Interim Results

RNS Number : 6653Y
India Hospitality Corp.
29 December 2010
 



 

India Hospitality Corp.

29 December 2010

 

Interim Results

 

India Hospitality Corp. (AIM: IHC) (the "Company" or "IHC") is pleased to announce its financial results for the half year ended 30 September 2010.

 

Post the period end, IHC divested 74% of its shareholding in Sky Gourmet Catering Private Ltd ("Skygourmet") to Gategroup Investments Singapore Pte. Ltd. (Gate Group). Ravi Deol, IHC's Chief Executive Officer, commented, "IHC has generated liquidity through this divestment and is now focusing on both organic and inorganic growth in the hospitality sector, which offers huge potential in a growing economy like India."

 

The Condensed Consolidated Interim Financial statements of the Company for the period ended 30 September 2010 are presented below and a full version of these is available on the Company's website www.indiahospitalitycorp.com. 

 

For Further Information Contact:

India Hospitality Corp.

 

Rajesh Mittal

+91 22 4090 6177

rmittal@ihcor.com

www.indiahospitalitycorp.com

 

Nominated Adviser: Grant Thornton Corporate Finance

Fiona Owen / Robert Beenstock

+44 20 7383 5100

 

Broker: Execution Noble & Company Ltd.

James Bromhead

+44 20 7456 9191

 

Media Contact: Mutual Public Relations Ltd.

Harsh Wardhan

+91 11 4362 0700

 

 

 

 

 


About India Hospitality Corp.

 

During the period to which the interim accounts relate, the Company was present in airline catering and hotel & restaurant segments, through its India-based subsidiaries Wah Restaurants Private Limited (formerly Mars Restaurants Private Limited) ("Wah Restaurants") and SkyGourmet Catering Private Limited ("Skygourmet").

 

 

Chief Executive Officer's Statement

 

On behalf of India Hospitality Corp., the Board of Directors is pleased to report the Company's unaudited interim financial results for the period ended 30 September 2010.

 

Financial Highlights

·     Total Operating Revenue of USD 20.37 million, an increase of 19.79% over the same period last year

·     Revenue from Air Catering Unit increased by 26.50% over the same period last year

·     Revenue from Hotel Business increased by 19.24% over the same period last year

·     Revenue from Restaurant Business decreased by 16.05% over the same period last year due to the transfer of certain restaurants to Mars Enterprises as part of a disengagement

·     Operating loss of USD 1.58 million, a reduction of 62.89% in operating losses over the same period

 

Partial exit from Skygourmet - Airline catering

 

As announced on 11 November 2010, IHC, its wholly-owned subsidiary IHC Mauritius, Skygourmet and Gate Group entered into a share purchase agreement, pursuant to which IHC and IHC Mauritius sold 74% of the shares in Skygourmet to Gate Group (the "Sale"). The consideration for the Sale was USD 39 million in cash, subject to post-completion adjustment to take account of any movement in the net debt of Skygourmet between 30 September 2010 and 31 October 2010. This post-completion adjustment is currently being finalised. IHC Mauritius also received USD 1.5 million in connection with the sale of certain land in Delhi owned by Skygourmet.

 

Furthermore, as announced on 11 November 2010, IHC continues to hold 26% of the shares in Skygourmet, which are subject to 'Call' and 'Put' options exercisable by Gate Group and IHC as per the terms of a Shareholders' Agreement. Considering that the Company only exercises significant influence on Skygourmet and not control, this residual holding in Skygourmet will be accounted for as an associate using the equity method from the effective date of the transaction.

 

SkyGourmet continues to remain a dominant player in the domestic air catering business. The asset and capacity utilisation of the business has constantly increased and a number of measures for efficiency improvement and productivity enhancement were initiated by the IHC management team.

 

Use of Proceeds

 

The proceeds of the Sale will be used by IHC to continue to develop its hospitality and restaurant businesses and to pay a special interim divided which is currently being considered by the Board. Further announcements as regards this will be made by the Company in due course.

 

Hotels & Restaurants

 

With the continued growth and increasingly positive signals for the Indian economy over the recent months, the Directors believe that there is significant growth still to be made in the hotels and restaurant sector in India and the recent partial divestment of Skygourmet will allow the Company to expand in this growing sector.

 

During the period the Company has also increased the number of pastry shops under the brand 'Birdy's" to 33. The partnership agreement, through its Indian subsidiary (Gordon House Estates Pvt. Ltd), with Entertainment World Developers Pvt. Ltd ("EWDPL") to manage its 10 hotels, which was put on hold due to funding constraints, is proposed to be revived.

