taj hotel project

7/28/2019 Taj Hotel Project

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Professor: Dr. Vinti Agarwal

Submitted By-

Sonal Shrivastava 05BS2869

Aakash Jain 05BS0115Milind Jain 05BS1625

Section 1


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Acknowledgement

We are extremely thankful to our teacher Dr.Vinti Agarwal for initiating us in

doing so much research on the topic and for her valuable suggestions and

guidance. We are also thankful to other members for permitting us to reproduce

the material from the lab. We also acknowledge the indirect contributions made b

seniors and our classmates that helped us to accomplish this assignment.


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Background of Hotel Industry

Indian Hotels Company Limited (Taj) Tourism is the worlds largest industry (hotel being major) and is the third

largest foreign exchange revenue earner for India, accounting for around 0.6% of global receipts. The domestic ho

industry follows a seasonal pattern, with the peak season extending from September to March, which accommoda

around 60% of the total tourist inflow. The Indian hotel industry banks largely on foreign tourists. Room Rental an

Food & Beverages together account for around 85% of the total revenues.

The major hotel chains in India include:

1. EIH Limited (Oberoi)

2. ITC Hotels Limited (Welcomgroup)

3. Asian Hotels (Hyatt) and

4. Hotel Leelaventure.

Increased thrust of the government on developing infrastructure has given a fillip to the domestic tourism sector,

which gained momentum during FY-05. The Incredible India promotion campaign undertaken by the Governme

led to a substantial increase in tourist inflow, which crossed the three million mark. This coupled with an increase

average room rentals has resulted in a satisfactory growth for the domestic hotel industry after a rather long lacklu

period.


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Regulations & Obligations for Hotels in India.

a) The hotel shall display the price list of its rooms in a conspicuous place preferably at the main service counter

b) Room fees shall be for a "Day/Night" time period

c) The hotel may charge additional service fees for additional service items provided by the hotel including meals,

laundry and telephone services. The hotel must clearly state the fees for such additional services in the price list.

d) The hotel shall be equipped with appropriate facilities to protect the safety and property of the guests.

e) The hotel shall be liable for loss and damage caused to the guests' property due to the fault of the hotel.

f) The hotel shall be equipped with a safe box with double locks and provide guests with a custody service for

valuable objects. If the hotel fails to provide such custody service and fails to explain the terms that apply to the

operation of such custody service to the guests, the hotel shall be liable for the loss relating to any such objects.

g) The hotel shall protect guests' cars in the hotel car park. If any loss or damage is caused to a car due to the

improper management of the hotel, the hotel shall be responsible for such loss or damage.

h) In places where the safety to life and/or property of the guests may be at risk, the hotel shall take preventive or

warning measures. Warning notices shall be displayed in both Chinese and foreign languages.

i) If a guest, who has booked a hotel room in advance, fails to be accommodated in the hotel due to the hotel being

overbooked, the hotel shall arrange for the guest to be accommodated in another hotel of equivalent or greater clas

and shall bear the cost of such arrangements.

TRENDS WITH REGARD TO HOTEL INDUSTRY

Five-Star

Deluxe

Five-Star Four-Star Three-

Star

Two-Star One-Star Heritage Others "2000-01

All-India

Average

26 28 33 144 86 25 25 76 443

207 110 76 57 44 28 37 40 62


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s

47,555 22,793 15,192 10,891 8,961 6,333 4,258 8,234 12,659

62.8% 55.8% 53.6% 54.7% 57.7% 63.1% 31.2% 58.7% 55.6%

Rs 4,242 Rs 2,844 Rs 2,216 Rs 1,182 Rs 824 Rs 972 Rs 2,246 Rs 676 Rs 2,046

Rs 2,663 Rs 1,586 Rs 1,188 Rs 647 Rs 476 Rs 614 Rs 700 Rs 397 Rs 1,137

er Operating & Overhead Expenses, before Depreciation, Interest Payments & Taxes)

29.5% 31.9% 29.2% 20.0% 18.5% 45.4% 11.1% 17.6% 27.2%

Table is showing the trend of different categories of hotels in India.

The revenue and growth of leading players in hotel industry is given below in the table:


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Price-Earning ratio:

P/E ratio as on 29-07-2005

Industry Hotel

Exchange BSE Group A

Current

Change

650.00

-23.05

Prev close

% change

673.05`

-3.42

Todays high 672.00 Today Low 650.00

52 Week high 694.00 52 weeks low 336.00

P/E Ratio 34.43 EPS 18.88

Volume 252906

Companies Revenue Growth PAT Growth OPM Inc/(

(Rs in mn) Q1 FY05 Q1 FY06 (yoy) Q1 FY05 Q1 FY06 (yoy) (

Hotel Leelaventures 526 600 14.1 4 12 200.0 41.8

Indian Hotels 1594 1953 22.5 64 109 70.0 14.3

Taj GVK 229 298 30.0 40 65 62.5 37.92

EIH Ltd 1063 1297 22.0 -47 -39 - 8.6

Viceroy 70 78 11.4 4 6 50.0 41

Asian Hotels 543 695 27.9 30 47 56.6 34.5

Total 4025 4921 22.3 95 200 110.7 20.9


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Share Chart

Exchange: NSE Start Date: 1-4-2003 End Date : 31-3-2005

INR

P/E RATIO AS ON 26-07-2005

Industry Hotel

Exchange BSE Group A

Current

Change

679.75

3.70

Prev close

% Change

673.05`

0.55

Todays high 679.75 Today Low 679.79

52 Week high 694.00 52 weeks low 336.00

P/E Ratio 144.32 EPS 4.71

Volume 17423


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Accounting Policies In Indian Hotels (Taj Hotels)

Accounting policies

Indian Hotels Co. Ltd.

.

1. Accounting Policies:

Significant accounting policies adopted in the presentation of the Accounts are as under:

Basis of Accounting:

The financial statements are prepared under historical cost convention on an accrual basis and

comply with the Accounting Standards (AS) issued by the Institute of Chartered Accountants

of India (ICAI), referred to in Section 211 (3C) of the Companies Act, 1956.

(a) Sales:

Sales comprise Sale of Rooms, Food and Beverages and allied services relating to hotel stay

(including net income from telecommunication services) and consultancy /operating fees.

(b) Retirement Benefits:

Staff benefits arising out of retirement / death, comprising of contributions to Provident Fund,

Superannuation & Gratuity Scheme, accrued Leave Encashable and other post-separation

benefits are accounted for on the basis of contribution to the schemes, or by an independent

actuarial valuation as at the year end, as the case may be.

