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.

22 NON-CURRENT BORROWINGS

Non-current borrowings outstanding as at 31^st March 2025 is Rs. Nil (31^st March 2024 - Nil).

Note:

The term loan facility from ICICI Bank Limited of Rs. 2,035.70 million was secured by way of first pari passu charge by way of equitable mortgage on the Company's hotel - The Oberoi, New Delhi. During the year ended 31^st March 2024, the term loan outstanding of Rs. 565.48 million as on 31^st March 2023 was repaid and the charge was satisfied. The rate of interest on such term loan was based on the bank's one-year MCLR plus spread, subject to annual reset and was in the range of 7.55% p.a. to 7.80% p.a.. Interest was payable on a monthly basis.

(a) The Company had unused long term capital loss of Rs. 1,797.02 million as at 31^st March 2024. As at 31^st March 2025, the Company recorded deferred tax assets in respect of such unused long term capital loss aggregating to Rs. 1,152.05 million to the extent of deferred tax liability recognised in relation to fair value changes on re-measurement of investment through profit or loss. The Company has unused long term capital loss of Rs. 604.68 million and short term unused capital loss of Rs. 298.88 million as at 31^st March 2025, for which no deferred tax assets have been recognised in the absence of reasonable certainty that there will be sufficient future taxable income relating to long term /short term capital gain as appilicable, to realise such assets.

(i) The unspent amount for the financial year 2024-25 [as indicated in (d) above] amounting to Rs. 6.37 millions has been subsequently transferred to a fund specified in Schedule VII of the Companies Act, 2013, i.e within the time period permitted under the second proviso to section 135(5) of the Act.

(ii) The Company did not have average net profits in the past three years for the financial year ended 31^st March 2024 and therefore was not required to spend any amount towards Corporate Social Responsibility (CSR) during the year ended 31^st March 2024 and did not have unspent CSR amounts for such year requiring a transfer to a Fund specified in Schedule VII to the Companies Act or special account in compliance with the provisions of sub-section (6) of section 135 of the said Act.

(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) For the investment in Golden Jubilee Hotels Private Limited (GJHPL), the management was of the view that carrying value of the investment is representative of its fair value as on 1^st April 2015. As on 1^st April 2015, no indicators of impairment were existing. However, during the financial year 2015-16, due to the non-payment of bank borrowings and other obligation, petition for the winding up had been filed by the creditors and lenders of the GJHPL. 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 31^st March 2016.

(c) The Company has re-measured the aforesaid investment in Mashobra Resort Limited at estimated fair value as indicated in note 3(ii), considering the assets (including goodwill) and liabilities related to MRL as at 31^st March 2025 attributable to the Company.

43 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.

(i) The aforementioned cash credit facilities may be drawn at any time and may be terminated by the bank without notice.

(ii) 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.

(iii) 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

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Company operates a gratuity plan through the "EIH Employees' Gratuity Fund". Gratuity plan is a funded plan and the Company through Gratuity Trust makes contributions of funds to Life Insurance Corporation of India. Provision/write back, if any, is made on the basis of the present value of the liability as at the Balance Sheet date determined by actuarial valuation following Projected Unit Credit Method.

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. 186.46 Million (31^st March 2024 - Rs.174.87 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 31^st March 2026 is Rs. 45.95 million.

The weighted average duration of the defined benefit obligation is 4.6 years (2024 - 5 years) in case of Gratuity and 6 years (2024- 6 years) in case of leave encashment.

(i) During the year ended 31^st March 2025, the Company received demands (including interest) aggregating to Rs. 3.77 million for the financial year 2020-21 from the VATO, Department of Trade & Taxes, Government of NCT of Delhi. Contingent liabilities as at 31^st March 2025 included amounts in respect thereof. The Company intends to file appeals with the appropriate authorities within the stipulated time.

(ii) Contingent liabilities as at 31^st March 2025 include demands relating to Goods and Service Tax aggregating to Rs. 28.38 million (including penalty) for the financial year 2017-18 and Rs. 0.16 million (including interest and penalty) for the financial year 2020-21, from the Additional Commissioner Mumbai and from the Deputy Commissioner Udaipur, Rajasthan, respectively, which were received by the Company during the year 31^st March 2025. The Company has filed an appeal with the Appellate Authority subsequent to the year-end within the stipulated time for such appeal.

(iii) During the year ended 31^st March 2024, Additional Commissioner of GST, Appeals-II, Bengaluru confirmed demand (including interest and penalty) against the Company aggregating to Rs. 0.38 million for the financial year 2017-18. Contingent liabilities as at 31^st March 2024 and 31^st March 2025 include amounts in respect thereof. The Company intends to file an appeal with the appropriate authorities (upon constitution of GST Appellate Tribunal) within the stipulated time.

Note:

The matters listed above are in the nature of statutory dues, namely, Property Tax, Sales Tax, Value Added Tax, Goods and Services Tax, Income Tax, Service Tax, Luxury Tax and other claims, all of which are under litigation, the outcome of which would depend on the merits of facts and law at an uncertain future date. The amounts shown in the items above represent the best possible estimates arrived at on the basis of currently available information. The Company engages reputed professional advisors to protect its interests, and cases that are disputed by the Company are those where the management has been advised that it has strong legal positions. Hence, the outcomes of the above matters are not envisaged to have any material adverse impact on the Company's financial position.

46A During the year ended 31st March 2023, the Company had recognised an obligation of Rs. 189.27 million, including custom duty on import of an asset, consequent to an order of the High Court of Delhi dated 31^st January 2023. The Company had preferred an appeal against the said order before the Honorable Supreme Court of India.

47 There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

53 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).

54 The Board of Directors of the Company in its meeting held on 16^th October 2024 had approved to invest upto GBP 69 million comprising 69 million shares of GBP 1 per share in EIH London Investments Limited (EIHLIL) with an objective to construct a five star luxury hotel in United Kingdom under the brand name "The Oberoi Mayfair". Accordingly, the Company has invested an amount of Rs 2,408.12 million (equivalent GBP 22 million) on 30^th October 2024 by subscribing to 22 million shares (99.995%) of GBP 1 each.

55 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment received Presidential assent on 28^th September 2020. The Code has been published in the Gazette of India and subsequently on 13^th November 2020 draft rules were published and invited for stakeholders' suggestions. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code and rules thereunder become effective.

59 OTHER STATUTORY INFORMATION

i. Title deeds of Immovable Properties are in the name of the Company, other than as disclosed in the note 56.

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 four 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 30^th June 2024, 30^th September 2024 and 31^st December 2024. The Company intends to submit the return/ statement as at the quarter ended 31^st March 2025, 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 has reviewed transactions to identify if there are any transactions with struck off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956. Below transactions were identified to the extent information is available on struck off companies.

viii. The Company has not traded or invested in Crypto currency or Virtual Currency during year ended 31^st March 2025.

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.

60 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.

61 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 31^st March 2025 except for:

(a) one software, audit trail feature was not enabled at the database level to log any direct data changes during the period from 1^st April 2024 to 30^th April 2024, (b) 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 and (c) in respect of certain third party softwares used by the Company for maintaining and processing certain relevant transactions, the independent auditor's System and Organisation Controls reports does not cover whether the audit trail was enabled or not, as per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014.

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 31^st March 2024 has been preserved by the Company.

The Company has established and maintained internal financial controls over financial reporting and such internal financial controls were operating effectively throughout the year.

62 The standalone financial statements were approved for issue by the Board of Directors on 20^th May 2025.