2.21 Provisions and Contingent Liabilities:
Provisions:

Provisions are recognised when the Company
has a present obligation (legal or constructive)
because of a past event, it is probable that an
outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the amount

of the obligation. When the Company expects
some or all of a provision to be reimbursed,
the reimbursement is recognised as a separate
asset, but only when the reimbursement is
virtually certain. The expense relating to a
provision is presented in the statement of profit
and loss net of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting
is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed
only by future events not wholly within the
control of the Company or

• Present obligations arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the amount
of the obligation cannot be made.

2.22 Significant estimates and judgement:

The preparation of financial statements in
conformity with Ind AS requires management to
make judgements, estimates and assumptions
that affect the application of accounting
policies and the reported amounts of assets,
liabilities, income, expenses and disclosures of
contingent assets and liabilities at the date of
these financial statements and the reported
amounts of revenues and expenses for the years
presented. These judgements and estimates are
based on management's best knowledge of the
relevant facts and circumstances, having regard
to previous experience, but actual results may
differ materially from the amounts included in
the financial statements.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the
period in which the estimate is revised, and
future periods affected.

The information about significant areas of
estimation uncertainty and critical judgements
in applying accounting policies that have
the most significant effect on the amounts
recognised in the financial statements are as
given below:”

(i) Significant estimates

Recoverability of deferred tax assets

The Company has carry forward tax
losses, unabsorbed depreciation and MAT
credit that are available for offset against
future taxable profit. Deferred tax assets
are recognised only to the extent that it is
probable that taxable profit will be available
against which the unused tax losses or tax
credits can be utilised. This involves an
assessment of when those assets are likely
to reverse, and a judgement as to whether
there will be sufficient taxable profits
available to offset the assets. This requires
assumptions regarding future profitability,
which is inherently uncertain. To the extent
assumptions regarding future profitability
change, there can be an increase or decrease
in the amounts recognised in respect of
deferred tax assets and consequential
impact in the statement of profit and loss.

Deferred tax asset i s recogn ized on
unabsorbed depreciation and business
losses to the extent it is probable that future
taxable profits will be available against which
the deductible temporary differences and
unabsorbed depreciation can be utilised.

(ii) Significant judgements

a) Determining the Lease Term

I nd AS 116 'Leases' requires lessees to
determine the lease term as the non¬
cancellable period of a lease adjusted
with any option to extend or terminate
the lease, if the use of such option
is reasonably certain. The Company
makes an assessment on the expected
lease term on a lease-by-lease basis
and thereby assesses whether it is
reasonably certain that any options to
extend or terminate the contract will be
exercised. In evaluating the lease term,
the Company considers factors such as
any significant leasehold improvements
undertaken over the lease term, costs
relating to the termination of the lease
and the importance of the underlying
asset to Company's operations taking
into account the location of the
underlying asset and the availability
of suitable alternatives. The lease
term in future periods is reassessed
to ensure that the lease term reflects
the current economic circumstances.
Critical Judgements in Determining
the Discount Rate: The discount rate
is generally based on the incremental
borrowing rate specific to the lease

being evaluated or for a portfolio of
leases with similar characteristics.

b) Employee Benefits (Estimation of
defined benefit obligation)

Post-employment benefits represent
obligation that will be settled in the future
and require assumptions to project
benefit obligations. Post-employment
benefit accounting is intended to
reflect the recognition of future benefit
cost over the employee's approximate
service period, based on the terms of
plans and the investment and funding
decisions made. The accounting requires
the Company to make assumptions
regarding variables such as discount
rate, rate of compensation increase
and future mortality rates. Changes
in these key assumptions can have a
significant impact on the defined benefit
obligations, funding requirements and
benefit costs incurred.

c) Impairment of trade receivables

The risk of collectability of accounts
receivable is primarily estimated based
on prior experience with, and the past
due status of doubtful debtors, while
large accounts are assessed individually
based on factors that include ability to
pay, bankruptcy and payment history.
The assumptions and estimates applied
for determining the valuation allowance
are reviewed periodically.

d) Estimation of expected useful lives
and residual values of property, plants
and equipment

Property, plant and equipment are
depreciated at historical cost using
straight-line method based on the
estimated useful life, considered at
residual value. The asset's residual
value and useful life are based on the
Company's best estimates and reviewed,
and adjusted if required, at each Balance
Sheet date.

e) Contingent Liabilities

Legal proceedings covering a range
of matters are pending against the
Company. Due to the uncertainty
inherent in such matters, it is often
difficult to predict the final outcomes.
The cases and claims against the
Company often raise difficult and

complex factual and legal issues that
are subject to many uncertainties
and complexities, including but not
limited to the facts and circumstances
of each particular case and claim,
the jurisdiction and the differences in
applicable law, in the normal course of
business, the Company consults with
legal counsel and certain other experts
on matters related to litigations. The
Company accrues a liability when it is
determined that an adverse outcome
is probable, and the amount of the loss
can be reasonably estimated. In the
event an adverse outcome is possible,
or an estimate is not determinable, the
matter is disclosed.