 

Concluding Remarks & Acknowledgements

The Directors remain optimistic about the growth of the hospitality sector in India and remain positive about the long term outlook of the Company.

 

The Directors wish to place on record their deep appreciation to employees at all levels for their hard work, dedication and commitment. The Directors would like to thank the shareholders for their support and look forward to achieving continued success together.

 

 

Ravi S. Deol

Chief Executive Officer and Managing Director

 



Condensed Consolidated Statement of Financial Position

 

(All amounts in USD, unless otherwise stated)


As at

September 30, 2010

(Unaudited)

As at

September 30, 2009

(Unaudited)

As at

March 31, 2010

(Audited)

Assets




Non current




Goodwill

 

27,712,492

25,895,374

27,559,011

Property, plant and equipment

61,375,404

73,995,026

74,294,333

Intangible assets

33,442,301

40,063,882

37,113,267

Deferred tax assets

318,356

594,268

318,356

Long term financial assets

3,307,845

3,720,910

3,682,367

Other assets

6,139,163

6,058,579

6,357,877

Restricted cash

315,604

304,277

320,501

Total non-current assets

132,611,165

150,632,320

149,645,712





Current




Inventories

570,297

415,382

491,654

Trade and other receivables, net

15,906,139

 11,855,187

11,531,629

Other short term financial assets

4,945,863

4,043,848

4,877,513

Prepayments and accrued income

514,418

317,047

270,405

Cash and cash equivalents

1,749,095

3,070,349

1,358,342

Total current assets

23,685,812

19,701,813

18,529,543





Total assets

156,296,977

170,334,133

168,175,255





Liabilities and Equity




Current liabilities




Interest bearing loans and borrowings

20,251,756

9,897,106

13,285,997

Trade and other payables

14,613,412

13,384,914

14,070,583

Total current liabilities

34,865,168

23,282,020

27,356,580





Non current




Interest bearing loans and borrowings, net of current portion

24,076,949

26,558,185

25,800,331

Employee benefit obligations

581,598

593,553

513,427

Deferred tax liability

13,800,147

16,815,097

13,692,882

Total non current liabilities

38,458,694

43,966,835

40,006,640





Total liabilities

73,323,862

67,248,855

67,363,220



 


As at

September 30, 2010

(Unaudited)

As at

September 30, 2009

(Unaudited)

As at

March 31, 2010

(Audited)





Equity




Issued capital

33,718

30,908

30,909

Additional paid in capital

149,688,567

148,517,102

148,590,149

Stock compensation reserve

-

525,377

300,767

Translation reserve

(12,490,214)

(21,807,382)

(13,035,612)

Accumulated earnings

(54,258,956)

(24,180,727)

(35,074,178)

Total equity

82,973,115

103,085,278

100,812,035





Total liabilities and equity

156,296,977

170,334,133

168,175,255

 

 (The accompanying notes are an integral part of these condensed consolidated interim financial statements)



Condensed Consolidated Statement of Comprehensive Income

(All amounts in USD, unless otherwise stated)

 


For period April 1, 2010 to September 30, 2010

(Unaudited)

For period April 1, 2009 to September 30, 2009

(Unaudited)

Revenues



Operating revenue

20,366,527

17,001,162

Finance and other income

639,103

4,759,330

Total

21,005,630

21,760,492




Expenses



Direct operating expenses

17,259,940

17,483,717

Administrative expenses

20,092,701

10,808,096

Selling expenses

37,128

40,434

Finance charges

2,800,612

2,034,640

Total

40,190,381

30,366,887




Loss before tax

(19,184,751)

(8,606,395)




Taxes



Current tax expense

-

-

Deferred tax charge/credit for the period

-

71,410

Loss for the period

(19,184,751)

(8,677,805)




Other Comprehensive Income:
Exchange difference on translating foreign operations

545,398

8,706,205




Total comprehensive income/(loss) for the period attributable to the owners of India Hospitality Corp.

