Notes to Accounts of Chalet Hotels Ltd.

Mar 31, 2025

Discount rate

The discount rate is a pre tax measure based on the rate of 10 year government bonds issued by the Government of India, adjusted for a risk premium to reflect both the increased risk of investing in equities generally and the systematic risk of the specific CGU.

Terminal value growth rate

Terminal value growth rate used for the purpose of calculation of terminal value has been determined based on the long-term compound annual growth rate in EBITDA.

Based on the above assumptions and analysis, no impairment was identified for any of the CGU as at March 31, 2025 and March 31, 2024 as the recoverable value of the CGU exceeded the carrying value.

With regard to the assessment of value in use, no reasonably possible change in any of the above key assumptions would cause the carrying amount of the CGUs to exceed their recoverable amount.

In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected under prepayment and others above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in 2003-04. During the financial year 2014-15, the Honorable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on January 22, 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the revised Standalone financial statements. The balance of prepaid lease rental in relation to such leasehold land as of March 31, 2025 is '' 46.14 million (March 31, 2024: '' 47.34 million).

(e) Rights, preferences and restrictions attached to equity shares.

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets on winding up. The equity shareholders are entitled to receive dividend as declared from time to time, subject to preferential right of preference shareholders to payment of dividend. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to his/its share of the paid-up equity share capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

f) Employee stock option plan

Number of shares reserved for ESOP is 1,100,999 (March 31, 2024 : 12,05,425) Term attached to stock options granted to employees are described in note 51.

Nature and purpose of reserves

Equity component of compound instruments

Equity component of Component Instruments comprises of the impact of fair valuation of preference shares issued by the Company. Employee stock option plan reserve

Reserve relates to stock options granted by the Company to employees of the Company under an employee stock options plan. (refer note 51)

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve represents appropriation of retained earnings and are available for distribution to shareholders.

Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve.

Capital redemption reserve

The reserve comprises of redemption of 0.001% Non-cumulative redeemable preference shares during the year.

Retained earnings

Retained earnings represents surplus/accumulated earnings of the Group and are available for distribution to shareholders. It includes impact of fair valuation of land on transition to Ind AS and are presently not available for distribution to shareholders (net of related tax impact): '' 4,263.67 million (March 31, 2024''3,710.05 million).

Unsecured From related parties

The Company accorded approval for raising further funds upto '' 1,000 million from the Promoters of the Company or their nominees by way of Unsecured Loans or Inter Corporate Deposits or any combination thereof in addition to the earlier approval of '' 1,000 million, on an interest-free basis, in accordance with the terms and conditions set out in the Subscription Agreement dated June 04, 2018 and any amendment thereto to be executed between the Company and the Promoters viz. Mr. Ravi C. Raheja and Mr. Neel C. Raheja, if necessary. In this regard, the Company has borrowed as on 31 March 2025 is '' Nil (March 31, 2024: '' 700 million).

There are no material breaches of the covenants associated with the borrowings.

(d) Rights, Preferences and restrictions attached to preference shares.

The Company has two classes of preference shares having a par value of '' 100,000 each per share.

1,600 0.001% Non-cumulative redeemable preference shares of '' 100,000 each.

Preference shares issued by the Group are due for redemption at par. Accordingly, the preference shares are liable to be redeemed at any time at the option of the Group but not later than December 21, 2026 (March 31, 2024: December 21, 2026).

In the event of liquidation of the Group before redemption of the equity shares, holders of the preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

The Company has redeemed 1,600, 0.01% Non-Cumulative Redeemable Preference Shares bearing Face Value of '' 100,000 each at par on May 27, 2024.

any year. Preference shares shall, subject to availability of profits during any financial year, be entitled to nominal dividend of '' 1 per

preference share per year.

The Company has redeemed 1,600, 0.01% Non-Cumulative Redeemable Preference Shares bearing Face Value of '' 1,00,000 each at par on May 27, 2024.

10.000 0.00%(Series A) Non-cumulative, Non-convertible redeemable preference shares of '' 100,000 each.

10.000 0.00%(Series B) Non-cumulative, Non-convertible redeemable preference shares of '' 100,000 each.

Rights, Preferences and restrictions attached to 0.00 % (Series A & Series B) Non-cumulative, Non-convertible redeemable preference shares

The preference shares do not carry any voting rights.

With respect to the Residential project at Bengaluru ("Projectâ), w.e.f. June 04, 2018, the Promoter - Directors, have agreed to provide the Company either by themselves or through their nominees, funds to meet the shortfall in cash flows for the Project expenses, by subscribing to 0.00% Non- Cumulative Non-Convertible Redeemable Preference Shares ("NCRPSâ) of the Company of '' 2,000 million. A designated bank account is maintained for the Project and redemption of NCRPS''s shall be after completion, out of surplus in the account, not later than 20 years from the date of issue and subject to applicable law/s. In this regard, the Company has a paid up preference share capital of '' 2,000 million as at March 31, 2025 (March 31, 2024: '' 2,000.00 million).

The Preference Shares do not carry any voting rights whatsoever in any meetings of the shareholders of the Company or of members of any class of shares of the Company.

Subject to applicable laws, other than the amounts payable for redemption, no amounts shall be payable to the Preference Shareholders, whether by way of dividend or in any other manner whatsoever.

In the event of liquidation of the Company before redemption of the equity shares, holders of the preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

(e) Dividend on preference shares

On August 09, 2024 amount of '' 1,600/- was paid as preference dividend to 1,600 0.001% Non-cumulative redeemable preference shares of '' 100,000 each.

During the year ended March 31, 2024, amount of '' 1,600/- was proposed as preference dividend to 1,600 0.001% Non-cumulative redeemable preference shares of '' 1,00,000 each.

In previous year Deferred tax assets includes recognition of '' 584.21 million, pursuant to the merger of wholly owned subsidiary company (''transferor company'') with the Company (''transferee company''). The transferee company has recognized deferred tax assets on the brought forward business losses (including unabsorbed depreciation) pertaining to transferor company which has been recognized considering the relevant facts and circumstances to the extent that the Company has convincing evidences based on its business plans and budgets, the unutilized tax losses/ credit will be utilized.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the year over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

Deferred tax assets for the carry forward of unused tax losses on business and house property are recognized to the extent that it is probable that future taxable profits will be available against which the unused tax losses can be utilized. The Company recognizes a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realized. Deferred tax assets - unrecognized or recognized, are reviewed at each reporting date and are recognized/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realized.

The Company has recognized deferred tax asset to the extent that the same will be recoverable using the estimated future taxable income based on the approved business plans and budgets of the Company. The business losses can be carried forward for a year of 8 years as per the tax regulations and the Company expects to recover the losses.

Accordingly, the Company, has recognized deferred tax asset on the carried forward business losses after considering the relevant facts and circumstances during each financial year to the extent that the Company had convincing evidence based on its business plans and budgets to the extent that the deferred tax asset will be realized. Consequently, the Company has not recognized deferred tax asset of '' 944.19 million as at March 31, 2024 (March 31, 2024: '' 1,066.88 million) on the carried forward lossess of the Company.

1 During the current year, the Company raised capital of '' 10,000 million through Qualified Institutional Placement (QIP) of equity shares. The QIP committee of Board of Directors of the Company as its meeting held on March 27, 2024 approved the allotment of 12,626,263 equity shares of face value of '' 10 each to eligible investors at a price of '' 792 per equity share (including a securities premium of '' 782 per equity share).

2 Weighted average number of shares is the number of equity shares outstanding at the beginning of the year/ year adjusted by the number of equity shares issued during year/ year, multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year. The impact of dilution on account of ESOP will not be considered if they are anti-dilutive.

NOTE 39. GOVERNMENT GRANT

Export Promotion Capital Goods (EPCG) scheme

The Company has recognized a deferred grant at the point of waiver of import duty in relation to import of capital goods. Given that the grant is conditional on fulfillment of future export obligation, the same is treated as a revenue grant and is accordingly recognized in the Statement of Profit and Loss on fulfillment of such obligation.

NOTE 40. EMPLOYEE BENEFITS a) Defined contribution plan

The contributions paid/payable to Provident Fund, Employees State Insurance Scheme, Employees Pension Schemes, 1995 and other funds are determined under the relevant approved schemes and/or statutes and are recognized as expense in the Standalone Statement of Profit and Loss during the year in which the employee renders the related service. There are no further obligations other than the contributions payable to the approved trusts/appropriate authorities.

b) Defined benefit plan Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972.

The Company follows unfunded gratuity except for:

(i) Hotel division of holding company (Westin, Hyderabad) where fund is maintained with Life Insurance Corporation of India.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out as at March 31, 2025. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

C. Finance lease:

Brief description of the leasing arrangements

The Company''s leasing arrangements represents the fit-outs or interior work completed for the customers which have been classified as "Finance leasesâ. The lease terms are for tenure of 36 to 60 months, where substantially all the risks and rewards of ownership are transferred to the lessees. The Company records disposal of the property concerned and recognizes the subsequent interest in the finance lease. No contingent rent is receivable.

NOTE 42. (A) CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) '' in million
Particulars	For the year ended March 31, 2025	For the year ended March 31, 2024
Contingent liabilities
Claims against the Company not acknowledged as debts
Disputed Goods and service tax and service tax demands	209.85	98.55
Disputed income tax demands	175.45	181.53
Disputed VAT demands	13.08	13.08
Labour Dispute	1.00	1.00
SFIS/SEIS Scheme	5.74	5.74

a. The Company is a party to various other proceedings in the normal course of business and does not expect the outcome of these proceedings to have an adverse effect on its financial conditions, results of operations or cash flows.

b. Further, claims by parties in respect of which the Management has been legally advised that the same are frivolous and not tenable, have not been considered as contingent liabilities as the possibility of an outflow of resources embodying economic benefits is highly remote.

c. In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected under prepayment and others above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honorable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on 22 January 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the Standalone financial statements. The balance of prepaid lease rental in relation to such leasehold land as of March 31, 2025 is '' 46.14 (March 31, 2024: '' 47.34 million) and carrying value of property, plant and equipment as at March 31, 2025 is '' 347.22 million (March 31, 2024: ''366.17 million).

d. The Company has considered as at March 31, 2022''31.41 million towards service tax refund receivable against cancellations of flats. One of the Company''s claim was rejected by the Customs, Excise & Service Tax Appellate Tribunal, Regional Bench, Bangalore on grounds of time limitations. The Company had filed appeal with Honorable High Court of Karnataka in this regard and has received favorable order for same. Based on the High Court order the Company has filed application for refund of the said amount with GST authorities.

NOTE 42. (A) CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) (CONTD.) (B) Commitments '' in million
Particulars	For the year ended March 31, 2025	For the year ended March 31, 2024
a. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) pertaning to:
- Property, plant and equipment & Investment property	5,226.67	413.15
- Intangible Assets	-	-

Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or

unobservable and consists of the following three levels:

(a) Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This includes listed equity instruments, traded debentures and mutual funds that have quoted price/ declared NAV. The fair value of all equity instruments (including debentures) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

(b) Level 2: Level 2 hierarchy includes financial instruments that are not traded in an active market (for example,traded bonds/ debentures, over the counter derivatives). The fair value in this hierarchy is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entityspecific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(c) Level 3: If one or more of the significant Inputs is not based on observable market data, the instrument is included in level 3. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.

