2.13Provisions, contingent liabilities and contingent assets

Contingent liabilities are possible but not probable obligations as on the balance sheet date, based on the available
evidence. Provisions are recognised when there is a present obligation as a result of past event; and it is probable that
an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are determined based on best estimate required to settle the obligation at the balance sheet date. Contin¬
gent assets are not recognised in the financial statements.

2.14 Employee Benefits

a. Short-term Employee Benefits

(i) All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits. Benefits such as salaries, wages, etc. and the expected cost of ex-gratia are recog¬
nized in the period in which the employee renders the related services.

b. Post Employment Benefits:

(i) Defined contribution plans:

The Company makes specified monthly contributions towards employees’ provident fund and employees’ state
insurance. The Company’s contribution paid / payable under the schemes is recognized as an expense in the
Profit and Loss statement during the period in which the employee renders the related service.

2.15Earnings per share (EPS):

The Basic EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted
average number of equity shares outstanding during the reporting period. Diluted EPS is computed by dividing the net
profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity
equivalent shares outstanding during the year, except where the results would be anti-dilutive.

b. Terms/Rights attached to equity shares:

The Company has only one class of equity shares having a face value of Rs. 10 per share. Each holder of equity shares is
entitled to one vote per share.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the
Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

The Shareholders have all other rights available to equity shareholders as per the provision of Companies Act, 2013 read
together with Memorandum of Association and Articles of Association of the Company, as applicable.

The Company has declared Rs. Nil (31st March, 2024 : Rs. Nil) dividend during the year.

h. The Company has issued 62,60,400 equity shares of face value Rs. 10 each pursuant to its Initial Public Offering (IPO), which
also included an Offer for Sale of 3,28,800 shares, and was listed on the SME segment of the NSE on 27 March 2025. The
Company received Rs. 6,124.38 lakhs as net proceeds from the IPO, after deducting IPO expenses of Rs. 949.87 lakhs.

i. Shares issued for consideration for other than cash

The Company allotted 1,39,83,669 (One crore Thirty Nine Lakh Eighty Three Thousand Six Hundred and Sixty Nine)
equity shares of ^10 each/- as bonus shares, aggregating of Rs. 13,98,36,690 (Thirteen Crore, Ninety Eight Lakhs, Thirty
Six Thousand, Six Hundred and Ninety) to the existing shareholders of the Company as on record date i.e. on 10 July
2024, in the proportion of 7:2 i.e. 7 (Seven) new fully paid equity shares of Rs. 10/- each for every 2 (Two) existing fully
paid up equity shares of Rs. 10/- each held by utilising the securities premium.

(ii) The details of repayment terms, rate of interest, and nature of securities provided in respect of Non-Con¬
vertible Debentures are as below:

The debentures are issued by Grand Continent Hotels Limited on private placement basis vide offering term
sheet and PAS-4 dated 24 August 2024 and 10 September 2024.

Series 1:

The free cash flows generated from the property situated at Hosur, along with any revenue received from
this property, is served as collateral against the Non-Convertible Debentures and is considered in the calcu¬
lation of security cover.

The Company has issued and allotted 3,35,000 (Three Lakhs Thirty Five Thousand) NCDs at a value of INR
100 each amounting to Rs. 335 Lakhs on 03 September 2024 carrying a coupon rate of 16% per annum for
a period upto 3 (Three) years to Debenture Holders Coupon would be accrued every quarter and would be
payable on maturity.

27. In the opinion of the Board, adequate provision has been made for all known liabilities and the same is not in excess of
the amounts considered reasonably necessary.

28. In the opinion of the Board of Directors, trade receivables, current assets, loans and advances have the value at which
they are stated in the balance sheet, if realised in the ordinary course of business. Trade receivables,creditors, GST
balances and advances are subject to confirmations. Periodically, the Company evaluates all customer dues for collect¬
ability.

29 Leases:

Operating Lease: Company as lessee

The Company has taken buildings under operating lease. Building leases are generally cancellable after commited lockin
and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free
deposits in accordance with the agreed terms.

33. Foreign Currency Transactions

The Company has not undertaken any foreign currency transactions during the current and previous financial year.

34. Employee benefits
Defined contribution plans:

The Company makes provident fund contributions and other fund contribution which are defined contribution plans,
for qualifying employees. Under the Schemes, the entity is required to contribute a specified percentage of the payroll
costs to fund the benefits. Provident fund and other fund contributions amounting to Rs.24.26 lakhs (2024: Rs.5.43 lakhs)
have been charged to the Statment of Profit and Loss. The contributions payable to this plan by the entity is at rates
specified in the rules of the scheme.

