Accounting Policies of Apeejay Surrendra Park Hotels Ltd. Company

Mar 31, 2025

2. Material Accounting Policies

This note provides a list of the material
accounting policies adopted in the preparation
of these Standalone Financial Statements.

2.01 Basis of preparation of Standalone
Financial Statements:

These Standalone Financial Statements have
been prepared in accordance with the Indian
Accounting Standards (referred to as “Ind
AS”) as prescribed under Section 133 of the
Act read with Companies (Indian Accounting
Standards) Rules 2015, as amended and
presentation requirements of Division II of
Schedule III to the Companies Act, 2013, (Ind
AS compliant Schedule III), as amended from
time to time, as applicable to the Standalone
Financial Statements.

The accounting policies applied by the
Company in preparation of the Standalone
Financial Statements are consistent with those
adopted in the preparation of Standalone
Financial statements for the year ended March
31, 2024. These standalone financial statements
have been prepared for the Company as a going

(All amounts in Rupees Crores, unless otherwise stated)
concern on the basis of relevant Ind AS that are
effective as at March 31, 2025.

The Standalone Financial Statements have been
prepared on the historical cost basis, except for
the following assets and liabilities which have
been measured at fair value:

• Certain financial assets and liabilities
measured at fair value (refer accounting
policy regarding financial instruments);

• Defined benefits plan - plan assets measured
at fair value;

• Equity settled ESOP at grant date fair value;

The Standalone Financial Statements are
presented in Indian Rupees “INR” or “H ” and all
values are rounded to the nearest crores except
when otherwise indicated.

2.02 Current versus non-current classification:

The Company segregates assets and liabilities
into current and non-current categories
for presentation in the balance sheet after
considering its normal operating cycle and
other criteria set out in Ind AS 1, “Presentation of
Financial Statements”. For this purpose, current
assets and liabilities include the current portion
of non-current assets and liabilities respectively.

An asset is treated as current when it is:

• Expected to be realized or intended to be
sold or consumed in normal operating cycle

• Held primarily for purpose of trading

• Expected to be realized within twelve months
after the reporting period, or

• cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal
operating cycle

• It is held primarily for purpose of trading

• It is due to be settled within twelve months
after the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

All other liabilities are classified as non-current.

Deferred tax assets and deferred tax liabilities a
re classified as non-current assets and liabilities.
The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents, the
Company has identified twelve months as its
operating cycle.

2.03 Property, plant and equipment:

Recognition and initial measurement:

All items of property, plant and equipment
are stated at deemed cost (fair value as at
transition date) less accumulated depreciation,
impairment loss, if any. Deemed cost includes
expenditure that is directly attributable to the
acquisition of the items.

Subsequent costs are included in the asset''s
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with
the item will flow to the Company and the cost of
the item can be measured reliably. The carrying
amount of any component accounted for as a
separate asset is derecognised when replaced.
All other repairs and maintenance are charged
to the statement of profit and loss during the
reporting period in which they are incurred.

Capital work-in-progress comprises the cost of
property, plant and equipment that are not yet
ready for their intended use on the reporting
date and materials at site.

Subsequent measurement (Depreciation
methods, estimated useful lives and residual
value):

Property, plant and equipment are subsequently
measured at cost less accumulated depreciation
and impairment losses. Depreciation on
property, plant and equipment is provided on
a straight-line basis, computed on the basis
of useful lives (as set out below) prescribed in
Schedule II to the Companies Act, 2013:

The Company, based on technical assessment
made by technical expert and management
estimate, depreciates certain property,
plant and equipment, overestimated useful
lives which are different from the useful life
prescribed in Schedule II to the Companies
Act, 2013. The management believes that these
estimated useful lives are realistic and reflect
fair approximation of the period over which the
assets are likely to be used.

Depreciation on deemed cost of other property,
plant and equipment (except land) is provided
on pro rata basis on straight line method based
on useful lives specified in Schedule II to the
Companies Act, 2013.

The useful lives, residual values and method of
depreciation of property plant and equipment
are reviewed and adjusted prospectively, if
appropriate at the end of each reporting period.

Derecognition:

An item of property, plant and equipment
and any significant part initially recognised
is derecognised upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss when the
asset is derecognised.

2.04 Business combination and goodwill:

Business combinations other than those
under common control transactions are
accounted for using the acquisition method.
The cost of an acquisition is measured as the
aggregate of the consideration transferred
measured at acquisition date fair value and
the amount of any non-controlling interests in
the acquiree. For each business combination,
the Company elects whether to measure the
non-controlling interests in the acquiree at

fair value or at the proportionate share of the
acquiree''s identifiable net assets. In respect
to the business combination for acquisition of
subsidiary, the Company has opted to measure
the non-controlling interests in the acquiree
at the proportionate share of the acquiree''s
identifiable net assets. Acquisition-related costs
are expensed as incurred.

At the acquisition date, the identifiable assets
acquired, and the liabilities assumed are
recognised at their acquisition date fair values.
For this purpose, the liabilities assumed include
contingent liabilities representing present
obligation and they are measured at their
acquisition fair values irrespective of the fact
that outflow of resources embodying economic
benefits is not probable.

When the Company acquires a business, it
assesses the financial assets and liabilities
assumed for appropriate classification
and designation in accordance with the
contractual terms, economic circumstances
and pertinent conditions as at the acquisition
date. This includes the separation of embedded
derivatives in host contracts by the acquiree.
If the business combination is achieved in
stages, any previously held equity interest is re¬
measured at its acquisition date fair value and
any resulting gain or loss is recognised in profit
or loss or OCI, as appropriate.

Goodwill is initially measured at cost, being the
excess of the aggregate of the consideration
transferred and the amount recognised for non¬
controlling interests, and any previous interest
held, over the net identifiable assets acquired
and liabilities assumed. If the fair value of the
net assets acquired is in excess of the aggregate
consideration transferred, the Company re¬
assesses whether it has correctly identified all
of the assets acquired and all of the liabilities
assumed and reviews the procedures used to
measure the amounts to be recognised at the
acquisition date. If the reassessment still results
in an excess of the fair value of net assets
acquired over the aggregate consideration
transferred, then the gain is recognised in OCI
and accumulated in equity as capital reserve.
However, if there is no clear evidence of bargain
purchase, the entity recognises the gain directly
in equity as capital reserve, without routing the
same through OCI.