(18,639,353)

28,400




Loss per share



Basic

(0.60)

(0.29)

Diluted

(0.60)

(0.29)

 

(The accompanying notes are an integral part of these condensed consolidated interim financial statements)

 

 

 


Condensed Consolidated Statement of Changes in Equity

 

(All amounts in USD, unless otherwise stated)

 


Equity attributable to shareholder's of India Hospitality Corp


Number of shares

Common stock- Amount

Additional paid in capital

Stock compens-ation reserve

Translation reserve

Accum-ulated earnings

 

Total stockholder's equity

Balance as at April 1, 2009 (Audited)

28,098,250

28,099

 147,469,159


(30,513,587)

(15,502,923)

101,480,748

Issue of shares to directors

2,809,500

2,809

1,047,943




1,050,752

Share based payments to directors




525,378

-

-

525,378

Transactions with owners

2,809,500

2,809

1,047,943

525,378

-

 -

 1,576,130

Loss for the year

-

-

-

-

-

(8,677,805)

(8,677,805)

Other comprehensive income:








Exchange differences on translation

-

-

-

-

8,706,205

-

8,706,805

Income tax relating to components of other comprehensive income

-

-

-

-

-

-

-

Total comprehensive income for the year

-

-

-

-

8,706,805

(8,677,805)

28,400

Balance as at September 30, 2009 (Unaudited)

30,907,750

 30,908

 148,517,102

525,378

 (21,807,382)

 (24,180,728)

 103,085,278

 



 


Equity attributable to shareholder's of India Hospitality Corp


Number of shares

Common stock - Amount

Additional paid in capital

Stock compens-ation reserve

Translation reserve

Accum-ulated earnings

 

Total stockholder's equity

Balance as at April 1, 2010 (Audited)

30,907,750

 30,909

 148,590,149

 300,767

 (13,035,612)

 (35,074,206)

 100,812,007

Issue of shares to directors

2,809,500

2,810

1,098,418




1,101,228

Share based payments to directors

-

-

-

797,651

-

-

797,651

Transferred on vesting of shares

-

-

-

(1,098,418)

-

-

(1,098,418)









Transactions with owners

2,809,500

2,810

1,098,418

(300,767)

 -

 -

800,461

Loss for the year






(19,184,751)

(19,184,751)

Other comprehensive income:

-

-

-

-

-

-

-

Exchange differences on translation

-

-

-

-

545,398

-

545,398

Income tax relating to components of other comprehensive income

-

-

-

-

-

-

-

Total comprehensive income for the period

-

-

-

-

545,398

(19,184,751)

(18,639,353)

Balance as at 30 September 2010 (Unaudited)

33,717,250

33,718

 149,688,567

 -

(12,490,214)

(54,258,956)

82,973,115

 

 

(The accompanying notes are an integral part of these condensed consolidated interim financial statements)



Condensed Consolidated Statement of Cash Flows

 

(All amounts in USD, unless otherwise stated)


For six months ended

September 30, 2010

(Unaudited)

For six months ended

September 30, 2009

(Unaudited))

Operating activities



Loss before tax

(19,184,751)

(8,606,395)

Adjustments for non cash items:



Depreciation, amortization and impairment

17,442,511

5,855,231

Interest expenses, net

2,797,735

2,034,640

Income on settlement of warranty claim relating to business combinations

-

(4,565,756)

(Profit)/ Loss on sale of asset, net

(3)

156,502

(Profit)/ Loss on sale of investments

(18,045)

-

Interest income, net

(173,542)

(2,173)

Dividend income

(4,283)

-

Expense for share based payments to directors

797,651

1,047,944

Provision for doubtful debts

36,202

-

Sundry Balance written back

(14,251)

-

Advances written off

2,400

-

Foreign exchange loss

19,159

-

Others

-

18,150




Net Changes in working capital



Increase/(decrease) in current liabilities

(1,536,774)

2,281,762

(Increase)/decrease in current assets

(2,608,530)

(2,522,181)

Net changes in operating assets and liabilities

(2,444,521)

(4,302,276)

Taxes refund/ (paid)

424,217

(60,235)

Cash used in operating activities

(2,020,304)

(4,362,511)




Investing activities



Interest received

176,144

2,636

Proceeds from sale of property, plant and equipment

14,091

61,200

Purchase of property, plant and equipment

(235,047)

(849,711)

Proceeds from sale of investments

18,045

95

Dividend received

4,283

-

Income on settlement of warranty claim relating to business combinations

-

4,565,756

Cash generated from / (used in) investing activities

(22,484)

3,779,976




 

 



Financing activities



Proceeds from issue of shares

2,810

2,809

Interest paid

(2,694,829)

(2,034,640)

Proceeds from long term borrowings (net)

4,790,787

2,625,113

Cash generated from / (used in) financing activities

2,098,768

593,282




Net increase in cash and cash equivalents

55,980

10,747

Effect of exchange rate changes on cash

334,772

(44,289)