(c) Fixed Assets:

All fixed assets are valued at cost less depreciation. In respect of borrowed capital used for

construction of fixed assets, interest paid during the period of construction and exchange

difference arising on foreign currency liability is adjusted to the cost carrying of the

underlying of fixed assets.

Notwithstanding the capitalization of interest, all interest on borrowings is treated as revenue

expenditure.(d) Depreciation:

In respect of assets acquired before 16th December 1993, depreciation is provided under the

straight-line method at rates specified in Schedule XIV to the Companies Act, 1956, as

existing on that date.


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In respect of assets acquired on or after 16th December 1993, depreciation has been provided

at the rates as specified in Schedule XIV to the Companies Act, 1956, as revised with effect

from that date.

(e) Inventories:

Stock of food and beverages and operating supplies are carried at cost or Net Realizable

Value, whichever is lower.

(f) Investments:

1) Long term investments are carried at cost.

2.) Current investments are carried at the lower of cost and fair value determined on a

category-wise basis.

(g) Transactions in Foreign Exchange:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of

the transactions. Monetary items denominated in foreign currency and outstanding at the

Balance Sheet date are translated at the exchange rate prevailing at the year end.

Non-monetary items denominated in foreign currency are carried at the exchange rate in force

at the date of the transaction.

(h) Assets taken on lease:

(1) In respect of finance lease transactions, prior to April 1, 2001, lease rents paid are charged

to the Profit and Loss Account in accordance with the terms of the lease agreement.

(2) In respect of finance lease arrangement entered into, after April 1, 2001, the assets taken on

lease are capitalized and depreciated.

(3) In respect of operating lease transactions, the assets are not capitalized in the books of theCompany and Lease payments are charged to the Profit & Loss Account.

(i) Miscellaneous Expenditure: Intangible Assets:

Expenditure in the nature of intangible items, which do not qualify as intangible assets arecharged to the Profit and Loss Account in the year in which they are incurred.

(j) Taxes on income:

(i) Income tax is computed in accordance with AS 22 -'Accounting for Taxes on Income'issued by the ICAI Tax expenses are accrued in the same period as the revenue and expensesto which they relate.

(ii) Provision for current income tax is made on the tax liability payable on taxable income

after considering tax allowances, deductions and exemptions determined in accordance withthe prevailing tax laws.

Deferred tax assets are recognized only if there is reasonable certainty that they will berealized and are reviewed for the appropriateness of their respective carrying values at eachbalance sheet date.


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Number of Players

THE TAJ GROUP OF HOTELS: -

Today, the Taj Group is India's largest and finest hotel chain offering 44 hotels in 30 destinations across t

sub-continent. In addition to superlative luxury hotels, the Taj Group includes business hotels, beach reso

palaces, garden retreats and other comfortable accommodations. Internationally, the Taj Group has a few

properties in key cities like New York, Washington D.C., Chicago, London andlocations in the Middle E

and in Africa.

WELCOME GROUP OF HOTELS: -

Welcome group, India's famous hotel chain with its twelve deluxe properties at India's most sought after

locations, three of which also take you through the fabled tourist circuit - the

Golden Triangle - of Delhi, Agra and Jaipur. You can experience the royal splendors of Jodhpur, Khimsaand Gwalior and also the grandeur of Aurangabad.

ASHOK GROUP OF HOTELS: -

The Ashok Group of Hotels has been India's gracious and regal host to leading National & International

visitors. The group is known for its unique mix of traditional Indian hospitality and modern-day systems a

facilities that are beyond compare. The Group has 33 hotels in 26 major destinations. The range of hotels

varies from five star deluxe, first class & budget hotels to suit individual tourist needs.

CLARKS GROUP OF HOTELS: -


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One of the leading Chains of Hotels in India with 5 luxury hotels with a unique experience in hotel Indus

The Clarks group is popular for its warmth and traditional Indian hospitality, each hotel offers an

unforgettable Indian experience.

PARK HOTELS: -

The Park Hotels in India with 3 Luxury Hotels at Delhi, Calcutta & Vishakapatnam. Park Hotels offer yorange of facilities designed to satisfy every requirement of your stay. All hotels are conveniently situated,

keeping in view the commercial centres as well as the main tourist attractions. Park Hotels luxury and

elegance with friendly services to give you a never-to-be forgotten stay.

THE HISTORIC RESORT HOTELS: -

The Historic Resort Hotels Group is India's one of the leading Heritage Group with luxury of converted

palaces and residences of the King's & Maharajas which form some of the properties in this exclusive cha

Presently with properties in Udaipur, Kumbalgarh, Gajner, Bikaner, Jaisalmer & Ranakpur. The Chain ca

cater to all your needs to make the holiday or business trip of your choice.

THE OBEROI GROUP OF HOTELS: -

Oberoi Group of Hotels is Internationally renowned & finest Chain of Hotels. Wherever in the world you

find Oberoi, you'll find luxury and comfort. That rare blending of old world charm and tradition combine

with modern day amenities that have made Oberoi one of the finest hotel chains in the world. The Group

synonymous with quality and provides facilities and services of International standard to the discerning

traveler throughout India.

WELCOME HERITAGE: -


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Today Welcome Heritage is India's popular Heritage chain of Hotels. The concept of heritage hospitality

came up to aid and facilitates the curious guests attempts to get to know India's great traditions. Welcome

Heritage is an alliance between the ITC Hotels, India's foremost and fastest growing chain of hotels, and

Marudhar Hotels, a group owned by Maharaja Gaj Singh of Jodhpur.

CASINO GROUP OF HOTELS: -

Casino Group of Hotels is the leading chain in South India Region with beautiful properties at Cochin,

Periyar, Kumarakom & Lakshadweep. The Chain is known for its friendly service & beautiful properties.

HERITAGE HOTELS: -

The concept of Heritage hospitality came up to aid & facilitate the curious guests attempt to get to know

India's great traditions. It was realized that the historic homes could be maintained only with their

appropriate reuse. The large Palaces of Maharajas set the trend by becoming five star hotels. The main

charm is the individual attention & personalized services. The ambience is perfectly reflected through sep

photographs & family memorabilia. Families in residence for centuries now welcome you to their homes

guests. The homes are modernized to meet the needs of today's International traveler, with adjoining

bathrooms, running hot & cold water, modern plumbing, even perhaps a swimming pool.
http://www.nirvanatour.de/india/Herthtl/herithtl.htmlhttp://www.nirvanatour.de/india/Herthtl/herithtl.html


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Company Profile

More Room For Growth

The Indian Hotels Company and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces

and are recognized as one of South Asia's largest and finest hotel chains. Taj Hotels Resorts and Palace

comprises 56 hotels in 37 locations across India with an additional 13 international hotels in the Maldive

Mauritius, UK, Nepal, Sri Lanka, Africa and the Middle East.