(i) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include :

- the fair value of certain unlisted equity shares are determined based on the income approach or the comparable market approach, and for certain equity shares equals to the cost.

- the fair value for the currency swap is determined using forward exchange rate for balance maturity.

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

- the fair value of the forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

- the fair value preference shares and the remaining financial instruments is determined using discounted cash flow analysis. ''The valuation model considers the present value of expected receipt/payment discounted using appropriate discounting rates.

The investments included in level 3 of the fair value hierarchy have been valued using the discounted cash flow technique

to arrive at the fair value.

(iii) Sensitivity analysis

The Company has invested in equity shares of entities engaged in generation of hydro power for securing the supply of renewable energy. The Company does not have any exposure or rights to variable returns. Hence no sensitivity is required for such equity shares.

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk;

â¢ Liquidity risk;

â¢ Market risk;

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors is responsible for developing and monitoring the Company''s risk management policies.

The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, cash and cash equivalents and other bank balances, derivatives and investment securities. The carrying amounts of financial assets represent the maximum credit exposure.

(a) Trade receivables from customers

The Company does not have any significant credit exposure in relation to revenue generated from hospitality business. For other segments the Company has established a credit policy under which each new customer is analyzed individually for creditworthiness before entering into contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Company.

(b) Cash and cash equivalents and other bank balances

The cash and cash equivalents and other bank balances are held with bank and financial institution counterparties with good credit rating.

(c) Derivatives

The derivatives are entered into with banks, financial institutions and other counterparties with good credit ratings. Further exposures to counter-parties are closely monitored and kept within the approved limits. There are no outstanding derivatives as at the current year.

(d) Other financial assets

Other financial assets are neither past due nor impaired.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The Company has sufficient current assets comprising of Trade Receivables, Cash & Cash Equivalents, Other Bank Balances (other than restricted balances), Loans and Other Current Financial Assets to manage the liquidity risk, if any in relation to current financial liabilities.The Company has overdraft facilities, general corporate borrowings, which are used to ensure that the financial obligations are met as they fall due in case of any deficit.

(D) Market risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company uses derivative to manage market risk.

(E) Currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may continue to fluctuate substantially in the future. Consequently, the Company uses derivative instruments, i.e., foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in respect of recognized liabilities. The Company enters into foreign currency forward contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables.

Exposure to currency risk

The summary quantitative data about the Company''s exposure to currency risk as reported to the management of the Company is as follows. The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The amounts reflected in the table below represent the exposure to respective currency in Indian Rupees:

(F) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/ borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

The Company adopts a policy to hedge the interest rate movement in order to mitigate the risk with regards to floating rate linked loans based on the market outlook on interest rates. This is achieved partly by entering into fixed rate instruments and partly by borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows attributable to interest rate risk.

Fair value sensitivity analysis for fixed-rate instruments

The Company''s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107 Financial Instruments: Disclosures, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. In cases where the related interest rate risk is capitalized to fixed assets, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets.

NOTE 47. CAPITAL MANAGEMENT

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined as total borrowings, comprising interest-bearing loans and borrowings, less cash and cash equivalents and bank deposits. Adjusted equity comprises all components of equity.

A) The Company has issued a letter of undertaking to provide need based financial support to

i) Chalet Hotels & Properties (Kerala) Private Limited

ii) Chalet Airport Hotel Private Limited

iii) Ayushi and Poonam Estates LLP

iv) The Dukes Retreat Private Limited

B) The Company has provided one of its hotel unit as security towards loan drawn by its subsidiary, Ayushi and Poonam Estates LLP. The total facility amounts to '' 1,980 million.

C) All the above transactions are to be settled in cash within 12 months of the reporting date. None of the balances are secured.

NOTE 52. SCHEME OF AMALGAMATION WITH WHOLLY OWNED SUBSIDIARY AND A SUBSIDIARY

The Company (''Transferee Company'') at its meeting held on October 25, 2023 had approved Composite Scheme of Arrangement and Amalgamation (''Scheme'') of Sonmil Industries Private Limited (''Sonmil/ Transferor Company No. 1'') (wholly owned subsidiary) and The Dukes Retreat Private Limited (''Dukes/ Transferor Company No. 2'') (subsidiary), with the Company under Section 230 to 232 of the Companies Act, 2013, with effect from April 01, 2024 for Sonmil (''Appointed Date- Stage 1 Amalgamation'') and from the date falling after the Effective Date- Stage 1 Amalgamation as fixed by the Board of Directors of the Company for Dukes (''Appointed Date- Stage 2 Amalgamation''), subject to the approval of the statutory and regulatory authorities.

An application for approval of the Scheme was filed with the Hon''ble National Company Law Tribunal (''Hon''ble NCLT'') on October 08, 2024. The Hon''ble NCLT by its Order dated March 18, 2025 directed the Transferee Company to convene a meeting of its Equity Shareholders within 60 days from the date of the Order. The Transferee Company has complied with the directions of the Order of the Hon''ble NCLT and a meeting of its Equity Shareholders is proposed to be held on May 13, 2025 to seek approval for the Scheme. Pending the requisite approvals, no adjustments are carried out in the financial statements.

(i) Revenue is recognized upon transfer of control of residential units to customers for an amount that reflects the consideration which the Company expects to receive in exchange for those units. The trigger for revenue recognition is on hand over of possession to the customers, as determined by the terms of contract with customers, post which the contract becomes non-cancellable by the parties. Any costs incurred that do not contribute to satisfying performance obligations are excluded from the Company''s input methods of revenue recognition as the amounts are not reflective of our transferring control of the system to the customer.

Significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives, liquidated damages, and other forms of variable consideration.

If estimated incremental costs on any contract, are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known.

Variations in contract work, claims, incentive payments are included in contract revenue to the extent that may have been agreed with the customer and are capable of being reliably measured.

The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as at March 31, 2025 is '' 8,273.92 million (Previous Year: '' 4,237.15 million ), of which '' 5,999.59 million (Previous Year: '' Nil million), which will be recognized as revenue over a period of 1 year and '' 2,274.33 million (Previous Year: '' 4,237.15 million ) which will be recognized over a period of 2-3 years.

Hospitality and Commercial & Retail

The Company applies practical expedient in paragraph 121 of Ind AS 115 and does not disclose information about remaining performance obligations that have original expected duration of one year or less.

NOTE 56.

The Company in its board meeting dated January 24, 2024 and through shareholders'' approval in postal ballot dated March 10, 2024 has approved to raise capital by way of private placement under qualified institutions placement (QIP) to eligible investors through an issuance of equity shares for an amount not exceeding ''20,000 million. Subsequent to year end, the Company has raised an amount of '' 10,000 million at the issue price of '' 792 per equity share and allotted 1,26,26,263 fully paid equity shares of face value '' 10 each on April 03, 2024. The proceeds from the issue, net of issue expenses, will be utilised mainly for repayment /pre-payment, in full or in part, of certain outstanding borrowings and balance is used for General corporate purposes.

During the previous year the Company has incurred certain expenditure during the year in connection with the above QIP offering and the same has been shown under other current assets, which during the current year ended March 31, 2025 has been adjusted towards the securities premium.

Issue of Shares (Qualified Institutional Placement)

The Company, during the year has issued 12,626,263 equity shares of face value of ''10 each through Qualified Institutional Placement (QIP) on 3 April 2025, at an issue price of '' 792 per equity share (including a securities premium of '' 782 per equity share).The total amount raised through QIP amounts to '' 10,000 million.

Following are the details of utilisation of proceeds of '' 9,799.74 million post meeting issue expenses of '' 200.26 million

NOTE 58. ACQUISITION OF AYUSHI AND POONAM ESTATES LLP (LIMITED LIABILITY PARTNERSHIP)

On February 29, 2024, the Company has acquired 99.80% share in Capital and Profit & Loss of Ayushi and Poonam Estates LLP (''APEL''), a limited liability firm, engaged in the business of hospitality (hotels). Consequent to such acquisition APEL has become the subsidiary of the Company.

believes are ineligible for such claims. Accordingly, the Company evaluated the same and made a payment of Goods and Services Tax (GST) amounting '' 107.54 million during the year ended March 31, 2024. The business operations of the Company continue as usual and are not impacted. Further, the finding of said proceeding being initiated separately under section 74 of the Goods and Services Tax Act 2017 by the Assessing Officer.

NOTE 63.

i) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

ii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

NOTE 64. OTHER ADDITIONAL REGULATORY INFORMATION PURSUANT TO THE REQUIREMENT IN DIVISION II OF SCHEDULE III TO THE COMPANIES ACT 2013

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for any Benami property.

(ii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

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

(iv) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(v) The Group has not drawn any borrowing from any bank or financial institutitions on the basis of security of current assets.

(vi) The Company has not been declared wilful defaulter by any Bank or Financial institution or government or any government authority.

(vii) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the group with banks and financial institutions are in agreement with the books of accounts.

(vii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(viii) The Company has not entered into any scheme of arrangement during the year which has an accounting impact on current or previous financial year, except note no. 52.

NOTE 65.

As per the MCA Notification dated August 06, 2022, the Central Government has notified the Companies (Accounts) Fourth Amendment Rules, 2022. As per the amended rules, the Company is required to maintain a backup of the books of account and other relevant books and papers in electronic mode that should be accessible in India at all the time. Also, the Company is required to create backup of accounts on servers physically (which has a feature of recording audit trail (edit log) facility) located in India on a daily basis.

The books of account along with other relevant records and papers of the Company is maintained in electronic mode, across all units. These are readily accessible in India at all times and currently a backup is maintained on a cloud based server. Such servers are located in India, with the exception of certain units, which are located overseas. The Company is in the process of complying with the requirement of maintaining server(s) in India for these units for backup of books of account and other relevant books and papers, on a daily basis, pursuant to the amendment.

Mar 31, 2024

4) Title deeds of immovable properties not held in name of the Company

The title deeds of all immovable properties (other than immovable properties where the Company is the lessee and the leases agreements are duly executed in favor of the lessee) as disclosed in the Note 2 and Note 4 and read with Note 43 (A) (c) of the standalone financial statements are held in the name of the Company. In respect of the land acquired on leasehold basis disclosed in Note 10 read with the footnote to Note 10 of the standalone financial statements, the lease agreements are duly executed in favor of the Company except for below.

1) Refer Note 20 and Note 24 for information on Property, plant and equipment pledged as security by the Company.

2) Borrowing cost aggregating to '' 656.71 million (March 31, 2023''589.36 million) are capitalized under investment property under construction.

B. Fair value measurementi. Fair value hierarchy

The fair value of investment property was determined by external, independent property valuers, having appropriate recognized professional qualification and experience.

The fair value measurement for all of the investment properties has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

ii. Valuation technique and significant unobservable inputs Valuation technique

The fair value of investment property has been determined by external, independent property valuers / management, having appropriate recognized professional qualifications and recent experience in the location and category of the property being valued.