Net increase/(decrease) in cash and cash equivalents during the period

390,752

(33,542)

Cash and cash equivalents at the beginning of the period

1,358,342

3,103,891

Cash and cash equivalents at the end of the period

1,749,096

3,070,349




Cash and cash equivalents comprise



Cash in hand

103,031

65,929

Balances with banks

623,264

3,004,420

Investment in highly liquid funds

1,022,801

-


1,749,096

3,070,349

 

(The accompanying notes are an integral part of these condensed consolidated interim financial statements)

 

 



 

Notes to Condensed Consolidated Interim Financial statements

 

(All amounts in USD, unless otherwise stated)

 

 

NOTE A -       BACKGROUND INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

1. NATURE OF OPERATIONS

 

For the period under review, the Company was present in airline catering and hotel & restaurant segments, through its India-based subsidiaries Wah Restaurants Private Limited (formerly Mars Restaurants Private Limited) ("Wah Restaurants") and SkyGourmet Catering Private Limited ("SkyGourmet").

 

2. GENERAL INFORMATION

 

The Company was incorporated in the Cayman Islands on May 12, 2006 and its shares are publicly traded on the AIM market operated by the London Stock Exchange. As of September 30, 2010, the Company had subsidiaries incorporated in Mauritius, Netherlands and India. The Company expects to conduct business, including making acquisitions, through its Mauritius subsidiary.

 

These condensed consolidated interim financial statements have been approved by the Board of Directors on December 24, 2010.

 

3. BASIS OF PREPARATION

 

The condensed consolidated interim financial statements of the Company with its subsidiaries for the six month period ended September 30, 2010 and the relevant comparatives have been prepared in accordance with IAS 34 Interim Financial Reporting as developed and published by the International Accounting Standards Board ('IASB'). They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated financial statements of the Group for the period ended March 31, 2010. These condensed consolidated interim financial statements have been prepared on a going concern basis.

 

These condensed consolidated interim financial statements of the Group are prepared and presented in United States Dollars ("USD"), the Company's reporting currency. The Group has chosen to present the condensed consolidated statement of financial position, condensed consolidated statement of comprehensive income, condensed consolidated statement of cash flows and condensed consolidated statement of changes in equity along with selected explanatory notes (referred to as 'condensed consolidated interim financial statements').



4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the period ended March 31, 2010.

 

5. BASIS OF CONSOLIDATION

 

The subsidiaries which consolidate under India Hospitality Corp.for the period under review comprise the entities listed below:

 

Name of the Entity

Period end date

Holding Co.

Country of Incorporation

Effective Group Share-holding (%)

India Hospitality Corp. (IHC)

September 30, 2010


Cayman Island

100

IHC Mauritius (IHC M)

September 30,2010

IHC

Mauritius

100

Wah Restaurants Private Limited (WRPL)

September 30, 2010

IHC M

India

100

SkyGourmet Catering Private Limited (SGCPL)

September 30, 2010

IHC M

India

100

IHC Advisory Services Private Limited (IHCA)

September 30, 2010

IHC

India

100

New India Glass Private Limited (NIGPL)

September 30, 2010

SGCPL

India

100

Gordon House Estates Private Limited (GHEPL)

September 30, 2010

MRPL

India

100

Navigate India Investments B.V

September 30, 2010

IHC M

Netherlands

100

IBEA Mars and GHH Holdings B.V

September 30, 2010

IHC M

Netherlands

100

S.C. Ventures Ltd

September 30, 2010

IBEA

Mauritius

100

Karia Investments B.V

September 30, 2010

Navigate

Netherlands

100

 

All of the above entities apply uniform accounting policies.

 

In consolidating the financial information of SGCPL WRPL, IHCA, NIGPL and GHEPL whose functional currency is the Indian Rupee, the assets and liabilities for each statement of financial position presented has been translated to USD, the presentation currency at the closing rate at the date of that statement of financial position, and income and expenses for each income statement have been translated at exchange rates at the dates of the transactions and all resulting exchange differences are recognized in the statement of comprehensive income. Between the dates of the two statements of financial positions, there has been a significant movement in the exchange rates of Indian Rupee to the USD from Rs 48.04/USD as of September 30, 2009 to Rs 44.89/USD as of September 30, 2010. 

