Changes at Oberoi Group

The Board of EIH Ltd. (a member of The Oberoi Group) met recently in New Delhi. Consequent to the demise of Rai Bahadur M.S. Oberoi, Chairman of EIH Ltd., the Board has appointed Mr. P.R.S. Oberoi, presently Vice Chairman and Managing Director, as Chairman of the Company. Mr. S.S. Mukherji, who was formerly the Deputy Managing Director, has been appointed as Managing Director of the Company. Both the above appointments are effective 27th June, 2002 and are subject to the approval of the Shareholders at the Annual General Meeting.
The Company now has a very broad based Board. Mr. Nusli Wadia, Mr. Rajan Raheja and Mr. Christopher Reeves have been added to the Board. Mr. Nusli Wadia is a well known industrialist and is the Chairman of Bombay Dyeing and Britannia Industries Limited. Mr. Rajan Raheja is also a well known industrialist and is Chairman of Prism Cement. Mr. Raheja is also on the Board of several well known companies. Mr. Christopher Reeves was formerly the Chairman of Merrill Lynch, United Kingdom.


The Board of Directors of EIH Limited announced the results for the financial year 2001-2002.


The total revenue of the Company is Rs. 427.33 crores as against Rs. 518.31 crores in the previous year. The net profit after tax is Rs. 35.57 crores as against Rs. 94.82 crores in the previous year.

 

 

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The Chairman, EIH Ltd., Mr. P.R.S. Oberoi, has stated that business during the year has been disappointing. Several events have had an adverse effect on the Travel and Tourism industry. Recession in the spring and summer of 2001, followed by terrorist attacks on the World Trade Centre and on the Pentagon on 11th September, 2001 and the attack on the Indian Parliament in December, 2001, have severely impacted travel to India. As there has been a drop in revenue due to adverse business conditions, the Company has curtailed costs, wherever possible.

The Dividend is being maintained @ Rs. 6/- (60%) per Equity Share. The Equity Dividend, if approved by the Shareholders, will be paid to those Shareholders whose names appear in the books of the Company as on 30th August, 2002. An amount of Rs. 9.1 crores has been paid as an Interim Dividend on the Cumulative Redeemable Preference Shares @ 9.1%. The tax on Preference Dividend is Rs. 92.82 lacs.


The foreign exchange earnings of the Company are Rs. 254 crores as compared to Rs. 332 crores in the previous year.


An amount of Rs. 30 crores has been transferred to the General Reserve and Rs. 5 crores to the Foreign Exchange Reserve. The total Shareholders` Fund now stands at Rs. 1039 crores.


The earnings per share is Rs. 4.87.


The Oberoi Group`s new luxury resort opened at Ranthambhore in November, 2001 and Udaivilas, the luxury resort in Udaipur will open on 15th August, 2002.


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