After initial recognition, goodwill is measured
at cost less any accumulated impairment
losses. For the purpose of impairment testing,
goodwill acquired in a business combination
is, from the acquisition date, allocated to each

(All amounts in Rupees Crores, unless otherwise stated)
of the Company''s cash-generating units that
are expected to benefit from the combination,
irrespective of whether other assets or liabilities
of the acquiree are assigned to those units.

A cash generating unit to which goodwill
has been allocated is tested for impairment
annually, or more frequently when there is an
indication that the unit may be impaired. If the
recoverable amount of the cash generating unit
is less than it carrying amount, the impairment
loss is allocated first to reduce the carrying
amount of any goodwill allocated to the unit
and then to the other assets of the unit pro rata
based on the carrying amount of each asset
in the unit. Any impairment loss for goodwill
is recognised in profit or loss. An impairment
loss recognised for goodwill is not reversed in
subsequent periods.

2.05 Investment in equity instruments of
subsidiaries:

A subsidiary is an entity that is controlled by the
Company. The Company controls its subsidiary
when the company is exposed, or has rights, to
variable returns from its involvement with the
subsidiary and has the ability to affect those
returns through its power over the subsidiary.

The consideration made in determining whether
significant influence or joint control are similar
to those necessary to determine control over
the subsidiaries.

Investment in equity instruments of subsidiaries
are stated at cost as per Ind AS 27 ''Separate
Financial Statements''. Where the carrying
amount of an investment is greater than its
estimated recoverable amount, it is assessed
for recoverability and in case of permanent
diminution provision for impairment is recorded
in Statement of Profit and Loss. On disposal
of investment, the difference between the net
disposal proceeds and the carrying amount is
charged or credited to the Statement of Profit
and Loss.

2.06 Investment Properties

Property that is held for long term rental
yields or for capital appreciation or for both,
and that is not occupied by the Company, is
classified as investment property. Investment
property is measured initially at its cost,
including related transaction cost and where
applicable borrowing costs. Subsequent to
initial recognition, investment properties are
stated at cost less accumulated depreciation
and accumulated impairment loss, if any.

Subsequent expenditure is capitalized to assets
carrying amount only when it is probable that
future economic benefits associated with the
expenditure will flow to the Company and
the cost of the item can be measured reliably.
When significant parts of investment property
are required to be replaced at intervals, the
Company depreciates them separately based on
their respective useful lives. All other repair and
maintenance cost are expensed when incurred.

Though the Company measures investment
property using cost-based measurement, the
fair value of investment property is disclosed in
the notes. Fair values are determined based on
an annual evaluation performed by an external
independent valuer applying a valuation model
as per Ind AS 113 “ Fair value measurement”.

I nvestment properties are derecognised either
when they have been disposed of or when
they are permanently withdrawn from use and
no future economic benefit is expected from
their disposal. The difference between the net
disposal proceeds and the carrying amount
of the asset is recognised in the statement of
profit and loss in the period of derecognition.

Investment properties are depreciated using
straight line method over their estimated useful
life i.e. 30 years.

Transfers are made to (or from) investment
properties only when there is a change in
use. Transfers between investment property,
owner-occupied property and inventories
do not change the carrying amount of the
property transferred and they do not change
the cost of that property for measurement or
disclosure purposes.

2.07 Intangible Assets

Intangible assets including brand acquired
separately are measured on initial recognition
at cost. The cost of intangible assets acquired in
a business combination is their fair value at the
date of acquisition. Following initial recognition,
intangible assets are carried at cost less any
accumulated amortisation and accumulated
impairment losses.

The useful lives of intangible assets are assessed
as either finite or indefinite.

Computer Software for internal use, which is
primarily acquired from third party vendors, is
capitalised. Subsequent costs associated with
maintaining such software are recognised as
expense as incurred. Cost of software includes
license fees and cost of implementation/system
integration services, where applicable.

(All amounts in Rupees Crores, unless otherwise stated)
I ntangible assets with finite lives are amortised
over the useful economic life (Computer software
5 years) and assessed for impairment whenever
there is an indication that the intangible asset
may be impaired. The amortisation period and
the amortisation method for an intangible asset
with a finite useful life are reviewed at least
at the end of each reporting period. Changes
in the expected useful life or the expected
pattern of consumption of future economic
benefits embodied in the asset are considered
to modify the amortisation period or method,
as appropriate, and are treated as changes
in accounting estimates. The amortisation
expense on intangible assets with finite lives is
recognised in the statement of profit and loss
unless such expenditure forms part of carrying
value of another asset.

The Brand under the head ''Intangible assets'' is
being amortised based on the useful life of 20
years as assessed by the management based on
technical assessment made by technical expert.

Intangible assets with indefinite useful lives are
not amortized, but are tested for impairment
annually, either individually or at the cash¬
generating unit level. The assessment of
indefinite life is reviewed annually to determine
whether the indefinite life continues to be
supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognised
in the statement of profit or loss when the asset
is derecognised.

Amortisation method

Computer software are amortized on a straight
line basis over estimated useful life of five years
from the date of capitalisation.

Brand are amortized on a straight line basis
over estimated useful life of Twenty years from
the date of capitalisation.

2.08 Impairment of non-financial assets

The Company assesses at each reporting date,
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset
is required, the Company estimates the asset''s
recoverable amount. An asset''s recoverable
amount is the higher of an assets or cash¬
generating unit''s (CGU) fair value less costs of
disposal and its value in use. The recoverable

amount is determined for an individual asset,
unless the asset does not generate cash
inflows that are largely independent of those
from other assets or Company''s assets. When
the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to its
recoverable amount.

I n assessing value in use, the estimated future
cash flows are discounted to their present value
using a pre-tax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset. In determining
fair value less costs of disposal, recent market
transactions are taken into account. If no such
transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, quoted
share prices for publicly traded companies or
other available fair value indicators.

