Sterling Holiday Resorts India Ltd Management Discussions

Established in 1986, Sterling Holiday Resorts (India) Limited [Sterling or the Company] is a leading Leisure Hospitality and Vacation Ownership Company in India. When Sterling entered the Vacation Ownership (earlier known as Timeshare) market in 1986, the concept was very new to India. Sterling was also one of the first to attempt the building of a pan India, branded chain of full-service leisure resorts catering to 3 segments -Vacation Ownership, One-time Leisure Holidayers and Meetings, Incentives, Conferences and Exhibitions (MICE). To develop the Vacation Ownership and organised Leisure Hospitality industry, Sterling had to make significant investments in educating the market about the joy of taking regular holidays to explore and discover new places, and the economic and emotional benefits of owning a Vacation Ownership membership. In its early years, Sterling had to also simultaneously invest in infrastructure and human resource skills to deliver memorable holidays to customers. Sterling succeeded in these efforts leading to the Company being widely acknowledged as a reputed Leisure Holidays brand and the pioneer in the Vacation Ownership industry.

Today, the Company has an active member base of over 70,000 Vacation Ownership members who have access to holidays in a network of 19 full-service resorts across the country, with an inventory of 1,512 apartments. The Company maintains a healthy member to room ratio, providing members with more opportunities to holiday in locales and seasons of their choice.

With over 28 years of expertise in Vacation Ownership and Resort Operations, a national network of resorts, and a growing base of holidaying customers, Sterling is one of the clear leaders in the Vacation Ownership and Leisure Hospitality industry in India.

SUMMARY OF HIGHLIGHTS

Sterling has a great competitive edge in so much that the Companys resorts are large, well located and command stunning views of some of Indias most scenic leisure destinations. The Company has, over the last couple of years, been investing in strengthening its competitive edge by renovating and refurbishing its resorts to contemporary, best-in-class standards. The investments and efforts made have already been yielding results with 5 resorts now awarded with RCI Crowns, including the RCI Gold Crown for Kodai - By The Lake, Munnar - Terrace Greens, Manali - White Mist and Ooty - Fern Hill.

The efforts made to substantially raise the standards of the Companys resorts and holiday experience delivered have also led to a substantial increase in customer satisfaction ratings across resorts and improved business performance:

The key highlights of the Companys performance and progress are as follows:

• A new resort was brought on-stream in Yelagiri, taking the total room inventory to 1512 across 19 resorts.

• During the year, the Company continued to invest in upgrading its existing resorts to global, best-in-class standards. Major refurbishment in the Yercaud - Rock Perch property was commenced during the year while renovation of accommodation was continued in other resorts across the network. Currently, the Company has completed renovation of around 50% of its owned inventory. The investments in renovated resorts and facilities accompanied by significantly enhanced service standards have resulted in a clear increase in customer satisfaction ratings, which the Company monitors through ongoing Guest Service Tracking Systems (GSTS) at the resorts, post-holiday surveys, and analysis of Sterlings reputation in social media networks and other online forums. The details of the measures taken to deliver a vastly enhanced holiday experience are discussed under the Resort Operations section in this report.

• In FY14, the Company added 3650 new Vacation Ownership members as compared to 3409 in the previous year, reflecting a 7% growth. The

Companys member acquisition program during the year was challenged by dampened consumer sentiment caused by an uncertain economic environment and high interest rates negatively affecting discretionary spending power. In the light of this, the Companys performance can be said to be commendable especially since the prices of Vacation Ownership Membership plans was increased by 7.5%; a move that was taken to communicate the significantly enhanced holiday experience being delivered post investing in an expanded destination network, resort renovation and higher service standards.

The key financial results for 2013-14 were:

• The Company declared Positive EBITDA of INR 627 lakhs on Total Operating Income of INR 13,606 lakhs, as compared to a negative EBITDA of INR 1,358 lakhs in the previous year.

• Total Operating Income grew by 25% over the previous year from INR 10,868 lakhs to INR 13,606 lakhs.

• Sales of Vacation Ownership Plans rose to INR 5,993 lakhs, an increase of 13%.

• Total Income from Resort Operations rose to INR 4,673 lakhs, up by 27%.

• The substantial investments the Company made in enhancing the overall customer holiday experience has resulted in a healthy rise in the number of Vacation Ownership members and non-members holidaying at the Companys resorts, leading to an increase in resort occupancy to 49% from 41% in the previous year.

