH&TM is presently providing Education & Training Consultancy in Tourism & Hospitality

Management besides providing training to

Apprentices, and Industrial Trainees from Institute of Hotel Management and other reputed institutes and also organizing in-house

Executive Development Programme for ITDCs Executives.

As part of business strategy, AIH&TM conducted following programme/courses: (a) Skill development training in F&B services, Housekeeping Utility, Bakery and Patisserie and Food

Production for youth under the

Hunar se Rozgar scheme of Ministry of Tourism, Govt of India.

(b) 06 days Skill Testing & Certification scheme sponsored by Ministry of Tourism for persons employed in hospitality industry for organizations. AIH&TM conducted Skill Testing Certification (STC) for various reputed organizations viz AIIMS, Gujarat Bhawan & J & K

House.

(c) Imparting on the-job training to

Industrial Trainees from various professional Hospitality Institutes in the country.

(d) Designing & conducting customized

Hospitality related Training for Uttarakhand Tourism, Maharashtra Sadan, Karnataka Bhawan, Delhi Police, PHTPB, Registrar General Office & Assam Bhawan.

(e) One-year diploma courses in

Food Production, Bakery and Confectionary, Front Office, Housekeeping and F&B service jointly with National Institute of

Open Schooling under Ministry of

HRD, Govt of India.

(f) AIH&TM also undertakes training of ITDC Executives which emphasise on developing Corporate Training,

Planning and Monitoring system for systematic formulation and implementation of Annual training Programme. Training programmes conducted on various topics including Women Leadership Program, The Road to Financial Freedom for Women, Public Speaking

& Presentation Skills, Career

Progression and Talent Management.

(g) The Human Resource Development division has been certified with an ISO

9001:2015 certificationfor imparting quality education in hospitality and tourism management.

(h) About 80% students of the 3rd batch of B.Sc. Hospitality and Hotel Administration affiliated to National Council of Hotel Management in

Catering Technology have been placed.

(i) 03 years B. Voc. Course in Food Production and 1-year Diploma course in Hotel Operations are also undergoing in affiliation Milia Islamia University from Qutub campus.

A number of inhouse training programs for the employees of ITDC were organised by the division namely E-Office, Finance, Hair & Skin Care for women employees, International Yoga Day Celebration, Self Defence and Healthy Living on International Womens Day, training on overarching theme Gateway to Empowerment & Tenacity Women Power by Ms. Pallavi Katoch a renowned facilitator from Times Professional Learning and Induction training program for newly promoted Assistant

Managers by ITDC.

India Tourism Development Corporation enhanced health and safety protocols to instill a feeling of reassurance and well-being in the minds of our patrons during COVID-19 period. In view of the above AIH&TM has designed a manual titled "Hospitality Operations Post COVID-19" exemplifying our preparedness in the industry by adopting strategic and meaningful practices to gain the trust of our guests. The Hospitality

Operations Post COVID-19 is designed in such a way that it will help all the staff members across the Hospitality Industry to adopt the knowledge and make changes that are in process during

COVID-19 pandemic.

HRD division has also started training on

Post COVID-19 operations for in house employees & IRCTC personnel and going to impart training to other sectors shortly.

Likely future impact during 2020-21 due to COVID-19 as discussed in Risk Management with Jamia

Compliance Committee Meeting held on

05.05.2020:

• Revenue may be impacted due to lesser number of admissions being expected in (B.Sc., B. Voc., NIOS), lesser number of Public Speaking, students in industrial training and less demand of hospitality professionals due to disruption in Hospitality Industry.

AIH&TM may approach all the state tourism departments to set up its branches offering job oriented short-term courses in hospitality with their Infrastructure support.

Short term training programme will be designed on "Prevention and Control of Pandemic Viruses" like COVID-19. This training will be offered in all the hospitality sectors with approval of MoT.

F. Ashok Consultancy & Engineering Services

Division (ACES)

Ashok Consultancy & Engineering Services Division is a full-fledged unit of ITDC for execution of Engineering Projects, SEL Shows and preparation of DPRs etc. The Division comprise engineers of Civil, Electrical, Mechanical and Architect Disciplines. The Division has completed more than 100 Tourism Infrastructure projects throughout the country and has also prepared more than 100 DPRs. The Division has vast experience in preparing DPRs, Economic Feasibility Report, Management Consultancy,

Advisory Services and Consultancy for all type of Tourism infrastructure works and SEL shows. Besides this, the division maintains and upgrades all ITDC properties located in different States. The division undertakes all projects under Central Financial Assistance (CFA), PRASAD scheme, Swadesh Darshan from Ministry of

Tourism and various Ministries and State Govts. for development of Tourism Infrastructure in the country. Ministry of Tourism, Ministry of

Culture and various State Governments allocate projects to ITDC for utilizing these professional services and expertise.

Ministry of Tourism / Govt. of Orisha has sanctioned infrastructure project i.e. Infrastructure Development at Puri, Shree Jagannath Dham Ramchandi Pranchi river front at Devli Dheuli under Mega Circuit (for Nabakalebara 2015) Odisha under PRASAD

Scheme comprising of seven sites for an amount of Rs. 78.00 cr. The various works are under execution.