The Company bases its impairment calculation
on detailed budgets and forecast calculations,
which are prepared separately for each of the
Company''s CGUs to which the individual assets
are allocated. These budgets and forecast
calculations generally cover a period of five
to eight years. For longer periods, a long-term
growth rate is calculated and applied to project
future cash flows after the 8^th year. To estimate
cash flow projections beyond periods covered
by the most recent budgets/forecasts, the
Company extrapolates cash flow projections in
the budget using a steady or declining growth
rate for subsequent years, unless an increasing
rate can be justified. In any case, this growth rate
does not exceed the long-term average growth
rate for the products, industries, or country or
countries in which the Company operates, or for
the market in which the asset is used.

Impairment losses of continuing operations,
including impairment on inventories, are
recognised in the statement of profit and loss,
except for properties previously revalued
with the revaluation surplus taken to OCI. For
such properties, the impairment is recognised
in OCI up to the amount of any previous
revaluation surplus.

An assessment is made at each reporting date
to determine whether there is an indication that
previously recognised impairment losses no
longer exist or have decreased. If such indication
exists, the Company estimates the assets
or CGU''s recoverable amount. A previously
recognised impairment loss is reversed only
if there has been a change in the assumptions
used to determine the asset''s recoverable

amount since the last impairment loss was
recognised. The reversal is limited so that the
carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying
amount that would have been determined, net
of depreciation, had no impairment loss been
recognised for the asset in prior years. Such
reversal is recognised in the statement of profit
and loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as
a revaluation increase.

Goodwill is tested for impairment annually at
each reporting date and when circumstances
indicate that the carrying value may be
impaired. Impairment is determined for
goodwill by assessing the recoverable amount
of each CGU (or group of CGUs) to which the
goodwill relates. When the recoverable amount
of the CGU is less than it''s carrying amount,
an impairment loss is recognised. Impairment
losses relating to goodwill cannot be reversed in
future periods. Intangible assets with indefinite
useful lives are tested for impairment annually
at each reporting date at the CGU level, as
appropriate, and when circumstances indicate
that the carrying value may be impaired.

2.09 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.

(i) Financial Assets

The Company classifies its financial assets in
the following measurement categories:

• Those to be measured subsequently at fair
value (either through other comprehensive
income, or through profit or loss)

• Those measured at amortized cost

The classification of financial assets at
initial recognition depends on the financial
asset''s contractual cash flow characteristics
and the Company''s business model for
managing them.

Initial recognition and measurement

With the exception of trade receivables
that do not contain a significant financing
component or for which the Company
has applied the practical expedient, the
Company initially measures a financial asset
at its fair value plus, in the case of a financial
asset not at fair value through profit or loss,
transaction costs.

Trade receivables that do not contain
a significant financing component or
for which the Company has applied the
practical expedient and are measured at the
transaction price determined under Ind AS
115. Refer to the accounting policies in section
''Revenue from contracts with customers''.

In order for a financial asset to be classified
and measured at amortised cost or fair value
through OCI, it needs to give rise to cash
flows that are ''solely payments of principal
and interest (SPPI)'' on the principal amount
outstanding. This assessment is referred
to as the SPPI test and is performed at an
instrument level. Financial assets with cash
flows that are not SPPI are classified and
measured at fair value through profit or loss,
irrespective of the business model.

The Company''s business model for managing
financial assets refers to how it manages
its financial assets in order to generate
cash flows. The business model determines
whether cash flows will result from collecting
contractual cash flows, selling the financial
assets, or both.

Financial assets classified and measured at
amortised cost are held within a business
model with the objective to hold financial
assets in order to collect contractual cash
flows while financial assets classified and
measured at fair value through OCI are held
within a business model with the objective
of both holding to collect contractual cash
flows and selling.

Subsequent measurement

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

• Financial assets at amortised cost (debt
instruments)

• Financial assets at fair value through other
comprehensive income (FVTOCI) with
recycling of cumulative gains and losses
(debt instruments)

• Financial assets designated at fair
value through OCI with no recycling
of cumulative gains and losses upon
derecognition (equity instruments)

• Financial assets at fair value through
profit or loss

Financial assets at amortised cost (debt
instruments)

A ''financial asset'' is measured at the
amortised cost if both the following
conditions are met:

(a) Business model test: The objective

is to hold the financial asset to collect
the contractual cash flows (rather

than to sell the instrument prior to its
contractual maturity to realize its fair
value changes) and;

(b) Cash flow characteristics test: The

contractual terms of the financial

asset give rise on specific dates to
cash flows that are solely payments
of principal and interest on principal
amount outstanding.

This category is most relevant to the
Company. After initial measurement,
such financial assets are subsequently
measured at amortized 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 EIR. EIR is the rate
that exactly discounts the estimated
future cash receipts over the expected
life of the financial instrument or a
shorter period, where appropriate,
to the gross carrying amount of the
financial asset. When calculating the
effective interest rate, the Company
estimates the expected cash flows by
considering all the contractual terms of
the financial instrument but does not
consider the expected credit losses. The
EIR amortization is included in other
income in statement of profit and loss.
The losses arising from impairment are
recognized in the profit or loss. This
category generally applies to trade and
other receivables.

Financial assets at fair value through OCI
(FVTOCI) (debt instruments)

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

(a) Business model test: The objective of
financial instrument is achieved by both
collecting contractual cash flows and
selling the financial assets; and

(b) Cash flow characteristics test:

The contractual terms of the Debt
instrument give rise on specific dates
to cash flows that are solely payments
of principal and interest on principal
amount outstanding.

Debt instrument included within the
FVTOCI category are measured initially
as well as at each reporting date at
fair value. Fair value movements are
recognized in the other comprehensive
income (OCI), except for the recognition
of interest income, impairment gains or
losses and foreign exchange gains or
losses which are recognized in statement
of profit and loss and computed in
the same manner as for financial
assets measured at amortised cost.
The remaining fair value changes are
recognised in OCI. Upon derecognition,
the cumulative fair value changes
recognised in OCI is reclassified from
the equity to profit or loss.