 

NOTE B -       SIGNIFICANT EVENTS DURING THE PERIOD

 

1. Issue of shares to Directors

 

 

2. Impairment on Delhi Land

 

NOTE C -       LOSS PER SHARE

The basic earnings per share for the six months ended September 30, 2010 and for the comparative period has been calculated using the net results attributable to shareholders of India Hospitality Corp. as the numerator. None of the dilutive shares relate to interest or similar expense recognisable in the income statement for the six months ended September 30, 2010 and the comparative period.

 

Calculation of basic and diluted EPS is as follows:


Six months ended September 30, 2010

Six months ended September 30, 2009

Net results attributable to shareholders of India Hospitality Corp., for basic and dilutive

(19,184,751)

(8,677,805)

Weighted average numbers Shares outstanding during the period for Basic

32,043,092

29,612,925




Basic and Diluted EPS, in USD

(0.60)

(0.29)

 

NOTE D -     RELATED PARTY TRANSACTIONS

 

Related parties with whom the Group has transacted during the period

 

Key Management Personnel

Ravi Deol


Sandeep Vyas


Rajesh Mittal

Ajit Mathur


Sanjay Narang

(ceased to be related party with effect August 1, 2009)

Arvind Ghei

(ceased to be related party with effect August 1, 2009)

Patrick Rodrigues

(ceased to be related party with effect August 1, 2009)

Jaswinder Singh

(ceased to be related party with effect August 1, 2009)

Ramesh Joshee

(ceased to be related party with effect August 1, 2009)

 


Enterprises over which significant influence exercised by key management personnel

Bullworker Pvt. Ltd

(ceased to be related party with effect August 1, 2009)

Mars Food Services

(ceased to be related party with effect August 1, 2009)

Mars Enterprises

(ceased to be related party with effect August 1, 2009)

Mars Corporation

(ceased to be related party with effect August 1, 2009)

Mars Hotel & Resorts Private Limited

(ceased to be related party with effect August 1, 2009)

Mars Catering Services Private Limited

(ceased to be related party with effect August 1, 2009)

Firstcorp Invesco Private Limited


 

Summary of transactions with related parties during the period

 

Nature of Transaction

September

30, 2010

September 30, 2009

Transactions with key management personnel



Remuneration

702,318

616,450

Acquisition of intangible assets

-

400,100

Share based payments

797,651

1,047,944

 



Transactions with enterprises over which significant influence exercised by key management personnel till July 31, 2009



Sale of Goods

-

85,740

Rendering of other services

-

361,582

Services received

-

750,176

Loans and advances

-

1,156

Deposit given

-

8,957,122

Amount payable at the period end

-

271,084

Amount receivable at the period end

-

1,798,968

 

NOTE E -      SEGMENT REPORTING

 

Primary segments

During the six months ended September 30, 2010 the Group has not made any changes in the basis of segmentation or basis of measurement of segment profit or loss from the basis adopted for presentation of segment information in the last annual financial statements for March 31, 2010.

 

Business segments

6 months to 30 September 2010

Air Catering Unit

Gordon House Hotel

 

Restaurants and others

Total

Revenue from external customers

17,127,707

1,124,865

2,113,956

20,366,528

Inter-segment revenues

-

-

-

-

Segment Revenue

17,127,707

1,124,865

2,113,956

20,366,528






Costs of material

5,000,170

144,928

1,152,278

6,297,376

Direct operating expenses

4,165,261

527,853

744,135

5,437,249

Employee remuneration

2,266,901

228,610

220,381

2,715,892

Depreciation and amortization

5,806,096

13,360

235,460

6,054,916

Administration and selling expenses

 

 1,101,004

103,723

238,371

1,443,098

Segment operating profit

(1,211,725)

106,391

(476,669)

(1,582,003)






Segment assets

118,864,249

14,841,769

12,319,121

146,025,138

Segment liabilities

25,005,531

147,607

1,012,906

26,166,044

 

6 months to 30 September 2009

Air Catering Unit

Gordon House Hotel

 

Restaurants and others

Total

Revenue from external customers

13,539,696

943,386

2,518,080

17,001,162

Inter-segment revenues

-

-

-

-

Segment Revenue

13,539,696

943,386

2,518,080

17,001,162






Costs of material

3,629,521

133,476

997,042

4,760,039

Direct operating expenses

4,211,062

351,657

1,118,341

5,681,060

Employee remuneration

2,265,822

196,631

1,224,341

3,686,794

Depreciation and amortization

4,093,897

358,825

676,720

5,129,442

Administration and selling expenses

1,488,438

80,617

438,179

2,090,404

Segment operating profit

(2,149,044)

