(m) Provisions
General

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result 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. The expense relating to a provision is
presented in the statement of profit and loss net of
any reimbursement.

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

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.

Provisions are reviewed at the end of each
reporting period and adjusted to reflect the current
best estimate. If it is no longer probable that an
outflow of resources would be required to settle the
obligation, the provision is reversed.

Contingent Assets/ Liabilities

Contingent assets are not recognised. However,
when realisation of income is virtually certain, then
the related asset is no longer a contingent asset,
and is recognised as an asset.

Contingent liabilities are disclosed in notes to
accounts when there is a possible obligation
arising from past events, the existence of which
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 or
a present obligation that arises from past events
where it is either not probable that an outflow of
resources will be required to settle or a reliable
estimate of the amount cannot be made.

(n) Deferred Revenue

The Company operates a loyalty point's programme,
which allows customers to accumulate points when
they obtain services in the Company's Hotels.
The points can be redeemed for free products/
nights, subject to a minimum number of points
being obtained. Consideration received is allocated
between the Room Revenue and the points issued,
with the consideration allocated to the points
equal to their fair value. Fair value of the points
is determined by applying a statistical analysis.
The fair value of the points issued is deferred
and recognised as revenue when the points are
redeemed.

(o) Retirement and other employee benefits

Retirement benefit in the form of provident fund is
a defined contribution scheme. The Company has
no obligation, other than the contribution payable
to the provident fund. The Company recognizes
contribution payable to the provident fund scheme
as an expense, when an employee renders the
related service. If the contribution payable to the
scheme for service received before the balance
sheet date exceeds the contribution already paid,
the deficit payable to the scheme is recognized as
a liability after deducting the contribution already
paid. If the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized as
an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment
or a cash refund.

Retirement benefit in the form of gratuity is
a defined benefit scheme. Gratuity liability of
employees is accounted for on the basis of actuarial
valuation on projected unit credit method at the
close of the year. Company's contribution made to
Life Insurance Corporation is expensed off at the
time of payment of premium.

Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognised immediately in the balance sheet with a
corresponding debit or credit to retained earnings
through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or
loss in subsequent periods.

Past service costs are recognised in profit or loss on
the earlier of:

• The date of the plan amendment or curtailment,
and

• The date that the Company recognises related
restructuring costs

Net interest is calculated by applying the
discount rate to the net defined benefit liability
or asset.The Company recognises the following
changes in the net defined benefit obligation
as an expense in the statement of profit and
loss:

• Service costs comprising current service
costs, past-service costs, gains and losses
on curtailments and non-routine settlements;
and

• Net interest expense or income

Retirement benefits in the form of Superannuation
Fund is a defined contribution scheme and the
contributions are charged to the statement of profit
and loss of the year when the contributions to
the respective funds are due. There are no other
obligations other than the contribution payable to
the respective trusts.

Short-term and other long-term employee
benefits

A liability is recognised for benefits accruing to
employees in respect of wages and salaries, annual
leave and sick leave in the period the related
service is rendered at the undiscounted amount of
the benefits expected to be paid in exchange for
that service.

Liabilities recognised in respect of short¬
term employee benefits are measured at the

undiscounted amount of the benefits expected to
be paid in exchange for the related service.

Liabilities recognised in respect of other long¬
term employee benefits are measured at the

present value of the estimated future cash outflows
expected to be made by the Group in respect of
services provided by employees up to the reporting
date.

The Company treats leaves expected to be

carried forward for measurement purposes. Such
compensated absences are provided for based on
the actuarial valuation using the projected unit
credit method at theyear-end. Remeasurement

gains/losses are immediately taken to the
statement of profit and loss and are not deferred.
The Company presents the entire leave as a current
liability in the balance sheet, since it does not have
an unconditional right to defer its settlement for 12
months after the reporting date. Where Company
has the unconditional legal and contractual right
to defer the settlement for a period beyond 12
months, the same is presented as non-current
liability.

(p) 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.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair
value, plus in the case of financial assets not recorded
at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the
financial asset. However, trade receivables that do
not contain a significant financing component are
measured at transaction price. Purchases or sales
of financial assets that require delivery of assets
within a time frame established by regulation
or convention in the market place (regular way
trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell
the asset.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in following categories:

• Debt instruments at amortised cost

• Debt instruments, derivatives and equity
instruments at fair value through profit or loss
(FVTPL)

• Equity instruments measured at fair value
through other comprehensive income (FVTOCI)

• Equity instruments in subsidiaries/associates
carried at cost

Debt instruments at amortised cost

A debt instrument is measured at the amortised
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.