Financial assets at fair value through profit
or loss

Financial assets at fair value through profit
or loss are carried in the balance sheet
at fair value with net changes in fair value
recognised in the statement of profit and
loss. This category includes derivative
instruments and listed equity investments
which the Company had not irrevocably
elected to classify at fair value through
OCI. Dividends on listed equity investments
are recognised in the statement of profit
and loss when the right of payment has
been established.

Financial assets designated at fair value
through OCI (equity instruments)

Upon initial recognition, the Company
can elect to classify irrevocably its equity
investments as equity instruments designated
at fair value through OCI when they meet the
definition of equity under Ind AS 32 Financial
Instruments: Presentation and are not held
for trading. The classification is determined
on an instrument-by-instrument basis. Equity
instruments which are held for trading and
contingent consideration recognised by an
acquirer in a business combination to which
Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are
never recycled to profit or loss. Dividends are
recognised as other income in the statement
of profit and loss when the right of payment

has been established, except when the
Company benefits from such proceeds as a
recovery of part of the cost of the financial
asset, in which case, such gains are recorded
in OCI. Equity instruments designated at
fair value through OCI are not subject to
impairment assessment.

Derecognition

A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised
(i.e. removed from the Company''s statement
of financial position) 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.

When the Company has transferred its rights
to receive cash flows from an asset or has
entered into a pass-through arrangement,
it evaluates if and to what extent it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all of the risks and rewards
of the asset, nor transferred control of the
asset, the Company continues to recognise
the transferred asset to the extent of the
Company''s continuing involvement. In
that case, the Company also recognises an
associated liability. The transferred asset and
the associated liability are measured on a
basis that reflects the rights and obligations
that the Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at the lower of the original carrying
amount of the asset and the maximum
amount of consideration that the Company
could be required to repay.

Impairment of financial assets

In accordance with IND AS 109, the Company
applies expected credit losses(ECL) model

for measurement and recognition of
impairment loss on the following financial
asset and credit risk exposure

• Financial assets measured at
amortized cost;

• Financial assets measured at fair value
through other comprehensive income
(FVTOCI);

ECLs are based on the difference between
the contractual cash flows due in accordance
with the contract and all the cash flows that
the Company expects to receive, discounted
at an approximation of the original effective
interest rate. The expected cash flows will
include cash flows from the sale of collateral
held or other credit enhancements that are
integral to the contractual terms.

ECLs are recognised in two stages. For
credit exposures for which there has not
been a significant increase in credit risk
since initial recognition, ECLs are provided
for credit losses that result from default
events that are possible within the next
12-months (a 12-month ECL). For those
credit exposures for which there has been a
significant increase in credit risk since initial
recognition, a loss allowance is required for
credit losses expected over the remaining life
of the exposure, irrespective of the timing of
the default (a lifetime ECL).

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

• Trade receivables or contract
revenue receivables.

• All lease receivables resulting from the
transactions within the scope of Ind AS
116 -Leases”.

Under the simplified approach, the Company
does not track changes in credit risk. Rather,
it recognizes impairment loss allowance
based on lifetime ECLs at each reporting
date, right from its initial recognition.
The Company uses a provision matrix to
determine impairment loss allowance on the
portfolio of trade receivables. The provision
matrix is based on its historically observed
default rates over the expected life of trade
receivable and is adjusted for forward
looking estimates. At every reporting date,
the historical observed default rates are
updated and changes in the forward-looking
estimates are analysed.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized
as income/ expense in the Standalone
statement of profit and loss. This amount is
reflected under the head ''other expenses'' in
the statement of Standalone statement of
profit and loss. The Standalone statement of
assets and liabilities presentation for various
financial instruments is described below:”

(a) Financial assets measured as at
amortised cost: ECL is presented as
an allowance, i.e., as an integral part
of the measurement of those assets in
the statement of assets and liabilities.
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.

(b) Loan commitments and financial
guarantee contracts: ECL is presented
as a provision in the statement of assets
and liabilities, i.e., as a liability.

(c) Debt instruments measured at FVTOCI:
For debt instruments measured at
FVTOCI, the expected credit losses
do not reduce the carrying amount in
the statement of assets and liabilities,
which remains at fair value. Instead,
an amount equal to the allowance that
would arise if the asset was measured
at amortised cost is recognised in
other comprehensive income as the
accumulated impairment amount.”

(ii) 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,
and payables, net of directly attributable
transaction costs. 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 financial liabilities include
loans and borrowings, trade payables, trade
deposits, retention money, liabilities towards
services and other payables.

Subsequent measurement

For purposes of subsequent measurement,
financial liabilities are classified in
two categories:

(i) Financial liabilities at fair value through
profit or loss

(ii) Financial liabilities at amortised cost
(loans and borrowings)”

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 relationship
as defined by Ind AS 109. The separated
embedded derivate are also classified as
held for trading unless they are designated
as effective hedging instruments.

Gains or losses on liabilities held for trading
are recognized in the statement of profit
and 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/ losses are
not subsequently transferred to profit and
loss. However, the Company may transfer
the cumulative gain or loss within equity. All
other changes in fair value of such liability
are recognized 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
(Loans and borrowings)

After initial recognition, interest-bearing
borrowings are subsequently measured
at amortized cost using the Effective
interest rate method. Gains and losses
are recognized in profit or loss when the
liabilities are derecognised as well as through
the Effective interest rate amortization
process. Amortized cost is calculated by
taking into account any discount or premium
on acquisition and fees or costs that are an
integral part of the Effective interest rate.
The Effective interest rate amortization is
included as finance costs in the statement of
profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the
Company are those contracts that require a
payment to be made to reimburse the holder
for a loss it incurs because the specified
debtor fails to make a payment when due
in accordance with the terms of a debt
instrument. Financial guarantee contracts
are recognised initially as a liability at fair
value, adjusted for transaction costs that
are directly attributable to the issuance of
the guarantee. Subsequently, the liability is
measured at the higher of the amount of loss
allowance determined as per impairment
requirements of Ind AS 109 and the amount
recognised less cumulative amortisation.

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 recognized
in the statement of profit and loss.

