Nature and purpose of Reserves
(i) Capital redemption reserve
Capital redemption reserve represents the statutory reserve created by the Company for the redemption of its preference share capital. The same can be utilised by the Company for issuing fully paid bonus shares.
(ii) Securities premium
This reserve represents the premium received on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.
(iii) General reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
(iv) Retained earnings
Retained earnings represents accumulated profits of the Company. It can be utilised in accordance with the provisions of the Companies Act, 2013.
(ii) Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its standalone financial instruments into the three levels prescribed under the Indian Accounting Standards.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed financial instruments that have quoted price. The fair value of all financial instruments which are traded in the stock exchanges is valued using the closing price as at the end of the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, security deposits included in level 3.
(iii) Assets and liabilities which are measured at amortised cost for which fair values are disclosed
For all the financial assets and financial liabilities measured at amortised cost, carrying value is an approximation of their respective fair value.
(iv) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) Investment in ReNew Wind Energy (Karnataka) Private Limited is made pursuant to the contract for procuring electricity supply at the hotel. As per the terms of electricity supply contract the Company is entitled to get the refund of its investment value equivalent to the subscription amount. Accordingly the investment value in said Company is classified as current investment. Investment in the said company is not usually traded in the market. Considering the terms of the agreement, the management of the company has assessed that cost represents the best estimate of its fair value.
(b) In respect of Golden Jubilee Hotels Private Limited (GJHPL), a petition for winding up was filed by the creditors and lenders of the GJHPL during the financial year 2015-16, due to the non-payment of bank borrowings and other obligations. Considering the financial position of the GJHPL and legal proceedings initiated by lenders, the management had fully provided for the investment in GJHPL as on 31st March 2016 resulting in carrying value of Rs. Nil as on 31st March 2025. During the financial year 2025-26, insolvency proceedings have concluded and the approved resolution plan, in accordance with the provisions of the Insolvency and Bankruptcy Code 2016 ("Code"), has been implemented effective 7th February 2026. Consequently, the shares held by the Company in GJHPL have been cancelled and extinguished without any consideration
(c) The Company had re-measured the aforesaid investment in Mashobra Resort Limited as at 31st March 2025, at estimated fair value as indicated in note 52, considering the assets (including goodwill) and liabilities related to MRL attributable to the Company.
(d) Investment in TP Varun Limited ("TPVL") is made pursuant to the contract for procuring renewable power at business units in Mumbai. As per the terms of the transaction documents, the Company is entitled to get the refund of its investment value equivalent to the subscription amount i.e. face value of shares, upon termination thereof. Further, the shares of said company are not usually traded in the market. Considering the terms as per the transaction document, the management has assessed that the cost represents the best estimate of its fair value.
41 FINANCIAL RISK MANAGEMENT
The Company's activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :
The Company's risk management is carried out by the treasury department under policies approved by the Board of Directors. The Company's treasury department identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The Board of Directors provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.
(A) Market risk
(i) Foreign currency risk
Foreign currency risk arises from future commercial transactions and recognised assets or liabilities denominated in a currency that is not the Company's functional currency (Rs.).
The exposure of the Company to foreign currency risk is not significant. However, this is closely monitored by the management to decide on the requirement of hedging. The position of foreign currency exposure to the Company as at the end of the year expressed in Rs. is as follows :
(C) Liquidity risk
The Company has a liquidity risk management framework for managing its short term, medium term and long term sources of funding vis-a-vis short term and long term utilisation requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.
(ii) Interest rate risk
The exposure of the Company's borrowing to interest rate changes at the end of the reporting period depends on the mix of fixed rate and floating rate of the borrowings and the expected movement of market interest rate. The Company does not have any outstanding borrowings as at the current year end as well as previous year end therefore Company is not exposed to interest rate risk.
(iii) Other Price risk
The Company's exposure to equity securities' price risk arises from investments held by the Company in equity securities and classified in the balance sheet as fair value through profit or loss (Refer note 8). However, the Company does not have a practice of investing in equity securities with a view to earn gain from change in fair value. As per the Company's 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.
(B) Credit risk
Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company.
Trade receivables consist of large number of customers, spread across diverse industries and 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.
The Company does not have any derivative transactions and therefore is not exposed to any credit risk on account of derivatives. The Company does not have any long-term contracts for which there are any material foreseeable losses.
(a) The aforementioned fund based cash credit facilities may be drawn at any time and may be terminated by the bank without notice.
(b) Security:
Cash credit facilities from the State Bank of India and ICICI Bank Limited and Short-term facility from HSBC are secured by way of hypothecation of all stock of inventories, book debts and other current assets of the Company, both present and future, ranking pari passu.