Ministry of Tourism, Govt. of India has sanctioned the project for Development of Spirtual Circuit: Sivagiri Sree Narayana Guru Ashram-Arruvipuram-Kunnumpara Sree

Subrahmania-Chembazhanthi Sree Narayana

Gurukulam in Kerala for an amount of Rs 69.47 cr. The division is under active liaison with various State Governments for new projects.

The divisions focus is on various infrastructure and renovation projects with various Ministries and State Governments to earn additional revenue.

G. Sound & Light Show

ITDC implemented the first ever Sound & Light Show at Red Fort about 45 years ago. In last few years, lots of innovations in the technology as well as methodology has been adopted in Implementation of the Sound &

Light Shows. ITDC has completed SEL shows at Ross Island, Andaman & Nicobar; Shilpgram in Deoghar, Jharkhand; and Dhauli Bhubaneswar- Odisha, Kankedam-Ranchi, Konark Sun Temple Odisha, Tilyar Lake, Rohtak (Haryana) with latest technology based on projection mapping with 3D animations in the recent past. Show at Diu Fort has also been completed and awaiting launch.

The shows at Nageen Lake - J&K, Udaigiri-Khandgiri Caves - Odisha, Sarkhej Roza Gujarat, Pinjore Garden - Haryana, Puttaparthy - Andhra Pradesh, Braham Sarovar Kurukshetra - Haryana, Cellular Jail Port Blair are under implementation.

Detailed Project Report for Water Laser Show at Leh Palace in Ladakh has been prepared and under submission to Ministry of Tourism for sanction. Proposal for SEL show at Dhordo Kutch Gujrat, SEL show Victoria Memorial Hall Kolkatta & SEL at Puducherry etc. are under pipeline.

Upgradation of Sound & Light Show at Purana Qila Delhi has been sanctioned by Ministry of Tourism Govt. of India for which tenders are being invited. ITDC also maintain and operates sound and light show at Tilyar Lake Rohtak, Haryana. Likely future impact in Engineering Division and SEL Division during 2020-21 due to COVID-19 as discussed in Risk Management Compliance Committee Meeting held on 05.05.2020:

Engineering/SEL Division may be affected to the extent that Projects in hand may be deferred and new projects may/ may not be sanctioned.

SEL projects are not expected to be put on hold as works have been awarded in most of the projects.

3. Vision & Mission

Due to disinvestment of hotels run by ITDC, it was felt necessary to review the vision and mission of ITDC. Accordingly, ITDC Board in its meeting held on 28.9.2017 under new Business Plan, approved the new Vision & Mission to align focus and activity of competition in accordance with changed business and economic scenario emerging out of divestment of some of the hotel units. The new Vision & Mission is as under:

Corporate Vision:

To position ITDC as a respected, preferred and leading "one stop solution provider" in the Hospitality, Travel and Tourism sector and achieve higher return on investment for its shareholders while contributing towards fulfilling the overall objective of development, promotion and expansion of domestic as well as international tourism in the country for all sections of the society.

Corporate Mission

To achieve the desired position by leveraging on inherent strength of Corporation as a well-known, established and trusted brand and by strengthening and enlarging other potential SBUs by adopting SBU specific strategy, increasing customer base from B2G to B2C and B2B, achieving customer delight (in terms of external and internal customers) and by offering value for money quality services at par with best in industry.

4. ITDC SWOT Analysis

Strengths

Well Established Brand for almost 55 years in Hospitality, Travel & Tourism related services.

Pool of highly skilled and experienced manpower in hospitality and travel & tourism related services like large banquets, VVIP catering, Domestic and global event management, Sound & Light shows, Tourism infra, Hospitality education and skill development, Duty

Free Shops etc.

• Patronage of Ministry of Tourism and other Govt. Agencies

Zero Debt company. Weakness

Ageing properties and manpower.

High operating costs due to high wage bill

• Non up-gradation of systems for a long time

Low IT environment.

High dependence on Govt Sector

Opportunities

• Tourism infrastructure in India is improving which will eventually translate into significant opportunities.

• E-based solutions and advanced technologies are available at low costs for different business verticals to utilize and increase productivity.

• Optimum utilization of infrastructure of hotels by leasing out extra space available.

Increased demand for skill development courses, training & Education in hospitality as well as increased focus of States on improving tourism related infrastructure.

Threats

New hotels with ultra-modern facilities are coming up.

• Overall decrease in demand due to excess rooms supply in Delhi and other cities.

Wage & Productivity imbalance

Shrinking size and area of operations of Hotels division.

Emergence of multi utility portals like MMT, Bookings.com

Depleting strength of skilled manpower.