This category is the most relevant to the Company.
The difference between the transaction amount
and amortized cost in case of interest free loan
to subsidiaries based on the expected repayment
period is considered as 'deemed investment on
account of interest free loan to subsidiaries' (Refer
Note 8(i)). After initial measurement, such financial
assets are subsequently measured at amortised
cost using the effective interest rate (EIR) method.
Amortised 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
amortisation is included in finance income in the
profit or loss. If there is any change in estimate for
payment of loan (provided that there was no error
in original estimate), difference in carrying amount
and repayment has been adjusted as return on
capital by the parent, based on condition/ situation
prevailing on that date. The losses arising from
impairment are recognised in the profit or loss.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments.

The Company has designated compulsory
redeemable preference shares investments in its
subsidiaries at FVTPL. The difference between
the transaction amount and amortized cost is
considered as 'deemed investment in compulsory
redeemable preference shares' (Refer Note 8(i)).

Debt instruments included within the FVTPL
category are measured at fair value with all changes
recognized in the P&L.

Equity instruments

All equity investments (other than equity
investments in subsidiaries) in scope of Ind AS
109 are measured at fair value. Equity instruments
in subsidiaries are carried at cost in financial
statements less impairments if any. Equity
instruments included within the FVTPL category are
measured at fair value with all changes recognized
in the P&L.

Derecognition

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar

financial assets) is primarily derecognised (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:

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

b) Trade receivables or any contractual right to
receive cash or another financial asset.

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

Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected
life of a financial instrument. The 12-month ECL
is a portion of the lifetime ECL which results from
default events that are possible within 12 months
after the reporting date.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the
entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
income/ expense in the statement of profit and
loss (P&L). This amount is reflected under the head

other expenses in the P&L. The balance sheet
presentation for various financial instruments is
described below:

• Financial assets measured as at amortised
cost, contractual revenue receivables and lease
receivables: ECL is presented as an allowance,
i.e., as an integral part of the measurement
of those assets in the balance sheet. The
allowance reduces the net carrying amount.
Until the asset meets write-off criteria,
the Company does not reduce impairment
allowance from the gross carrying amount.

• Debt instruments measured at FVTOCI: There
are no instruments measured at FVTOCI

For assessing increase in credit risk and impairment
loss, the Company combines financial instruments
on the basis of shared credit risk characteristics
with the objective of facilitating an analysis that is
designed to enable significant increases in credit
risk to be identified on a timely basis.

The Company does not have any purchased or
originated credit-impaired (POCI) financial assets,
i.e., financial assets which are credit impaired on
purchase/ origination.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company's financial liabilities include trade
and other payables, loans and borrowings including
bank overdrafts and financial guarantee contracts.

Subsequent measurement

The measurement of financial liabilities depends on
their classification, as described below:

Financial liabilities at fair value through profit or
loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing
in the near term. This category also includes
derivative financial instruments entered into by
the Company that are not designated as hedging
instruments in hedge relationships as defined by
Ind AS 109.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated
as such at the initial date of recognition, and
only if the criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognized in OCI. These gains/ loss are not
subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or loss
within equity. All other changes in fair value of such
liability are recognised in the statement of profit or
loss. The Company has not designated any financial
liability as at fair value through profit and loss.

Financial liabilities at amortised cost

This is the category most relevant to the Company.
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through the
EIR amortisation process.

Amortised 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 amortisation is included as finance costs in the
statement of profit and loss.

This category generally applies to borrowings. For
more information refer Note 16.

Financial guarantee

Financial guarantees issued by the Company
on behalf of group companies are designated as
'Insurance Contracts'. The Company assess at the
end of each reporting period whether its recognised
insurance liabilities (if any) are adequate, using
current estimates of future cash flows under its
insurance contracts. If that assessment shows
that the carrying amount of its insurance liabilities
is inadequate in the light of the estimated future
cash flows, the entire deficiency is recognised in
profit or loss.