• Notably, the Companys performance has improved with net losses reducing in FY14 by INR 1,269 lakhs (before exceptional items), as compared to INR 1,213 lakhs in the previous year.

• It is also notable that the Company reported Total Operating Income of INR 3,883 lakhs in the last quarter of FY14, an increase of 35% over the same period of the previous fiscal. Income from Sales of Vacation Ownership Plans grew by 72%, indicating an accelerated momentum in the Companys growth. The Company declared a Profit after Tax (before exceptional items) of INR 131 lakhs for the quarter.

The significant improvement in the Companys performance in FY14 is a result of the strategic turnaround initiatives taken over the last couple of years leading to a strong resurgence of the Sterling brand in the marketplace. Going forward, the Company will continue to focus on delivering Great Holiday experiences whilst simultaneously looking at innovation and productivity, enabling the Company to strengthen its market position. Though the macroeconomic environment in India has been a cause of concern in the last few years, it is encouraging that the Travel & Tourism industry continues to see positive trends world over, and especially in India with strong favourable trends in Domestic Tourism. These trends bode well especially for Vacation Ownership companies as the concept offers tremendous economic and emotional benefits for families who would like to holiday frequently and explore India and the world.

This section is followed by an overview of the economic and market environment in which Sterling operates as well as the operational and financial performance of the Company during 2013-14. The section also discusses in greater detail the market opportunities as well as important initiatives taken during the year in key functional areas such as resort operations, human resources, information technology and marketing.

THE TOURISM INDUSTRY: AN OVERVIEW

In the aftermath of the global slowdown triggered by the financial crisis in 2008-09, the Indian economy responded to fiscal and monetary stimulus and achieved a growth rate of over 8% annually between 2009-10 and 2011-12. However, the Indian economy is seeing its sharpest downturn in over a decade. Soaring borrowing costs and delays in government approvals have hindered corporate investments, thereby affecting cash flows. Apart from which high inflation has shaken consumer confidence leading to cuts in household spending. Under such circumstances, in the last 3 years viz. 2011-12, 2012-13 and 2013-14, the growth rate has decelerated to 6.2%, 5.0% and 4.9% respectively. While macroeconomic trends are cause for concern currently, the potential in the Indian economy and the Travel & Tourism industry in particular continues to be a promising one.

The year 2013-14 exhibited again the strength of the Travel & Tourism industry in the face of an uncertain global economic environment. According to the latest annual research from the World Travel & Tourism Council (WTTC), Travel & Tourisms contribution to global GDP grew for the fourth consecutive year in 2013, and generated more than 4.7 million fresh jobs with leisure and business travelers continuing to display a strong appetite for travel beyond national borders. Travel & Tourisms contribution equates to 9.5% of total global economy GDP, 1 in 11 of the worlds total jobs, 4.4% of total investment and 5.4% of world exports. The industry performed better than the entire broader economy in 2013, rising faster than other notable industries such as retail, manufacturing and financial services.

In the Indian context, the tourism industry continues to be vibrant in the services sector and overall economy with the total contribution to GDP at 6.2% in 2013 (INR 66,31,600 million). This is expected to rise by 7.3% in 2014 and 7.0% per annum thereafter to INR 1,39,83,000 million (6.8% of GDP) by 2024. Industry estimates that Indias travel and tourism sector will see healthy year-on-year growth as an increasingly large middle class family population begin to look outward and fulfill aspirations to travel both within and beyond Indias borders. The Government is also making efforts to develop the tourism industry in India by proposing new tourist destinations. It is estimated that the Hospitality sector in India is likely to see over USD 12 billion of investments over the next few years.

Sterling believes it is well positioned to profit from the positive trends in the Travel and Leisure Hospitality industry in India, as the Company has a national network of 19 full-service resorts and over 28 years of expertise in Leisure Hospitality and Vacation Ownership.

MARKETS AND OPPORTUNITIES

Although the Indian economy has slowed down in the last couple of years and growth is currently hovering around the 5% mark, India is still seen as a growth story with leading analysts such as the McKinsey Global Institute (MGI) predicting that over the next two decades the Indian market will undergo a major transformation resulting in India growing into the worlds fifth-largest consumer market by 2025. As income levels in India rise, the burgeoning middle class (projected to triple from 50 million to 583 million people) will contribute to 60% of the countrys total consumption. The MGI analysis also projects an increase in Indias wealthy class to over 23 million Indians (more than the population of Australia).