Associate companies and joint ventures

The Indian Hotels Company is the Taj Hotels Resorts and Palaces' main company, owning around a third

the group's inventory of rooms. The balance of the room inventory is with associate companies and joint

ventures. The more important joint ventures are with Taj GVK Hotels and Resorts and Taj Asia.


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Corporate social responsibility

The key theme of corporate social responsibility at the Indian Hotels Company is to build livelihoods wit

clear focus on women, craftsmen and artisans and education of children. Employees of all hotels and the

corporate office contribute and actively participate in numerous on-going projects and events. The core

competencies of the hospitality business have been utilized to make these themes truly relevant and

meaningful.

Locations

The Taj Group has more than 56 hotels at 37 places in India and abroad. These include the Taj Mahal Ho

Mumbai, the Taj Mahal Hotel, New Delhi, the Taj Palace Hotel, New Delhi, the Taj Bengal, Kolkata, the

Taj Coromandel, Chennai, and the Taj West End, Bangalore. Its beach resorts are at Goa, Kochi, the

Maldives and Bentota (SriLanka)

Indian Hotels' presence spans different brands and price segments. It is famous for providing world-class

personalized service to guests, even as it retains an old-world charm by upholding the traditions and herit

of India. Today the Taj brand is synonymous with luxury and service, in India and abroad and it currently

comprises more than 50 hotels in 37 locations across India as well as hospitality properties in the Maldive

Mauritius, the UK, Nepal, Sri Lanka, Africa and the Middle East

Company Profile


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Current price (NSE): 675.25 Mkt cap: Rs 3,393.13

Registered office Mandlik House, Mandlik Road, Mumbai, Maharashtra - 400001.Tel: 22026260Fax: 22027442Email:[email protected]: http://www.tajhotels.com/

Senior management Name Designation

Ratan N Tata Chairman

Raymond N Bickson Managing Director

B D Nariman Senior VP - Legal & Company Secretary

Industry Hotels

Listings BgSE , BSE , DSE , MSE , NSE

BSE code 500850

NSE code INDHOTELEQ

ISIN INE053A01011

Face value 10

Market lot 1
mailto:[email protected]:[email protected]://www.tajhotels.com/mailto:[email protected]://www.tajhotels.com/


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PRODUCTS AND SERVICES OF TAJ

SERVICESTaj Luxury Hotels

Taj Leisure Hotels

Taj Business Hotels

Taj Luxury Hotels

The Embodiment of True Indian Hospitality

Taj Luxury Hotels capture the essence of the Taj experience and are synonymous with

lavish\accommodations and unrivalled service. With vantage locations in every city, each hotel offe

luxuriously appointed suites and rooms, gourmet specialty restaurants and bars, state-of-the-artbusiness facilities, modern fitness centres, rejuvenating spas, and well equipped banquet and meetin

facilities.Taking Guests Back to the Age of Refinement and Fairytale Beauty

Taj Luxury Hotels also encompass authentic palaces. Transporting guests back to the age of kings a

courtesans, these exquisite buildings resplendent with domes, terraces, carved pillars, and archways

built in the true royal style? Have recently been refurbished with modern luxuries. To heighten the

authentic palace experience, a team of butlers serves guests in the kind of style that a maharaja wou

have offered his guests.
http://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#luxury%23luxuryhttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#luxury%23luxuryhttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#Leisure%23Leisurehttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#Leisure%23Leisurehttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#Business%23Businesshttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#Business%23Businesshttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#luxury%23luxuryhttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#luxury%23luxuryhttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#Leisure%23Leisurehttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#Leisure%23Leisurehttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#Business%23Businesshttp://www.tajhotels.com/AboutTaj/CompanyInformation/Taj_hotels.htm#Business%23Business


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Fine Dining that Stands Apart

A distinctive feature of the Taj Luxury Hotels is the trend setting, award-winning restaurants and ba

that serve a wide variety of cuisines from across the globe. From contemporary Pan Indian cuisine t

East Mediterranean, Chinese, Vietnamese cuisine, the restaurants at Taj are setting benchmarks for a

outstanding culinary experience.

Expanding into New Waters

In November 2004, Taj Luxury Hotels will unveil the luxurious Taj Exotica Resort & Spa in

Mauritius. 2004 will also mark the Tajs foray into serviced luxury residences in India with the laun

of Taj Wellington Mews Luxury Residences in Mumbai.

Members of the Leading Hotels of the World, Ltd.

The following hotels are members of the Leading Hotels of the World, Ltd.:The Taj Mahal Palace & Tower (Mumbai)

The Taj Mahal Hotel (New Delhi)

The Taj West End (Bangalore)

Taj Coromandel (Chennai)

Taj Krishna (Hyderabad)

The following hotels are part of the Leading Small Hotels of the World, Ltd.:

Taj Lake Palace (Udaipur)

Rambagh Palace (Jaipur)

Taj Exotica Resort & Spa (Maldives)

Taj Leisure Hotels


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Escape the Ordinary at Our Leisure Hotels

Taj Leisure Hotels include idyllic beach resorts, genuine palaces, turn-of-the-century garden retreats, and

historic and pilgrim centres. Showcasing the best of every destination, Taj Leisure Hotels are replete with

adventure, romance, comfort, and style.

Offering a Holiday to RememberTaj Resort Hotels offer delightful rooms by the sea, restaurants that serve the freshest catch of the day, th

latest water sports facilities, tennis courts, freshwater swimming pools, spas, and travel assistance. Taj

Garden Retreats are a great escape in the midst of nature; offering restored colonial architecture, gracious

rooms with a view of exquisitely landscaped gardens and a wonderful atmosphere of peace and calm. Oth

Leisure Hotels echo the countrys rich and varied past, and are located in close proximity to the focal poin

of Indian art, culture and history.

Fun the Whole Family Can Enjoy

Taj Leisure Hotels are a complete family destination offering a wide variety of activities for all age group

For the young members of the family, Taj Leisure Hotels offers exciting, fun-filled holidays that provide

best in children activities ranging from sports, culture, environment, adventure, music, and entertainment

Parents can relax throughout their holiday by leaving their children in the care of the hotel staff, which w

make sure that the younger guests have a holiday to remember.

