Indian Hotels provides Rs.500 crore for investment impairment

Indian Hotels Company Ltd. (IHCL), which owns and operates Taj Group of hotels, has made an additional non-cash provision of around Rs.400 crore and Rs.100 crore in its consolidated statement of profit and loss for the year ended March 31, 2014, for its overseas and domestic investments that may have been adversely affected due to a sustained depression in the macro-economic and market environment, the company said.

“The impairment is primarily due to a sustained depression in the micro-economic and market environments internationally, as also in the domestic market and the adverse effect thereof on some of the investments,” the company said in its review of investments impairment for 2013-14.

“With the economic uncertainty expected to continue over the near and medium term, it has had an impact on the downward revision of projected cash flow expectations from some of the underlying affected investments,” the company added.

IHCL said the final figures would be included in the full year results which would be published on May 30, 2014.

It said the financial covenants related to its borrowings were unaffected by the referred impairment of investment.