Scheduleforming part of the Balance Sheet - Domain-b

The Indian Hotels Company Limited
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AUDITORS’ REPORT
TO THE BOARD OF DIRECTORS OF
THE INDIAN HOTELS COMPANY LIMITED
ON THE CONSOLIDATED FINANCIAL STATEMENTS
1. We have audited the attached Consolidated Balance Sheet of THE INDIAN HOTELS COMPANY LIMITED (“the
Company”), its subsidiaries and jointly controlled entities, (the Company, its subsidiaries and jointly controlled entities
together constitute “the Group”) as at 31 st March, 2008, the Consolidated Profit and Loss Account and the Consolidated
Cash Flow Statement of the Group for the year ended on that date, both annexed thereto. The Consolidated Financial
Statements include investments in associates, accounted for on the equity method, in accordance with Accounting Standard
23 (Accounting for Investments in Associates in Consolidated Financial Statements) (AS 23) and financial statements of the
jointly controlled entities, accounted for in accordance with Accounting Standard 27 (Financial Reporting of Interests in
Joint Ventures) (AS 27), as notified by the Companies (Accounting Standards) Rules, 2006. These financial statements are
the responsibility of the Company’s Management. Our responsibility is to express an opinion on these Consolidated Financial
Statements based on our audit.
2. We conducted our audit in accordance with the generally accepted auditing standards in India. These Standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the
financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by
the Management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. (i) We did not audit the financial statements of fifteen subsidiaries and two jointly controlled entities, whose financial
statements reflect total assets (net) of Rs. 3,384.59 crores as at 31 st March, 2008, total revenues of Rs. 937.40 crores and
net cash flows amounting to Rs. 37.71 crores for the year then ended as considered in the Consolidated Financial
Statements. We have also not audited the accounts of any of the associates, which reflect the Group’s share of profit
(net) for the year amounting to Rs. 64.18 crores. These financial statements have been audited by other auditors, whose
reports have been furnished to us and our opinion, in so far as it relates to the amounts included in respect of these
subsidiaries, jointly controlled entities and associates, is based solely on their reports.
(ii) The Consolidated Financial Statements include the unaudited financial statements of two jointly controlled entities,
having total assets (net) of Rs. 91.11 crores as at 31 st March, 2008, total revenues of Rs. 41.20 crores and cash flows
amounting to Rs. 7.15 crores for the year then ended, as considered in the Consolidated Financial Statements. The
financial statements of these entities have not been audited but have been certified by the Management.
4. (i) We report that the Consolidated Financial Statements have been prepared in accordance with the requirements of
Accounting Standard 21, (Consolidated Financial Statements), AS 23 and AS 27, as notified by the Companies
(Accounting Standards) Rules, 2006 and on the basis of the separate audited/unaudited financial statements of the