f) Fair value measurements

When the fair values of financial assets
and financial liabilities recorded in the
Balance Sheet cannot be measured
based on quoted prices in active
markets, their fair values are measured
using valuation techniques which involve
various judgements and assumptions.

g) Impairment testing

Impairment Testing: Property, plant and
equipment, Right-of-Use assets and
intangible assets that are subject to
depreciation/ amortisation are tested for
impairment periodically including when
events occur or changes in circumstances
indicate that the recoverable amount of
the cash generating unit is less than its
carrying value. The recoverable amount
of cash generating units is higher of
value-in-use and fair value less cost
to sell. The calculation involves use of
significant estimates and assumptions
which includes turnover and earnings
multiples, growth rates and net margins
used to calculate projected future cash
flows, risk-adjusted discount rate, future
economic and market conditions.

2.23 New and amended standards:

(i) Ind AS 117 Insurance Contracts

The Ministry of corporate Affairs (MCA)

notified the Ind AS 117, Insurance Contracts,

vide notification dated 12 August 2024,

under the Companies (Indian Accounting
Standards) Amendment Rules, 2024,

which is effective from annual reporting
periods beginning on or after 1 April 2024.
Ind AS 117 Insurance Contracts is a
comprehensive new accounting standard for
insurance contracts covering recognition and
measurement, presentation and disclosure.
Ind AS 117 replaces Ind AS 104 Insurance
Contracts. Ind AS 117 applies to all types
of insurance contracts, regardless of the
type of entities that issue them as well as to
certain guarantees and financial instruments
with discretionary participation features; a
few scope exceptions will apply. Ind AS 117 is
based on a general model, supplemented by:

• A specific adaptation for contracts with
direct participation features (the variable
fee approach)

• A simplified approach (the premium
allocation approach) mainly for short-
duration contracts

• The application of Ind AS 117 had no
impact on the Company standalone
financial statements as the Company has
not entered any contracts in the nature
of insurance contracts covered under Ind
AS 117.

(ii) Amendment to Ind AS 116 Leases -
Lease Liability in a Sale and Leaseback

The MCA notified the Companies (Indian
Accounting Standards) Second Amendment
Rules, 2024, which amend Ind AS 116,
Leases, with respect to Lease Liability in a
Sale and Leaseback.

The amendment specifies the requirements
that a seller-lessee uses in measuring the
lease liability arising in a sale and leaseback
transaction, to ensure the seller-lessee does
not recognise any amount of the gain or loss
that relates to the right of use it retains.

The amendment is effective for annual
reporting periods beginning on or after 1 April
2024 and must be applied retrospectively
to sale and leaseback transactions entered
into after the date of initial application of Ind
AS 116.

The amendment does not have a material
impact on the Company financial statements.

5.1 Investment properties primarily consists of
leasehold land taken for a continuous period
of 99 years. In prior years, the Company had
acquired certain parcel of lands aggregating
to INR 146.78 crores for expanding its hotel
business. The Company had been actively
considering opportunities for development and
sale of portions of each such land parcel.

In previous years, the Company acquired certain
parcel of lands of 3.36 acres at EM Bypass, Kolkata.
This land parcel was classified as investment
properties pending a final decision on the extent
to which each such land parcel may be used
for purposes other than the Company's hotel
business. During the year ended March 31, 2024,
the Company had executed a Joint Development
Agreement ('JDA'), for development of serviced
apartments (49% of land area) and hotel (51% of
land area) at EM Bypass with Ambuja Housing
and Urban Infrastructure Company Limited
(“Developer”). Till March 31, 2024, this was still
classified as investment properties pending
active development in accordance with Ind AS
40 “Investment properties”. Management had
recognised deferred tax asset ('DTA') of INR
19.33 crores arising from difference between
book values of the portions of land parcels
that relate to serviced apartment and their
corresponding indexed costs for tax purposes.

During the year ended, the Company initiated
architectural designs and other approvals required
to be taken for the purpose of construction of

serviced apartments/ hotel, which indicates that
active development began on the EM Bypass
property as per Ind AS 40. Accordingly, the
proportionate land parcel and ancillary cost of
INR 92.10 crores relating to hotel was transferred
from investment properties to right-of-use assets
- Land and INR 88.50 crores relating to serviced
apartments to inventories. Further, construction
cost of INR 5.85 crores relating to serviced
apartments was transferred from capital work-
in-progress to inventories. Consequent to such
transfer, deferred tax charge of INR 19.33 crores
was recognised in the statement of profit and
loss during the year ended March 31, 2025.