Offsetting of financial instruments

Financials assets and financial liabilities are
offset, and the net amount is reported in the
statement of assets and liabilities if there is a
currently enforceable legal right to offset the
recognized amounts and there is an intention
to settle on a net basis, to realize the assets
and settle the liabilities simultaneously.

Reclassification of financial assets/
financial liabilities

The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial assets
which are equity instruments and financial
liabilities. For financial assets which are debt
instruments, a reclassification is made only
if there is a change in the business model
for managing those assets. Changes to the
business model are expected to be infrequent.
The Company''s senior management
determines change in the business model as

a result of external or internal changes which
are significant to the Company''s operations.
Such changes are evident to external parties.
A change in the business model occurs
when the Company either begins or ceases
to perform an activity that is significant to
its operations. If the Company reclassifies
financial assets, it applies the reclassification
prospectively from the reclassification date
which is the first day of the immediately next
reporting period following the change in
business model.

2.10 Inventories:

I nventories are valued at lower of cost or net
realisable value.

Cost includes the cost of purchase and other
costs incurred in bringing the inventories (other
than finished goods) to their present location
and condition. Cost of finished goods includes
cost of direct materials and labour and a
proportion of manufacturing overheads based
on the normal operating capacity but excluding
borrowing costs. Cost is determined on a first in
first out basis.

Net realisable value is the estimated selling
price in the ordinary course of business less
estimated costs necessary to make sale.

2.11 Income Tax:

The income tax expense or credit for the period
is the tax payable on the current period''s taxable
income based on the applicable income tax rate
for each jurisdiction adjusted by changes in
deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.

Current income tax

The current income tax charge is calculated on
the basis of the tax laws enacted or substantively
enacted at the end of the reporting period.
Management periodically evaluates positions
taken in tax returns with respect to situations
in which applicable tax regulation is subject
to interpretation and considers whether it is
probable that a taxation authority will accept
an uncertain tax treatment. The Company
measures its tax balances either based on the
most likely amount or the expected value,
depending on which method provides a better
prediction of the resolution of the uncertainty.
Current income tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognised in
correlation to the underlying transaction either
in OCI or directly in equity.

Deferred tax

Deferred income tax is provided in full,
using the liability method, on temporary
differences arising between the tax bases
of assets and liabilities and their carrying
amounts in the Standalone Financial
Statements. However, deferred tax liabilities
are not recognised if they arise from the
initial recognition of goodwill. Deferred
income tax is also not accounted for if it
arises from initial recognition of an asset
or liability in a transaction other than a
business combination that at the time of the
transaction affects neither accounting profit
nor taxable profit (tax loss). Deferred income
tax is determined using tax rates (and laws)
that have been enacted or substantially
enacted by the end of the reporting period
and are expected to apply when the related
deferred income tax asset is realised, or the
deferred income tax liability is settled.

Deferred tax assets are recognised for
all deductible temporary differences and
unused tax losses only if it is probable that
future taxable amounts will be available
to utilise those temporary differences
and losses.

Deferred tax liabilities are not recognised for
temporary differences between the carrying
amount and tax bases of investments in
subsidiaries, joint ventures and associates
and interest in joint arrangements where the
Company is able to control the timing of the
reversal of the temporary differences and
it is probable that the differences will not
reverse in the foreseeable future.

Deferred tax assets are not recognised for
temporary differences between the carrying
amount and tax bases of investments in
subsidiaries, joint ventures and associates
and interest in joint arrangements where
it is not probable that the differences will
reverse in the foreseeable future and taxable
profit will not be available against which the
temporary difference can be utilised.

Deferred tax assets and liabilities are offset
where there is a legally enforceable right
to offset current tax assets and liabilities
and where the deferred tax balances relate
to the same taxation authority. Current tax
assets and tax liabilities are offset where
the entity has a legally enforceable right to
offset and intends either to settle on a net
basis, or to realise the asset and settle the
liability simultaneously.

Current and deferred tax is recognised in
statement of profit and loss, except to the
extent that it relates to items recognised in
other comprehensive income or directly in
equity. In this case, the tax is also recognised
in other comprehensive income or directly in
equity, respectively.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable
that sufficient taxable profit will be available
to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting
date and are recognised to the extent that
it has become probable that future taxable
profits will allow the deferred tax asset to
be recovered.

Deferred tax relating to items recognised
outside profit or loss is recognised outside
profit or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognised in correlation to the underlying
transaction either in OCI or directly in equity.

2.12 Revenue from contract with customers:

Revenue is recognised at an amount that reflects
the consideration to which the Company expects
to be entitled in exchange for transferring the
promised goods or services to a customer i.e.,
on transfer of control of the goods or service
to the customer. Revenue from sales of goods
or rendering of services is net of Indirect taxes,
returns and variable consideration on account
of discounts and schemes offered by the
Company as part of the contract. The Company
applies the revenue recognition criteria to
each separately identifiable component of the
revenue transaction as set out below:

(i) Revenue from sale of services (Rooms, Food
and Beverage & Banquets):

• Revenue is recognised at the transaction
price that is allocated to the performance
obligation. Revenue includes room revenue,
food and beverage sale and banquet
services which is recognised once the rooms
are occupied, food and beverages are sold,
and banquet services have been provided as
per the contract with the customer.

• Revenue is recognised net of discounts and
sales related taxes in the period in which
the services are rendered. The Company
collects Goods and Service Tax (GST) and
value added tax (VAT) on behalf of the

government, and therefore, these are not
economic benefits flowing to the Company.

(ii) Other Operating Revenue:

• Exports entitlements [arising out of Served
from India Scheme (SFIS)] are recognised
when the right to receive credit as per the
terms of the schemes is established in
respect of the exports made by the Company
and when there is no significant uncertainty
regarding the ultimate collection of the
relevant export proceeds.

• Loyalty Programme: The Company operates
a loyalty point''s programme, which allows
customers to accumulate points when
they obtain services in the Company''s
Hotels. This programme provides a
material right to customers, in the form
of award points, on eligible spends. The
promise to provide the discount through
award points to the customer is therefore
a separate performance obligation. The
points so earned by such customers are
accumulated and have a fixed redemption
price. The revenues related to award points
pertaining to the Company is deferred and
a contract liability is created at the time of
initial sales basis the points awarded to the
customer and the likelihood of redemption,
as evidenced by the Company''s historical
experience. On redemption or expiry of such
award points, revenue is recognised at pre¬
determined rates.