Well Equipped for the Perfect Escape

Taj Leisure Hotels offer everything from comfortable rooms with a view, friendly efficient service, specia

restaurants and lively bars, telecommunication facilities such as Internet connectivity, well equipped

business centres, conference facilities, and banquet areas. Other features include swimming pools, casual

dining restaurants, fitness centres, travel assistance, spas, various sightseeing options, backwater cruises,

much more. The restaurants offer an array of delectable Indian and world cuisines. Some recipes from

homes in the region often go back two to three generations.


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The Fine Art of Relaxation

The Taj Leisure Hotels also promise a whole new experience of tranquility and total wellness. At the Sp

Ayurveda, yoga, meditation, and herbal knowledge come together to create a holistic experience in harmo

with its location.

Taj Business Hotels

Offering the Finest Standards of Hospitality and Service

Located in the heart of Indias key commercial cities and towns, Taj Business Hotels provide modern

conveniences and spacious comfort for both leisure and business travelers alike. Vibrant and progressive,

they retain the warmth and spirit of India while offering multi-cuisine restaurants and contemporary busin

facilities.

Well Equipped to Make Business Trips Smoother and More Productive

The Business Hotels of Taj are spread across India, Sri Lanka, Africa, and the Middle East, Designed to

satisfy every need of the business traveler, the hotels offer everything including well appointed rooms,

telecommunication facilities such as wireless internet connectivity, efficient service, specialty restaurants

and lively bars, well equipped business centres, and conference facilities and banquet areas. Other feature

include swimming pools, coffee shops, fitness centres, and helpful travel assistance.

Leading the Industry with Innovation

Taj Business Hotels are witessing a new spirit of change. Recognizing the evolving needs of its guests, T


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Business Hotels are in the process of rolling out an enhanced product offering across its hotels. Extensive

research has been conducted across the country to understand the needs of guests to create a product offer

that will set the benchmark for business hotels in India.

REVIEW OF THE TAJ PERFORMANCE USING

DIRECTORS REPORT AND NOTES

DIRECTORS REPORT

Year End 31/ 03/2005

The Directors have pleasure in presenting the 104 th Annual report of the Company

together with its Audited Profit and Loss Account for the year ended March 31, 2005

and the Balance Sheet as on that date.

( In Crores)

RS.

2004-05

RS.

2003-04


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Total Income

Profit before Depreciation, Interest, Tax&

Extraordinary Items

Less:- Depreciation

Less:- Interest (Net)

Profit before extraordinary items and tax

Add:-Profit on sale of business and property

Add:- Profit on sale of investmentLess:- Exceptional Items

Add:- Interest on income-tax refund on earlier

years

Profit before tax

Less:- Provision for tax

Profit after tax

Add:- Balance b/d from the previous years

Profit before AppropriationsAppropriations--

1. Foreign Exchange Earnings Reserve

2. General Reserve

3. Dividend

A dividend of 100 i.e. Rs. 10/- per Ordinary

shares was recommended by the Board of

Directors.

( In respect of the previous year, a dividend of 80* i.e. 8/- per Ordinary Equity Share was

declared and paid to the shareholders)

Tax on Dividend

4. Balance carried to Balance Sheet

Total

873.24

207.30

56.77

31.84

118.69

6.38

16.61---

---

141.68

35.82

105.86

44.34

150.20

---

11.00

---

50.25

7.05

81.90

150.20

699.16

133.23

48.58

30.40

54.25

27.54

---5.07

3.48

80.20

19.55

60.65

32.97

93.62

2.50

6.07

--

36.09

4.62

44.34

93.6


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APPROPRIATIONS

INCOME

The total income for the year ended March 31, 2005 at Rs. 873.24 crores was higher than that of

the previous year by 25%. The income from hotel operations increased by 27% from Rs. 668.32

crores to Rs. 847.63 crores. Room Income was higher than the previous year by 34%. The Average

Room Rate (ARR) increased by 24% over the previous year, contributing 75% of the total increasein room income, with the balance increase attributable to higher occupancies.

Food & Beverage (F&B) income was 19% higher than the previous year. Out of the

aggregate increase in F&B income, Rs. 6.70 crores was on account of new outlets at The

Taj Mahal Palace and Tower, Mumbai and Taj West End, Bangalore. Banquets income

grew by 15% over the previous year.

INTEREST AND DEPRECIATION

Interest cost was marginally higher by Rs. 1.44 crores compared to the previous year. The

gross interest cost for the year ended March 31, 2005 stood at Rs. 52.15 crores, which is

the same level as the previous year. The cost of borrowing reduced from 6.9% in 2003-04

to 3.6% in 2004-05 on account of the impact of low cost FCCB borrowing.

Depreciation for the year was higher due to incremental depreciation on new additions to

fixed assets, mainly Taj Wellington Mews, which started operations during the year.

PROFITS

Profit before extraordinary/exceptional items and tax at Rs. 118.69 crores was significantly

higher than the previous year by 119%. Profit before tax at Rs. 141.68 crores and profit


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NOTES TO ACCOUNTS:

Indian Hotels Co. Ltd.

1. Change in accounting policy:

Payments towards Voluntary Retirement Scheme (VRS), which were hitherto

being charged off to the Profit and Loss Account in the year in which they

were incurred, pursuant to the then applicable AS 26 -'Intangible Assets' issued

by the ICAI, are now amortized over a period of 60 months, pursuant to the

limited revision to AS 26 carried out by the ICAI. Had there been no change in

the policy, the profit for the year before tax would have been lower by

Rs.2.18Crores.

2. Sale of Hotel and Property:

a) During the year, the Company transferred the ownership of its hotel

undertaking at Chiplun. The transfer, which came into effect from December

29, 2003, was finalized for a total consideration of Rs. 3.51 crores, on which

the Company made a profit of Rs. 0.84 crore. The Company, however,

continues to manage this undertaking.

b) The Company also sold property held for development pursuant to which it

made a profit of Rs. 26.70 crores.


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3. The Company has given undertaking to a bank in respect of borrowing by

Taj International (HK) Ltd. for US Dollars 3 million, that it will not dilute the

shareholding and / or change the management in Taj International (HK) Ltd., a

wholly owned subsidiary.

4. Non Convertible Debentures:

(a) The Company had, during the financial year 2001-02, issued 6%, 5 year

Secured Non-Convertible Redeemable Debentures, of a total value of Rs. 200

Crores. These Debentures are redeemable at a premium, which is linked to the

year of the exercise of the put option. While the interest is charged to revenue

of each year over the tenure of the instrument, the entire quantum of the

premium payable on redemption, aggregating to Rs. 48.93 crores, had been

provided in the Financial Year 2001-02 and charged to the Securities Premium

Account, assuming that the put option will not be exercised by the debenture

holders.

