The Board of Indian Hotels Co (IHCL) at its meeting held on 19 July 2024 has approved the transfer of restaurant business of its wholly owned overseas subsidiary i.e. Taj International Hotels (TIHL) to St James Court Hotels, a subsidiary of the company.
The proposed restructuring will simplify the operational/
legal/ tax structure. As this is a common control transaction, this will not have any accounting implication in IHCL.
IHCL's investment in TIHL and SJCH is held through IHOCO BV, Netherlands, a wholly owned subsidiary of IHCL.
The Board also approved amendment to the Subscription cum Shareholders Agreement (SSHA) by execution of amendment Agreement between the Company, SATS (SATS) and Taj SATS Air Catering (Taj SATS).
The amendment to the SSHA is proposed to be entered into to
modify certain rights of both shareholders in aspects of running
the day-to-day affairs of Taj SATS without any changes made to
the shareholdings of IHCL and SATS in the equity of Taj SATS. In
addition, area of focus demarcated between Taj SATS and a
subsidiary of SATS in India.
Under Indian Accounting Standards (IndAS), based on evaluation
of “control”, Taj SATS will now be accounted as a subsidiary of
IHCL instead of as a joint venture from the date of execution of
the amended SSHA.