If a financial guarantee is an integral element of
debts held by the entity, itisnot accounted for
separately.

Derecognition

A financial liability is derecognised 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 recognised in the
statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance
sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

(q) Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, which are subject to an insignificant
risk of changes in value.

(r) Share-based payments

Certain employees (including senior executives) of
the Company receive part of their remuneration
in the form of share based payment transactions,
whereby employees render services in exchange
for shares or rights over shares ('equity settled
transactions').

The cost of equity-settled transactions with
employees measured at fair value at the date
at which they are granted using an appropriate
valuation model. That cost is recognised, together
with a corresponding increase in share-based
payment (SBP) reserves in equity, over the
period in which the service conditions are fulfilled
in employee benefits expense. The cumulative
expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects
the extent to which the vesting period has expired
and the Company's best estimate of the number
of equity instruments that will ultimately vest. The
statement of profit and loss expense or credit for

a period represents the movement in cumulative
expense recognised as at the beginning and end of
that period and is recognised in employee benefits
expense.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part
of the Company's best estimate of the number of
equity instruments that will ultimately vest. Market
performance conditions are reflected within the
grant date fair value. Any other conditions attached
to an award, but without an associated service
requirement, are considered to be non-vesting
conditions. Non-vesting conditions are reflected in
the fair value of an award and lead to an immediate
expensing of an award unless there are also service
and/or performance conditions.

When the terms of an equity-settled award are
modified, the minimum expense recognised is the
expense had the terms not been modified, if the
original terms of the award are met. An additional
expense is recognised for any modification that
increases the total fair value of the share-based
payment transaction, or is otherwise beneficial
to the employee as measured at the date of
modification. Where an award is cancelled by
the entity or by the counterparty, any remaining
element of the fair value of the award is expensed
immediately through profit or loss.

s) Measurement of EBITDA

The Company has elected to present earnings
before interest, tax, depreciation and amortization
(EBITDA) as a separate line item on the face of
the statement of profit and loss. The Company
measures EBITDA on the basis of profit/ (loss) from
core business operations. In its measurement, the
Company does not include finance costs, finance
income, depreciation and amortization, exceptional
items, if any and tax expense.

t) Cash Flow Statement

Cash flows are reported using the indirect method,
where by profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts
or payments and item of income or expenses
associated with investing or financing cash flows.
The cash flows from operating, investing and

financing activities of the Company are segregated.

(u) Indirect taxes

Value Added Taxes/Goods & Service Tax paid on
acquisition of assets or on incurring expenses

Expenses and assets are recognised net of the
amount of sales/ value added taxes paid, except:

• When the tax incurred on a purchase of
assets or services is not recoverable from the
taxation authority, in which case, the tax paid
is recognised as part of the cost of acquisition
of the asset or as part of the expense item, as
applicable

• When receivables and payables are stated with
the amount of tax included

The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of
receivables or payables in the balance sheet.

(v) Earnings Per Share (EPS)

Basic EPS is calculated by dividing the profit for the
year attributable to ordinary equity shareholders of
the Company by the weighted average number of
Equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit
attributable to ordinary equity shareholders of
the Company by the weighted average number of
Equity shares outstanding during the year plus the
weighted average number of Equity shares that
would be issued on conversion of all the dilutive
potential Equity shares into Equity shares.

Contingently issuable equity shares are included
in the computation of diluted earnings per share
where the conditions for issuance are satisfied as
at the reporting date, or would be satisfied if the
reporting date were the end of the contingency
period. Where conditions are not satisfied as at the
reporting date, such shares are excluded from the
calculation of diluted earnings per share

(w) Exceptional items

An item of income or expense which by its size,
type or incidence requires disclosure in order to
improve an understanding of the performance of
the Company is treated as an exceptional item and
disclosed as such in the financial statements.

(x) Refer note 29 for Significant accounting judgements,
estimates and assumptions.

Notes:

Securities premium: Securities premium comprises of premium receievd on issue of shares

Surplus in the Statement of Profit and Loss: Surplus in the Statement of Profit and Loss represents
balances of profit and loss at each year end.

Other comprehensive income: Other comprehensive income represents accumulated balances of
Remeasurement (losses)/gains on defined benefit plans.