Defined benefit plans

The Company has a defined benefit gratuity plan. Every employee who has completed continuous service for five years
or more gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service as per the
Gratuity Act, 1972.

35. Segment Reporting

The Company operates in different geographical locations within India; however, the operations across these locations
are similar in nature and are subject to similar risks and returns, governed by a common regulatory environment. There¬
fore, in accordance with Accounting Standard 17 - Segment Reporting, no separate disclosure of geographical segments
is considered necessary.

36. IPO Fund Utilisation of funds

The Company has come out with IPO alongwith offer for sale of 3,28,800 shares.62,60,400 shares were issued by the
Company persuant to its IPO. The Company got listed on SME segment of NSE on 27th March, 2025.

The Company received a sum of Rs.6,124.38 lakhs (net of IPO expenses of Rs. 949.87 lakhs) consequent upon its success¬
ful IPO. The funds were utilised in repayment of debts/loans and for General Corporate purpose amounting to Rs.776.94
lakhs.

Reasons for Variance more than 25%

¹ Increase in Current Ratio is due to decrease in short term borrowings in the current year

² Decrease in Debt-Equity Ratio is due to increase in equity as shares were issued in the current year

³ Increase in Debt-Service Coverage Ratio is due to increase in EBITDA in the current year

⁴ Decrease in ROE is due to increase in equity as shares were issued in the current year

⁵ Increase in Trade Payable Turnover Ratio is due to decrease in trade payable in the current year

⁶ Decrease in Net Capital Turnover Ratio is due to increase in trade receivables in the current year

38. Subsequent events

No subsequent event has been observed which may require an adjustment to the balance sheet.

39. Additional Regulatory Information

i. 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).

ii. The Company does not have any benami property, where any proceeding has been initiated or pending against
the Company for holding any benami property.

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

iv. The Company has 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.

The company has 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

v. The Company is not declared willful defaulter by and bank or financials institution or lender during the year.

vi. The Company does not have charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

vii. The company has availed working capital/short term borrwoings from banks and financial institutions on the basis
of security of current assets for year ended March 31, 2025.

viii. The company do not have any transactions with the companies struck off under section 248 of Companies Act, 2013
or section 560 of Companies Act, 1956.

ix. The company has complied with the number of layers prescribed under the Companies Act, 2013.

x. The company has not entered into any scheme of arrangement which has an accounting impact on current or pre¬
vious financial year.

xi. The company has not revalued its property, plant and equipment or intangible assets or both during the year ended
March 31, 2025 and March 31, 2024.

xii. The title deeds of all immovable properties disclosed in the financial statements are held in the name of the Com¬
pany.

40. Other Disclosure

The other additional disclosures and information’s (not specifically disclosed) as required by Schedule III are either nil
or not applicable.

41 Compliance with section 143(3) for maintenance of Audit Trail

The Company has used accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the soft¬
ware.

42 Corporate social responsibility

During the year, the Company was required to spend Rs. 3.76 lakhs towards Corporate Social Responsibility (CSR) activ¬
ities and has incurred an amount of Rs. 4.79 lakhs in this regard.

43 Prior Year Comparatives

Figures have been re-grouped/re-classified/restated to make them comparable to the figures wherever necessary. Fur¬
ther, the figures for the year ended 31 March 2025 are not strictly comparable with those for the year ended 31 March
2024 due to a substantial increase in the Company’s operations, along with the completion of its IPO in March 2025.
The comparative figures have been derived from the restated financial statements prepared specifically for the purpose
of the Initial Public Offering (IPO) to ensure consistency and comparability.

The accompanying notes 1 to 43 are an integral part of these financial statements.

As per our report of even date attached

For Bhuta Shah & Co. LLP For and on behalf of the Board of the Directors

Chartered Accountants Grand Continent Hotels Limited

Firm’s Registration No: 101474W / W100100 (formerly known as Grand Continent Hotels Private Limited)

Atul Gala Ramesh Siva Vittal Vidyaramesh

Partner Managing Director Director

Membership No.048650 DIN: 02449456 DIN: 02127241

Place : Mumbai Place : Bengaluru Place : Bengaluru

Date : 30th May, 2025 Date: 30th May, 2025 Date: 30th May, 2025

Mithun Jayaraman Aastha Kochar

Chief Financial officer Company Secretary

Place : Bengaluru Place : Bengaluru

Date: 30th May, 2025 Date: 30th May, 2025