9. Provisions and contingent liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the effect of the time value of
money is material, provisions are determined by discounting the expected future cash flows at
a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to
settle the present obligation at reporting date, taking into account the risks and uncertainties
surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
The expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.

Contingent liabilities are possible obligations that arise from past events and whose existence
will only be confirmed by the occurrence or non-occurrence of one or more future events not
wholly within the control of the Company. Where it is not probable that an outflow of economic
benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed
as a contingent liability, unless the probability of outflow of economic benefits is remote.
Contingent liabilities are disclosed on the basis of judgment of the management/independent
experts. These are reviewed at each balance sheet date and are adjusted to reflect the current
management estimate.

Contingent assets are possible assets that arise from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company. Contingent assets are disclosed in the financial
statements when inflow of economic benefits is probable on the basis of judgment of
management. These are assessed continually to ensure that developments are appropriately
reflected in the financial statements.

10. Foreign currency transactions and translation

Transactions in foreign currencies are initially recorded at the functional currency spot rates at
the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the
functional currency spot rates of exchange at the reporting date. Exchange differences arising
on settlement or translation of monetary items are recognized in profit or loss in the year in
which it arises.

Non-monetary items are measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the transaction.

11. Revenue Recognition

Effective April 1, 2018, the Company adopted Ind AS 115 "Revenue from Contracts with
Customers" which introduces the five-step model described as follows: -

1. Identify the contract with a customer.

2. Identify the separate performance obligations in the contract.

3. Determine the transaction Price.

4. Allocate the transaction price to the separate performance obligations.

5. Recognize revenue when (or as) each performance obligation is satisfied.

Revenue from operations

The Company derives revenues primarily from sale of rooms, food and beverages, allied
services relating to hotel operations such as management fees for the management of the
hotels.

A. Revenue is recognized upon transfer of control of promised products or services to customers
in an amount that reflects the consideration we expect to receive in exchange for those
products or services.

The Company presents revenues net of indirect taxes in statement of Profit and loss.

B. Trade receivables and Contract Balances

The company recognises contract assets on an amount equals to consideration related to goods
and services already transferred to customers when the right to receive such consideration is
conditioned upon something other than passage of time.

Unconditional right to receive consideration are recognised as trade receivable.

Trade receivable and contract assets are subject to impairment as per Ind AS 109 'Financial
Instruments'.

The company recognises amount already received from customer against which transfer for
goods and services are not made as contract liability.

Interest Income

For all financial instruments measured at amortized cost and interest-bearing financial assets
classified as fair value through other comprehensive income, interest income is recorded using
the effective interest rate (EIR). The EIR is the rate that exactly discounts the estimated future
cash receipts over the expected life of the financial instrument or a shorter period, where
appropriate, to the net carrying amount of the financial asset. When calculating the effective
interest rate, the Company estimates the expected cash flows by considering all the contractual
terms of the financial instrument (for example, prepayment, extension, call and similar options)
but does not consider the expected credit losses. Interest income is included in other income
in the statement of profit or loss.

Dividend

Dividend Income is recognized when the Company's right to receive is established which
generally occurs when the shareholders approve the dividend.

12. Employee Benefits

12.1. Short Term Benefit

Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under performance related
pay if the Company has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated
reliably.

12.2. Post-Employment benefits

Employee benefit that are payable after the completion of employment are Post¬
Employment Benefit (other than termination benefit). These are of two type:

12.2.1. Defined contribution plans

Defined contribution plans are those plans in which an entity pays fixed contribution into
separate entities and will have no legal or constructive obligation to pay further amounts.
Provident Fund and Employee State Insurance are Defined Contribution Plans in which
company pays a fixed contribution and will have no further obligation.

12.2.2. Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined
contribution plan.

Company pays Gratuity as per provisions of the Gratuity Act, 1972. The Company's net
obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in return for their
service in the current and prior periods; that benefit is discounted to determine its present
value. Any unrecognized past service costs and the fair value of any plan assets are
deducted. The discount rate is based on the prevailing market yields of Indian government
securities as at the reporting date that have maturity dates approximating the terms of
the Company's obligations and that are denominated in the same currency in which the
benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit
method. When the calculation results in a liability to the company, the present value of
liability is recognized as provision for employee benefit. Any actuarial gains or losses are
recognized in OCI in the period in which they arise.

12.3. Long Term Employee Benefit

Benefits under the Company's leave encashment constitute other long term employee
benefits.

Leave Encashment is determined based on the available leave entitlement at the end of
the year.

13. Income Taxes

Income tax expense comprises current and deferred tax. Current tax expense is recognized in
profit or loss except to the extent that it relates to items recognized directly in other
comprehensive income or equity, in which case it is recognized in OCI or equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted and as applicable at the reporting date, and any adjustment
to tax payable in respect of previous years. Current income taxes are recognized under 'Income
tax payable' net of payments on account, or under 'Tax receivables' where there is a debit
balance.

Deferred tax is recognized using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences when they reverse, based on the laws that
have been enacted or substantively enacted by the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be realized simultaneously.