• Space and Shop Rentals: Rentals basically
consists of rental revenue earned from
letting of spaces for retails and office at the
properties. Revenue is recognised in the
period in which services are being rendered.

• Other Allied Services: In relation to laundry
income, communication income, health
club income, airport transfers income and
other allied services, the revenue has been
recognised by reference to the time of
service rendered.

• Management and Operating Fees:
Management fees earned from hotels
managed by the Company are usually
under long-term contracts with the hotel
owner. Under Management and Operating
Agreements, the Company''s performance
obligation is to provide hotel management
services and a license to use the Company''s
trademark and other intellectual property.
Management and incentive fee are earned
as a percentage of revenue and profit and
are recognised when earned in accordance

with the terms of the contract based on
the underlying revenue, when collectability
is certain and when the performance
criteria are met. Both are treated as
variable consideration.

• Membership Fees: Membership fee income
majorly consists of membership fees
received from the loyalty programme and
Chamber membership fees. In respect of
performance obligations satisfied over a
period of time, revenue is recognised at
the allocated transaction price on a time-
proportion basis.

(iii) Interest Income:

Interest income is recorded on accrual
basis using the effective interest rate
(EIR) method. For all debt instruments
measured either at amortised cost or at
fair value through other comprehensive
income, interest income is recorded using
the effective interest rate (EIR). EIR is the
rate that exactly discounts the estimated
future cash payments or receipts over the
expected life of the financial instrument
or a shorter period, where appropriate, to
the gross carrying amount of the financial
asset or to the amortised cost of a financial
liability. When calculating the effective
interest rate, the Company estimates the
expected cash flows by considering all the
contractual terms of the financial instrument
(for example, prepayment, extension, call
and similar options) but does not consider
the expected credit losses.

(iv) Rental Income:

Rental income is recognised on a straight¬
line basis over the term of the lease over
the lease terms and is included in revenue
in the statement of profit or loss due to its
operating nature.

(v) Dividend Income:

Dividend income is recognised at the time
when the right to receive is established which
is generally when shareholders approve
the dividend.

(vi) Contract balances

A contract asset is the right to consideration
in exchange for goods or services transferred
to the customer. If the Company performs by
transferring goods or services to a customer
before the customer pays consideration or
before payment is due, a contract asset is

recognised for the earned consideration that
is conditional.

A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer. If a customer pays consideration
before the Company transfers goods
or services to the customer, a contract
liability is recognised when the payment is
made, or the payment is due (whichever is
earlier). Contract liabilities are recognised as
revenue when the Company performs under
the contract.

A trade receivable is recognised if an amount
of consideration that is unconditional (i.e.,
only the passage of time is required before
payment of the consideration is due). Refer
to accounting policies of financial assets
in section (Financial instruments - initial
recognition and subsequent measurement).

2.13 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, a reduction in future
payment or a cash refund.

The Company operates a defined benefit gratuity
plan in India, which requires contributions to be
made to a separately administered fund.

The cost of providing benefits under the defined
benefit plan is determined using the projected
unit credit method.

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

Accumulated leave, which is expected to be
utilized within the next 12 months, is treated

---

Mar 31, 2024

2. Material Accounting Policies

This note provides a list of the Material accounting policies adopted in the preparation of these Standalone Financial Statements.

2.1 Basis of preparation of Standalone Financial Statements:

These Standalone Financial Statements have been prepared in accordance with the Indian Accounting Standards (referred to as “Ind AS”) as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Standalone Financial Statements.

The accounting policies applied by the Company in preparation of the Standalone Financial Statements are consistent with those adopted in the preparation of Standalone Financial statements for the year ended March 31, 2024. These standalone financial statements have been prepared for the Company as a going concern on the basis of relevant Ind AS that are effective as at March 31, 2024.

The Standalone Financial Statements have been prepared on the historical cost basis, except for the following assets and liabilities which have been measured at fair value:

• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments);

• Defined benefits plan - plan assets measured at fair value;

(All amounts in Rupees Crores, unless otherwise stated) The Standalone Financial Statements are presented in Indian Rupees “INR” or “Rs and all values are rounded to the nearest crores except when otherwise indicated.

>.2 New and amended standards adopted by the Company:

The Company has applied the following amendments to Ind AS for the first time for their latest annual reporting period commencing from April 01, 2023:

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standard) Amendment Rules 2023 dated March 31, 2023, to amend the following Ind AS which are effective from April 01, 2023.

(i) Definition of Accounting Estimates -Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments do not have any impact on the Company standalone financial statements.

(ii) Disclosure of Accounting Policies -Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''Significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The Company has modified their accounting policy information disclosures to ensure consistency with the amended requirements. Further, this amendment did not impact the measurement, recognition or presentation of any items in the Company standalone financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions

that give rise to equal taxable and deductible temporary differences.

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101. The amendments to Ind AS 12 are applicable for annual periods beginning on or after 1 April 2023.

The amendments do not have any impact on the Company.

2.3 Current versus non-current classification:

The Company presents assets and liabilities in the balance sheet based on current/non- current classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current.

Deferred tax assets and deferred tax liabilities are classified as non- current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has identified twelve months as its operating cycle.

2.4 Property, plant and equipment:

Recognition and initial measurement:

All items of property, plant and equipment are stated at deemed cost (fair value as at transition date) less accumulated depreciation, impairment loss, if any. Deemed cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the statement of profit and loss during the reporting period in which they are incurred.

Capital work-in-progress comprises the cost of property, plant and equipment that are not yet ready for their intended use on the reporting date and materials at site.

Subsequent measurement (Depreciation methods, estimated useful lives and residual value):

Property, plant and equipment are subsequently measured at cost less accumulated depreciation and impairment losses. Depreciation on property, plant and equipment is provided on a straightline basis, computed on the basis of useful lives (as set out below) prescribed in Schedule II to the Companies Act, 2013:

The Company, based on technical assessment made by technical expert and management estimate, depreciates certain property, plant and equipment, overestimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

‘Depreciation on building constructed on leasehold land is restricted to lower of useful life of balance period of leasehold land or useful life calculated based on 100 years.

