With its long-term investments affected by the slowdown in both domestic and global markets, Tata group hospitality major Indian Hotels Company (IHCL) expects to make an additional provision of Rs 400 crore on a standalone basis.
In a filing to the BSE, the company said on a consolidated basis expects an additional non-cash provision of Rs 100 crore for the year ending on March 31, 2014.
"The impairment is primarily due to a sustained depression in the macroeconomic and market environment internationally, as also in the domestic market and adverse effect thereof on some of the investments," it said.
According to the company, as the economic uncertainty is expected to continue it has an impacted on the downwards revision of projected cash flow expectations.
"The company expects an additional non-cash provision in respect of its investment/financial exposure in the standalone statement of profit and loss of around Rs 400 crore and a provision of Rs 100 crore in the consolidated statement of profit and loss for the year ending on March 31, 2014," it said.
The final figure would be included in the full years result for year ending on March 31, 2014 which are scheduled to publish on May 30, 2014, it added.
Meanwhile, it also added that its financial covenants related to its borrowing are unaffected by the impairment of investments.