The fair value measurement for all of the investment property has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

The Company follows discounted cash flows technique. The valuation model considers the present value of net cash flows to be generated from the property, taking into account the expected rental growth rate, vacant years, occupancy rate, lease incentive costs such as rent-free years and other costs not paid by tenants. The expected net cash flows are discounted using risk-adjusted discount rates. Among other factors, the discount rate estimation considers the quality of a building and its location (prime vs secondary), tenant credit quality and lease terms. The land of Commercial Complex, Bengaluru is valued by residual method. The valuation of Retail block, Sahar, Mumbai considers change in end use to commercial purpose.

Discount rate

Terminal value growth rate

Terminal value growth rate used for the purpose of calculation of terminal value has been determined based on the long-term compound annual growth rate in EBITDA.

The above assumptions are reviewed annually as part of management''s budgeting and strategic planning cycles. These estimates may differ from actual results. The values assigned to each of the key assumptions reflect the Management''s past experience as their assessment of future trends, and are consistent with external / internal sources of information. Based on the above assumptions and analysis, no impairment was identified for any of the CGU as at March 31,2024 and March 31,2023 as the recoverable value of the CGU exceeded the carrying value.

With regard to the assessment of value in use, no reasonably possible change in any of the above key assumptions would cause the carrying amount of the CGUs to exceed their recoverable amount.

In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected under prepayment and others above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on January 22, 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the revised Standalone financial statements.The balance of prepaid lease rental in relation to such leasehold land as of March 31,2024 is '' 47.34 million (March 31,2023: '' 48.54 million).

(e) Rights, preferences and restrictions attached to equity shares.

f) Employee stock option plan

Number of shares reserved for ESOP is 12,05,425 (March 31,2023 : 13,50,831)

Term attached to stock options granted to employees are described in Note 52

Nature and purpose of reserves

Equity Component of Compound Instruments

Equity component of Component Instruments comprises of the impact of fair valuation of preference shares issued by the Company.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve represents appropriation of retained earnings and are available for distribution to shareholders.

Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve. Employee stock option plan reserve

Represents expense recognized towards employee stock option plans issued by the Company. (Refer Note 52)

Retained earnings

Retained earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders. It includes impact of fair valuation of land on transition to Ind AS and are presently not available for distribution to shareholders (net of related tax impact): '' 3,710.05 million (March 31,2023''3,710.05 million).

Unsecured

From related parties

The Holding Company accorded approval for raising further funds upto '' 1,000 million from the Promoters of the Company or their nominees by way of Unsecured Loans or Inter Corporate Deposits or any combination thereof in addition to the earlier approval of '' 1,000 million, on an interest-free basis, in accordance with the terms and conditions set out in the Subscription Agreement dated June 04, 2018 and any amendment thereto to be executed between the Company and the Promoters viz. Mr. Ravi C. Raheja and Mr. Neel C. Raheja, if necessary. In this regard, the Group has borrowed as on March 31,2024 is '' 700 million (March 31,2023: '' 450 million).

The Group has two classes of preference shares having a par value of '' 100,000 each per share. 1,600 0.001% Noncumulative redeemable preference shares of '' 100,000 each.

Rights, Preferences and restrictions attached to 0.00% Non-cumulative redeemable preference shares The preference shares do not carry any voting rights, even if dividend has remained unpaid for any year or dividend has not been declared by the Group for any year. Preference shares shall, subject to availability of profits during any financial year, be entitled to nominal dividend of Re.1 per preference share per year.

10.000 0.00%(Series A) Non-cumulative, Non-convertible redeemable preference shares of '' 100,000 each.

10.000 0.00%(Series B) Non-cumulative, Non-convertible redeemable preference shares of '' 100,000 each.

Rights, Preferences and restrictions attached to 0.00 % (Series A & Series B) Non-cumulative, Non-convertible redeemable preference shares The preference shares do not carry any voting rights.

With respect to the Residential project at Bengaluru ("Projectâ), w.e.f. June 04, 2018, the Promoter - Directors, have agreed to provide the Group either by themselves or through their nominees, funds to meet the shortfall in cash flows for the Project expenses, by subscribing to 0.00% Non- Cumulative Non-Convertible Redeemable Preference Shares ("NCRPSâ) of the Group of '' 2,000 million. A designated bank account is maintained for the Project and redemption of NCRPS''s shall be after completion, out of surplus in the account, not later than 20 years from the date of issue and subject to applicable law/s. In this regard, the Group has a paid up preference share capital of '' 2,000 million as at March 31,2024 (March 31,2023: '' 2,000.00 million).

The Preference Shares do not carry any voting rights whatsoever in any meetings of the shareholders of the Group or of members of any class of shares of the Group. Subject to applicable laws, other than the amounts payable for redemption, no amounts shall be payable to the Preference Shareholders, whether by way of dividend or in any other manner whatsoever. In the event of liquidation of the Group before redemption of the equity shares, holders of the preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

On August 14, 2023 amount of '' 1,600/- was paid as preference dividend to 1,600 0.001% Non-cumulative redeemable preference shares of '' 100,000 each.

During the year ended March 31, 2024, amount of '' 1,600/- was proposed as preference dividend to 1,600 0.001% Non-cumulative redeemable preference shares of '' 1,00,000 each.

Bengaluru residential project

During the year 2013-14, Hindustan Aeronautics Limited (HAL) had raised an objection with regard to the permissible height of buildings of the Company''s Bengaluru residential project. Pursuant to an interim order passed by the Karnataka High Court, in the petition filed by the Company, the Company had suspended construction activity at the Project and sale of flats.

Pending the outcome of the proceedings and a final closure of the matter, the Company suspended revenue recognition based on the percentage completion method after financial year ended March 31,2014. Further, in case of cancellations subsequent to March 31, 2014, the Company reversed the revenue and derecognized margins in the respective year of cancellation. The Company also recompensed flat owners, in accordance with mitigation plans framed by the Company on account of the delay in completion of the project.

During the year ended March 31,2018, without prejudice to its rights and remedies under law and keeping the commercial considerations in perspective, the Board of Directors of the Company, decided that the Company should proactively consider re-commencement of construction up to the miminum permissible limits and engage with the buyers above the 10th floor for evaluating possible options. Accordingly, the Company has reassessed the estimated cost of completion of the project upto 10th floor as per the aforementioned plan and has recognized a provision towards the following:

- cost of alteration of superstructure

- estimated costs in relation to potential cancellations

Further, cost of actual cancellation (where applicable) has also been provided for and included in the provision referred to above.

By Judgement dated May 29, 2020 the Karnataka High Court had allowed the writ petition in part, quashing the cancellation of the NOC and remanding back the matter to HAL for re-survey in a time bound manner and thereafter to proceed in accordance with law. The Company and HAL after discussions, signed terms for an amicable settlement of all the disputes between the parties, as per which the Company would undertake demolition of already constructed structures above 932 meters Above Mean Sea Level ''AMSL''. Final orders in the matter have been passed by the Hon''Ble Karnataka High Court on October 26, 2021 as per the said settlement terms and consequently, the litigation stands disposed. Demolition work of the area above 10th floor for all the 9 buildings has been completed in April 2022, and the NOC from HAL and approval from BBMP has been received.

The Company has also received approval for modification of the plan and extension for RERA completion deadline.

During the previous year, on account of various approval in place, the Management has considered reversal of earlier created provision for interest in relation to potential cancellation for the said flats above 10th floor amounting to '' 584.82 million and same is included in provision utilized during the previous year.

Deferred tax assets includes recognition of '' 584.21 million during the year, pursuant to the merger of wholly owned subsidiary company (''transferor company'') with the Company (''transferee company''). The transferee company has recognized deferred tax assets on the brought forward business losses (including unabsorbed depreciation) pertaining to transferor company which has been recognized considering the relevant facts and circumstances to the extent that the Company has convincing evidences based on its business plans and budgets, the unutilized tax losses/ credit will be utilized.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the year over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

Deferred tax assets for the carry forward of unused tax losses on business and house property are recognized to the extent that it is probable that future taxable profits will be available against which the unused tax losses can be utilized. The Company recognizes a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognized or recognized, are reviewed at each reporting date and are recognized/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

Accordingly, the Company, has recognized deferred tax asset on the carried forward business losses after considering the relevant facts and circumstances during each financial year to the extent that the Company had convincing evidence based on its business plans and budgets to the extent that the deferred tax asset will be realised. Consequently, the Company has not recognized deferred tax asset of '' 1,066.88 million as at March 31,2024 (March 31,2023 : '' 1,078.40 million) on the carried forward lossess of the Company.

Weighted average number of shares is the number of equity shares outstanding at the beginning of the year/ year adjusted by the number of equity shares issued during year/ year, multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year. The impact of dilution on account of ESOP will not be considered if they are anti-dilutive.

NOTE 40. GOVERNMENT GRANTExport Promotion Capital Goods (EPCG) scheme

Served from India scheme (SFIS)/Service exports from India scheme (SEIS)

The Company under SFIS / SEIS receives an entitlement / credit to be sold separately (only in case of SEIS) or utilized against future imports.

The Company recognizes income in respect of duty credit entitlement arising from export sales under the SFIS/SEIS of the Government of India in the year of exports, provided there is no significant uncertainty regarding the entitlement and availment of the credit and the amount thereof. Export credit entitlement can be utilized within specified benefit year, by way of adjustment against duties payable on purchase of capital equipments, spare parts and consumables or sale of such licenses.

NOTE 41. EMPLOYEE BENEFITS a) Defined contribution plan

The contributions paid/payable to Provident Fund, Employees State Insurance Scheme, Employees Pension Schemes, 1995 and other funds are determined under the relevant approved schemes and/or statutes and are recognized as expense in the Revised Standalone Statement of Profit and Loss during the year in which the employee renders the related service. There are no further obligations other than the contributions payable to the approved trusts/ appropriate authorities.

b) Defined benefit planGratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972.

The Company follows unfunded gratuity except for:

(i) Hotel division of holding company (Westin, Hyderabad) where fund is maintained with Life Insurance Corporation of India.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out as at March 31,2023. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

NOTE 43. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for) (A) Contingent Liabilities		'' in million
Particulars	For the year ended March 31,2024	For the year ended March 31,2023
Contingent liabilities
Claims against the Company not acknowledged as debts
Disputed service tax demands	98.55	69.74
Disputed income tax demands	181.53	401.54
Disputed VAT demands	13.08	13.08
Disputed provident funds demands	-	5.80
Labour Dispute	1.00	12.21
Transportation Charges	-	0.08
Power Facilitation Agreement	-	36.17
Contractors Claim	-	184.87
SFIS/SEIS Scheme	5.74	17.27
EPCG obligation	_	4.78

c. In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected under prepayment and others above). The Company has been operating the Four Points By Sheraton

Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on January 22, 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the Standalone financial statements. The balance of prepaid lease rental in relation to such leasehold land as of March 31,2024 is '' 47.34 million (March 31,2023: '' 48.54 million). and carrying value of property, plant and equipment as at March 31,2024 is '' 348.46 million (March 31,2023: '' 348.46 million).

d. The Company has considered as at March 31, 2022 '' 31.41 million towards service tax refund receivable against cancellations of flats. One of the Company''s claim was rejected by the Customs, Excise & Service Tax Appellate Tribunal, Regional Bench, Bangalore on grounds of time limitations. The Company had filed appeal with Honourable High Court of Karnataka in this regard and has received favorable order for same. Based on the High Court order the Company has filed application for refund of the said amount with GST authorities.