Fair value of the properties for the year ended
March 31, 2024 was determined by using the
market comparable method. This means that
valuations performed by the valuer are based on
active market prices, significantly adjusted for
difference in the nature, location or condition of
the specific property. As at the date of valuation,
the properties' fair values are based on valuations
performed by Mr. Pradyumna Kumar Dev an
accredited independent valuer who has relevant
valuation experience for similar office properties
in India for the last 7 years and is a registered
valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017.

Further, the Company had performed sensitivity
analysis on the assumptions used by the valuer
and ensured that the valuation of investment
properties is appropriate.

Notes:

a) For impairment testing, goodwill of INR 22.81 crores as at March 31, 2025 and March 31, 2024 respectively,
acquired through business combinations for Flurys brand (cash generating unit referred as “CGU”), having
indefinite life is allocated to the hospitality segment which is also an operating and reportable segment of
the Company.

The Company has performed its annual impairment test for the year ended March 31, 2025 and March 31,
2024 in accordance with the provisions of Ind AS 36 “Impairment of Assets”. The Company considers the
cash flows from the said CGU in comparison to the cash projections at the time of acquisition, amongst
other factors, when reviewing for indicators of impairment. For the year ended March 31, 2025 and March
31, 2024, there were no impairment triggers identified since the Company was able to meet the cash
flow projections.

The estimated value-in-use of this CGU is calculated using cash flow projections basis 10.00% growth
rate (March 31, 2024: 10.00%) till March 31, 2035, 4.50% terminal growth rate (March 31, 2024: 4.50%) for
periods subsequent to the forecast period of 10 years, pre-tax weighted average cost of capital (“WACC”)
of 16.00% (March 31, 2024: 13.00%) and capitalisation rate of 9.00% (March 31, 2024: 9.00%). An analysis
of the sensitivity of the value-in-use to a change in key parameters (such as operating margin, WACC and
average growth rate) based on reasonable assumptions, did not identify any probable scenario in which
the recoverable amount of the CGU would decrease below its carrying amount.

A Company as a lessee

The Company as a lessee has entered into various lease contracts, which includes lease of land, office space, club, restaurant
and guest houses. The Company has several lease contracts that include extension and termination options. These options
are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company's
business needs. Management exercises significant judgement in determining whether these extension and termination options
are reasonably certain to be exercised.

The Company also has certain leases of guest houses with lease terms of 12 months or less. The Company applies the 'short¬
term lease' recognition exemptions for these leases.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current
assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

(v) Total cash outflow in respect of leases for the year ended March 31, 2025 is amounting to INR 22.49 crores
(March 31, 2024: INR 14.48 crores).

(vi) The effective interest rate for lease liabilities is 9.40% with maturity between 2025 - 2077.

B Company as a lessor

(i) The Company has given certain portion of a building in Hyderabad and Kolkata under cancellable
operating lease. Tenure of such lease extends to 9 years with an option to renew it for a further
period of 18 years. This lease agreement inter-alia includes escalation clauses to compensate for
inflation, option for renewals etc. Lease income (rental and service charges) aggregating INR 3.48
crores (March 31, 2024: INR 3.50 crores) has been recognized in the Statement of Profit and Loss in
keeping with lease arrangements.

(ii) The Company has entered into cancellable operating leases wherein some area of the properties
have been leased for shops, towers, etc. Tenure of such leases is generally one year with an option
for renewal. Lease income aggregating INR 0.79 crores (March 31, 2024: INR 0.83 crores) has been
recognized in the statement of profit and loss in keeping with lease arrangements.

Notes:

1) Trade receivables are non interest bearing and generally on terms of up to 90 days.

2) No trade or other receivable are due from directors or other officers of the Company either severally or
jointly with any other person. Nor any trade or other receivable are due from firms or private companies
respectively in which any director is a partner, a director or a member.

3) Refer note 19 and 43 for information on trade receivables pledged as security by the Company
against borrowings.

4) Refer note 34 and 35 for fair value measurements and financial risk disclosures.

5) The Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on historical credit loss experience and forward looking experience.

6) Refer note 38 for disclosures of related party transactions.

*During the previous year, the Company had completed its Initial Public Offer (IPO) of 5,93,85,351 equity shares of face value
of Re. 1 each at an issue price of INR155 per share (including a share premium of INR154 per share) out of which 5,93,57,646
equity shares were issued and subscribed. A discount of INR7 per share was offered to eligible employees bidding in the
employee's reservation portion of 6,75,675 equity shares out of which 62,208 equity shares were issued and subscribed. The
issue comprised of a fresh issue of 3,87,12,486 equity shares aggregating to INR 600 crores and offer for sale of 2,06,45,160
equity shares by selling shareholders aggregating to INR320 crores.

(ii) Terms/ rights attached to equity shares

The Company has only one class of equity shares referred to as equity shares having a par value of Re. 1 per share. Each
Shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval
of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts,
if any, the distribution will be in proportion to number of equity shares held by the shareholders.