Depreciation on deemed cost of other property, plant and equipment (except land) is provided on pro rata basis on straight line method based on useful lives specified in Schedule II to the Companies Act, 2013.

The useful lives, residual values and method of depreciation of property plant and equipment are reviewed and adjusted prospectively, if appropriate at the end of each reporting period.

Derecognition:

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised.

2.5 Business combination and goodwill:

Business combinations other than those under common control transactions are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at

(All amounts in Rupees Crores, unless otherwise stated) acquisition date fair value and the amount of any non-controlling interests in the acquiree. For each business combination, the Company elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree''s identifiable net assets. In respect to the business combination for acquisition of subsidiary, the Company has opted to measure the non-controlling interests in the acquiree at the proportionate share of the acquiree''s identifiable net assets. Acquisition-related costs are expensed as incurred.

At the acquisition date, the identifiable assets

acquired, and the liabilities assumed are recognised at their acquisition date fair values. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable.

When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the

acquiree. If the business combination is achieved in stages, any previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognised in profit or loss or OCI, as appropriate.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for noncontrolling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Company reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in OCI and accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly

in equity as capital reserve, without routing the same through OCI.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company''s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than it carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

2.6 Investment in equity instruments of subsidiaries:

A subsidiary is an entity that is controlled by the Company. The Company controls its subsidiary when the company is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary.

The consideration made in determining whether significant influence or joint control are similar to those necessary to determine control over the subsidiaries.

I nvestment in equity instruments of subsidiaries are stated at cost as per Ind AS 27 ''Separate Financial Statements''. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is assessed for recoverability and in case of permanent diminution provision for impairment is recorded in Statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

2.7 Investment Properties

Property that is held for long term rental yields or for capital appreciation or for both, and that is not occupied by the Company, is classified as investment property. Investment property is

(All amounts in Rupees Crores, unless otherwise stated) measured initially at its cost, including related transaction cost and where applicable borrowing costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

Subsequent expenditure is capitalised to assets carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. When significant parts of investment property are required to be replaced at intervals, the Company depreciates them separately based on their respective useful lives. All other repair and maintenance cost are expensed when incurred.

Though the Company measures investment property using cost-based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an external independent valuer applying a valuation model as per Ind AS 113 “ Fair value measurement”.

Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the statement of profit and loss in the period of derecognition.

Investment properties are depreciated using straight line method over their estimated useful life i.e. 30 years.

Transfers are made to (or from) investment properties only when there is a change in use. Transfers between investment property, owner-occupied property and inventories do not change the carrying amount of the property transferred and they do not change the cost of that property for measurement or disclosure purposes.

2.8 Intangible Assets

Intangible assets including brand acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.

The useful lives of intangible assets are assessed as either finite or indefinite.

Computer Software for internal use, which is primarily acquired from third party vendors, is capitalised. Subsequent costs associated with maintaining such software are recognised as expense as incurred. Cost of software includes license fees and cost of implementation / system integration services, where applicable.

I ntangible assets with finite lives are amortised over the useful economic life (Computer software 5 years) and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

The Brand under the head ''Intangible assets'' is being amortised based on the useful life of 20 years as assessed by the management based on technical assessment made by technical expert.

I ntangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cashgenerating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

Amortisation method

Computer software are amortised on a straight line basis over estimated useful life of five years from the date of capitalisation.

Brand are amortised on a straight line basis over estimated useful life of Twenty years from the date of capitalisation.

2.9 Impairment of non- financial assets

The Company assesses at each reporting date, whether there is an indication that an asset may

be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an assets or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Company''s assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

I n assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company''s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five to eight years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the 8^th year. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which the Company operates, or for the market in which the asset is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss, except for properties previously revalued with the revaluation surplus taken to OCI. For such properties, the impairment is recognised in OCI up to the amount of any previous revaluation surplus.

An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication

exists, the Company estimates the assets or CGU''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit and loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

Goodwill is tested for impairment annually at each reporting date and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or Company of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than it''s carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. Intangible assets with indefinite useful lives are tested for impairment annually at each reporting date at the CGU level, as appropriate, and when circumstances indicate that the carrying value may be impaired.

2.10Financial 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.

(i) Financial Assets

The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss)

• Those measured at amortised cost

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them.”

Initial recognition and measurement

With the exception of trade receivables that do not contain a significant financing

component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient and are measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section ''Revenue from contracts with customers''.

I n order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.”

Subsequent measurement

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

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses (debt instruments)

• - Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

• - Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

A ''financial asset'' is measured at the amortised cost if both the following conditions are met:

(a) Business model test: The objective is to hold the financial asset to collect the contractual cash flows (rather than to sell the instrument prior to its contractual maturity to realise its fair value changes) and;

(b) Cash flow characteristics test: The

contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on principal amount outstanding.

This category is most relevant to the Company. 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 EIR. EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. The EIR amortisation is included in other income in statement of profit and loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade and other receivables.

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

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

(a) Business model test: The objective of financial instrument is achieved by both collecting contractual cash flows and selling the financial assets; and

(b) Cash flow characteristics test:

The contractual terms of the Debt instrument give rise on specific dates to cash flows that are solely payments of principal and interest on principal amount outstanding.”

Debt instrument included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the other comprehensive income (OCI), except for the recognition of interest income, impairment gains or losses and foreign exchange gains or losses which are recognised in statement of profit and loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value changes recognised in OCI is reclassified from the equity to profit or loss.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognised in the statement of profit and loss. This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment has been established.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration recognised by an

acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit and loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

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 statement of financial position) 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.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with IND AS 109, the Company applies expected credit losses(ECL) model for measurement and recognition of impairment loss on the following financial asset and credit risk exposure

• Financial assets measured at amortised cost;

• Financial assets measured at fair value through other comprehensive income (FVTOCI);

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

The Company follows “’’simplified approach”” for recognition of impairment loss allowance on:

• Trade receivables or contract revenue receivables.