General reserve: Under the erstwhile Companies Act 1956, general reserve was created through an annual
transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these
transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paidup capital of
the Company for that year, then the total dividend distribution is less than the total distributable results for that
year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified
percentage of the net profit to general reserve has been withdrawn.

Share based payment reserve: The Share based payment reserve is used to recognise the grant date fair
value of unit issued to employees under LTHL Stock Appreciation Rights (LTHL SAR) Scheme -2024.

Capital redemption reserve: The Companies Act provides that companies redeeming its preference shares
at face value or nominal value is required to transfer an amount into capital redemption reserve. This reserve
can be used to issue fully paid-up bonus shares to the shareholders of the Company.

Capital reserve: Capital reserve account is recorded as difference in net worth of the transferee Company
merged and investment made in those Companies.

28. Earnings per share (Basic EPS and Diluted EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company
by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of Equity shares outstanding during the year plus the weighted average number of
Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually
issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity
shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential
equity shares are determined independently for each period presented.

29. Significant accounting judgements, estimates and assumptions

The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying
disclosures and the disclosure of contingent liabilities and other commitments. Uncertainty about these
judgements, estimates and assumptions could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods. Existing circumstances and assumptions about
future developments, however, may change due to market changes or circumstances arising that are beyond
the control of the Company. Such changes are reflected in the assumptions when they occur. The estimates
and underlying assumptions are reviewed on an ongoing basis and the revisions to accounting estimates are
recognized in the period in which the estimate is revised.

Critical judgements, estimates and assumptions

a. Impairment of property, plant and equipment

Each hotel property is an identifiable asset that generates cash inflows and is independent of the cash
inflows of the other hotel properties, hence identified as cash generating units. The Company assesses the
carrying amount of hotel properties (CGU) to determine whether there is any indication that those assets
have suffered an impairment loss. Where the carrying amount of CGU exceeds its recoverable amount
(being higher of fair value less cost to sell or value in use), the asset is considered impaired and is written
down to its recoverable amount. An impairment loss (if any) is recognised in the statement of profit and
loss.

The value in use is determined basis discounted cash flow model which requires exercise of significant
judgment in determining key assumptions like forecast of future revenue, operating margins, growth rate
and selection of the discount rates. The key assumptions used for the calculations are as follows:

Sensitivity analysis of assumptions

The Company has performed sensitivity analysis on the key assumptions by /- 1% for each of the
assumptions used and ensured that the valuation is appropriate and there is no further impairment.

b. Impairment of Investment in subsidiaries having hotel properties

The Company assesses the carrying amounts of investment in subsidiaries having hotel properties to
determine whether there is any indication that those investments have suffered an impairment loss. Where
the carrying amount of investments exceed its recoverable amount, the investment is considered impaired
and is written down to its recoverable amount (being higher of fair value less cost to sell or value in use).
An impairment loss (if any) is recognised in the statement of profit and loss.

The value in use is determined basis discounted cash flow model which requires exercise of significant
judgment in determining key assumptions like forecast of future revenue, operating margins, growth rate
and selection of the discount rates. The key assumptions used for the calculations are as follows:

Sensitivity analysis of assumptions

The Company has performed sensitivity analysis on the key assumptions by /- 1% for each of the
assumptions used and ensured that the valuation is appropriate and there is no further impairment.

c. Impairment of Investment in Totally Foxed Solutions Private Limited

The Company has made investment in its wholly owned Subsidiary, Totally Foxed Solutions Private Limited
amounting to ' 801.00 lakhs (March 31, 2025: '801.00 lakhs) and have given loan of ' 6,217.51 lakhs (March
31, 2025: ' 4,999.65 lakhs), which is engaged in development of software solutions for hospitality into revenue
management, Sales, customer engagement and business intelligence, which is to be utilised by the group
companies and monetised as separate service to managed/ franchised and third party hotels. The net worth
of the Company as at March 31, 2026 is ' (2,160.40) lakhs (March 31, 2025 is ' (401.92) lakhs).

The Company has performed impairment analysis of the investment and concluded that the recoverable
value of the investment including loans given is higher than its carrying value. The recoverable amount of
the Totally Foxed Solutions Private Limited as a cash generating unit is determined based on a value in use
calculation which uses cash flow projections based on financial budget prepared by the management for five
year period and post which forward looking terminal value has been considered.