Nature and purpose of reserves

(i) Share based payment reserve: The reserve is used to recognize the grant date fair value of options issued
to employees under employee stock option schemes and is adjusted on exercise/ forfeiture of options.

(ii) Retained earnings: These are the profits that the Company has earned till date, less any transfer to
general reserve appropriation towards dividends or other distributions paid to shareholders, as applicable.
Retained earnings include re-measurement loss/(gain) on defined benefit plans, net of taxes that will not
be reclassified to statement of profit and loss.

(iii) General reserve: It represents a free reserve not held for any specific purpose. The Company has
transferred a portion of net profit of the Company before declaring dividend to general reserve pursuant
to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve is not required
under the Companies Act, 2013. However, the amount previously transferred to the general reserve can
be utilised only in accordance with the specific requirements of the Companies Act, 2013.

(iv) Securities premium reserve: It represents premium received on issue of shares. The reserve will be utilised
in accordance with the provisions of the Companies Act, 2013.

(v) Capital redemption Reserve: It represents amount arisen on account of buy back of equity shares during
FY 2017-18.

(i) Borrowings are net of EIR adjustment of INR 0.61 crores (March 31, 2024: INR Nil).

(ii) For the financial year 2024-25, Interest rates on Term Loan carries interest rate of 9.40 % p.a.

(iii) The amounts stated in footnotes above are inclusive of any amounts disclosed under current maturities of
long term borrowings, if any.

19.3 Working capital loan and cash credit

(i) During the year ended March 31, 2025 and March 31, 2024, no written information or stock statements
were required to be submitted with the lenders by the Company under the terms of respective
borrowing agreement.

(ii) Secured working capital loans and Cash credit of INR 30.00 crores as at March 31, 2025 (INR 24 crores:
March 31, 2024) which is secured by first charge by way of hypothecation of First charge on all current
assets , including book debts of borrower , both present and future, of the company ranking pari passu
where applicable. Second pari passu over the property The Park Kolkata. These loans carries interest rate
of 9.50% to 10.85%. Working capital loans and cash credits are repayable on demand.

19.4 General

(i) During the year ended March 31, 2025 and March 31, 2024, no proceedings were initiated against the
Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and the rules made thereunder.

(ii) The Company is not declared wilful defaulter by any bank or financial Institution or other lender during
the year ended March 31, 2025 and March 31, 2024.

(ii) Fair Value

1) The management assessed that cash and cash equivalents, trade receivables, trade payables,
investment in mutual fund and other investments, other current financial assets and other current
financial liabilities approximate their carrying amounts largely due to the short-term maturities of
these instruments.

2) The fair value of the other financial assets and liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a forced
or liquidation sale. The following methods and assumptions were used to estimate the fair values:

3) The fair values of the company's interest-bearing borrowings are determined by using effective
interest rate (EIR) method using discount rate that reflects the issuer's borrowing rate as at the end
of the reporting period. The own non-performance risk as at March 31, 2025 and March 31, 2024 was
assessed to be insignificant.

4) Long-term receivables/payables are evaluated by the Group based on parameters such as interest
rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the
financed project. Based on this evaluation, allowances are taken into account for the expected credit
losses of these receivables.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial
statements are a reasonable approximation of their fair values since the company does not anticipate that
the carrying amount would be significantly different from the values that would eventually be received
or settled.

Fair value hierarchy

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date under current market conditions.

The Company categorises assets and liabilities measured at fair value into one of the three levels depending
on the ability to observe inputs employed in their measurement which are described as follows:

Level 1: Inputs are quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: Inputs are observable inputs, either directly or indirectly, other than quoted prices included within
level 1 for the asset and liability.

Level 3: Inputs are unobservable inputs for the asset or liability reflecting significant modifications to
observable related market data or Company's assumptions about pricing by market participants.

Valuation inputs and relationship to fair value and valuation process:

(i) As per the Company policies, whenever any investment is made by the company in equity securities,
the same is made either with some strategic objective or as a part of contractual arrangement.

Valuation technique used to determine fair value include

Investment in unquoted equity shares in Green Infra Wind Farms Limited and Green Infra Wind
Generation Limited amounting to INR 0.02 (March 31, 2024: 0.02) are made pursuant to the contract
for procuring electricity supply at the hotels units. Investment in said companies is not usually
traded in market. Considering the terms of the electricity supply contract and best information
available in the market, cost of investment is considered as fair value of the investments.

(ii) Valuation technique for fair value of fixed-rate and variable-rate borrowings has been determined
by the Company based on parameters such as interest rates, country risk factors, and the risk
characteristics of the financed project.

(iii) Investment in mutual funds traded in active markets are determined by reference to quotes from the
financial institutions; for example: Net asset value (NAV) for investments in mutual funds declared by
mutual fund house.