Overdraft facility from State Bank of India is secured against fixed deposit placed with the bank.
(c) Non-fund based facility with HSBC is secured by way of first pari passu charge by way of equitable mortgage on the immovable fixed assets property, plant and equipment of the Company's hotel in Delhi known as Maidens Hotel.
(ii) Maturities of financial liabilities
The table below analyses the Company's all non-derivative financial liabilities into relevant maturity based on their contractual maturities.
The amounts disclosed in the table are the contractual undiscounted cash flows.
(i) Employee benefit plans
a) Gratuity
(i) Permanent Employees
The gratuity plan provides for a lump sum payment to vested employees at retirement/termination of employment in accordance with the provisions under the Code on Social Security, 2020 or as per the Company Scheme, as applicable. Permanent employees who have completed five years of continuous service are eligible to receive gratuity upon retirement, resignation, termination of employment, death, or disablement, in accordance with applicable law. The amount of gratuity payable is calculated at the rate of 15 days' salary for each completed year of service, based on the employee's last drawn Salary/Wages, as applicable, computed proportionately for the actual period of service rendered by the employee.
(ii) Fixed Term employees (FTEs)
The Company provides gratuity benefits to Fixed-Term Employees (FTEs) in accordance with the Code on Social Security, 2020, effective 21 November 2025. Gratuity is payable to FTEs upon expiry of the fixed-term contract or earlier termination, provided the employee has completed at least one year of continuous service, as prescribed under the Code. The amount of gratuity payable shall be calculated at the rate of 15 days' salary for each completed year of service, computed on the basis of the employee's last drawn Wages, and calculated proportionately for the actual period of service rendered during the contract tenure.
b) Leave encashment
As per the policy of the Company, obligations on account of encashment of accumulated leave of an employee is settled only on separation of the employee. Such liability is recognised on the basis of actuarial valuation following the projected unit credit method. It is an unfunded plan.
(ii) Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees as per applicable regulations. The contributions are made to registered provident fund administered by the government.The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contribution plan is Rs. 204.34 Million (31st March 2025- Rs. 186.46 Million).
(vii) Risk exposure
The defined benefit obligations have the undermentioned risk exposures :
Interest rate risk : The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation is likely to increase.
Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation depends upon the combination of salary increase, discount rate and vesting criteria.
Investment risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. LIC of India primarily invests in debt instruments such as Government securities and highly rated corporate bonds wherein the risk of downward fluctuation in value is minimal.
(viii) Defined benefit liability and employer contributions
Expected contribution to post employment benefit plan during the year ending 31st March 2027 is Rs. 328.20 million.
The weighted average duration of the defined benefit obligation is 5 years (2025 - 4.6 years) in case of Gratuity and 6 years (2025- 6 years) in case of leave encashment.
51 DISCLOSURE ON CONTRACT BALANCES : a) Trade receivables
A trade receivable is recorded when the Company has an unconditional right to receive payment. In respect of revenue from rooms, food and beverages and other services invoice is typically issued as the related performance obligations are satisfied as described in note 1(b)-Significant accounting policies-Revenue Recognition (Refer note 14-Trade receivables).
52 Mashobra Resort Limited ('MRL'), a subsidiary of the Company till 31st March 2025, had acquired ownership of the Wildflower Hall property in 1997, pursuant to a joint venture agreement between EIH Limited ('Company') and the Government of Himachal Pradesh ('State') in 1995. A long-standing dispute between the JV partners culminated in an order dated 20th February 2024 by the Hon'ble Supreme Court of India, directing the Company to vacate and handover the hotel to the State by 31st March 2025.
As at 31st March 2025, the execution petitions/ responses/objections filed by the State, the Company and MRL were pending for adjudication before the Hon'ble High Court of Himachal Pradesh ("High Court").
In compliance with the above order, the vacant and peaceful possession of the hotel was handed over
to the State on 31st March 2025. The shares of MRL held by the Company were agreed to be transferred to the Government of Himachal Pradesh at a valuation to be fixed by the Hon'ble High Court.
Pursuant to the loss of control of the Company over MRL on 31st March 2025, the Company had re-assessed the aforesaid investment at estimated fair value and had continued to classify the said investment as an 'assets classified as held for sale' under Ind AS 105, "Non-current Assets Held for Sale and Discontinued Operations". Pending determination of the valuation of MRL shares by the Hon'ble High Court, in view of the uncertainty, and having regard to the contingencies, the Company had considered it prudent to restrict the aforesaid estimate to Rs. 1,412.09 million considering its share of the un-audited carrying amount of net assets related to MRL as at 31st March 2025. The resultant difference of Rs. 1,152.09 million was credited to the
Statement of Profit and Loss for the year ended 3151 March 2025 and presented as an Exceptional item.