The increasing consumption story of the Indian middle class, combined with the large untapped potential in Leisure Tourism bodes well for established companies in the Leisure Hospitality sector, leading to projections of 8.4% CAGR for the leisure industry and 8.2% CAGR for the hotel industry in India.

Indians are holidaying more

In the arena of holidays and the role they play in lifestyle aspirations of Indias burgeoning middle class, it is encouraging that there has been an exponential growth in the number of Indians undertaking leisure travel from 748 million in 2010 to 1243 million in 2013(Est.), auguring well for companies in the Leisure Hospitality and Vacation Ownership space.

Currently, the total number of Vacation Ownership memberships sold in India is approximately 0.4 million. It is estimated that the potential market comprises around 11 million households, taking car ownership figures and income data as indicators. As Indian families get habituated to holidays and understand the economic and emotional benefits of owning a Vacation Ownership membership plan, the industry will see increased penetration and accelerated growth. In this connection, it is important to note here that Sterling enjoys a huge competitive advantage in terms of its destination network, large inventory and additional sites it already has, which will enable it to grow rapidly along with the industry. Since Sterling also caters to fulfilling the holiday aspirations of non-members, the Company has the additional advantage of non-members opting for a Vacation Ownership membership post experiencing a holiday at one of the Companys resorts.

BUSINESS PERFORMANCE

Sterling functions in three segments in the leisure and hospitality industry namely: Vacation Ownership, One-Time Leisure Holidays and Meetings, Incentives, Conferences and Exhibitions (MICE). The resorts in the Sterling network are equipped to cater to all 3 business verticals. For example, all resorts are equipped with Vacation Ownership apartments, hotel rooms, conference and banquet facilities. By virtue of the Company operating in these 3 verticals, it enjoys the flexibility of earning from different revenue earning streams, catering to Vacation Ownership members, One-Time Leisure Holiday Guests (FITs), Leisure Holiday Tours (GITs) and MICE (offsite conferences and events booked by corporate India and event companies).

VACATION OWNERSHIP

The Vacation Ownership industry came into being from a simple insight - people love to travel but find it expensive to do so! From those early days, when an industry grew to answer a consumer need for inexpensive holidays, the Vacation Ownership product design has continually evolved to meet changing consumer recreational needs.

In India, Sterling pioneered the concept of Vacation Ownership or Timeshare as it is still popularly known. Sterling began with offering customers property timeshares, which allowed customers to holiday in a fixed week at a fixed resort destination. That model had logistical problems in matching exchanges of holidays when a customer desired to do so. Today, the product is far more customer friendly as it is points-based, enabling total flexibility in choice of accommodation, season and location. The array of choices is not just restricted to India but encompasses international destinations as well since customers can exchange their Vacation Ownership Points with other Vacation Ownership members world over through Sterlings association with Resort Condominium Internationals (RCI) exchange platform, which enables Sterlings members to holiday in over 4,000 destinations worldwide.

The evolution of the product is in line with changing consumer holidaying patterns and aspirations. The Indian consumer of today is more discerning and seeks to explore a wider range of destinations and new holiday experiences. There is also an apparent shift from annual vacations to multiple short breaks with family and friends. This implies that a Vacation Ownership Company has to be in a position to deliver memorable holidays in full-service resorts located in a wide array of destinations. In this connection, it is important to note here that Sterling enjoys a huge competitive advantage in terms of its 19 resorts in Indias scenic holiday destinations, large inventory and 15 additional sites it already has, which will enable it to grow rapidly along with the industry.

The Indian timeshare market is poised to rapidly grow and mature into a very exciting market. Consumer lifestyles have undergone dramatic changes in the last couple of decades, with globalization and technology resulting in a fast-paced world. These changes have benefited Leisure Tourism with holidays increasingly being considered as a necessity for both personal relaxation and family well-being. This shift in outlook is reflected in trends in the tourism industry continuing to be favourable in spite of an uncertain global and local macroeconomic environment. Just one statistic reflects the trend - the fact that domestic tourism has enjoyed a 14.34% CAGR between 1991 to 2011. In just the last couple of years, there has been exponential growth in the number of Indians undertaking leisure travel - from

748 million in 2010 to 1243 million in 2013(Est.).