• All lease receivables resulting from the transactions within the scope of Ind AS 116 -Leases”.

Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognises impairment loss allowance

based on lifetime ECLs at each reporting date, right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in the Standalone statement of profit and loss. This amount is reflected under the head ''other expenses'' in the statement of Standalone statement of profit and loss. The Standalone statement of assets and liabilities presentation for various financial instruments is described below:”

(a) Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the statement of assets and liabilities. 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.

(b) Loan commitments and financial guarantee contracts: ECL is presented as a provision in the statement of assets and liabilities, i.e., as a liability.

(c) Debt instruments measured at FVTOCI: For debt instruments measured at FVTOCI, the expected credit losses do not reduce the carrying amount in the statement of assets and liabilities, which remains at fair value. Instead, an amount equal to the allowance that would arise if the asset was measured at amortised cost is recognised in other comprehensive income as the accumulated impairment amount.”

(ii) 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, and payables, net of directly attributable transaction costs. 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 financial liabilities include loans and borrowings, trade payables, trade deposits, retention money, liabilities towards services and other payables.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

(i) Financial liabilities at fair value through profit or loss

(ii) Financial liabilities at amortised cost (loans and borrowings)”

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 relationship as defined by Ind AS 109. The separated embedded derivate are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit and 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 recognised in OCI. These gains/ losses are not subsequently transferred to profit and loss. 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 (Loans and borrowings)

After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the Effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the Effective interest rate amortisation process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the Effective interest rate. The Effective interest rate amortisation is included as finance costs in the statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

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 and loss.

Offsetting of financial instruments

Financials assets and financial liabilities are offset, and the net amount is reported in the statement of assets and liabilities 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.

Reclassification of financial assets/ financial liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model.

2.11 Inventories:

Inventories are valued at lower of cost or net realisable value.

Cost includes the cost of purchase and other costs incurred in bringing the inventories (other than finished goods) to their present location and condition. Cost of finished goods includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity but excluding borrowing costs. Cost is determined on a first in first out basis.

Net realisable value is the estimated selling price in the ordinary course of business less estimated costs necessary to make sale.

2.12Income Tax:

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current income tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions

taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Standalone Financial Statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in

subsidiaries, joint ventures and associates

and interest in joint arrangements where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are not recognised for

temporary differences between the carrying amount and tax bases of investments in

subsidiaries, joint ventures and associates and

interest in joint arrangements where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised.

Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

2.13 Revenue from contract with customers:

Revenue is recognised at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services to a customer i.e., on transfer of control of the goods or service to the customer. Revenue from sales of goods or rendering of services is net of Indirect taxes, returns and variable consideration on account of discounts and schemes offered by the Company as part of the contract. The Company applies the revenue recognition criteria to each separately identifiable component of the revenue transaction as set out below:

(i) Revenue from sale of services (Rooms,

Food and Beverage & Banquets):

• Revenue is recognised at the transaction price that is allocated to the performance obligation. Revenue includes room revenue, food and beverage sale and banquet services which is recognised once the rooms are occupied, food and beverages are sold, and banquet services have been provided as per the contract with the customer.

• Revenue is recognised net of discounts and sales related taxes in the period in which the services are rendered. The Company collects Goods and Service Tax (GST) and value added tax (VAT) on behalf of the government, and therefore, these are not economic benefits flowing to the Company.

(ii) Other Operating Revenue:

• Exports entitlements [arising out of Served from India Scheme (SFIS)] are recognised when the right to receive credit as per the terms of the schemes is established in respect of the exports made by the Company and when there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

• Loyalty Programme: The Company operates a loyalty point''s programme, which allows customers to accumulate points when they obtain services in the Company''s Hotels. This programme provides a material right to customers, in the form of award points, on eligible spends. The promise to provide the discount through award points to the customer is therefore a separate performance obligation. The points so earned by such customers are accumulated and have a fixed redemption price. The revenues related to award points pertaining to the Company is deferred and a contract liability is created at the time of initial sales basis the points awarded to the customer and the likelihood of redemption, as evidenced by the Company''s historical experience. On redemption or expiry of such award points, revenue is recognised at pre-determined rates.

• Space and Shop Rentals: Rentals basically consists of rental revenue earned from

letting of spaces for retails and office at the properties. Revenue is recognised in the period in which services are being rendered.

• Other Allied Services: In relation to laundry income, communication income, health club income, airport transfers income and other allied services, the revenue has been recognised by reference to the time of service rendered.

• Management and Operating Fees: Management fees earned from hotels managed by the Company are usually under long-term contracts with the hotel owner. Under Management and Operating Agreements, the Company''s performance obligation is to provide hotel management services and a license to use the Company''s trademark and other intellectual property. Management and incentive fee are earned as a percentage of revenue and profit and are recognised when earned in accordance with the terms of the contract based on the underlying revenue, when collectability is certain and when the performance criteria are met. Both are treated as variable consideration.

• Membership Fees: Membership fee income majorly consists of membership fees received from the loyalty programme and Chamber membership fees. In respect of performance obligations satisfied over a period of time, revenue is recognised at the allocated transaction price on a time-proportion basis.

(iii) Interest Income:

Interest income is recorded on accrual basis using the effective interest rate (EIR) method. For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call

and similar options) but does not consider the expected credit losses.

(iv) Rental Income:

Rental income is recognised on a straightline basis over the term of the lease over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature.

(v) Dividend Income:

Dividend income is recognised at the time when the right to receive is established which is generally when shareholders approve the dividend.

(vi) Contract balances

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

A trade receivable is recognised if an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section (Financial instruments - initial recognition and subsequent measurement).

2.14Retirement 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 recognises 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 recognised 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 recognised as an asset to the extent that the pre-payment will lead to, a reduction in future payment or a cash refund.

The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to a separately administered fund.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

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

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Company recognises expected cost of short-term employee benefit as an expense, when an employee renders the related service.

2.15 Leases:

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company''s lease asset classes primarily comprise of lease for land and building. The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and accumulated impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, ini

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Mar 31, 2023

DATA NOT AVAILABLE