(B) Commitment

'' in million
Particulars	For the year ended March 31,2024	For the year ended March 31,2023
a. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	413.15	1,930.07

(i) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include :

- the fair value of certain unlisted equity shares are determined based on the income approach or the comparable market approach, and for certain equity shares equals to the cost.

- the fair value for the currency swap is determined using forward exchange rate for balance maturity.

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

- the fair value of the forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

The investments included in level 3 of the fair value hierarchy have been valued using the discounted cash flow technique to arrive at the fair value.

(iii) Sensitivity analysis

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk;

â¢ Liquidity risk;

â¢ Market risk;

Risk management framework

(B) Credit risk

(a) Trade receivables from customers

(b) Cash and cash equivalents and other bank balances

The cash and cash equivalents and other bank balances are held with bank and financial institution counterparties with good credit rating.

(d) Other financial assets

Other financial assets are neither past due nor impaired.

Exposure to liquidity risk

The Company has sufficient current assets comprising of Trade Receivables, Cash & Cash Equivalents, Other Bank Balances (other than restricted balances), Loans and Other Current Financial Assets to manage the liquidity risk, if any in relation to current financial liabilitiesThe Company has overdraft facilities, general corporate borrowings, which are used to ensure that the financial obligations are met as they fall due in case of any deficit.

(D) Market risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivative to manage market risk.

(E) Currency risk

Exposure to currency risk

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against all other foreign currencies at March 31, would have affected the measurement of financial instruments denominated in a foreign currency and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

(F) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

The Group adopts a policy to hedge the interest rate movement in order to mitigate the risk with regards to floating rate linked loans based on the market outlook on interest rates. This is achieved partly by entering into fixed rate instruments and partly by borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows attributable to interest rate risk.

Fair value sensitivity analysis for fixed-rate instruments

Cash flow sensitivity analysis for variable-rate instruments

NOTE 48. CAPITAL MANAGEMENT

NOTE 52. EMPLOYEE STOCK OPTION SCHEMES Description of share-based payment arrangements:

At March 31,2024, Company had following share-based payment arrangements:

Employee Stock Option Plan 2018:

The primary objective of the plan is to reward the key employee for his association, dedication and contributions to the goals of the Company. The plan is established is with efffect from June 12, 2018 on which the shareholders of the Company have approved the plan by the way of special resolution and it shall continue to be in force until its termination by the Company as per provisions of Applicable laws, or the date on which all of the Options available for issuance under the plan have been issued and exercised , whichever is earlier.

Measurement of Fair value

The fair value of employee share options has been measured using Black Scholes Option Pricing Model and is charged to the Statement of Profit and Loss over the vesting year.

NOTE 53. SCHEME OF AMALGAMATION WITH WHOLLY OWNED SUBSIDIARY

On August 11, 2020, the Company had filed a scheme of Amalgamation of Belaire Hotels Private Limited and Seapearl Hotels Private Limited with the Company at National Company Law Tribunal (''NCLT'') with appointed date being April 01,2020.

During the year ended March 31, 2023, basis the certified copy of the NCLT order dated May 19, 2023, (filed with the Registrar of Companies, Maharashtra on June 19, 2023), the Group has given effect to the Scheme of Arrangement of amalgamation of Belaire Hotels Private Limited and Seapearl Hotels Private Limited with the Company ("the Schemeâ) in the earlier approved consolidated financial statements for the year ended March 31, 2023 from the Appointed date of April 01,2020 by revising the consolidated financial statements approved by the Board of Directors on May 09, 2023. The manner in which Scheme has been given effect to and of financial statements has been explained in detail below.

These financial statements for the year ended March 31, 2023 have been prepared pursuant to the Scheme from the specified retrospective appointed date of April 01, 2020. Pursuant to the Scheme, all the assets, liabilities, reserves and surplus of the transferor company have been transferred to and vested in the Company with effect from the appointed date at their carrying values and the financial information in the revised consolidated financial statements has been restated from April 01,2020 as per requirements of Appendix C to Ind AS 103.

The details of transferor companies and their merger are as below:

Accounting treatment

i. All of the assets, liabilities and reserves in the books of account of the Transferee upon the Scheme becoming effective, the audited financial statements of the Transferor Companies as on the close of business on the day immediately preceding the Appointed Date shall be forwarded to the Transferee Company by the Transferor Companies;

ii. The Book Value of all the assets, liabilities (excluding the Belaire FCCD''s and Belaire ICD) and reserves of Transferor Companies as recorded in the financial statements have been recorded in the books of accounts of the Transferee Company as such, subject to suitable adjustments being made, if any, to ensure uniformity of accounting policies;

iii. Investments in the Share Capital of the Transferor Companies in the books of accounts of the Transferee Company, whether held directly or indirectly through nominees, stand cancelled;

iv. Surplus arising as a result of amalgamation of the Transferor Companies into and with the Transferee Company, in terms of this Scheme, after adjustment of the amount of investment of the Transferee Company in the Transferor Companies due to cancellation of the share capital of the Transferor Company, have been adjusted to capital reserves in the books of the Transferee Company;

v. Identity of the reserves of the Transferor Companies, have been preserved and appear in the financial statements of the Transferee Company in the same form and manner, in which they appeared in the financial statements of the Transferor Companies, as on the Appointed Date;

vi. All outstanding balances (including the Belaire FCCD''s and Belaire ICD) as on the Appointed date between the Transferor Companies and the Transferee Company stand cancelled and there are no further obligation in that behalf;

vii. The financial statements of Transferee reflect the financial position on the basis of consistent accounting policies.

The Company in its board meeting dated January 24, 2024 and through shareholders'' approval in postal ballot dated March 10, 2024 has approved to raise capital by way of private placement under qualified institutions placement (QIP) to eligible investors through an issuance of equity shares for an amount not exceeding '' 20,000 million. Subsequent to year end, the Company has raised an amount of '' 10,000 million at the issue price of '' 792 per equity share and allotted 1,26,26,263 fully paid equity shares of face value '' 10 each on April 03, 2024.

The proceeds from the issue, net of issue expenses, will be utilized mainly for repayment /pre-payment, in full or in part, of certain outstanding borrowings and balance is used for General corporate purposes.

The Company has incurred certain expenditure during the year in connection with the above QIP offering and the same has been shown under other current assets, which will adjusted towards the securities premium in ensuing year of subsequent issuance.

NOTE. 58

Acquisition of Ayushi and Poonam Estates LLP (Limited Liability Partnership)

On February 29, 2024, the Company has acquired 99.80% share in Capital and Profit & Loss of Ayushi and Poonam Estates LLP (''APEL''), a limited liability firm, engaged in the business of hospitality (hotels) for a consideration of '' 425.22 million. Consequent to such acquisition APEL has become the subsidiary of the Company.

NOTE 59. ACQUISITION OF TP AGASTYA LIMITED

During the period March 31,2024, pursuant to the shareholding agreement the Company has acquired 26% stake in TP Agastya Limited (''TPAL''). The Company neither has exposure nor rights to variable return. These investment is solely to obtain captive solar power supply for one of its hotel units.

The Company has provided one of its hotel unit as security towards loan drawn by its subsidiary, Ayushi and Poonam Estates LLP. The total facility amounts to '' 2000 million.

NOTE 61.

Goods and Services Tax (GST) Investigation Department, Maharashtra State (GST Authorities) had conducted search proceedings pursuant to Section 67 of the Goods and Services Tax Act 2017. The Goods and Services Tax (GST) officials have identified certain matters relating to input tax credit pertaining to the period July 2017 to financial year 2022-23, which the Authority believes are ineligible for such claims. Accordingly, the Company evaluated the same and made a payment of Goods and Services Tax (GST) amounting '' 107.54 million during the period ended March 31,2024. The business operations of the Company continue as usual and are not impacted. GST Authorities has transferred case to Assessing Officer for 201819 & 2019-20. The said proceedings have not yet concluded either by GST Authorities or by Assessing Officer and any further outcome from such proceedings will be appropriately dealt with in the subsequent period.

NOTE 62.

i) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

Other Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

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

(v) The Group has not drawn any borrowing from any bank or financial institutitions on the basis of security of current assets.

(vi) The Company has not been declared wilful defaulter by any Bank or Financial institution or government or any government authority.

(vii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(viii) The Company has not entered into any scheme of arrangement during the year which has an accounting impact on current or previous financial year.

NOTE 64.

Mar 31, 2023

ii. Valuation technique and significant unobservable inputs Valuation technique

The fair value measurement for all of the investment property has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

Discount rate

Terminal value growth rate

Terminal value growth rate used for the purpose of calculation of terminal value has been determined based on the long-term compound annual growth rate in EBITDA.

The above assumptions are reviewed annually as part of management''s budgeting and strategic planning cycles. These estimates may differ from actual results. The values assigned to each of the key assumptions reflect the Management''s past experience as their assessment of future trends, and are consistent with external / internal sources of information. Based on the above assumptions and analysis, no impairment was identified for any of the CGU as at March 31,2023 and March 31,2022 as the recoverable value of the CGU exceeded the carrying value.

With regard to the assessment of value in use, no reasonably possible change in any of the above key assumptions would cause the carrying amount of the CGUs to exceed their recoverable amount.

In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected under prepayment and others above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on 22 January 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the revised Standalone financial statements.The balance of prepaid lease rental in relation to such leasehold land as of March 31,2023 is ''48.54 million (March 31,2022: ''49.74 million).

(d) Rights, preferences and restrictions attached to equity shares.

Nature and purpose of reservesEquity Component of Compound Instruments

Equity component of Component Instruments comprises of the impact of fair valuation of preference shares issued by the Company and unsecured interest free loan from Promoters-Directors.

Securities premium account

Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve represents appropriation of retained earnings and are available for distribution to shareholders.

Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve.

17 OTHER EQUITY (CONTD.)Employee stock option plan reserve

Represents expense recognised towards employee stock option plans issued by the Company. (Refer Note 47 ).

Retained earnings

Unsecured

From related parties

The Company accorded to raise funds from the Promoters of the Company or their nominees by way of Unsecured Loans or Inter Corporate Deposits or any combination thereof upto an amount not exceeding ''1,000 million on an interest-free basis, in accordance with the terms and conditions set out in the Subscription Agreement dated June 4, 2018 and the amendment thereto to be executed between the Company and the Promoters viz. Mr. Ravi C. Raheja and Mr. Neel C. Raheja, if necessary. In this regard, the Company has borrowed '' 450 million as at March 31,2023 (March 31,2022: ''Nil).

*The bank has confirmed that no event of default has been called due to the breach of covenants during the year 2022-23.

** Previous year information are disclose within brackets

There are no material breaches of the covenants associated with the borrowings (referred to above).

(d) Rights, Preferences and restrictions attached to preference shares.

The Company has two classes of preference shares having a par value of ''100,000 each per share.

1,600 0.001% Non-cumulative redeemable preference shares of '' 100,000 each.

Rights, Preferences and restrictions attached to 0.00% Non-cumulative redeemable preference shares The preference shares do not carry any voting rights, even if dividend has remained unpaid for any year or dividend has not been declared by the Company for any year. Preference shares shall, subject to availability of profits during any financial year, be entitled to nominal dividend of ''1 per preference share per year.