The Vacation Ownership industry is now over two and a half decades old in India. According to industry estimates there are only around 0.4 million Indian families who have invested in a Vacation Ownership plan, against an estimated potential market comprising of 11 million households. As Indian families get habituated to holidays and understand the economic benefits of a Vacation Ownership membership plan, the industry will see accelerated penetration and growth.

The Companys Vacation Ownership business has numerous benefits over the traditional, pure play leisure hotel model. For one, Vacation Ownership companies enjoy higher annual average resort occupancy as members tend to use their Vacation Ownership Points to holiday multiple times during the year. Since holidaying trends currently are headed towards more frequent, shorter breaks as against one long, annual holiday, Vacation Ownership companies will benefit even more in the future. In addition, the Vacation Ownership business is less susceptible to economic cycles as members have already paid for their holidays upfront and tend to utilize the time credited (this is in the form of Vacation Ownership Points, the number of which is dependent on the type of Membership plan purchased) to their account every year. The Vacation Ownership business is also less dependent on debt since it has robust cash flows with consumers paying upfront for holidays over a period of 25 years. The business also enjoys manifold revenue streams through annual and annuity based fees.

The Companys Vacation Ownership product is based on a fine tuned, flexible Vacation Ownership Points system, which offers customers a range of choices in destinations, apartment types and seasons. When compared to the expense of hotels of an equivalent standard, the Companys Vacation Ownership plans are attractively priced as it offers consumers protection against the effects of inflation. This particular aspect of the product will have enhanced appeal in the current economic environment.

From the customers perspective, resorts designed to cater to Vacation Ownership members triumph compared to conventional leisure hotels which are more impersonal and designed for individuals. To illustrate, Vacation Ownership resorts are designed as per the needs of the whole family from senior citizens to younger children. This is reflected in the choice of apartments to suit different family sizes, and the fact that these resorts are full-service resorts, offering members a wide choice of facilities from multi-cuisine restaurants, In-Room Dining and a range of Holiday Activities designed to engage members and guests of all ages.

Sterling currently has an active Vacation Ownership membership base of around 70,000 who enjoy the facility of holidaying in 19 resorts across India and overseas through the additional facility of a RCI (Resort Condominium International) membership which allows them to exchange a weeks time of vacation with over 4000 resorts across the world.

During 2013-14, the Company added 3,650 members to its base, as compared to 3,409 in the previous year reflecting a 7% growth. The growth in new member acquisition is creditable in the light of an economic slowdown in India and dampened consumer sentiment with high interest rates negatively affecting discretionary spending power. The performance can be further said to be commendable in the light of the fact that the Company increased its prices in 2013-14 by 7.5% with the aim of signaling the enhanced holiday experience being delivered post investing in an expanded destination network, resort renovation and higher service standards, enabled by significant investments in human capital and training.

RESORT OPERATIONS

The resorts in the Companys network earn income from One-Time Leisure Holiday Guests (FITs), Leisure Holiday Tours (GITs) and Meetings, Incentives, Conferences and Exhibitions (MICE), in addition to the income from the expenditure at the resorts by the Companys Vacation Ownership members. The resorts in the Sterling network are equipped to cater to all the different business verticals as they are designed to include Vacation Ownership apartments, hotel rooms, conference and banquet facilities. By virtue of the Company operating in these verticals, it enjoys the flexibility of earning from different revenue earning streams.

In the year under review, Total Income from Resort Operations rose to INR 4,673 lakhs, up by 27%. The significant improvement in Resort Operations performance in FY14 is a result of the strategic turnaround initiatives taken over the last couple of years leading to a strong resurgence of the Sterling brand in the marketplace. The substantial investments made in enhancing the overall customer holiday experience through refurbishment of resorts and an expanded menu of recreational and culinary experiences have resulted in a healthy rise in the number of Vacation Ownership members and non-members holidaying at the Companys resorts, leading to an increase in Resort Income from INR 3,680 lakhs in FY13 to INR 4,673 lakhs in the year under review. Resort occupancy rose to 49% from 41% in the previous year.

Over the course of the year, the Company added a new resort in Yelagiri, taking the total room inventory to 1512 across 19 resorts. The Company also continued to invest in upgrading its existing resorts to global, best-in-class standards. Major refurbishment in the Yercaud property was commenced during the year while renovation of accommodation was undertaken in other resorts across the network. Currently, approximately 50% of the owned room inventory has been renovated across resorts.