(b) The Company had also effected a currency swap in March 2002, in respect

of these debentures, whereby the underlying rupee liability was converted to a

Japanese Yen liability. The liability has been re-stated in rupee terms as on

31st March, 2004 at the prevailing / contracted exchange rates. Since the

underlying loan has been utilized for acquisition of fixed assets, the applicable

interest and exchange fluctuation has been capitalized to the underlying assets.

5. (a) During the year under review the Company raised, 5 year 1 day 1%

Foreign Currency Convertible Bonds (FCCBs) aggregating US $ 150,000,000

(Rs.656.81 Crores), including the green shoe option of US $ 15,000,000, with

an option to the investor to convert the FCCBs into ordinary shares or Global


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Depository Shares at Rs.501.53 per share at any time after 24th, March, 2004

and prior to 28th January, 2009. The Bonds will be redeemed at a premium of

11.545 % at maturity, representing a yield - to- maturity of 3.15%. The Bonds

are redeemable at the option of the Company on or after 11th February 2006

and prior to 12th, February 2009 if the closing price of the shares is greater

than 125% of the conversion price for a continuous period of 30 consecutive

trading days

(b) Expenses incurred in connection with the (FCCBs) issue, amounting to Rs.

17.11 crores have been charged to the Securities Premium Account, which

includes fees of Rs. 0.15 crore paid to the auditors.

(c) Premium payable on maturity of FCCBs, that do not get converted into

equity shares or Global Depository Shares, is presently being charged to theSecurities Premium Account over the tenure of the FCCBs on the assumption

that there will be no conversion. Accordingly, an amount of Rs 0.21 Crore has

been debited to the Securities Premium Account. In the event that the

conversion option is exercised by holders of FCCBs in the future, the amount

of premium to be charged to the Securities Premium Account will be suitably

adjusted in that year.

6. Estimated amount of contracts remaining to be executed on capital account

and not provided for is Rs. 43.45 crores (Previous Year Rs. 64.24 crores)

7. a) Expenditure on account of (i) Salaries, Wages, Bonus etc, (ii) Repairs to

Buildings, (iii) Fuel Power and Light, (iv) Repairs to Machinery, (v) Linen and

Uniform Washing, (vi) Rent and (vii) Other Expenses is after adjusting (i)

Rs.16.5 crores (Previous Year Rs. 6.46 crores); (ii) Rs.0.27 crore (Previous

Year Rs. 0.29 crore); (iii) Rs.5.26 crores (Previous Year Rs. 4.90 crores); (iv)Rs.1.88 crores (Previous Year Rs. 1.59 crores); (v) Rs.0.85 crore (Previous

Year Rs. 0.93 crore); (vi) Rs.0.95 crore (Previous Year 0.55 crore) and (vii)

Rs.0.72 crore (Previous Year 1.25 crores) respectively, recovered from other

parties.


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b) Purchase of Food and Beverages is after adjusting Rs.0.27 crore (Previous

Year Rs. 0.30 crore) on account of sale of empties etc.

c) Dividend income includes dividend from subsidiary companies Rs. 4.31

crores (Previous Year Rs. 4.66 crores).

d) Income on Long term Investments Rs. 10.93 crores ( Previous Year Rs.9.68

crores) and on current Investments Rs.0.03 crore ( Previous Year Rs. Nil).

e) Miscellaneous income includes gain on currency swap Rs. 5.94 crores

(Previous Year Rs. 4.65 crores) and net gain on foreign exchange transactions

Rs. 7.57 crores (Previous Year Rs. NIL).

f) Other expenses include loss on sale of long-term investment Rs. 0.16 crore

(Previous Year Rs. 4.36 crores), loss on foreign exchange Rs.Nil (Previous

Year Rs. 1.30 crores), and lease charges Rs. 0.21 crore (Previous Year Rs.

0.22 crore).

g) Workmen Staff Welfare Expenses includes (i) Rent Rs. 4.38 crores

(Previous Year Rs. 3.05 crores) (ii) Repairs to Building Rs. 2.16 crores

( Previous Year Rs. 0.95 crore).

8. Contingent Liabilities:

(a) On account of Income Tax matters in dispute:

i) In respect of appeals filed by the Income-Tax Department against the

decision of the Income Tax Appellate Tribunal for the assessment years 1967-

68 to 1970-71 Rs.0.05 crore (Previous Year Rs. 0.05 crore).


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ii) In respect of the Company's appeals pending before Appellate authorities

for matters which have been decided in the Company's favour in earlier

assessment years Rs. 50.12 crores (Previous Year Rs. 53.12 crores).

iii) In respect of other matters for which Company's appeals are pending

Rs.28.94 crores (Previous Year Rs. 31.76 crores). (b) On account of dispute in

respect of.

i) Luxury tax - Rs. 0.24 crore (Previous Year Rs. 0.19 crore).

ii) Entertainment tax - Rs. 3.36 crores (Previous Year Rs. 3.18 crores).

iii) Sales tax - Rs. 2.77 crores (Previous Year Rs.1.20 crores).

iv) Property tax - Rs. 10.28 crores (Previous Year Rs. 6.59 crores).

v) Others - Rs. 2.82 crores (Previous Year Rs. 2.74 crores).

(c) Other claims against the Company not acknowledged as debts Rs. 24.23

crores (Previous Year Rs. 27.99 crores).

(d) Guarantees given by the Company in respect of deposits received and loans

obtained by other companies, and outstanding as on 31" March 2004, Rs.

222.74 crores (Previous Year - Rs. 227.10 crores).

9. The amount transferred to Foreign Exchange Earnings (Utilized) Reserve

represents amounts utilized towards construction of new hotels and expansion

of facilities in existing hotels in earlier years.

10. According to the information available with the Company, there are no

amounts as at March 31, 2004 due to suppliers who constitute a "small scale

industrial undertaking".

11. The Company has an investment of Rs. 0.30 crore and advances

outstanding (including interest) of Rs.8.05 crores in an associate company, the

Taj Karnataka Hotels and Resorts Limited (TKHRL). TKHRL has

accumulated losses in excess of its Paid-up Capital and Reserves. Considering

the inherent value of the investee company's assets based on valuation of the


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property and the proposed financial restructuring, the management is of the

view that there is no permanent diminution in the value of the investment and

that the outstanding remaining after the financial restructuring will be fully

recovered.