1. Forecast sales growth rates: Forecast sales growth rates are based on past experience adjusted
for historic measures and market trends analysed.

2. Operating profits: Operating profits are forecasted based on historical experience of operating
margins, adjusted for the impact of changes to product costs and cost saving initiatives.

Sensitivity analysis: The Company has conducted an analysis of the sensitivity of the impairment test to
changes in the key assumptions used to determine the recoverable amount. The management believe that
any reasonable possible change in the key assumptions on which the recoverable amount of Totally Foxed
Solutions Private Limited is based would not cause the aggregate carrying amount to exceed the aggregate
recoverable amount of the Totally Foxed Solutions Private Limited.

d. Leases

The Company has taken certain land and land & building on long term lease basis. The lease agreements
generally have an escalation clause and are generally non-cancellable. In assessing whether the Company is
reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances that create an economic incentive for the Company to
exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company
evaluates if an arrangement qualifies to be a lease as per the requirements of IND AS 116. Identification of
a lease requires judgment. The Company uses judgement in assessing the lease term and the applicable
discount rate. The discount rate is generally based on the incremental borrowing rate.

e. Loss Allowance on trade receivables (Expected credit loss)

An impairment analysis of trade receivables is performed at each reporting period based on the Company's
history of collections, customer's creditworthiness, existing market conditions as well as forward looking
estimates. Basis this assessment, the allowance for doubtful trade receivables as at March 31, 2026 is
considered adequate.

f. Deferred tax asset (DTA)

Deferred tax asset (DTA) is recognized only when and to the extent there is convincing evidence that the
Company will have sufficient taxable profits in future against which such assets can be utilized. Significant
management judgment is required to determine the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable profits together with future tax planning
strategies, recent business performance and developments.

30. Gratuity

The Company has a defined benefit gratuity plan (funded). The gratuity plan is governed by the Payment of
Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific
benefit. The level of benefits provided depends on the member's length of service and salary at retirement age.
The fund has the form of a trust and it is governed by the Board of Trustees, which consists of an equal number
of employer and employee representatives. The Board of Trustees is responsible for the administration of the
plan assets and for the definition of the investment strategy. The Trust Fund has taken a Scheme of Insurance,
whereby these contributions are transferred to the insurer. The Company makes provision of such gratuity
liability in the books of accounts on the basis of actuarial valuation as per the Projected unit credit method.

Risk analysis

The Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to
defined benefits plans and management estimation of the impact of these risks are as follows:

• Investment risk

The most of the Indian defined benefit plans are funded with Life Insurance Corporation of India. Company
does not have any liberty to manage the fund provided to Life Insurance Corporation of India.

The present value of the defined benefit plan liability is calculated using a discount rate determined by
reference to Government of India bonds for Company's Indian operations. If the return on plan asset is
below this rate, it will create a plan deficit.

• Interest risk

A decrease in the interest rate on plan assets will increase the plan liability.

• Longevity risk/life expectancy

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and at the end of the employment. Increases in the life expectancy
of the plan participants will increase the plan liability.

• Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. An increase in the salary of the plan participants will increase the plan liability.

Each year, the Board of Trustees reviews the level of funding in the Gratuity plan. Such a review includes the
asset - liability matching strategy and investment risk management policy. The Board of Trustees decides
its contribution based on the result of this annual review.

31. Commitments and contingenciesa. Leases

Operating lease commitments - Company as lessee

The Company has entered into operating leases on hotel buildings, office premises, staff hostels and others.
These are generally cancellable and are renewable by mutual consent on mutually agreed terms except for few
properties (including hotel properties at Indore, Aurangabad, Gurgaon, New Delhi, Hyderabad (Banjara Hills)
and Chandigarh.) The lease for the hotel property at Indore, Aurangabad, Gurgaon, New Delhi, Hyderabad
(Banjara Hills) and Chandigarh are non-cancellable for a period of twenty-nine, twenty-two, thirty, twenty-
seven, thirty and sixty years respectively. Refer Note No.7 for carrying value of right to use asset recognised
and Refer Note No.16(a) for carrying value of lease liability and the movement during the year.

The weighted average of incremental borrowing rate applied to lease liabilities is 9.39% (March 31, 2025:
9.39%)

b. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for:

Estimated amount of contracts remaining to be executed and not provided as at March 31, 2026 is
' 3,367.27 lakhs (March 31, 2025 ' 2,682.17 lakhs).

