Scheduleforming part of the Balance Sheet - Domain-b

Annual Report 2007-2008
Notes on Consolidated Balance Sheet and Profit and Loss Account (Contd.)
f) Guarantees given to bankers:
St. James Court Hotel Limited owns the leasehold interest in a property in London, such interest having been assigned
to it in an earlier year by a subsidiary company (under liquidation) on the basis of a licence granted by the landlord of
the property, Scottish Widows’ Fund and Life Assurance Society. The licence was granted for such assignment upon
the guarantee from the Company for the due performance and observance by St. James Court Hotel Limited of the
covenants and conditions contained in the licence. The obligations of the Company in favour of the landlord shall
remain in force throughout the full term of the lease, including any renewals.
g) Undertakings given:
The Group has given the following undertakings as at the Balance Sheet date:
i. An undertaking to the bankers of TLRL by TIHK., for non-disposal of its shares in TLRL in consideration of the
banks providing loan facilities to TLRL. TIHK holds 24.16% ordinary shares of TLRL as at March 31, 2008.
ii. TIHK has agreed to subordinate 50% of its basic management fees and 100% of its incentive fees due from TLRL
in lieu of a bank having extended loan facilities to TLRL. No amount of fee has remained unpaid on account of
this subordination as at March 31, 2008.
iii. The Group has entered into a Share Retention Agreement with International Finance Corporation, Washington,
USA (“IFC”) in November 2003, in consideration of IFC having provided loan facilities to a subsidiary of a
jointly controlled entity, Taj Maldives Private Limited (“TMPL”). The Group, of which TIHK is a member, has
also agreed to maintain at least a 26% aggregate effective shareholding in TMPL and to retain effective control of
TMPL, so long as any amount remains outstanding under the loan agreement between TMPL and IFC.
iv. The Group has given an undertaking to a lender of Taj Air Limited (TAL) not to transfer, assign, dispose of or
encumber its holding in the shares of TAL without the said lender’s prior written approval, except for changes in
the shareholding of TAL between specified entities
10. Finance and Operating Leases:
a) IHMS formed IHMS LLC (“New York LLC”) under the laws of the State of Delaware, U.S.A. The New York LLC
was formed to acquire the lease with 795 Fifth Avenue Corporation, its affiliates 795 Fifth Avenue Limited Partner
ship, Barneys New York and individual apartment owners, which encompass the facilities of the Hotel Pierre.
The New York LLC has entered into lease agreements for the use of various facilities at the Hotel Pierre for the purpose
of operating a hotel business. Under the terms of the various Agreements, the New York LLC is required to:
i. provide an irrevocable unconditional letter of credit in the amount of $ 5 million, as to be renewed annually until
expiration of the lease.
ii. spend not less than $35 million on renovations of the property not later than June 30, 2007.
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