(iv) In the absence of observable inputs to measure fair value the assets and liabilities have been classified
as level 3. The Company has not given further disclosures since the amount involved is not material.

The management considers that the carrying amounts of financial assets and financial liabilities having
short term maturities recognised in the standalone financial statements approximates their face values.

35 Financial risk management objectives and policies

The Company's principal financial liabilities comprise of borrowings, trade and other payables and other
financial liabilities. The main purpose of these financial liabilities is to finance and support the operations
of the Company. The Company's principal financial assets include trade and other receivables, loans,
investments and cash & cash equivalents that derive directly from its operations.

The Company's business activities are exposed to a variety of risks including liquidity risk, credit risk
and market risk. The Company seeks to minimize potential adverse effects of these risks by managing
them through a structured process of identification, assessment and prioritization of risks followed by
coordinated efforts to monitor, minimize and mitigate the impact of such risks on its financial performance
and capital. For this purpose, the Company has laid comprehensive risk assessment and minimization/
mitigation procedures and are reviewed by the management from time to time. These procedures are
reviewed to ensure that executive management controls risks by way of properly defined framework. The
Company does not enter into derivative financial instruments for speculative purposes.

Credit risk refers to risk of financial loss to the Company if customers or counterparties fail to meet their
contractual obligations. The Company is exposed to credit risk from its operating activities (mainly trade
receivables) and from its investing activities (primarily deposit with banks).

(a) Trade receivables

Trade receivables consist of large number of customers, spread across geographical areas. In order to
mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process
in respect of customers who are allowed credit period. In respect of walk-in customers the company does
not allow any credit period and therefore, is not exposed to any credit risk.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments
are more than 90 days past due. The Company has a policy to provide for specific receivables which
are overdue for a period over 180 days. On account of adoption of Ind AS 109, the Company also uses
expected credit loss model to assess the impairment loss or reversal thereof.

The Company has made investments in liquid mutual funds to meet their short term liquidity objectives.
The Company analyses the credit worthiness of the party before investing their funds. The Company
limits its exposure to credit risk by generally investing in liquid securities and only with counterparties
that have a good credit rating. The Company does not expect any losses from non-performance by these
counterparties, and does not have any significant concentration of exposures to specific industry sectors
or specific country risks.

B Liquidity risk

Liquidity risk implies that the Company may not be able to meet its obligations associated with its financial
liabilities. The Company manages its liquidity risk on the basis of the business plan that ensures that the
funds required for financing the business operations and meeting financial liabilities are available in a
timely manner and in the currency required at optimal costs. The Management regularly monitors rolling
forecasts of the Company's liquidity position to ensure it has sufficient cash on an ongoing basis to meet
operational fund requirements.

Additionally, the Company has committed fund and non-fund based credit lines from banks which may
be drawn anytime based on Company's fund requirements. The Company maintains a cautious liquidity
strategy with positive cash balance and undrawn bank lines throughout the year.

C Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments may fluctuate because
of changes in market conditions. Market risk broadly comprises three types of risks namely currency risk,
interest rate risk and price risk (for equity instruments). The above risks may affect the Company's income
and expenses and/or value of its investments. The Company's exposure to and management of these risks
are explained below:

(a) Interest rate risk

The company's exposure to risk of change in market interest rates relates primarily to its debt interest
obligations. It's borrowings are at floating rates and its future cash flows will fluctuate because of changes
in market interest rates.

36 Capital management

For the purposes of the Company's capital management, capital includes issued capital, all other equity reserves and long term
borrowed capital less reported cash and cash equivalents.

The primary objective of the Company's capital management is to maintain an efficient capital structure to reduce the cost of
capital, support the corporate strategy and to maximise shareholder's value.

The Company's policy is to borrow primarily through banks to maintain sufficient liquidity. These borrowings, together with cash
generated from operations are utilised for operations of the Company including periodic capital projects undertaken for the
company's existing projects . The Company monitors capital on the basis of cost of capital. The Company manages its capital
structure and makes adjustments in light of changes in economic conditions. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and
borrowings, less cash and cash equivalents.

(ii) Leave Obligations - defined benefit plan

The Company has a scheme of encashment of leave or leave with pay subject to certain rules. The
employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability
is determined on the basis of actuarial valuation using projected unit credit method of unutilized on leave
entitlements on balance sheet date. The scheme is unfunded.

(iii) Gratuity - defined benefit plan

The Company has a post employment defined benefit scheme in the form of gratuity. Under the scheme,
employees are entitled to gratuity benefits based on fifteen days salary (basic plus dearness allowance) for
each completed year of service. The aforesaid benefit accrues on completion of five years of service. The
Company's obligation towards such gratuity benefits are determined on the basis of actuarial valuation
using projected unit credit method of the Company's period end obligation under the scheme. Difference
between the Company's obligation so determined and year end value of the assets of the related gratuity
fund is recognised as charge for the year.