Preference shares issued by the Company are due for redemption at par. Accordingly, the preference shares are liable to be redeemed at any time at the option of the Company but not later than December 21,2023.

18 LONG-TERM BORROWINGS (CONTD.)

20.000 0.00%(Series A) Non-cumulative, Non-convertible redeemable preference shares of '' 100,000 each.

20.000 0.00%(Series B) Non-cumulative, Non-convertible redeemable preference shares of '' 100,000 each.

Rights, Preferences and restrictions attached to 0.00 % (Series A & Series B) Non-cumulative, Non-convertible redeemable preference shares

The preference shares do not carry any voting rights.

The Preference Shares do not carry any voting rights whatsoever in any meetings of the shareholders of the Company or of members of any class of shares of the Company.

Subject to applicable laws, other than the amounts payable for redemption, no amounts shall be payable to the Preference Shareholders, whether by way of dividend or in any other manner whatsoever.

.In the event of liquidation of the Company before redemption of the equity shares, holders of the preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

During the year ended March 31,2023 amount of '' 1,600/- was proposed as preference dividend to 1,600 0.001% Non-cumulative redeemable preference shares of '' 100,000 each.

Deferred tax assets for the carry forward of unused tax losses on business and house property are recognised to the extent that it is probable that future taxable profits will be available against which the unused tax losses can be utilised. The Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised.

21 TAX EXPENSE (CONTD.)

Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

The Company has recognised deferred tax asset to the extent that the same will be recoverable using the estimated future taxable income based on the approved business plans and budgets of the Company. The business losses can be carried forward for a year of 8 years as per the tax regulations and the Company expects to recover the losses.

Accordingly, the Company, has recognised deferred tax asset on the carried forward business losses after considering the relevant facts and circumstances during each financial year to the extent that the Company had convincing evidence based on its business plans and budgets to the extent that the deferred tax asset will be realised. Consequently, the Company has not recognised deferred tax asset of ''1,078.40 million as at March 31, 2023 (March 31,2022 : ''1,773.22 million) on the carried forward lossess of the Company.

Bengaluru residential project

Pending the outcome of the proceedings and a final closure of the matter, the Company suspended revenue recognition based on the percentage completion method after financial year ended 31 March 2014. Further, in case of cancellations subsequent to 31 March 2014, the Company reversed the revenue and derecognised margins in the respective year of cancellation. The Company also recompensed flat owners, in accordance with mitigation plans framed by the Company on account of the delay in completion of the project.

- cost of alteration of superstructure

- estimated costs in relation to potential cancellations

Further, cost of actual cancellation (where applicable) has also been provided for and included in the provision referred to above.

By Judgement dated 29 May 2020 the Karnataka High Court had allowed the writ petition in part, quashing the cancellation of the NOC and remanding back the matter to HAL for re-survey in a time bound manner and thereafter to proceed in accordance with law. The Company and HAL after discussions, signed terms for an amicable settlement of all the disputes between the parties, as per which the Company would undertake demolition of already constructed structures above 932 meters Above Mean Sea Level ''AMSL''. Final orders in the matter have been passed by the Hon''Ble Karnataka High Court on 26 October 2021 as per the said settlement terms and consequently, the litigation stands disposed. Demolition work of the area above 10th floor for all the 9 buildings has been completed in April 2022, and the NOC from HAL and approval from BBMP has been received.

The Company has also received approval for modification of the plan and extension for RERA completion deadline.

During the year, on account of various approval in place, the Management has considered reversal of earlier created provision for interest in relation to potential cancellation for the said flats above 10th floor amounting to '' 584.82 million and same is included in provision utilised during the year.

39 (I) Contingent liabilities and commitments (to the extent not provided for)		'' in million
Particulars	For the year ended	For the year ended
	March 31, 2023	March 31, 2022
Contingent liabilities
Claims against the Company not acknowledged as debts
Disputed service tax demands	69.74	67.39
Disputed income tax demands	401.54	323.51
Disputed VAT demands	13.08	13.08
Disputed provident funds demands	5.80	5.80
Labour Dispute	12.21	12.21
Transportation Charges	0.08	0.08
Power Facilitation Agreement	36.17	36.17
Contractors Claim	184.87	113.77
SFIS/SEIS Scheme	17.27	16.73
EPCG obligation	4.78	4.34

c. In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai). The Company has been operating Four Points By Sheraton, Navi Mumbai, Vashi at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on 22 January 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the above revised standalone financial results. The balance of prepaid lease rental in relation to such leasehold land as of 31 March 2023: '' 48.54 million and carrying value of property, plant and equipment as at 31 March 2023 is '' 348.46 million.

d. Show Cause Notice issued by CGST & Central Excise Division, Bhopal in July 2019 with reference to utilisation of SFIS benefits by the Company for purchase of glass and a demand to make payment of Excise Duty of '' Nil in million. The Company has filed a reply in the matter, requesting to not precipitate the matter in view of the existing Court Order of Gujarat High Court. Personal Hearings were held on October 10, 2020 on behalf of the Company and former director, Mr. Ramesh Valecha however no orders have been passed.

39 (I) Contingent liabilities and commitments (to the extent not provided for) (Contd.)

e. The Company has considered as at March 31, 2023 '' 31.41 million towards service tax refund receivable against cancellations of flats. One of the company''s claim was rejected by the Customs, Excise & Service Tax Appellate Tribunal, Regional Bench, Bangalore on grounds of time limitations. The Company had filed appeal with Honourable High Court of Karnataka in this regard and has received favorable order for same. Based on the High Court order the company has filed application for refund of the said amount with GST authorities.

39 (II) Commitments		'' in million
Particulars	For the year ended	For the year ended
	March 31, 2023	March 31, 2022
a. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	1,930.07	3,142.76

(i) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include :

- the fair value of certain unlisted equity shares are determined based on the income approach or the comparable market approach, and for certain equity shares equals to the cost.

- the fair value for the currency swap is determined using forward exchange rate for balance maturity.

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

- the fair value of the forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

The investments included in level 3 of the fair value hierarchy have been valued using the discounted cash flow technique

to arrive at the fair value.

(iii) Sensitivity analysis

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk ;

â¢ Liquidity risk;

â¢ Market risk;

Risk management framework

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(B) Credit risk

(a) Trade receivables from customers

The Company does not have any significant credit exposure in relation to revenue generated from hospitality business. For other segments the company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Company.

(b) Cash and cash equivalents and other bank balances

The cash and cash equivalents and other bank balances are held with bank and financial institution counterparties with good credit rating.

(d) Other financial assets

Other financial assets are neither past due nor impaired.

Exposure to liquidity risk

43 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (CONTD.)

(D) Market risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivative to manage market risk.

(E) Currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may continue to fluctuate substantially in the future. Consequently, the Company uses derivative instruments, i.e., foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in respect of recognised liabilities. The Company enters into foreign currency forward contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables.

Exposure to currency risk

43 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (CONTD.)

(F) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

Fair value sensitivity analysis for fixed-rate instruments

The Company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107 Financial Instruments: Disclosures, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. In cases where the related interest rate risk is capitalised to fixed assets, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets.

44 CAPITAL MANAGEMENT

The Company has given effect to the Scheme of Arrangement of amalgamation of Belaire Hotels Private Limited and Seapearl Hotels Private Limited with the Company ("the Schemeâ) in the earlier approved standalone financial statements for the year ended 31 March 2023 from the Appointed date of 1 April 2020 by revising the standalone financial statements approved by the Board of Directors on 9 May 2023. The manner in which Scheme has been given effect to and revision of standalone financial statements has been explained in detail below.

Application seeking approval of the Scheme was filed with Hon''ble National Company Law Tribunal (NCLT), Mumbai Bench on 26 April 2021. The standalone financial statements of the Company for the year ended 31 March 2023 were approved by the Board of Directors at its meeting held on 9 May 2023 without giving effect to the Scheme since the petition was pending before the NCLT as of date.

On receipt of the certified copy of the order dated 19 May 2023 from NCLT, Mumbai Bench sanctioning the Scheme, with appointed date 1 April 2020, and upon filing the same with Registrar of Companies, Maharashtra on 19 June 2023 the Scheme has become effective.

These Revised standalone financial statements for the year ended 31 March 2023 have been prepared pursuant to the Scheme from the specified retrospective appointed date of 1 April 2020. Pursuant to the Scheme, all the assets, liabilities, reserves and surplus of the transferor company have been transferred to and vested in the Company with effect from the appointed date at their carrying values and the financial information in the revised standalone financial statements has been restated from 1 April 2020 as per requirements of Appendix C to Ind AS 103.

The revision to the standalone financial statements has been carried out solely for the impact of above referred merger and no additional adjustments have been carried out for any other events occurring after 9 May 2023 (being the date when the financial statements were first approved by the Board of Directors of the Company) other than stated above.

Pursuant to the approved Scheme of Merger, the Company has accounted for merger in its books with effect from 1 April

2020 as per the applicable accounting principles prescribed under under Appendix C to Ind AS 103 for common control

business combinations.

Accounting treatment

iii. Investments in the Share Capital of the Transferor Companies in the books of accounts of the Transferee Company, whether held directly or indirectly through nominees, stand cancelled;

vii. The financial statements of Transferee reflect the financial position on the basis of consistent accounting policies.

i) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

As per the MCA Notification dated 6 August 2022, the Central Government has notified the Companies (Accounts) Fourth Amendment Rules, 2022. As per the amended rules, the Company is required to maintain a backup of the books of account and other relevant books and papers in electronic mode that should be accessible in India at all the time. Also, the Company is required to create backup of accounts on servers physically located in India on a daily basis.

Mar 31, 2022

1) Refer Note 19 and Note 24 for information on Property, plant and equipment pledged as security by the Company.

2) Refer Note 40 for contractual commitments with respect to property plant and equipments.

3) In December 2005, the Company had purchased the entire building comprizing of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected in the schedule above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on January 22, 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the Standalone financial statements. The carrying value of property, plant and equipment in respect of the aforementioned hotel as at March 31,2022 is '' 372.12 million (March 31,2021: '' 400.77 million).

4) The title deeds of all immovable properties (other than immovable properties where the Company is the lessee and the leases agreements are duly executed in favour of the lessee) as disclosed in the Note 2 and 4 and read with Note 40 (c) of the standalone financial statements are held in the name of the Company. In respect of the land acquired on leasehold basis disclosed in Note 10 read with the footnote to Note 10 of the standalone financial statements, the lease agreements are duly executed in favour of the Company.

Discount rate

Terminal value growth rate

Terminal value growth rate used for the purpose of calculation of terminal value has been determined based on the long-term compound annual growth rate in EBITDA.

Based on the above assumptions and analysis, no impairment was identified for any of the CGU as at March 31, 2022 and March 31, 2021 as the recoverable value of the CGU exceeded the carrying value. With regard to the assessment of value in use, no reasonably possible change in any of the above key assumptions would cause the carrying amount of the CGUs to exceed their recoverable amount

In December 2005, the Company had purchased the entire building comprizing of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected under prepayment and others above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on January 22, 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the financial statements.The balance of prepaid lease rental in relation to such leasehold land as of March 31,2022 is '' 49.74 million (March 31,2021: ''50.93 million).

Rights, preferences and restrictions attached to equity shares.