12. The Company on a review of foreign operations had in the past made

voluntary disclosures to the appropriate regulator of what it considered to be

possible irregularities in relation to foreign exchange transactions relating to

the period prior to 1998. Arising out of such disclosure the Company has

received show cause notices. The Company has replied to a majority of these

notices and is in the process of completing replies to the balance. Adjudication

proceedings are in progress.

13. Segmental Information:

Hoteliering business is the Company's only business segment; hence disclosure

of segment- wise information is not applicable.

14. Figures for the current year are not strictly comparable with that of the

previous year in view of the fact that - During 2002-03 the Company had

entered into a licensing agreement with Taj Lands End Ltd., consequent upon

which the performance of Taj Lands End property is reflected for full year in

2003-04 and for period 9th September, 2002 to 31st March, 2003 in 2002-03.

Analysis of Financial Statements using Ratio Analysis, Du

Pont Analysis and Common size analysis

Mar ' 05 Mar ' 04 Mar ' 03 Mar ' 02 Mar '

SOURCES OF FUNDS

Owner's Fund

Equity Share Capital 46.41 45.12 45.12 45.12 45

Share Application Money 3.84 0.00 0.00 0.00 0

Preference Share Capital 0.00 0.00 0.00 0.00 0

Reserves & Surplus 1,081.80 844.79 842.17 844.13 980

Loan Funds


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Secured Loans 433.45 461.37 603.84 721.02 381

Unsecured Loans 574.88 911.18 152.75 45.28 166

Total 2,140.38 2,262.46 1,643.88 1,655.55 1,572

USES OF FUNDS

Fixed Assets

Gross Block 1,252.94 944.77 858.39 866.87 879

Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0

Less : Accumulated Depreciation 405.50 346.56 307.94 291.07 276

Net Block 847.44 598.21 550.45 575.80 603

Capital Work-in-progress 37.76 214.92 127.32 79.28 60

Investments 607.01 600.83 571.64 541.34 422

Net Current Assets

Current Assets, Loans & Advances 1,115.51 1,210.02 676.96 726.78 617

Less : Current Liabilities & Provisions 469.00 363.70 282.49 267.65 194

Total Net Current Assets 646.51 846.32 394.47 459.13 422

Miscellaneous expenses not written 1.66 2.18 0.00 0.00 63

Total 2,140.38 2,262.46 1,643.88 1,655.55 1,572Note :

Book Value of Unquoted Investments 533.08 523.70 494.52 465.47 348

Market Value of Quoted Investments 240.84 89.45 42.80 49.24 55

Contingent liabilities 225.63 389.00 418.16 415.65 325

Number of Equity shares outstanding (in Lakhs) 464.13 451.15 451.15 451.15 451

Ratio 2004-05 2003-04 2002-03

Liquidity Ratio

1. Current Ratio 0.75 0.69 0.65

Leverage Ratio

1. Debt-Equity Ratio 0.89 1.5 0.85

2. Debt Ratio 0.47 0.60 0.46

3. Interest Coverage Ratio 4.72% 2.78% 1.93%

Turnover Ratio

1. Inventory Turnover 3.95 3.73 3.64


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2. Debtor Turnover 11.94 9.83 8.76

3. Fixed Asset Turnover 1.20 1.21 1.07

4. Total Asset Turnover 0.396 0.356 0.36

Profitability Ratio (%)

1. Gross profit Margin 21.26 13.44 13.50

2. Net Profit Margin 12.12 8.7 6.8

3. Return on Asset 4.8 3.10 2.45

4. Earning Power 6.8 4.3 4.3

5. Return on Investments 7.74 2.39 2.81

Valuation (%)

1. Dividend Yield 1.08 0.80 0.70

ANALYSISLIQUIDITY RATIOS:

1.CURRENT RATIO-The current ratio measures the ability of the firm to meet its current liabilities-current asse

get converted in to cash during the operating cycle of the firm and provide the funds needed to pay current liabiliti

Apparently, the higher the current ratio, the greater the short term solvency of the company. So, in 2005 the short

term solvency and the liquidity of TAJ is higher than 2004 and 2003

LEVERAGE RATIO

1.DEBT-EQUITY RATIO-The lower the debt-equity ratio, the higher the degree of production enjoyed by the creditors. S

in 2005 the protection enjoyed by the creditors is higher than 2004 but lower than 2003.

2.DEBT RATIO:- The debt ratio measure the extent to which the borrowed funds support the firms asset. In 2005 this ratio

less than 2004 but more than 2003 that means, In 2003 the borrowed funds supported the firms assets most.


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3. INTEREST COVERAGE RATIO:- In 2005 the company has highest interest coverage ratio compared to previous year th

means the firm can easily meet its interest burden even if the profit before tax and interest suffer a considerable decline.

PROFITABILITY RATIO

1.GROSS PROFIT MARGIN RATIO- The efficiency of production and pricing of Taj Hotel is better in 2005 as compared t

2004 & 2003.

2. NET PROFIT MARGIN RATIO- The overall efficiency of production, administration, financing, selling, and tax

management is better in 2005 as compared to previous year.

4. EARNING POWER- The business performance of The Taj Hotels excluding the interest charges and tax burden is

higher in 2005.

TURNOVER RATIO:-

1.INVENTORY TURNOVER- The inventory turnover ratio is higher in 2005, that signifies the management of invento

is efficient.

2. FIXED ASSET TURNOVER RATIO- There is not much significant difference between the fixed asset ratios of

2005,2004& 2003. Hence the efficiency with which the fixed assets are employed in the given years are more or less sam

3. TOTAL ASSET RATIO- there is not much significant difference between the fixed asset ratios of 2005,2004& 2003.

Hence the efficiency with which the total assets are employed is same.

VALUATION RATIO:-

1. DIVIDEND YIELD RATIO- This is a measure of the rate of return earned by the shareholders. Usually companies w

superior growth prospects offer a low dividend yield .Taj Hotels is just offering 1.08 % of dividend yield.


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DU PONT ANALYSIS 2005

*RETURN ONASSET(4.8%)

TotalAssetTurnoverRatio(0.396)

Net Sales(873.24)

Net Sales(873.24)

Avg. Total Asset(2201.42)

Avg. Investment( 732.18)

Avg. FixedAsset (722.82)

N/PMargin(12.12%)

*

/

/

/

+

+

Avg. NetCurrent Asset( 746.41)

DU PONT ANALYSIS OF TAJ HOTELS(2005)

N/P (105.86)


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For the Du Pont analysis of 2004 and 2003 the required data is given below. Using t

data we can make the table.