Maturity Profile of Defined Benefit Obligation

The contribution expected to be made by the Company for the period ended March 31, 2025 is INR18.85 crores
(March 31, 2024 is INR15.69 crores)

Notes

a) The discount rate is based on the prevailing market yields of Indian Government securities as at the
balance sheet date for the estimated term of obligations.

b) The compensated absences are unfunded.

c) The estimates of future salary increase considered takes into account the inflation, seniority, promotion
and other relevant factors.

d) The average duration of the defined benefit plan obligation at the end of the reporting period is 9 years
(March 31, 2024: 7 years).

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When
calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of the
reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior
period.

Risk associates with plan provisions

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which
may vary overtime. Thus, the Company is exposed to various risks in providing the above gratuity benefit, the most
significant of which are as follows:

Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result
in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the
liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short term gratuity pay outs. This may arise due
to non availability of sufficient cash/cash equivalents to meet the liabilities.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of
increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability.
The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act , 1972 (as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts e.g. Increase in the
maximum limit on gratuity of INR 20,00,000 and upward revision of maximum gratuity limit will result in gratuity plan
obligation.

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets, exposing
the Company to market risk for volatilities/fall in interest rate.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular
investment.

39 Utilisation of IPO Proceeds

Previous year ended March 31, 2024, the Company completed its Initial Public Offer (IPO) of 5,93,85,351
equity shares of face value of Re. 1 each at an issue price of INR 155 per share (including a share premium of
INR 154 per share) out of which 5,93,57,646 equity shares were issued and subscribed. A discount of INR
7 per share was offered to eligible employees bidding in the employee's reservation portion of 6,75,675
equity shares out of which 62,208 equity shares were issued and subscribed. The issue comprised of a
fresh issue of 3,87,12,486 equity shares aggregating to INR 600 Crores and offer for sale of 2,06,45,160
equity shares by selling shareholders aggregating to INR 320 Crores. Pursuant to the IPO, the equity
shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited
(BSE) on February 12, 2024.

The Company has imported Capital Goods under the Export Promotion Capital Goods Scheme of the
Government of India at concessional rates of duty on an undertaking to fulfil the quantified export. As on
date, the Company has fulfilled export obligation however, export obligation discharge certificate from
the DGFT are yet to be received . The Company is in the process of obtaining such discharge certificates,
meanwhile the same has been disclosed as above.

41 Other statutory information

(i) The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.

(ii) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(iii) The Company have not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the
Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(iv) The Company does not have any such transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the year in the tax assessments under
the Income tax act, 1961 (such as, search or survey or any other relevant provisions of the Income
tax act, 1961).

(v) The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory year.

(vi) The Company has complied with the number of layers for its holding in downstream companies
prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies
(Restriction on number of Layers) Rules, 2017.

(vii) The Company does not have any transaction during the year or balance as at the reporting date with
the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies
Act, 1956.

(a) During earlier years, the Company had received a
Property Tax demand from New Delhi Municipal
Council (NDMC) for INR 67.65 crores for period
upto March 31, 2024 with a view that the
assessable value for calculation of property tax
considered by Company is lower than the actual
ought to be value. Against the amount demanded,
the Company had deposited INR 2.02 crores in
the form of regular tax payment and remaining
INR 8.56 crores was deposited 'under protest' up
to March 31, 2025 (INR 7.36: March 31, 2024).

On January 22, 2019, the property tax matter for
similar case contested by another Company was
decided in favour of that Company by Hon'ble
Supreme Court of India ('SC'). Thereafter,
on September 11, 2019, the Company filed
representation before NDMC claiming a sum of
INR 5.34 Crores (amount paid under protest till
the date of SC order). Till date, NDMC has not
provided any specific response for refund of such
excess amount paid by the Company. Instead,
NDMC issued notice u/s 72 and proposed to
increase rateable value w.e.f April 01, 2018.

The Company is of the view that NDMC has not
adhered to the orders of Supreme Court and
the demand raised for earlier years up to 2024
is not tenable. For period from April 01, 2018 to
March 31, 2025, the Company, basis the legal
opinion, is of the view that the assessable value
considered for calculation of property tax is high
and accordingly revised rate is not acceptable
keeping in view other properties in the vicinity and
in same industry. Based on above, management
believes that there is no impact required to be
recorded in the Company's financial statements.

The Delhi High Court, vide its order dated
September 20, 2022, has ordered a stay on
the aforesaid writ petitions since the same are
linked to certain other writ petitions, and will be
disposed off along with the said petitions. The
matter is listed in Delhi High Court on August
19, 2025."

(b) "During the earlier years company had received
order u/s 143(3) of income tax act for the A.Y.
2013-14 with respect to various matters such
as disallowances of interest capitalization, Bad
debts written off and disallowances Amortization
of leasehold land.