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liabilities where applicable, in its financial statements.
The Company does not expect the outcome of these proceedings to have a materially adverse effect on its
financial statements.

For financials guarantee given to banks on behalf of and in respect of term loan facilities availed by its group
companies refer note 31(f).

d. During the earlier years, the Company has taken land on lease for construction of building from one of the
subsidiary Company for which South Delhi Municipal Corporation ('the Authority') has raised demand of
' 68.20 lakhs (for the financial Years 2010-11 to financial years 2013-2014) towards annual value in respect
of the hotel property situated in Hospitality District, Aerocity. During the year ended March 31, 2026, the
Company has availed a one-time settlement scheme notified by the Municipal Corporation of Delhi for
settlement of property tax dues relating to one hotel property. The resultant impact of ' 166.93 lakhs has
been recognised as an exceptional expense, after adjusting the provision of ' 105.43 lakhs already created
by the Company towards such liabilities.

e. Note on Provident Fund:

Based upon the legal opinion obtained by the management, the Company is not required to create provisions
in books of accounts in view of the judgement of the Hon'ble Supreme court in the case of Vivekananda
Vidyamandirvs Regional Provident Fund Commissioner (II), West Bengal and subsequent dismissal of review
petition by Hon'ble Supreme court in the case of review petition No. 001972-001973/2019 in civil appeal
3965-3966 in the matter of Surya Roshni Ltd Vs Employees Provident Fund and Another.

Considering the equitable cause, the High Courts may give prospective effect to the judgement which can
be done in exercise of inherent powers of High Court under Article 226 of the constitution of India.

In case of the Company, retrospective effect is remote and at present uniformity is maintained across all
brands/grades.

f. Financial guarantees

The Company has issued financial guarantees to banks on behalf of and in respect of term loan facilities
availed by its group companies for construction of new hotel project. In accordance with the policy of the
Company (refer note 2.2(p)) the Company has designated such guarantees as 'Insurance Contracts' and
classified them as contingent liabilities. Since these financial guarantees are an integral element of debts
held by entities, hence, these have not been accounted for separately.

Accordingly, there are no assets and liabilities recognized in the balance sheet under these contracts. Refer
below for details of the financial guarantees issued:

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.
Outstanding balances with related parties at the year-end are unsecure and settlement occurs in cash. For the year
ended March 31, 2026, the Company has not recorded any impairment of receivables relating to amounts owed by
related parties (March 31, 2025: Nil). This assessment is undertaken each financial year through examining the
financial position of the related party and the market in which the related party operates.

Commitments with related parties

The Company has not entered into any commitments with related parties during the year.

34. Fair value measurement

This section gives an overview of the significance of financial instruments for the Company and provides additional
information on the balance sheet. Details of significant accounting policies, including the criteria for recognition,
the basis of measurement and the basis on which income and expenses are recognised, in respect of each class
of financial asset, financial liability and equity instrument.

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

i) Level 1

Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

ii) Level 2

I nputs are inputs that are observable, either directly or indirectly, other than quoted prices included
within level 1 for the asset or liability.

iii) 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.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management
oversees the management of these risks. The Company's senior management advises on financial risks and the
appropriate financial risk governance framework for the Company. The Company's financial risk activities are
governed by appropriate policies and procedure and that financial risks are identified, measured and managed in
accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees policies
for managing each risk, which are summarised as below:

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises of interest rate risk. Financial instruments affected by market
risk include loans and borrowings.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates
relates primarily to the Company's long-term debt obligations with floating interest rates. The Company is
carrying its borrowings primarily at variable rate. The Company expects the variable rate to decline, accordingly
the Company is currently carrying its loans at variable interest rates.

The following methods and assumptions were used to estimate the fair values:

• The fair values of the unquoted equity shares have been estimated using a DCF model. The valuation
requires management to make certain assumptions about the model inputs, including forecast cash
flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range
can be reasonably assessed and are used in management's estimate of fair value for these unquoted
equity investments.