The Company has a single class of equity shares. Each shareholder is eligible for one vote per share held. The equity shareholders are eligible for dividend when recommended by the Board of Directors and approved by the Shareholders. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of reservesEquity Component of Compound Instruments

Equity component of Component Instruments comprizes of the impact of fair valuation of preference shares issued by the Company.

Securities premium account

Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve represents appropriation of retained earnings and are available for distribution to shareholders.

Capital reserve

The reserve comprizes of profits/gains of capital nature earned by the Company and credited directly to such reserve. Employee stock option plan reserve

Represents expense recognized towards employee stock option plans issued by the Company. (Refer Note 48 ).

Retained earnings

(d) Rights, Preferences and restrictions attached to preference shares.

The Company has two classes of preference shares having a par value of ''100,000 each per share.

1,600 0.001% Non-cumulative redeemable preference shares of '' 100,000 each. "

Rights, Preferences and restrictions attached to 0.001% Non-cumulative redeemable preference shares. The preference shares do not carry any voting rights, even if dividend has remained unpaid for any year or dividend has not been declared by the Company for any year. Preference shares shall, subject to availability of profits during any financial year, be entitled to nominal dividend of '' 1 per preference share per year.

20.000 0.00%(Series A) Non-cumulative, Non-convertible redeemable preference shares of '' 100,000 each.

20.000 0.00%(Series B) Non-cumulative, Non-convertible redeemable preference shares of '' 100,000 each."

Rights, Preferences and restrictions attached to 0.00 % (Series A & Series B) Non-cumulative, Non-convertible redeemable preference shares

The preference shares do not carry any voting rights."

With respect to the Residential project at Bengaluru ("Project"), w.e.f. June 4, 2018, the Promoter - Directors, have agreed to provide the Company either by themselves or through their nominees, funds to meet the shortfall in cash flows for the Project expenses, by subscribing to 0.00% Non- Cumulative Non-Convertible Redeemable Preference Shares ("NCRPS") of the Company of '' 2,000 million. A designated bank account is maintained for the Project and redemption of NCRPS''s shall be after completion, out of surplus in the account, not later than 20 years from the date of issue and subject to applicable law/s. In this regard, the Company has a paid up preference share capital of '' 1,750 million as at March 31,2022 (March 31,2021: ''1,250.00 million).

The Preference Shares do not carry any voting rights whatsoever in any meetings of the shareholders of the Company or of members of any class of shares of the Company. Subject to applicable laws, other than the amounts payable for redemption, no amounts shall be payable to the Preference Shareholders, whether by way of dividend or in any other manner whatsoever.

The Company''s weighted average tax rates for years ended March 31,2022 and March 31,2021 is 47.95 % and 45.47 %, respectively. The effective tax rate is primarily lower on account of indexation benefit recognised on land and unquoted equity shares. Further unabsorbed tax losses have been utilised during some years to reduce the current tax expense.

During the year, the Company has transfer Property, plant and equipment to Investment property on Company has recognised deferred tax assest of '' NIL million as at March 31,2022 (March 31,2021: ('' 124.16 million).

Accordingly, the Company, has recognized deferred tax asset on the carried forward business losses after considering the relevant facts and circumstances during each financial year to the extent that the Company had convincing evidence based on its business plans and budgets to the extent that the deferred tax asset will be realized. Consequently, the Company has recognized deferred tax asset of '' 1,773.20 million as at March 31,2022 (March 31,2021 : '' 1,664.87 million) on the carried forward lossess of the Company.

Bengaluru residential project

During the year 2013-14, Hindustan Aeronautics Limited (HAL) had raised an objection with regard to the permissible height of buildings of the Company''s Bengaluru residential project. Pursuant to an earlier interim order passed by the Karnataka High Court, in the petition filed by the Company, the Company had suspended construction activity and sale of flats at the Project.

The Company had suspended revenue recognition based on the percentage completion method after financial year ended March 31, 2014. Further, in case of cancellations subsequent to March 31, 2014, the Company had reversed the revenue and derecognised margins in the respective year of cancellation. The Company also compensated flat owners, in accordance with mitigation plans framed by the Company on account of the delay in completion of the project.

By Judgement dated May 29, 2020 the Karnataka High Court had allowed the writ petition in part, quashing the cancellation of the NOC and remanding back the matter to HAL for re-survey in a time bound manner and thereafter to proceed in accordance with law. HAL filed an appeal challenging the said order. In November 2020, your Company also filed an appeal challenging certain parts of the order.

In October 2021, the Company and HAL after discussions, signed terms for an amicable settlement of all the disputes between the parties, as per which the Company would undertake demolition of already constructed structures above 932 meters Above Mean Sea Level ''AMSL''. Further, the Hon''ble Karnataka High Court on October 26, 2021, disposed of the Writ Appeals in terms of the settlement. The Company has executed Supplemental MOUs with all existing flat owners, with revised terms inter-alia consenting to the revised development plans, subject to applicable regulatory approvals. Further, flat owners above 10th floor have consented to relocate to lower floors.

Demolition work of the area above 10th floor for all the 9 buildings has been completed in April 2022, and the NOC from HAL has been received. Process for obtaining all other approvals is underway.

Accordingly, the Company is reworking the estimated cost of completion of the project upto 10th floor as per the aforementioned plan and reassessing the cost of demolition of super structure above 932 meters AMSL. The excess/short provision on this account, if any, will be reviewed and accounted in the subsequent accounting period, upon confirmation from statutory authorities.

The Company had estimated and accounted interest payable on cancellation to flat owners above 10 floors amounting to '' 553.94 million as at March 31,2022. The said provision shall be reversed upon receipt of all regulatory approvals from statutory authorities.

With respect to the said residential project, w.e.f. June 4, 2018, the Promoter - Directors, have agreed to provide the Company either by themselves or through their nominees, funds to meet the shortfall in cash flows for the Project expenses, by subscribing to 0% Non-Cumulative Non-Convertible Redeemable Preference Shares ("NCRPSâ) of the Company of ''2,000.00 million. A designated bank account is maintained for the Project and redemption of NCRPS''s shall be after completion, out of surplus in the account, not later than 20 years from the date of issue and subject to applicable law/s. In this regard, the Company has a paid-up preference share capital of '' 1,750 million as at March 31,2022 (March 31,2021: ''1,250.00 million).

During the year 2013-14, Hindustan Aeronautics Limited (HAL) had raised an objection with regard to the permissible height of buildings of the Company''s Bengaluru residential project. Pursuant to an earlier interim order passed by the Karnataka High Court, in the petition filed by the Company, the Company had suspended construction activity and sale of flats at the Project.

By Judgement dated May 29, 2020 the Karnataka High Court had allowed the writ petition in part, quashing the cancellation of the NOC and remanding back the matter to HAL for re-survey in a time bound manner and thereafter to proceed in accordance with law. HAL filed an appeal challenging the said order. In November 2020, your Company also filed an appeal challenging certain parts of the order.

Demolition work of the area above 10th floor for all the 9 buildings has been completed in April 2022, and the NOC from HAL has been received. Process for obtaining all other approvals is underway.

Export Promotion Capital Goods (EPCG) scheme

The Company under the EPCG scheme receives a grant from the Government towards import of capital goods without any levy of import duty. The Company has an obligation towards future exports of the Company. The Company has recognized a deferred grant at the point of waiver of import duty in relation to import of capital goods. Given that the grant is conditional on fulfillment of future export obligation, the same is treated as a revenue grant and is accordingly recognized in the Statement of Profit and Loss on fulfilment of such obligation.

Served from India scheme (SFIS)/Service exports from India scheme (SEIS)

The Company under SFIS / SEIS receives an entitlement / credit to be sold separately (only in case of SEIS) or utilized against future imports.

a) Defined contribution plan

The contributions paid/payable to Provident Fund, Employees State Insurance Scheme, Employees Pension Schemes, 1995 and other funds are determined under the relevant approved schemes and/or statutes and are recognized as expense in the Statement of Profit and Loss during the year in which the employee renders the related service. There are no further obligations other than the contributions payable to the approved trusts/appropriate authorities.

The Company has recognized the following amounts in the Statement of Profit and Loss for the year.

b) Defined benefit plan Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972.

The Company follows unfunded gratuity except for:

Hotel division of holding company (Westin, Hyderabad) where fund is maintained with Life Insurance Corporation of India.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out as at March 31, 2022. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The above sensitivity analysis have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the reporting date. In practice, generally it does not occur. When we change one variable, it affects to others. In calculating the sensitivity, project unit credit method at the end of the reporting year has been applied.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Expected contributions to gratuity fund for the year ended March 31,2022 is '' 30.37 million (March 31,2021): '' 30.50 million

NOTE 40 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) '' in million
Particulars	For the year ended March 31,2022	For the year ended March 31, 2021
Contingent liabilities
Claims against the Company not acknowledged as debts
Disputed service tax demands	67.39	62.15
Disputed income tax demands	323.51	331.95
Disputed VAT demands	13.08	12.70
Non-Agricultural Tax (refer note g)	-	8.29
Disputed provident funds demands	5.80	5.80
Labour Dispute	12.21	-
Transportation Charges	0.08	-
Contractors Claim	113.77	-
SFIS/SEIS Scheme	16.73	5.74
Power Facilitation Agreement	36.17	-

c. In December 2005, the Company had purchased the entire building comprizing of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private LimitedThe Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 200304. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on January 22, 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the Standalone financial information. The balance of prepaid lease rental in relation to such leasehold land as of March 31,2022 is '' 49.74 million (March 31,2021: ''50.93 million) and carrying value of property, plant and equipment as at March 31,2022 is '' 372.12 million (March 31,2021: '' 400.77 million).

d. Show Cause Notice issued by CGST & Central Excise Division, Bhopal in July 2019 with reference to utilization of SFIS benefits by the Company for purchase of glass and a demand to make payment of Excise Duty of '' Nil million. The Company has filed a reply in the matter, requesting to not precipitate the matter in view of the existing Court Order of Gujarat High Court. Personal Hearings were held on October 10, 2020 on behalf of the Company and former director, Mr. Ramesh Valecha however no orders have been passed.

e. There are numerous interpretative issues relating to the Supreme Court (SC) judgment on provident fund dated February 28, 2019. As a matter of caution, the Company has made a provision on a prospective basis from the date of the SC order. The Company will update its provision, on receiving further clarity on the subject.

f. The Company has considered as at March 31,2022''41.96 million (March 31,2021: '' 25.16 million) towards service tax refund receivable against cancellations of flats. One of the Company''s claim was rejected by the Customs, Excise & Service Tax Appellate Tribunal, Regional Bench, Bangalore on grounds of time limitationsThe Company had filed appeal with Honourable High Court of Karnataka in this regard. The matter is pending before the Honourable High court of Karnataka.

g. The Company has recieved notice from, The Tahilsdar, Kurla, vide five notices demanded aggregate payment of '' Nil million towards Non-Agricultural Tax which was kept in abeyance vide GR dated July 31, 2016. In the said notice, the authority demanded the levy in view of the aforesaid GR being recalled by the State Government vide subsequent GR dated February 14, 2018. Group has in response to the said Demand Notice, sought references of the said GR''s and the calculation upon which the Authority has arrived at the amounts payable by Group in the said notice. Group is awaiting response from the Authorities. However, an advance of '' Nil million has been paid to the authorities under protest.

