Scheduleforming part of the Balance Sheet - Domain-b

The Indian Hotels Company Limited
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� Share of profit in Associates represents Company’s proportionate share in Profit After tax of its associates. The increase is
on account of improved performance of its associates carrying out hoteliering business.
Operating expenses:
The operating expenses increased by 13% from Rs. 1946.43 crores to Rs. 2195.62 crores. The increase was mainly on account of
payroll to keep in line with competition and industry, new properties acquired in USA over last couple of years, increase in
advertisement and general administration expenses. The increased advertisement expenses are an endeavour to make Taj a global
brand and create awareness of its rapid international expansion.
Consolidated Profits:
Profit Before tax & Interest increased by 24% from Rs. 709.09 crores to Rs. 881.18 crores, which is in line with the growth in domestic
properties.
Interest costs:
Interest cost was higher at Rs. 202.32 crores for the year ended March 31, 2008 as compared to Rs. 122.15 crores in the previous year
consequent to incremental debt to fund acquisition of Campton Place in San Francisco and 11.57% of the Common Stock A of
Orient-Express Hotels Limited, USA.
Profit after Tax from Ordinary Activities:
Profit after Tax from Ordinary Activities, increased from Rs. 409.14 crores to Rs. 370.31 crores, an increase of 10 %.
Exceptional Items:
International Hotel Management Services Inc., a 100% overseas subsidiary of the Company, in order to undertake extensive
renovation, shut down all the rooms at The Pierre Hotel, New York. Consequent to the closure of rooms for renovation, the
Company incurred an expenditure of Rs. 54.16 crores as employee severance cost.
Profit after Exceptional items and Tax:
Profit after tax for 2007/08 in view of the exceptional items and higher interest cost was marginally lower from Rs. 370.31 crores to
Rs. 354.98 crores.
Cash Flow Data
The following table sets forth selected items from the consolidated cash flow statements:
Particulars Year Ended
Rs/Crores
March 31, 2008 March 31, 2007
Net cash from operating activities 583.68 670.30
Net cash used for investing activities (1,650.99) (1,097.74)
Net cash from financing activities 1,127.34 148.39
Net Increase / (Decrease) in cash and cash equivalents 60.03 (279.05)
Operating Activities:
Net cash from operating activities was lower at Rs 583.68 crores as compared to Rs 670.30 crores in the previous year, mainly due
to lower tax outflow in the previous year on account of adjustment tax losses that were available to The Indian Hotels Company
Ltd. and incremental working capital requirement for the purpose of new properties acquired during the year.
Investing Activities
Net cash used for investing activities was mainly on account of
� Rs 677.73 crores spent towards purchase of Fixed Assets, including US$ 60 million for acquisition of Campton Place, San
Francisco and balance for expansion plans, renovation of existing properties and replacement/up-gradation of existing fixed
assets.