In terms of strategic direction, your Company is on track to achieving its growth plans by upgrading the holiday experience it delivers to its Members and Guests. A great deal of progress has been made in establishing a sophisticated, multi-cuisine Food & Beverage experience; professionally managed spas; and an expanded Holiday Activities menu at all resorts.

These inclusions, along with an overall, significantly enhanced holiday experience, have led to greater customer satisfaction and goodwill, as evidenced by all Sterling resorts climbing significantly in rankings on online review sites such as Trip Advisor, Holiday IQ and Online Travel Agent (OTA) portals. The Company is also seeing a significant increase in customer feedback ratings, which it monitors continuously through a Guest Service Tracking System at the resort and post departure of members and guests. In addition, the Company also conducts periodic Customer Satisfaction surveys through a professional market research agency. It is also important to note that the Company continuously focuses on its Online Reputation Management (ORM) and responds promptly to customer posts and reviews. All reviews are monitored by an Online Tracking System.

The increased ratings and number of positive reviews, coupled with the overall increased visibility of the Sterling brand in the online marketplace has yielded positive results with increased room nights generated from OTAs. In 2013-14, leading OTAs such as MakeMyTrip, Booking.com and Travel Guru contributed 22,640 room nights totalling to INR 615 lakhs, representing a growth of 157% in OTA Revenue generated for the year.

The growing recognition and strength of the Sterling brand is also evident in the increase in room nights and revenue generated by the Booking Engine on the Company website - www.sterlingholidays.com -which increased from INR 350 lakhs (632 room nights) in 2012-13 to INR 950 lakhs (2095) room nights in 2013-14, representing a growth of 169%. This growth is commendable in the light of the fact that these room nights were generated from organic traffic coming to the website.

DIGITAL INITIATIVES

The explosion of Information Technology has led to significant changes in the way companies engage with customers and prospects. In pace with the transformation into a digital world, the Company has been steadily increasing its investments in digital platforms, including its website and Social Media channels.

The investments made has resulted in Sterling now having its own ecosystem on the World Wide Web, encompassing the Company website (www.sterlingholidays.com), a blog site (blog.sterlingholidays.com), and social media channels through Facebook, Google+, Twitter, Pinterest etc. The ecosystem works together in engaging members and prospects with the Brand leading to increased brand visibility, recall and engagement.

In 2013-14, as mentioned earlier in this report, the revenue from the Booking Engine on the Company Web site saw a growth of 169% in room revenue from INR 350 lakhs (632 room nights) in 2012-13 to INR 950 lakhs (2095 room nights). This growth was the result of website traffic averaging 250 lakh visitors a year and a growing community on channels such as Facebook.

During 2013-14, the Company ran two successful social media campaigns which were integrated into a customer and prospect engagement program at the resorts and on-ground. In October 2014, the Company launched a campaign called India Unveiled with the objective of sharing knowledge about little known but interesting facts about India that would inspire people to learn and discover more through travel. The success of India Unveiled, as established by community engagement statistics, has led to the Company continuing the campaign on its social media channels and resort communication channels. India Unveiled was followed by the Bagful of Memories campaign in December 2014. This was an initiative to encourage the Companys members and guests to upload and share memorable photos and videos on personal and Company owned social media channels. Over 500 images were uploaded and this collection has since been catalogued as testimonials of the memorable holiday experiences the Companys members and guests are enjoying at all Company resorts.

MEMBER RELATIONS

When a customer becomes a Vacation Ownership member, she or he enters into a 25 year relationship with the Company, which needs to be nurtured to build a community of happy members. In FY14, the Company strengthened its relationship with its Vacation Ownership members and non-members though continuous relationship building initiatives in the form of mailers, short messages (SMS) and outbound calls to connect with and understand Company customers better. The Company also regularly publishes a magazine called Sterling World. Through such initiatives, the Company encourages its members to holiday more frequently and discover new experiences be it at a newly opened resort or at a destination that the member has not visited before.

In 2013-14, the key focus has been on re-engaging loyal Sterling members and encouraging them to reactivate their membership and enjoy holidays at the Companys resorts. These efforts have succeeded in bringing many inactive members back into the Sterling family. The engagement drive undertaken has also resulted in a 42% increase in Annual Maintenance Fees collected from the Companys Vacation Ownership member base.