During the previous year, the company has
received a demand order u/s 147 for the A.Y.
2022-23 dated March 22, 2024 and for the A.Y.
2018-19 dated March 24, 2024 of income tax
act from Income Tax Department with respect
to various matters such as tax on income
on buy back of shares and disallowances of
interest capitalization, addition u/s 37 and other
disallowances of expenses.

Based on evaluations of the matters and legal
advice obtained, management believes that the
chances of liability devolving on the company
are less likely and there will be no adverse impact
on the Company in this regard. Accordingly, no
provision has been considered in these financial
statements."

(c) "The Company had received a demand March 11,
2022 amounting to INR 9.81 Crores from Land
& Development Office (LDO), Ministry of Urban
Development, Government of India, to regularise
the alleged breaches relating to the property
of New Delhi. This was the first time that the
Company had received such demand letter
despite regular/ periodic inspection of the said
property carried out by appropriate authority.
Based on the communication received from LDO,
the demand had been raised with retrospective
effect from 1985. The Company has disputed the
alleged claim and the matter is pending before
LDO which is supported by a legal opinion
obtained by the company.

Further, in April 10, 2024, the Company

has received additional demand order for
INR 1.42 Crore till July 14, 2024 calculated
retrospective from January 01, 1994,

A writ petition was filed before Hon'ble High
Court of Delhi challenging aforesaid demand
and the Court has directed that no coercive
action with respect to the enhanced ground
rent shall be taken against the Company till
such matter is heard. Next date of hearing xx
Management believes that the alleged demand
is questionable, arbitrary and not tenable and
is likely to be settled in favour of the company.
Based on the above, liability in this regard has
not been recognised based on management's
best estimate. "

(d) During the year, the Company received a property
tax demand dated July 26, 2024 under Section
108(A) (10) of K.M.C. Act, 1976 and Section 144
(12) of current BBMP Act, 2020 from Office of the
Zonal Commissioner (East), Bruhat Bengaluru
Mahanagra Palike East Zone for INR 8.32 crores

which includes penalty, after revising and fixing
the property tax, by amendments to principal
act, based on for years starting from 2008-09
to 2023-24 for 'The Park Hotels' building situated
at Bengaluru pursuant to Total Station Survey of
the subject Building.

The Company is of the view that amendments
to principal act are contrary to the various
provisions of the Constitution of India, 1950 ,
and accordingly, the demand raised for earlier
years up to 2024 is not tenable. The Company
had filed the writ petition against the said order.
The Bengaluru High Court, vide its order dated
August 20, 2024, has ordered a stay on the
aforesaid writ petition.The date of hearing is not
yet notified.

For period from April 01, 2008 to March 31, 2024,
the Company, basis the legal opinion, is of the
view that the amendments to the principal act
for property tax is not tenable and cannot be
retrospective, and accordingly, revised rate is
not acceptable keeping in view other properties
in the vicinity and in same industry. Based on
the above, the management believes that no
provision is required to be made in the standalone
financial statements in this regard.

(e) Pursuant to a lease deed dated August 08, 2007,
executed between the Jaipur Development
Authority (“JDA”) and the Company, the
JDA granted leasehold rights in favour of the
Company. The JDA has, from time to time, sent
letters/notices directing the Company to clear its
dues of annual lease rent for the period starting
from the year 2008 onwards. The JDA last issued
a notice to the Company on December 12, 2019
under Sections 256 and 257 of the Rajasthan
Land Revenue Act, 1956, raising a demand for
outstanding dues of annual rent aggregating
up to INR 2.21 Crores, coupled with interest
payable amounting to approximately INR 1.78
Crores. The Company has filed a writ of certiorari
dated January 17, 2020 before the High Court of
Jaipur together with an application to stay the
Notice during the pendency of the writ petition.
Pursuant to the writ petition, our Company has
prayed for, among other things, to direct JDA (i)
not to take any unjust or illegal action against
our Company, in accordance with the Notice; (ii)
to direct JDA not to take any stern legal action
against our Company. The matter is currently
pending. Management believes that there will be
no adverse impact on the Company in this regard
and therefore no liability in this regard has been
recognised in these financial statements based
on management's best estimate.

(f) Imposition of Vacant land Tax on constructed land.
Notice of demand is raised by the Visakhapatam
Municipal Corporation related to the Vacant land
tax. Notice was challenged on the ground that no
notice was served on the amalgamated company.
Further there is no vacant land available to pay
vacant land tax as it was fully utilized for lawn,
swimming pool, approach road, trees, gardens,
parkings etc. Suit was dismissed without hearing
on merits. Therefore IA No. 984/1994 filed to
restore and rehear the case. The same was
also dismissed.