(177,820)

(1,936,544)

(4,263,407)






Segment assets

125,790,133

14,487,041

13,061,844

153,339,018

Segment liabilities

31,381,980

341,153

1,149,778

32,872,913

 

The totals presented for the Group's operating segments reconcile to the entity's key financial figures as presented in its financial statements as follows:

 

 

Particulars

6 months to 30 September 2010

6 months to

30 September 2009

Revenue



Total Segment revenue

20,366,528

17,001,162




Reconciling items:



Finance Income

450,716

2,173

Other corporate income:

188,386

-

Royalty Income

-

13,064

Income on settlement of warranty claim relating to business combinations

-

4,565,756

Other miscellaneous income

-

178,337

Total Revenue

21,005,630

21,760,492

 

Profit and loss

6 months to 30 September 2010

6 months to 30 September 2009

Segment operating loss

(1,582,003)

(4,263,407)

Reconciling items:



Other corporate incomes:



Royalty Income

-

13,064

Income on settlement of warranty claim relating to business combinations

-

4,565,756

Other miscellaneous income

188,386

180,514




Other corporate expenses:



Costs incurred on disengagement of operating agreements

-

(1,877,850)

Losses incurred on transfer of assets in line with disengagement of operating agreements

-

(156,166)

Share issue expenses

(797,651)

(1,573,320)

Senior management employee costs

(1,364,067)

(1,204,435)

Impairment of financial assets

(36,202)

-

Corporate office administration expenses

(1,855,724)

(1,603,347)

Depreciation/amortization/impairment on corporate assets and intangibles

(11,387,594)

(654,737)

Group loss before finance costs and tax

(16,834,855)

(2,034,640)




Finance costs

(2,800,612)

(2,034,640)

Finance income

450,716

2,173

Group loss before tax

(19,184,751)

(8,606,395)

 



 

Assets

6 months to 30 September 2010

6 months to 30 September 2009

Total Segments assets

146,025,138

153,339,018




Other assets:



Cash and cash equivalents

719,651

3,070,349

Surplus Land

3,817,379

10,920,325

Deferred Tax assets

318,356

2,410,164

Other corporate assets

5,916,453

594,268

Total assets

156,796,977

170,334,124

 

 

Liabilities

6 months to 30 September 2010

6 months to 30 September 2009

Total Segments liabilities

26,166,044

32,872,913




Other liabilities:



Loans and other borrowings

28,637,111

12,014,326

Employee Retirement benefits

581,598

593,553

Deferred tax liability

13,800,147

16,815,097

Other corporate liabilities

4,138,962

4,952,966

Total Liabilities

73,323,862

67,248,855

 

 

Description of business segments

 

Air Catering Unit: SGCPL acquired by the Group is identified as an independent business segment offering air catering services. SGCPL also provides handling, stores management, transportation of meals, loading/unloading of goods and other consumable and ancillary services. However these services are directly related and covered under the original meals supply contract and related air catering services.

 

Hotels: Currently this segment represents independent operations of Gordon House Hotel located at Mumbai. The Hotel is a modern boutique providing state of the art facilities.

 

Restaurants and others: This segment comprises operating specialty restaurants, and a chain of patisserie, cake shops and food courts.

 

Geographical segments

The Group has not presented geographical segments as all its operations are carried out in India.

 



 

NOTE F -       SUBSEQUENT EVENTS

 

Agreement with Gategroup in relation to the Company's Skygourmet airline catering business

IHC entered into an agreement on 11 November 2010 with Gategroup Investments Singapore Pte Ltd. ("Gategroup"), a wholly owned subsidiary company of Gategroup Holding AG, in relation to its wholly owned airline catering company Skygourmet Catering Private Limited ("Sky"). As part of this agreement, IHC has sold 74 per cent. of its interest in Sky to Gategroup (the "Sale") and has also entered into a put and call arrangement with Gategroup in respect of its remaining shares in Sky. The transaction implies an enterprise value for the whole of Sky of approximately USD92 million.

 

The above transaction does not meet the conditions within the meaning of IFRS 5 for treating the air-catering business as being "Held for Sale" as on 30 September. 2010, therefore no accounting adjustment was made in the half yearly financials for the period ended September 30, 2010. Further, as at September 30, 2010, the value in use of this business is higher than the carrying value and accordingly no impairment has been recognised during the period ended September 30, 2010.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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