Ratios 2005 2004 2003

N/P margin 12.12% 8.7% 6.8%

Total Asset Turnover 0.396 0.356 0.36

Net Profit 105.86 cr. 60.65 cr. 40.48 cr.

Net Sales 873.25 cr. 696.07 cr. 590.71 cr.

Avg. Total Assets 2201.42 cr. 1953.13 cr. 1649.715 cr.

Avg. Fixed Assets 722.82 cr. 574.33 cr. 550.45 cr.

Avg. Investment

Assets

732.18 cr. 758.41 cr. 672.46 cr.

Avg. Net Current

Asset Return

746.41 cr. 620.39 cr. 426.8 cr.


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COMMON SIZE ANALYSIS

Commo

Size finan

statement

useful andconvenien

way of

standardiz

financial

statement

to express

each item

a balance

sheet as a

percentag

a total ass

Particulars 2004-05 2003-04 2002-03Sources of funds :-

Equity Share Capital 2.17 2 2.74

Share Application Capital 0.18 0.00 0.00

Preference Share Capital 0.00 0.00 0.00

Reserves & Surplus 50.54 37.74 51.23

Loan Funds:-

Secured Loans 20.25 20.36 36.73

Unsecured Loans 26.86 40.30 9.30

Total 100 100 100

Uses of Funds:-

Fixed Asset-

Gross Block 58.54 41.76 52.22Less- Revaluation 0.00 0.00 0.00

Less- Accumulated Depreciation 18.95 15.32 18.73

Net Block 39.60 26.44 33.48

Capital Work-in-progress 1.76 9.5 7.75

Investments:- 28.36 26.56 34.77

Net Current Assets

Loan, Current Assets & Advances 52.12 53.5 41.18

Less-Current Liabilities &Provisions 21.19 16 17.18

30.20 37.4 24

Misc. Expenses not written .08 .10 .00

Total 100 100 100


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Review of Capital Structure

Share Capital

ParticularsYear2003-04

Year2002-03

1. Authorized CapitalUnclassified Shares

Ordinary Shares10,00,00,000 (previous year 50,00,00,00)Ordinary Shares of Rs. 10/-each..

Preference Share Capital10,00,00,000 (Previous Year Nil)Cumulative Redeemable PreferenceShares of Rs. 100/- each

2. Issued and Subscribed Paid up Capital

4,51,14,695 (Previous Year 4,51,14,695)Ordinary Shares of Rs. 10/- each fullypaid..

----------

100.00

100.00_________

200.00_________

45.12

150.00

50.00

200.00_________

45.12


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Notes:-

Of the above,1) 49,00,400 Ordinary Shares of face value of Rs. 10/- each were issued as ful

paid up Bonus Shares by Capitalization of Reserves.

2) 2,48,87,715 Ordinary Shares of the face value of Rs. 10/- each were issued fully paid Bonus Shares by capitalization of Securities Premium Account.

Particulars Year2003-04

Year2002-03

1. Capital ReserveBalance as per Last Account.

2. Capital Redemption ReserveBalance as per Last Account.

3. Securities Premium Accounta) Balance as per Last Account 203.49

Less-1) Debenture issue cost written off/Premium on early redemption ------

2) FCCB Issue Expenses Written off 17.113) Provisions for Premium on Redemption on FCCBs 0.21

------------Total

4. General Reservesa) Balance as per Last Account.. 259.22

Add:- Transferred From Profit & Loss Account 6.07-----------------

Total5. Investment as per Reserves

Balance as per Last Account .6. Investment Allowance Reserve

Balance as per Last Account.7. Investment Allowance Utilized Reserve

Balance as per Last Account

8. Export Profit ReserveBalance as per Last Account

9. Debenture Redemption ReserveBalance as per Last Account..

0.85

0.55

-----------------

186.17

265.29

5.00

1.68

4.03

0.41

88.67

0.85

0.55

210.30

6.81------

--------------

203.49

254.225.00

--------------

259.22

5.00

1.68

4.03

0.41

88.67


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10.Foreign Exchange Earnings Reservesa) Balance as per Last Account 2.50b) Add:- Transferred from P&L A/c 2.50c) Less:- Transferred to Foreign

Exchange Utilized Reserve. 2.50-----------

Total

11.Foreign Exchange Earnings Utilized Reservea) Balance as per last account 242.80b) Add:- Transferred from Foreign

Exchange Earnings Reserve 2.50--------------

Total12.Profit and Loss Account

Balance Carried Forward

Total

2.50

245.30

44.34

844.79

5.002.505.00

----------

2.50

237.80

5.00-----------

---242.80

32.97

842.17


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Various InstrumentsUsed by the

Company


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Particulars Year2003-04

Year2002-03

1. Debentures

a) 1000, 14% Secured Redeemable Non-Cumulative, Non Convertible debenture of Rs. 5Lakh each, allotted between 24th November1998 and 21st January, on a private placementbasis, repayable at par at the end of the 5thyear from the date of allotment [Repayablewithin one year Rs. Nil (Previous Year Rs. 50Crores)]

b) 266 12.75% Secured Redeemable NonCumulative, NonConvertible debenture of 50 Lakh each, allottedon 7th June 1999 on a private placement basisrepayable in three installments at the end of6th, 7th and 8th year respectively from the date ofallotment in the ratio of 34:33:33 respectively,with a call option at the end of 5th year from thedate of allotment (Repayable within 1 yearRs. Nil, Previous year-Nil)

c) 37, 12% Secured Redeemable Non CumulativeNon ConvertibleDebenture of Rs. 100/- Lakh each, allotted on10th Oct.2000 on a private placement basis,repayable in single installments at the end ofthe 5th year from the date of the allotment(Repayable within 1 year Rs. Nil, Previous Year

Nil.)d) 100, 9.75% Secured Redeemable NonConvertible RedeemableDebentures of Rs. 100 Lakh each, allotted onthe 2nd march,2002 repayable at the end of 5thyear from the date of allotment.( Repayablewithin one year Rs. Nil, Previous Year Nil)

e) (i) 120, 6% Secured Non ConvertibleRedeemable Debenture ofRs. 100 lakhs each, allotted on 2nd march, 2002repayable at the end of 5 years from the date of

allotment, with a put option with thedebenture-holders at the end of 2nd, 3rd & 4thyear from the date of allotment. (Repayablewith one year Rs. Nil and Previous Year Rs. Nil)(ii) 80, 6% Secured Non-ConvertibleRedeemable Debentures of Rs. 100 Lakh eachallotted on 2nd march 2002, repayable at theend of 5th year from the date of allotment with a

------

133.00

---------

100.00

120.00

80.00

80.00

50.00

133.00

37.00

100.00

120.00

80.00

80.00


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put option with the debenture-holders at theend of 1st, 2nd, 3rd, & 4th year from the date ofallotment. (Repayable within one year Rs. Nil)

2. Fixed Deposits:-

a) From Shareholders.[Repayable within one year 0.61 (Previous Year0.39)]b) From Others..