Pending adjudication, the Company had continued to hold an obligation towards user fee in respect of use of subject property (including interest), as provision for contingencies amounting to Rs. 905.78 million as at 31st March 2025. The corresponding annual charge to the Statement of Profit and Loss of Rs. 83.52 million for the year ended 31st March 2025 was classified as an Exceptional item. Further, the Company expected to recover in full all dues against Advances recoverable from MRL aggregating to Rs. 1,361.93 million based on expert legal advice. Such amounts continued to be disclosed under Other Non-Current Financial Assets in the Standalone Balance Sheet as at 31st March 2025.
Pursuant to the order of Hon'ble High Court dated 2nd June 2025 and 14th October 2025, adjudicating the claims/counter-claims of the parties, the Company:
- adjusted the value of its investments in MRL to Rs. 130.00 million, resulting in a charge to the Statement of Profit and Loss of Rs. 1,282.09 million.
- wrote down advances recoverable from MRL by Rs. 680.97 million, representing 50% of the total outstanding amount as at 31st March 2025
- reversed obligation towards user fees (including interest) to the extent of Rs. 905.78 million as no longer payable and,
- recorded an interest income amounting to Rs. 38.20 million on the amount deposited with the Registrar.
These amounts were presented under Exceptional item for the year ended 31st March 2026.
In compliance with the directions of Hon'ble High Court, the shares held by the Company in MRL were transferred in favour of the State in December 2025 upon receipt of compensation adjudicated by the Hon'ble High Court.
As per the order of Hon'ble High Court dated 5th January 2026, the proceedings are closed and the execution petitions stand disposed off.
53 On 21st November 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "Labour Codes"), which consolidate multiple existing labour laws into a unified framework governing employment and post-employment benefits. The Ministry of Labour & Employment also published Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations.
The Company has assessed the financial implications of these changes and, pursuant to such assessment, recognised an incremental obligation of Rs. 290.88 million on account of increase in employee benefit liabilities arising from past service. Considering the impact is arising from enactment of the new legislation and its non-recurring nature, the said amount has been presented under Exceptional Items in the standalone statement of profit and loss for the year ended 31st March 2026.
The Company continues to monitor developments relating to the Labour Codes, including issuance of further rules, clarifications or amendments, and will evaluate and account for the impact, as applicable, in the periods in which such developments occur.
57 OTHER STATUTORY INFORMATION
i. Title deeds of Immovable Properties are in the name of the Company, other than as disclosed in the note 54.
ii. The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.
iii. The Company has been sanctioned a fund based and non-fund based working capital limit from banks on the basis of security of current assets, including fixed deposits. Based on the sanction letter/ acknowledgement of correspondence with the bank, the quarterly returns or statements comprising stock statements and book debt statements filed by the Company with three such banks till the date of approval of these financial statements are in agreement with unaudited books of account of the Company for the quarter ended 30th June 2025, 30th September 2025 and 31st December 2025. The Company intends to submit the return/statement as at the quarter ended 31st March 2026, with the banks.
iv. The Company was not holding any benami property and no proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
v. The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
vi. The Company did not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
vii. The Company did not have any charges or satisfaction of charge which were yet to be registered with ROC beyond the statutory period.
viii. The Company has not traded or invested in Crypto currency or Virtual Currency during year ended 31st March 2026.
ix. The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) any funds to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
x. The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
xi. The Company did not have any transaction which had not been recorded in the books of account that had 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).
xii. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
58 The Company has maintained books of account as required by law including back up on daily basis of books of account maintained in electronic mode in a server physically located in India.
59 As per the requirements of the Rule 3(1) of the Companies (Accounts) Rules, 2014 the Company has used only such accounting softwares for maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an edit log of each change made in the books of account along with the date when such changes were made and who made those changes within such accounting softwares for the year ended 3151 March 2026 except for certain softwares which did not have a feature of recording audit trail (edit log) facility at the database level to log any direct data changes throughout the year.
The Company has not noted any tampering of the audit trail feature in respect of the software for which the audit trail feature was operating. Further, the audit trail to the extent enabled and operated for the year ended 31st March 2026 and 31st March 2025 has been preserved by the Company as per the statutory requirements for record retention.
The Company has established and maintained internal financial controls over financial reporting and such internal financial controls were operating effectively throughout the respective years.
60 The standalone financial statements were approved for issue by the Board of Directors on 26th May 2026.
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