Deferred tax is recognized in profit or loss except to the extent that it relates to items
recognized directly in OCI or equity, in which case it is recognized in OCI or equity.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits
will be available against which the temporary difference can be utilized. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realized.

Additional income taxes that arise from the distribution of dividends are recognized at the same
time that the liability to pay the related dividend is recognized.

14. Impairment of Non-Financial Assets

The carrying amounts of the Company's non-financial assets are reviewed at each reporting
date to determine whether there is any indication of impairment considering the provisions of
Ind AS 36 'Impairment of Assets'. If any such indication exists, then the asset's recoverable
amount is estimated.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less
costs to disposal and its value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. For the purpose of
impairment testing, assets that cannot be tested individually are grouped together into the
smallest group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (the "cash-generating unit",
or "CGU").

An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its
estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment
losses recognized in respect of CGUs are reduced from the carrying amounts of goodwill of that
CGU, if any and then the assets of the CGU.

Impairment losses recognized in prior periods are assessed at each reporting date for any
indications that the loss has decreased or no longer exists. An impairment loss is reversed if
there has been a change in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset's carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortization, if
no impairment loss had been recognized.

15. Operating Segments

In accordance with Ind AS 108 - Operating Segments, the operating segments used to present
segment information are identified on the basis of internal reports used by the Company's
Management to allocate resources to the segments and assess their performance. The Board
of Directors is collectively the Company's 'Chief Operating Decision Maker' or 'CODM' within
the meaning of Ind AS 108. For management purpose company is organized into major
operating activity of hoteling in India. The indicators used for internal reporting purposes may
evolve in connection with performance assessment measures put in place.

16. Dividends

Dividends and interim dividends payable to a Company's shareholders are recognized as
changes in equity in the period in which they are approved by the shareholders' meeting and
the Board of Directors respectively.

17. Material Prior Period Errors

Material prior period errors are corrected retrospectively by restating the comparative
amounts for the prior periods presented in which the error occurred. If the error occurred
before the earliest prior period presented, the opening balances of assets, liabilities and equity
for the earliest prior period presented, are restated.

18. Earnings Per Share

Basic earnings per equity share is computed by dividing the net profit or loss attributable to
equity shareholders of the Company by the weighted average number of equity shares
outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to
equity shareholders of the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average number
of equity shares that could have been issued upon conversion of all dilutive potential equity
shares.

19. Statement of Cash Flows

Statement of cash flows is prepared in accordance with the indirect method prescribed in Ind
AS-7 'Statement of cash flows.

20. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

20.1. Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus or minus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition or issue of the financial asset.

Subsequent measurement

Debt instruments at amortized cost

A 'debt instrument' is measured at the amortized cost if both the following conditions are
met:

(a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized
cost using the EIR method. Amortized cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included in finance income in the profit or loss. The losses arising from
impairment are recognized in the profit or loss. This category generally applies to trade
and other receivables.

Debt instrument at FVTOCI (Fair Value through OCI)

A 'debt instrument' is classified as at the FVTOCI if both of the following criteria are met:

(a) The objective of the business model is achieved both by collecting contractual cash
flows and selling the financial assets, and

(b) The asset's contractual cash flows represent SPPI

Debt instruments included within the FVTOCI category are measured initially as well as at
each reporting date at fair value. Fair value movements are recognized in the OCI.
However, the Company recognizes interest income, impairment losses & reversals and
foreign exchange gain or loss in the profit and loss. On derecognition of the asset,
cumulative gain or loss previously recognized in OCI is reclassified from the equity to profit
and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest
income using the EIR method.

Debt instrument at FVTPL (Fair value through profit or loss)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not
meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at
FVTPL.

In addition, the Company may elect to classify a debt instrument, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if
doing so reduces or eliminates a measurement or recognition inconsistency (referred to
as 'accounting mismatch'). Debt instruments included within the FVTPL category are
measured at fair value with all changes recognized in the profit and loss.

Equity investments

All equity investments in entities other than subsidiaries and joint ventures are measured
at fair value. Equity instruments which are held for trading are classified as at FVTPL. For
all other equity instruments, the Company decides to classify the same either as at FVTOCI
or FVTPL. The Company makes such election on an instrument by instrument basis. The
classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value
changes on the instruments, excluding dividends, are recognized in the OCI. There is no

recycling of the amounts from OCI to P&L, even on sale of investment. However, the
company may transfer cumulative gain or loss within the equity.

Equity instruments included within the FVTPL category are measured at fair value with all
changes recognized in the profit and loss.

Equity investments in subsidiaries and joint ventures are measured at cost.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of
similar financial assets) is primarily derecognized (i.e. removed from the Company's
balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay to a
third party under a 'pass-through' arrangement; and either (a) the Company has
transferred substantially all the risks and rewards of the asset, or (b) the Company has
neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and
credit risk exposure:

• Financial assets that are debt instruments, and are measured at amortised cost e.g.,
loans, debt securities, deposits, trade receivables and bank balance

• Trade receivables or any contractual right to receive cash or another financial asset that
result from transactions that are within the scope of Ind AS 115.