[Repayable within one year 9.12 crores(Previous Year Rs. 8.26 Crores)

3. Short-Term Loans from Banks.[Repayable within one-year Rs. 85.72(Previous Year 25000 Crores)

4. Inter-Corporate Deposits..[Repayable within one Year 29.30(Previous Year 14.80 Crores)]

5. 1% Foreign Currency Convertible Bonds (FCCBs)[Repayable within one year- Nil]

6. Foreign Currency Term-Loan From A Bank(Repayable within one year Nil)

7. Commercial Paper[(Repayable within 1 year- 50000 Crores (PreviousYearRs. 75.00 Crores) Maximum amount outstandingduring the year Rs. 95.00 Crores (Previous Year

85.00)

TOTAL

0.89

33.70

85.72

29.30

656.81

54.76

50.00

911.18

1.25

36.70

25.00

14.80

------

75.00

152.75


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Weighted Average Cost of Capital (WACC)

WACC = WeRe + Wd RdWhere,

WACC = Weighted Cost of CapitalRe = Cost of EquityWe = Proportion of EquityWd = Proportion of DebentureRd = Cost of Debt

Re = EPS + gPo

Where,EPS = Earning Per SharePo = Market Priceg = Growth Rate

EPS = 13.44g = 14.2%Po = 442 Rs.

Re = .1344 + .142442

Re = 14.23

For Cost of Debenture.

WACC = 45.12 * 14.23 + 461 * 5.819

506.12 506.12

= 1.26 + 5.292= 6.55%

Weighted Average Cost of Capital = 6.55%


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PROJECTED BALANCE SHEET

2003-04 2004-05

Net Sales 696.07 873.15

Sources of funds

Shareholder's funds

Capital 45.12 45.12

Reserves & Surplus 844.79 1056.512

Total 889.91 1101.632

Loan Funds

Secured loans 461.37 578.7238

Unsecured loans 911.18 1135.095

Total 1372.55 1713.819

Trade deposits 39.91 49.76955

Deffered tax liablity 70.91 88.18815

TOTAL 2373.28 2953.408

Application of funds

Fixed Assets

Gross Block 1159.69 1449.429

less:depriciation 346.5154 433.0894

Net Block 813.1746 1016.34

Investments 600.83 753.5285

Long term deposits 211.56 211.56

Current assets,loans & advances 986.7 1231.142

less:current liabilities & provisions 241.12 302.1099

Net current assets 745.58 929.0316

Misc. Expenditure 2.18 2.73296

External funds required 40.21

TOTAL 2373.325 2953.403


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2005-06 2006-07

Net Sales 1095.28 1373.91

Sources of funds

Shareholder's funds

Capital 45.12 45.12

Reserves & Surplus 1325.289 1662.431

Total 1370.409 1707.551

Loan Funds

Secured loans 725.9516 910.6275

Unsecured loans 1423.864 1786.083

Total 2149.816 2696.711

Trade deposits 62.43096 78.31287

Deffered tax liablity 110.6233 138.7649

TOTAL 3693.279 4621.339


Fixed Assets

Gross Block 1818.165 2280.691

less:depriciation 543.2676 681.4704

Net Block 1274.897 1599.22

Investments 945.2266 1185.684

Long term deposits 211.56 211.56

Current assets,loans & advances 1544.345 1937.213

less:current liabilities & provisions 378.9669 475.3729

Net current assets 1165.378 1461.84

Misc. Expenditure 3.428226 4.300338

External funds required 92.78 158.73

TOTAL 3693.27 4621.335


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2007-08


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Net Sales 1723.8

Sources of funds

Shareholder's funds

Capital 45.12

Reserves & Surplus 2085.798

Total 2130.918

Loan Funds

Secured loans 1142.535

Unsecured loans 2240.94Total 3383.475

Trade deposits 98.2566

Deffered tax liablity 174.1038

TOTAL 5786.753


Fixed Assets

Gross Block 2861.508

less:depriciation 855.0186

Net Block 2006.489

Investments 1487.639Long term deposits 211.56

Current assets,loans & advances 2430.558

less:current liabilities & provisions 596.4348

Net current assets 1834.123

Misc. Expenditure 5.395494

External funds required 241.55

TOTAL 5786.758

PROJECTED P& L A/c.


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2005-06 2006-07

Income 1095.28 1373.919

Oprtg. & Gen. Expenses 913.4632 1145.848

Dep. 73.93137 92.73952

Interest 57.50218 72.13073

Total Expenditure 1044.897 1310.718

less:Unallocated Exp.

Expenditure 1044.897 1310.718

PBIT,Extra Items 50.38286 63.20026

Extra Items 43.26355 54.26979

less:Exceptional Items 5.07 5.07

Interest 3.48 3.48PBT 92.05641 115.8801

less: Tax 22.43415 28.23997

PAT 69.62226 87.64008

less:Amt.to F.Res. 2.5 2.5

Balance Profit 67.12226 85.14008

PROJECTED P& L 2003-04 2004-05

Income 696.07 873.1502

Oprtg. & Gen. Expenses 583.1 728.2073

Dep. 48.58 58.93764

Interest 30.4 45.84039

Total Expenditure 662.08 832.9853

less:Unallocated Exp. 20.67

Expenditure 641.41 832.9853

PBIT,Extra Items 54.66 40.16491

Extra Items 27.54 34.48943

less:Exceptional Items 5.07 5.07

Interest 3.48 3.48

PBT 80.61 73.06434

less: Tax 19.64466 17.80578

PAT 60.96534 55.25856

less:Amt.to F.Res. 2.5 2.5

Balance Profit 58.46534 52.75856


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2007-08

Income 1723.8

Oprtg. & Gen. Expenses 1437.649

Dep. 116.3565

Interest 90.4995

Total Expenditure 1644.505

less:Unallocated Exp.

Expenditure 1644.505

PBIT,Extra Items 79.2948

Extra Items 68.0901

less:Exceptional Items 5.07

Interest 3.48

PBT 145.7949

less: Tax 35.53022

PAT 110.2647

less:Amt.to F.Res. 2.5

Balance Profit 107.7647


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taj hotel project

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