Then C.R.P. No. 1014 of 1997 was filed before the
Hon'ble High Court of A.P. During the pendency of
the Revision before the Hon'ble High Court, stay
was granted on 18/08/1997 subject to depositing
half of the demanded amount. Accordingly, the
same was deposited. The said C.R.P. was allowed
on 14/07/2000 in favour of the Park Hotel and
directed the Trail Court to rehear the case.

The matter was remanded to the Trail Court to
re-hear the matter on merits. However, O.S.
No. 204 of 1988 was dismissed with costs on
02/01/2003 by the 1^st Additional Senior Civil
Judge, Visakhapatnam against the Park Hotel.

The Division Bench of the Hon'ble Court while
admitting the appeal granted stay on 11/11/2003
in C.M.P. No. 11622/2003 on a condition to
deposit the suit costs i.e., INR 9093/- only. The
appeal is still pending before the Hon'ble High
Court. The matter is listed in Hon'ble High Court
on June 24, 2024.

44 Segment Reporting

The Company is primarily engaged in business of owning, operating and managing hotels (‘Hospitality
segment'). The Board of directors which has been identified as the Chief operating decision maker
(‘CODM') reviews the performance of the Company as a single operating segment in accordance with
Ind AS-108 “Operating Segments i.e., the ‘Hospitality segment', notified pursuant to the Companies
(Indian Accounting Standard) Rules 2015. Accordingly, no separate segment information has been
furnished herewith.

Information about geographical areas

The Company has only domestic operations and hence no information required for the Company as per
the requirements of Ind AS 108 - “Operating Segments”.

Information about major customers

No customer individually accounted for more than 10% of the revenue.

45 The financial figures disclosed as zero values are due to rounding off norms.

46 Events after the reporting period

(i) Company has granted loan of INR 70.47 crores to its wholly owned subsidiary, Apeejay North West
Private Limited as at March 31, 2025 (H 21.53 crores as at March 31, 2024). Subsequent to the year
ended March 31, 2025, the Company has approved conversion of such loan into Optionally convertible
redeemable preference shares (‘OCRPS') at its face value of H 100 each. This instrument carries a non¬
cumulative discretionary dividend of 12% and a tenure of 10 years.

(ii) The board of directors have proposed dividend after the balance sheet date which are subject to
approval by the shareholders at the annual general meeting. Refer note 18.1 for details.

47 The previous year's figures have not been regrouped/ reclassified.

48 The Company has defined process to take daily back-up of books of account in electronic mode on
servers physically located in India. However, the backup of the books of account and other books and
papers maintained in electronic mode with respect to Symphony software implemented at individual
hotel units for Food & Beverage billing has not been maintained on servers physically located in India on
daily basis.

The Company's individual units (except for Someplace Else and Flurys) have used accounting software
for maintaining its books of account which has a feature of recording audit trail (edit log) facility which
was not enabled throughout the year for all relevant transactions recorded in the software and feature
is not enabled for certain changes made using privileged/ administrative access rights to the Opera,
Webprolific, Micros, Wish and Touche applications and the underlying database. In respect of Flurys
unit, its accounting software 'Tally' did not have the feature of recording audit trail (edit log) facility for
all relevant transactions recorded in the software. Further, in respect of Someplace else and Flurys, the
Company has used accounting softwares Webprolific, Infrasis and Pace Automation which is operated
by a third-party software service provider, for maintaining its books of account. Management is not in
possession of Service Organisation Controls Report to determine whether audit trail feature of the said
software was enabled and operated throughout the year for all relevant transactions recorded in the
software or whether there were any instances of the audit trail feature being tampered with, in respect of
an accounting software(s) where the audit trail has been enabled.

Additionally, the audit trail of prior year has been preserved by the Company as per the statutory
requirements for record retention to the extent it was enabled and recorded in the respective year.

The management is taking steps to ensure that the books of accounts are maintained as required under
applicable statute.

*The Company has not presented inventory turnover ratio since it holds inventory for consumptions in the service of food and
beverages and the proportion of such inventory is insignificant to total assets.

**Not applicable to the Company considering the investments are made to subsidiaries with long term growth outlook
*** Re-computed previous year's ratios based on moderation of definitions in the current year.

Summary of material accounting policies 2

The accompanying notes form an integral part of these Standalone Financial Statements.

As per our report of even date attached

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Apeejay Surrendra Park Hotels Limited

ICAI Firm Registration No.: 301003E/E300005

per Amit Chugh Priya Paul Vijay Dewan

Partner Chairperson & Whole Time Director Managing Director

Membership Number - 505224 DIN: 00051215 DIN: 00051164

Place: Kolkata Place: Delhi

Date: May 26, 2025 Date: May 26, 2025

Atul Khosla Shalini Keshan

Chief Financial Officer Company Secretary

Membership No: A14897

Place: Delhi Place: Delhi Place: Delhi

Date: May 26, 2025 Date: May 26, 2025 Date: May 26, 2025