• The fair values of compulsorily redeemable preference shares of subsidiaries have been estimated
using the fair valuation by independent valuer. The valuation requires management to make certain
assumptions about the interest rate, including forecast cash flows, discount rate, credit risk and
volatility. The probabilities of the various estimates within the range can be reasonably assessed and
are used in management's estimate of fair value for these unquoted equity investments.

35. Financial risk management objectives and policies

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

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company has no exposure in foreign currency.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables and deposits to landlords) and from its financing activities, including deposits with banks and
financial institutions and other financial instruments.

(a) Trade receivables

Customer credit risk is managed by each business location subject to the Company's established policy,
procedures and control relating to customer credit risk management. Credit quality of a customer is assessed
and individual credit limits are defined in accordance with the assessment both in terms of number of days
and amount.

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 maximum exposure to credit risk at the reporting date is the carrying value of
each class of financial assets disclosed in Note 12. The Company does not hold collateral as security.

(b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury
department in accordance with the Company's policy. Investment of surplus funds are made only with
approved counterparties and within credit limits assigned to each counterparty. The Company's maximum
exposure to credit risk for the components of the balance sheet at March 31, 2026 and March 31, 2025 is
the carrying amount as given in Note 12(ii).

Liquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company's
objective is to maintain a balance between continuity of funding and flexibility through the use of bank
overdrafts, cash credit facilities and bank loans. The Company assessed the concentration of risk with
respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety
of sources of funding and debt maturity within 12 months can be rolled over with existing lenders. As at
March 31, 2026, the Company had no available (March 31, 2025: ' Nil) undrawn committed borrowing
facilities.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments.

36. Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company's capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. 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, trade payables, less cash and cash equivalents.

a. On November 21, 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, ('Labour Codes') which consolidate twenty-nine existing labour
laws into a unified framework governing employee benefits during employment and post-employment.
The Labour Codes, amongst other things introduces changes, including a uniform definition of wages
and enhanced benefits relating to leave. The Company has assessed the financial implications of these
changes which has resulted in increase in gratuity liability by ' 619.04 lakhs, a defined benefit plan
arising out of past service cost relating to plan amendments and increase in compensated absences by
' 115.98 lakhs. Considering the impact arising out of an enactment of the new legislation is an event
of non-recurring nature, the Company has presented this incremental amount as "Impact of Labour
Codes" under "Exceptional Item" in the Statement of Profit and Loss for the year ended March 31, 2026.
The Company continues to monitor the developments pertaining to Labour Codes and will evaluate
impact if any on the measurement of the employee benefits liability.

b. During the year ended March 31, 2026 , the Company has recognised a one-time ex-gratia provision
amounting to ' 926.92 lakhs paid to certain employees as a goodwill gesture in connection with salary
rationalisation measures undertaken during the COVID-19 period. The said payment is discretionary
in nature, does not arise from any contractual or statutory obligation and is not part of the Company's
regular remuneration framework. The payment is non-recurring and accordingly has been disclosed as
an exceptional item.

c. During the year ended ended March 31, 2026, the Company has availed a one-time settlement scheme
notified by the Municipal Corporation of Delhi for settlement of property tax dues relating to one hotel
property. The resultant impact of ' 166.93 lakhs has been recognised as an exceptional expense, after
adjusting the provision of ' 105.43 lakhs already created by the Company towards such liabilities.

d. During the year ended March 31, 2026, the Company incurred certain expenses towards legal,
professional, advisory and other directly attributable costs in connection with the proposed Composite
Scheme of Arrangement involving demerger and restructuring of the Company and its group entities,
which was approved by the Board of Directors on January 09, 2026, subject to requisite statutory and
regulatory approvals.Considering the non-recurring nature of such expenses and their direct association
with the proposed Composite Scheme of Arrangement, the same have been disclosed as exceptional
items in the Statement of Profit and Loss for the year ended March 31, 2026.

(B) During the year ended March 31, 2026, the Board of Directors of the Company, at its meeting held on
January 09, 2026, approved a proposed Composite Scheme of Arrangement (Scheme) involving merger and
demerger of certain group entities, inter alia, resulting in segregation of the hotel ownership & development
business and the hotel management & brand business into separate focused platforms.