Uncertainty due to ongoing disinvestment process of hotels business

5. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations:

Name of the Ratio 2018-19 2019-20 Explanations for Change of 25% or more
Debtors Turnover [Trade Receivables (Net) as no. of days of Revenue from Operations] 102 days 104 days NA
Current Ratio 2.15 2.28 NA
Debt Equity Ratio No debt No debt NA
Interest coverage Ratio NA NA NA
Inventory Turnover Ratio 8.37 7.27 NA
Operating profit margin 7.28 7.17 NA
Net profit margin 11.18 4.15 Net profit margin was down due to lesser exceptional income. Exceptional Income is Rs 3.93 crore as against Rs 22.33 crore during the same period previous year. During the previous year 2018-19, the exceptional income from disinvestment was Rs 16.36 crore.

6. Environment Management Initiatives

Environmental friendly policies including installation / up gradation of LED lights, ETP plants & organic waste plants etc. are regularly included in the Plan budgets every year for all units. Being a responsible CPSE of Ministry of

Tourism, ITDC has adopted various eco-friendly measures like STP, Rainwater Harvesting System, and Solar Energy, etc. along with other energy conservation measures in most of its units with latest technologies.

Wastewater treatment presents a sustainable short term and long-term solution to water scarcity. The Ashok / Samrat Hotel have a capacity of 1 MLD STP and Hotel Kalinga Ashok, Bhubaneswar has a capacity of 30 KLD

of STP/ETP. Organic waste convertor to reduce hazardous waste harmful to environment is utilized at Hotel Ashok and Hotel Samrat. Hotel Ashok and Hotel Kalinga Ashok, Bhubaneswar have solar water Heating System installed to save energy. In addition, Hotel Kalinga Ashok also has standalone Solar street lights installed in its premises.

Hotel Ashok, New Delhi is LEED Gold certified hotel under US Green Building Council since February 2017. The Ashok New Delhi is to process for the LEED Platinum certification. ITDC continues to maintain thrust on energy conservation and ISO 14001:2004 certifications to provide, establish, implement, maintain and improve an Environmental Management System.

Similarly, Hotel Samrat is also in the process of applying for LEED Gold Certification from US

Green Building Council.

7. Outlook

Indian Tourism and Hospitality Industry has emerged as one of the key drivers of growth among the services sector in India. India has a vast untapped potential for tourism which can play a special role in our socio-economic progress.

ITDC is working hard to improve its overall performance by focussing on each vertical and various initiatives have been taken in this regard.

Started new dynamic, responsive & bilingual Website covering all verticals of ITDC & also includes payment gateway.

Implemented mobile app on android &

IoS platform covering Hotels, SEL & ATT division

• ITDC participated in various domestic and International Travel Marts like SATTE (New Delhi); India Tourism Mart, Delhi, FITUR (Spain); Convention India Conclave 2019 (Kochi)

• Film shoot done for " Big Bull" an

Ajay Devgn Production starring Abhishek Bachchan and Ilana DCruz to target new business segment of film tourism

Hosted Hospitality India Awards, Safari India Awards to promote brand ITDC/The Ashok.

• Sponsored Delhi Tourism charity event for cause of Thalassemia children (ABBA concert).

• Not only regular posts on business verticals on various occasions, important festivals/ events but also celebrity movements, F&B

Promotions at the Restaurants including aggressive promotion of various business featured on social media channels.

Ashoknaama, quarterly E-magazine highlighted key activities of the organization during the year.

Introduction of Summer Getaway Packages/Promotions.

8. Risk and Concerns i. Tourism is a sensitive product. It is affected by general economic conditions like global recession, general inflationary conditions; Socio-political risk like socio political environment internationally and within the country, advisories from foreign countries; Competition from international hotel chains; increased outbound travel etc. ii. Companys specific risks (Level of Risks: Likely/Almost Certain), have been mentioned in the Board Report.

9. Internal Control i. The Corporation has adequate internal control system commensurate to its nature of business. Board has laid down policies and procedures such as Licensing

Procedure, Purchase Procedures, Engineering & Works Manual, Standards of Procedures (SoP) for Cash and Bank Transactions, Delegation of Powers etc. for ensuring the orderly and efficient conduct of business. ii. 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. iii. 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 action, wherever required, is taken by the units/ verticals. Significant observations, if any, are reported to the Audit Committee.

10. Human Resource Management and

Industrial Relations

Total employees in the Corporation, as on 31-3-2019, were 910, which have now come down to 770 as on 31.3.2020. (Excluding 61 employees engaged on Direct Contract basis).

Out of 770 employees, 221 employees belong to Scheduled Castes (SCs), 19 belong to Scheduled Tribes (STs) and 51 to Other Backward Classes (OBCs). Moreover, 83 employees were promoted to the next higher posts, out of which 13 employees belong to Scheduled Castes (SCs).

Further, there are 113 Women employees (41 Executives & 72 Non-Executives) working in ITDC as on 31.3.2020 constituting 14.67% of the total workforce of the Corporation. The overall

Industrial relation situation in ITDC continued to be cordial and good.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis describing the Companys objective, projections and estimates are forward looking statement and progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions,

Government policies and other incidental factors.

Report on Corporate Governance for the year 2019-20

Pursuant to Regulation 34(3) and Schedule V of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015