Commitments '' in million
Particulars	For the year ended March 31, 2022	For the year ended March 31, 2021
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	3,138.26	3,149.13
NOTE 41 TOTAL OUTSTANDING DUES OF MICRO ENTERPRISES AND SMALL ENTERPRISES During the year, Micro small and medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) have been identified by the Company on the basis of the information available with the Company and the auditors have relied on the same. '' in million
Particulars	For the year ended March 31, 2022	For the year ended March 31, 2021
The amounts remaining unpaid to micro and small enterprises as at the end of the year.
Principal	162.40	85.27
Interest	0.10	0.01
The amount of interest paid by the buyer as per the Micro Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006)	-	-
The amounts of the payments made to micro and small suppliers beyond the appointed day during each accounting year.	-	-
The amount of interest due and payable for the year of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under MSMED Act, 2006
The amount of interest accrued and remaining unpaid at the end of each accounting year	0.10	0.01
The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under the MSMED Act, 2006
NOTE 42 PAYMENT TO AUDITORS '' in million
Particulars	For the year ended March 31, 2022	For the year ended March 31, 2021
Audit fees	8.00	6.55
Tax audit fees	0.50	0.45
Other services	1.60	2.46
Out of pocket expenses	0.45	0.34
Amount debited to Statement of Profit and Loss (excluding taxes)	10.55	9.80

(i) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include :

â¢ the fair value of certain unlisted equity shares are determined based on the income approach or the comparable market approach, and for certain equity shares equals to the cost.

â¢ the fair value for the currency swap is determined using forward exchange rate for balance maturity.

â¢ the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

â¢ the fair value of the forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

â¢ the fair value preference shares and the remaining financial instruments is determined using discounted cash flow analysis. ''The valuation model considers the present value of expected receipt/payment discounted using appropriate discounting rates.

The investments included in level 3 of the fair value hierarchy have been valued using the discounted cash flow

technique to arrive at the fair value.

(iii) Sensitivity analysis

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk ;

â¢ Liquidity risk;

â¢ Market risk;

Risk management framework

(B) Credit risk

(a) Trade receivables from customers

The Company does not have any significant credit exposure in relation to revenue generated from hospitality business. For other segments the Company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Company.

(b) Cash and cash equivalents and other bank balances

The cash and cash equivalents and other bank balances are held with bank and financial institution counterparties with good credit rating.

(d) Other financial assets

Other financial assets are neither past due nor impaired.

Exposure to liquidity risk

(D) Market risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivative to manage market risk.

(E) Currency risk

Exposure to currency risk

Sensitivity analysis

(F) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

Fair value sensitivity analysis for fixed-rate instruments

NOTE 45 CAPITAL MANAGEMENT

In the previous financial year, the Company has discontinued its retail operations at Sahar, Mumbai based on internally evaluated financial feasibility and commercial negotiation with existing retailers. The Company will customise the property for commercial operations.

During the current year, the Company had decided to terminate the agreements with all retailers of Inorbit Mall, Bengaluru and convert the same to a commercial space.

The Income and EBITDA of retail operations at Sahar, Mumbai and Inorbit Mall, Bengaluru has been disclosed separately as income and EBITDA from discontinued business operations. The discontinued business costs includes all direct and indirect costs of retail operations at Sahar, Mumba and Inorbit Mall, Bengaluru.

The Holding Company at its meeting held on 11 August 2020 has approved scheme of amalgamation of Belaire Hotels Private Limited (BHPL) and Seapearl Hotels Private Limited (SHPL), its wholly owned subsidiaries, with the Company under Section 230 to 232 of the Companies Act, 2013, with effect from April 1,2020, (the Appointed Date) subject to the approval of the statutory and regulatory authorities. Post the approval received from the shareholders, petition for sanction of the scheme of amalgamation has been filed with National Company Law Tribunal (NCLT) on April 26, 2021.The scheme of amalgamation is pending for approval by NCLT. Accordingly, the Scheme has not been given effect to in the standalone financial statements for the year ended March 31,2022.

NOTE 55 DISCLOSURE UNDER SECTION 186 OF THE COMPANIES ACT 2013

The operations of the Company are classified as ''infrastructure facilities'' as defined under Schedule VI to the Act. Accordingly, the disclosure requirements specified in sub-section 4 of Section 186 of the Act in respect of loans given, guarantee given or security provided and the related disclosures on purposes/ utilization by recipient companies, are not applicable to the Company.

NOTE 56

The Management has represented that, to the best of it''s knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

NOTE 57

Previous period figures have been re-grouped / re-classified wherever necessary, to conform to current period''s classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective April 1,2021.

Mar 31, 2019

1.1 Reporting entity

The Company is a public limited company, which is domiciled and incorporated in the Republic of India with its registered office situated at Raheja Tower, Plot No. C-30, Block âGâ, Next to Bank of Baroda, Bandra Kurla Complex, Bandra East, Mumbai 400 051. The Company was incorporated under the Companies Act, 1956 on 6 January 1986 and has been converted into a public company with effect from 6 June 2018.

The Company is engaged in the business of hospitality (hotels), commercial and retail operations and real estate development. At March 31, 2019, the Company has, (a) five hotels (and one service apartment building) operating at Powai and Sahar (Mumbai), Vashi (Navi Mumbai), Bengaluru and Hyderabad, (b) developed residential property at Hyderabad (c) Retail Block at Sahar, Mumbai and at Bengaluru, (d) commercial property at Bengaluru and Sahar, Mumbai and (e) is engaged in construction and development of a residential property at Bengaluru.

Notes :

1) Refer note 20 and 25 for information on Property, plant and equipment pledged as security by the Company.

2) The Company has reviewed and revised the estimated economic useful lives of its property, plant and equipment in accordance with the useful lives specified in Schedule II of the Companies Act, 2013 and in accordance with an internal evaluation which is more representative of the useful lives of its property, plant and equipment for the year ended 31 March 2018. Consequently, the depreciation expense for the year ended 31 March 2018 was lower by Rs. 295.10 million. The change in estimated useful lives has effect of reduction in depreciation charge in future period.

3) Refer note 42 for contractual commitments with respect to property plant and equipments.

4) In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected in the schedule above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on 22 January 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the Standalone financial information. The carrying value of property, plant and equipment in respect of the aforementioned hotel as at 31 March 2019 is Rs. 436.66 million (31 March 2018: Rs. 449.27 million).

Notes:

1. The Company has reviewed and revised the estimated economic useful lives of its investment property in accordance with the useful lives specified in Schedule II of the Companies Act, 2013 in accordance with an internal evaluation which is more representative of the useful lives of its investment property during the year ended 31 March 2018. Consequently, the depreciation expense for the year ended 31 March 2018 was lower by Rs. 52.14 million. The change in estimated useful lives has effect of reduction in depreciation charge in future period.

2. Refer note 20 and 25 for information on investment property pledged as security by the Company.

3. Borrowing cost aggregating to Rs. 34.99 millions (31 March 2018 â, 221.41 millions) are capitalised under investment property under contruction.

4. Details of investment property under construction

B. Fair value measurement

i. Fair value hierarchy

The fair value of investment property was determined by external, independent property valuers, having appropriate recognised professional qualification and experience.

The fair value measurement for all of the investment properties has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

ii. Valuation technique and significant unobservable inputs Valuation technique

The fair value of investment property has been determined by external, independent property valuers / management, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.

The fair value measurement for all of the investment property has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

The Company follows discounted cash flows technique. The valuation model considers the present value of net cash flows to be generated from the property, taking into account the expected rental growth rate, vacant years, occupancy rate, lease incentive costs such as rent-free years and other costs not paid by tenants. The expected net cash flows are discounted using risk-adjusted discount rates. Among other factors, the discount rate estimation considers the quality of a building and its location (prime vs secondary), tenant credit quality and lease terms. The land of Commercial Complex, Bengaluru - I is valued by residual method. The Hyderabad flats are valued internally using market price/saleable value for residential flat.

D. The Company has no restrictions on the realisability of investment property or the remittance of income and proceeds of disposal.

Note 5 Impairment testing for cash generating unit (CGU) containing goodwill

For the purpose of impairment testing, goodwill is allocated to the Companyâs operating segments which represent the lowest level within the Company at which goodwill is monitored for internal management purposes. The aggregate carrying amounts of goodwill allocated to each unit are as follows:

The recoverable amount is based on a value-in-use calculation using the discounted cash flow method.

Value in use has been determined by discounting the future cash flows generated from the continuing use of the unit. The calculation of the value in use in based on the following key assumptions:

Discount rate

Terminal value growth rate

Terminal value growth rate used for the purpose of calculation of terminal value has been determined based on the long-term compound annual growth rate in EBITDA.

The above assumptions are reviewed annually as part of managementâs budgeting and strategic planning cycles. These estimates may differ from actual results. The values assigned to each of the key assumptions reflect the Managementâs past experience as their assessment of future trends, and are consistent with external / internal sources of information.

Based on the above assumptions and analysis, no impairment was identified for any of the CGU as at 31 March 2019 and 31 March 2018 as the recoverable value of the CGU exceeded the carrying value.

With regard to the assessment of value in use, no reasonably possible change in any of the above key assumptions would cause the carrying amount of the CGUs to exceed their recoverable amount.

In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected under prepayment and others above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on 22 January 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the Standalone IndAS financial Statements. The balance of prepaid lease rental in relation to such leasehold land as of 31 March 2019 is Rs. 53.32 million (31 March 2018: Rs. 54.52 million).

Cash and cash equivalents includes balances in escrow account which shall be used only for specified purposes as defined under Real Estate (Regulation and Development) Act, 2016.

Loan to related parties include amounts due from a Director is â Nil (31 March 2018: Rs. 1.41 million) and due from Private Limited companies aggregating to â Nil (31 March 2018: Rs. 2,340.74 million) in which directors of the Company are directors.

The interest rate applicable to the amounts due from private limited companies in which directors of the Company are directors are 11.00% (31 March 2018: 11.00%). These amounts are unsecured and repayable on demand.

(d) Rights, preferences and restrictions attached to equity shares.

(f) Initial public offer

The Company has made an initial public issue of 58,613,571 equity shares of face value of Rs. 10 each at a price of Rs. 280 per equity share (including a share premium of Rs. 270 per equity share) aggregating Rs. 16,412 million consisting of 33,928,571 equity share by the company and on offer for sale of 24,685,000 equity share 10,784,176, 5,550,000, 5,550,000, 2,000,824 and 800,000 by K Raheja Corp Private Limited, Neel Raheja, Ravi Raheja, Ivory Properties & Hotels Private Limited and Palm Shelter Estate Development LLP respectively. Aforementioned 58,613,571 equity shares were allotted on 5 February 2019 and the equity share of the company got listed on the National stock exchange (NSE) and BSE Limited (BSE) on 7 February 2019.

Nature and purpose of reserves

Equity Component of Compound Instruments

Equity component of compound Instruments comprises of the impact of fair valuation of preference shares issued by the Company.

Securities premium account

Securities premium account is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve represents appropriation of retained earnings and are available for distribution to shareholders.

Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve. Employee stock option plan reserve

Represents expense recognised towards employee stock option plans issued by the company.(Refer note no.50).