The proposed Composite Scheme of Arrangement is subject to receipt of necessary statutory, regulatory
and shareholder approvals, including approvals from the stock exchanges, National Company Law Tribunal
and other applicable authorities. The Scheme (appointed date: April 01, 2026) shall become effective upon
receipt of such approvals and filing of the requisite orders with the Registrar of Companies. Subsequent to
the year, on April 7, 2026, the Company has received approval from the Competition Commission of India
(CCI) on the Scheme.

38. Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Group has reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in its financial statements.

In August 2025, MCA notified the following amendments to:

• Ind AS 1, Presentation of Financial Statements, applicable w.e.f April 1, 2025 - The amendment relates to
classification of liabilities as current or non -current and non-current liabilities with covenants. In the context
of classifying a liability as current, it removes the requirement of existence of a right to defer settlement
for at least 12 months after the reporting date, and instead requires that the said right should exist on the
reporting date and have substance. The amendment also introduces guidance on classification of liabilities
with covenants. The Company does not have significant impact of the amendment in its classification
criteria of current and non-current liabilities.

• I nd AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicable w.e.f
April 1, 2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence
of supplier finance arrangements and explain the nature of the arrangements, the carrying amount of
liabilities and the range of payment due dates. Ind AS 107 has been amended to add supplier finance
arrangements as a factor that may cause concentration of liquidity risk. The Company has reviewed the
amendment and based on its evaluation has determined that it does not have any significant impact in its
financial statements.

There are no new amendements/standards (other than above) that are notified, but not yet effective up to the
date of issuance of the Company's financial statements

(i) Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other
amortizations Interest (excluding bank charges) other adjustments like loss on sale of Fixed assets etc
which are non cash in nature.

(ii) Debt Service = Interest & Lease Payments Principal Repayments (excluding prepayments).

(iii) Capital Employed = Net worth Total Debt Deferred Tax Liability-Net Intangible aseets

(iv) Working Capital= Current Assets- Current liabilities

(v) EBIT= Earning before interest, taxes and exceptional items

40. Segment Reporting

The Company is into Hoteliering business. The Board of Directors of the Company, which has been identified
as being the chief operating decision maker (CODM), evaluates the Company performance, allocate resources
based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is
no reportable segment for the Company as per the requirements of Ind AS 108 - "Operating Segments".

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.

41. As at March 31, 2026, APG Strategic Real Estate Pool N.V. (APG) held 41.09% of the equity share capital of Fleur
Hotels Limited (formerly known as Fleur Hotels Private Limited) (Fleur Hotels), a subsidiary of the Company.
Fleur Hotels had entered into shareholders agreement with APG which was effective until APG held shares in Fleur
Hotels. Subsequent to the balance sheet date, APG has sold its entire shareholding in Fleur Hotels Limited to
Coastal Cedar Investments B.V. (Investor) on May 22, 2026. The Company, Fleur Hotels, the Investor, Patanjali
Govind Keswani and Spank Management Services Private Limited entered into shareholders' agreement dated
January 9, 2026, effective from May 22, 2026. In terms of the said shareholders' agreement, new opportunities
with respect to Hospitality Asset and any ownership Interest therein is required to be referred to and evaluated
at the Fleur Hotels Limited.

42. During earlier years, the Company had entered into a sub license agreement with M/s Hyacinth Hotels Private
Limited (a subsidiary of the Company) as part of Infrastructure development and services agreement entered
between M/s Hyacinth Hotels Private Limited and Delhi International Airport Limited (DIAL) to develop a hotel at
Aero City, New Delhi for an initial term of 27 years, extendable at the option of the Company for an additional
period of 30 years provided DIAL gets the extension from Airport Authority of India('AAI'). DIAL/AAI may
take over the building at 'Book values'//Net Present Value', as defined in the aforesaid agreement in case the
agreement is not extended further.

(iv) . The Company has not entered into any transaction with companies struck off.

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

statutory period.

(vi) . The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act

read with Companies (Restriction on number of Layers) Rules, 2017.

(vii) . During the year on March 31, 2026, the Board of Directors of the Company has approved scheme of

arrangements in terms of section 230-232 of the Companies Act, 2013. The scheme is pending for approval
from relevant authorities and accordingly, the prescribed disclosures of Schedule III are not required to be
given. The Company has not entered into any scheme of arrangements in terms of section 233 to 237 of
the Companies Act, 2013. (Refer note 37(B))

(viii) . 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.

(ix) The Company have not received any funds from any 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.