The Company follows 'simplified approach' for recognition of impairment loss allowance
on:

Trade receivables or contract assets resulting from transactions within the scope of Ind AS
115, if they do not contain a significant financing component

• Trade receivables or contract assets resulting from transactions within the scope of Ind
AS 115 that contain a significant financing component, if the Company applies practical
expedient to ignore separation of time value of money, and

The application of simplified approach does not require the Company to track changes in
credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the
Company determines that whether there has been a significant increase in the credit risk
since initial recognition. If credit risk has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk has increased significantly, lifetime
ECL is used. If, in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, then the
entity reverts to recognizing impairment loss allowance based on 12-month ECL.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly
attributable cost. Fees of recurring nature are directly recognized in the Statement of
Profit and Loss as finance cost.

Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method.
Amortized cost is calculated by taking into account any discount or premium on acquisition
and any material transaction that are any integral part of the EIR. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognized in the statement of profit or loss.

D. Major Estimates made in preparing Financial Statements

1. Useful life of property, plant and equipment

The estimated useful life of property, plant and equipment is based on a number of factors
including the effects of obsolescence, demand, competition and other economic factors
(such as the stability of the industry and known technological advances) and the level of
maintenance expenditures required to obtain the expected future cash flows from the
asset.

Useful life of the assets are in accordance with Schedule II of the Companies Act, 2013.

The Company reviews at the end of each reporting date the useful life of property, plant
and equipment, and are adjusted prospectively, if appropriate.

2. Post-employment benefit plans

Employee benefit obligations are measured on the basis of actuarial assumptions which
include mortality and withdrawal rates as well as assumptions concerning future
developments in discount rates, the rate of salary increases and the inflation rate. The
Company considers that the assumptions used to measure its obligations are appropriate
and documented. However, any changes in these assumptions may have a material impact
on the resulting calculations.

3. Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made
in accordance with Ind AS 37, 'Provisions, Contingent Liabilities and Contingent Assets'.
The evaluation of the likelihood of the contingent events has required best judgment by
management regarding the probability of exposure to potential loss. Should circumstances
change following unforeseeable developments, this likelihood could alter.

4. Impairment Test of Non-Financial Assets

The recoverable amount of investment in subsidiary is based on estimates and
assumptions regarding in particular the future cash flows associated with the operations
of the investee company. Any changes in these assumptions may have a material impact
on the measurement of the recoverable amount and could result in impairment.

43 Disclosure as per Ind AS-107, Financial Instruments
Financial Risk Managment

The Company’s principal financial liabilities comprise Borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the
Company’s operations. The Company’s principal financial assets include trade & other receivables, loan given, cash & cash Equivalent, Investment, deposits and derivative that
derive directly from its operations.

The Company's Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company's financial risk management is set by the
Managing Board.

Company is exposed to following risk from the use of its financial instrument:

a) -Credit Risk

b) -Liquidity Risk

c) -Market Risk

a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss
to the Company. Credit risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.

Trade Receivable

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Trade
receivables are non-interest bearing and are generally on 7 days to 45 days credit term. Credit limits are established for all customers based on internal rating criteria.
Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and
geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into
homogenous groups and assessed for impairment collectively. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting
date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to
trade receivables as low. The requirement of impairment is analysed as each reporting date.

(ii) Provision for Expected Credit or Loss

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses.

The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Accordingly, no loss allowance for
impairment has been recognised.

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified approach.

b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or
another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

c) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the Company. All such transactions are carried out within the
guidelines set by the risk management committee.

Foreign Currency sensitivity

The Company’s exposure to foreign currency changes for all other currencies is not material. Hence there is no major impact on company's profit before tax due to change in
the fair value of monetary assets and liabilities.

49 Details of Crypto Currency or Virtual Currency

During the year company has not invested in any virtual currency.

50 The company has not incurred transaction with companies struck off under section 248 of the companies Act, 2013 or section 560 of the Companies Act,

1956.

51 No Proceeding have been initialed or pending against the company for holding any benami property under the benami Transaction (Prohibition) Act 1988 (45 of 1988) and the
rules made thereunder

52 No undisclosed income has been surrendered or disclosed as income during the year in the tax assessment under the Income tax act, 1961.

53 No Charge or satisfaction is pending to be registered with Registrar of Companies beyond its statutory period

⁵⁴ The company is not declared willful defaulter by any bank or financial institution or any other lender.

55 The Company has reclassified previous year figures to conform to this year classification.

Significant Accounting Policies and other Notes 1-55
These notes form an integral part of these financial statements
In term of our report attached

For K.L.Vyas & Company For and on behalf of Board of Directors

Chartered Accountants
Firm Regn. No. 003289C

Himanshu Sharma Abhay C Chaudhari Raoof Razak Dhanani

Partner Chairman & Director Director

M.No. 402560 DIN. 06726836 DIN No. 00174654

Place: Indore Goverdhan Singh Panwar Kajal Jain

Date: 23/05/2025 Chief Financial Officer Company Secretary