INFORMATION TECHNOLOGY

In 2012-13, the Company invested in the Sales Force CRM platform with the objective of facilitating efficient and engaging interaction with its members and guests. In 2013-14, the Company continued investing in Information Communications Technology (ICT) infrastructure, developing the efficient use of its CRM and Human Resource Management System (HRMS) platforms. A great deal of progress was also made in evolving the virtual branch network across locations and the Aruba and Information Security Management Systems (ISMS) across the Company network at all resorts and offices. In addition, work towards an Enterprise Resource Planning (ERP) system along with a Property Management system to suit the requirements of the unique Vacation Ownership industry and enable more productive, efficient management of resort inventory, MIS and Financial Reporting saw a great deal of progress. The ERP system is expected to go live in the coming year along with a Lead Management System for Marketing purposes.

PROPERTIES AND NEW PROJECTS

Sterling has a network of 19 resorts in 16 of Indias most scenic and popular holiday destinations. 10 of these resorts are owned while the balance is managed on long-lease.

In 2013-14, a new resort was brought on-stream in Yelagiri, taking the total room inventory to 1512 across 19 resorts.

The Company also signed MOUs for resorts in Daman, Dindi and Sariska. Due to the uncertain economic environment, the Company deferred bringing these resorts on-stream in the year under review. These new destinations and resorts should be added to the Company network in the coming year. In the mid to long-term, the Company will look at exercising the option of undertaking Greenfield projects, choosing attractive holiday locales from the large land bank of 15 additional sites it possesses.

HUMAN RESOURCES

Over the last couple of years, the Company has been making steady investments in its Human Capital. In 2013-14, a Corporate Chef was brought on board to raise the standards of the culinary experience delivered at all resorts. The Company also continued to make investments in training staff across levels to enhance service standards and efficiency.

On March 31, 2014, there were a little over 1900 employees on the payroll of the Company.

INTERNAL CONTROL SYSTEMS

In 2013-14, the Company strengthened its internal control systems. These systems, including regular internal audits, have been designed to protect and safeguard the Companys assets and ensure reliability of financial transactions. The systems provide for adequate checks and balances; adherence to applicable statutes, accounting policies and approval procedures; and for ensuring optimum use of available resources. The systems are regularly reviewed and improved upon. The Company also has a comprehensive budgetary control system to regularly monitor revenue and budgeted expenditures.

In addition to the above, M/s. Venkat & Associates, Management Auditors of the Company, review on an ongoing basis the adequacy and effectiveness of Internal Control. The observations of the Internal Auditors are reviewed periodically on a quarterly basis and due compliances ensured. The exceptional items are reported to the Board.

FINANCIAL OPERATIONAL PERFORMANCE

For the financial year ended March 31, 2014, the Total Operating Income of the Company was reported as INR 13,606 lakhs, as compared to INR 10,868 lakhs in the previous year, representing a 25% growth in revenues. Sales of Vacation Ownership Plans rose to INR 5,993 lakhs, an increase of 13%, while Total Income from Resort Operations rose to INR 4,673 lakhs, up by 27%. Notably, the Companys performance has improved with net losses reducing in FY14 by INR 1,269 lakhs (before exceptional items) as compared to INR 1,213 lakhs in the previous fiscal.

OUTLOOK

Despite the uncertain macroeconomic environment, the Company believes that it is in a strong position to leverage the favourable trends in the domestic Leisure Tourism market and strengthen its market position in the

Leisure Hospitality and Vacation Ownership segments in India. The efforts made towards turning the Companys performance around and creating a strong, resurgent brand have already begun to yield results with the Company reporting a total income of INR 136 crores.

The proposed merger with Thomas Cook India, and the resultant fresh injection of capital will further strengthen the Companys market position. The investments made will allow your Company to accelerate the pace of expansion into new holiday destinations. The merger will also benefit the Company as there are multiple natural synergies. With favorable trends in the tourism sector, the Companys continued improved performance, and the proposed merger, the Companys outlook for 2014-15 is optimistic.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results could differ from those expressed or implied.

Sources: The McKinsey Global Institute; WTTC; Euromonitor; Ministry of Tourism; AIRDA, Census India; Economic Survey of India