Retained earnings

Retained earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders. It includes impact of fair valuation of land on transition to Ind AS and are presently not available for distribution to shareholders (net of related tax impact): Rs. 3,710.05 million. (31 March 2018 Rs. 3,710.05 million).

(d) Rights, Preferences and restrictions attached to preference shares.

The Company has two classes of preference shares having a par value of Rs. 100,000 each per share.

1,600 0.001% Non-cumulative redeemable preference shares of Rs. 100,000 each.

Rights, Preferences and restrictions attached to 0.001% Non-cumulative redeemable preference shares The preference shares do not carry any voting rights, even if dividend has remained unpaid for any year or dividend has not been declared by the Company for any year. Preference shares shall, subject to availability of profits during any financial year, be entitled to nominal dividend of Re.1 per preference share per year.

20,000 0.00%(Series A & Series B) Non-cumulative, Non-convertible redeemable preference shares of Rs. 100,000 each.

Rights, Preferences and restrictions attached to 0.00 % (Series A & Series B) Non-cumulative Non convertible redeemable preference shares

The preference shares do not carry any voting rights.

Preference shares issued by the Company are due for redemption at par. The Company and its Board shall have the right to redeem the preference shares to the extent of any surplus amounts available from the Bengaluru Residential Project. However, the preference shares are liable to be redeemed not later than one month prior to completion of 20 years from the date of allotment.

The Preference Shares do not carry any voting rights whatsoever in any meetings of the shareholders of the Company or of members of any class of shares of the Company.

Subject to applicable laws, other than the amounts payable for redemption, no amounts shall be payable to the Preference Shareholders, whether by way of dividend or in any other manner whatsoever.

The Companyâs weighted average tax rates for years ended 31 March 2019 is 56.01% and 2018 was 34%, respectively. The effective tax rate is primarily high on account of indexation benefit recognised on land and unquoted equity shares. Further unabsorbed tax losses have been utilised during some years to reduce the current tax expense.

Significant management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the year over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

Unrecognised deferred tax assets

Deferred tax assets (DTA) have not been recognised in respect of the following items, because it is not probable that future taxable profit will be available against which the Company can use the benefits therefrom:

Deferred tax assets for the carry forward of unused tax losses are recognised to the extent that it is probable that future taxable profits will be available against which the unused tax losses can be utilised. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

The Company has recognised deferred tax asset to the extent that the same will be recoverable using the estimated future taxable income based on the approved business plans and budgets of the Company. The Company has began to generate taxable income from the financial year ended 31 March 2018 onwards.The business losses can be carried forward for a year of 8 years as per the tax regulations and the Company expects to recover the losses.

Further, the Company had incurred losses in relation to the residential project at Bengaluru pursuant to litigation which arose during the financial year ended March 31, 2014. During the financial year ended 31 March 2018, without prejudice to its rights and remedies under law and keeping the commercial considerations in perspective, the Board of Directors of the Company, decided that the Company should proactively consider re-commencement of construction up to the permisible limits and engage with the buyers above the 10th floor for evaluating possible options.Consequently, the Company has made a provision for estimated losses on such cancellations pertaining to all flats above 10 floors and recognised the same during the financial year ended 31 March 2018 (refer note 36). Further, the Company does not expect any further material losses to be incurred in relation to the said project.

Accordingly, the Company, has recognised deferred tax asset on the carried forward business losses after considering the relevant facts and circumstances during each financial year to the extent that the Company had convincing evidence based on its business plans and budgets to the extent that the deferred tax asset will be realised. Consequently, the Company has recognised deferred tax asset of Rs. 897.00 million as at 31 March 2019 (31 March 2018: Rs. 820.95 million) on the carried forward losses of the Company.

Bengaluru residential project

During the year 2013-14, Hindustan Aeronautics Limited (HAL) had raised an objection with regard to the permissible height of buildings of the Companyâs Bengaluru residential project. Pursuant to an interim order passed by the Karnataka High Court, in the petition filed by the Company, the Company had suspended construction activity at the Project and sale of flats.

Pending the outcome of the proceedings and a final closure of the matter, the Company suspended revenue recognition based on the percentage completion method after financial year ended March 31, 2014. Further, in case of cancellations subsequent to March 31, 2014, the Company reversed the revenue and derecognised margins in the respective year of cancellation. The Company also recompensed flat owners, in accordance with mitigation plans framed by the Company on account of the delay in completion of the project.

- cost of alteration of superstructure

- estimated costs in relation to potential cancellations

Further, cost of actual cancellation (where applicable) has also been provided for and included in the provision referred to above.

Notes:

Pending the outcome of the proceedings and a final closure of the matter, the Company suspended revenue recognition based on the percentage completion method after financial year ended March 31, 2014. Further, in case of cancellations subsequent to March 31, 2014, the Company reversed the revenue and derecognised margins in the respective year of cancellation. The Company also compensated flat owners, in accordance with mitigation plans framed by the Company on account of the delay in completion of the project.

During the year ended 31 March 2018, without prejudice to its rights and remedies under law and keeping the commercial considerations in perspective, the Board of Directors of the Company, decided that the Company should proactively consider re-commencement of construction up to the miminum permissible limits and engage with the buyers above the 10th floor for evaluating possible options.In accordance thereto, an application has been filed by the Company before the Karnataka High Court in November 2018 with a request to take on record the fact that HAL had no objection to the construction upto 40 meters to enable the Company to apply for a building sanction. HAL has filed its objection inter-alia stating that any alteration or construction of the building would be in violation of the Interim Order. The matter is presently pending.

Consequently, Accordingly, the Company has reassessed the estimated cost of completion of the project upto 10th floor as per the aforementioned plan and has recognised a provision towards the following:

- cost of alteration of superstructure

- estimated costs in relation to potential cancellations

Further, cost of actual cancellation (where applicable) has also been provided for and included in the provision referred to above.

The Promoter-Directors of the Company have agreed to provide funds to the Company either by themselves or through their Nominees, to meet its cash flow requirements for the Project to the extent of Rs. 200 Crores by way of subscription to Rs.0â% Non-Cumulative Redeemable Preference Shares of the Company, for which a Subscription Agreement has been executed by them.

The proceeds of issue of Preference Shares will be deposited in a separate Designated Bank Account of the Company and will be utilised for meeting future cash outflows of the Project. The redemption of Preference Shares shall be 20 years from the date of issue, or earlier, out of surplus from the Project, subject to applicable law/s.

Note:

Note 2 Government grant

Export Promotion Capital Goods (EPCG) scheme

The Company has recognised a deferred grant at the point of waiver of import duty in relation to import of capital goods. Given that the grant is conditional on fulfillment of future export obligation, the same is treated as a revenue grant and is accordingly recognised in the Statement of Profit and Loss on fulfilment of such obligation.

Served from India scheme (SFIS)/Service exports from India scheme (SEIS)

The Company under SFIS / SEIS receives an entitlement / credit to be sold separately (only in case of SEIS) or utilised against future imports.

The Company recognises income in respect of duty credit entitlement arising from export sales under the SFIS/SEIS of the Government of India in the year of exports, provided there is no significant uncertainty regarding the entitlement and availment of the credit and the amount thereof. Export credit entitlement can be utilized within specified benefit year, by way of adjustment against duties payable on purchase of capital equipments, spare parts and consumables or sale of such licenses.

Note 3 Employee benefits

a) Defined contribution plan

The contributions paid/payable to Provident Fund, Employees State Insurance Scheme, Employees Pension Schemes, 1995 and other funds, are determined under the relevant approved schemes and/or statutes and are recognised as expense in the Standalone Statement of Profit and Loss during the year in which the employee renders the related service. There are no further obligations other than the contributions payable to the approved trusts/appropriate authorities.

The Company has recognised the following amounts in the Standalone statement of profit and loss for the year.

b) Defined benefit plan

Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972.

The Company follows unfunded gratuity except for one of its Hotel division (Westin, Hyderabad) where fund is maintained with Life Insurance Corporation of India.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out as at 31 March 2019. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

Fair value of the plan assets and present value of the defined benefit liabilities

The amount included in the Balance sheet arising from the Companyâs obligations and plan assets in respect of its defined benefit schemes is as follows:

6 The principal actuarial assumptions used for estimating the Companyâs benefit obligations are set out below (on a weighted average basis):

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

8 Expected contributions to gratuity fund for the year ended 31 March, 2020 is Rs. 15.10 million (31 March, 2019 : Rs. 6.37 million).

(c) Short-term compensated absences:

Compensated absences, classifies as long term benefits is recognised as an expense and included in âEmployee benefits expenseâ in the Standalone Statement of Profit and Loss during the year. The following table provides details in relation to compensated absences.

Note 4 Operating leases

A. Leases as lessor

The Company leases out its investment property on operating lease basis (Refer note 4). Also, the Company leases office premises and shops in hotel premises

i) Amount recognised in the Standalone Statement of Profit and Loss

ii) Future minimum lease receivables under non cancellable operating lease of shops in Hotels and office premises.

iii) Future minimum lease receivables under non cancellable operating lease of investment properties

B. Leases as lessee

The Company has taken lease on office premises and land on lease on which the Four Points by Sheraton Vashi Hotel is situated. All agreements are cancellable at short notice.

Note 5 Scheme of arrangements

a. Merger of Magna Warehousing & Distribution Private Limited, wholly owned subsidiary of the Company

The said Scheme received the approval of the National Company Law Tribunal (NCLT) at Mumbai and Bangalore and other statutory and regulatory authorities on March 21, 2018. The Scheme has become effective from April 1, 2018.

The merger is accounted as per the âPooling of Interestâ method as prescribed in the Honâble court order. Further since this is a common control transaction, the financial statements in respect of prior periods have been restated from the earliest period presented. Accordingly, the carrying values of the assets, liabilities and reserves pertaining to the Transferor as appearing in the standalone financial statements of the Transferee have been recorded.

b. Merger of Hotel and Retail undertaking of Genext Hardware & Parks Private Limited with the Company

The Board of Directors of the Company at its meeting held on January 5, 2017, approved the demerger proposal and approved the âScheme of Arrangementâ (âthe Schemeâ) to demerge the Hotel Undertaking and the Retail Undertaking of Genext Hardware & Parks Private Limited (âTransferor Companyâ) with the Company (âTransferee Companyâ) under Section 230 to 232 of the Companies Act, 2013, with effect from 1 November 2016, (âthe Appointed Dateâ) subject to obtaining necessary approvals of National Company Law Tribunal (NCLT) at Mumbai.

The said Scheme received the approval of the National Company Law Tribunal (NCLT) at Mumbai and Bangalore and other statutory and regulatory authorities on 11 September 2017. The Scheme has become effective 1 October 2017.

The scheme has been accounted in a manner prescribed by the Honâble court order. The book values of the assets, liabilities and reserves of the Transferor company as of 1 November 2016 have been recorded and the identity of the reserves have been maintained. The consideration for such merger was Rs. 189.53 million in the form of equity shares. Such equity shares were issued during the year ended 31 March 2018.

Note 6 Contingent liabilities and commitments (to the extent not provided for)

c. In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited. The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on 22 January 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the Standalone financial information. The balance of prepaid lease rental in relation to such leasehold land as of 31 March 2019 is Rs. 53.32 million (31 March 2018: Rs. 54.52 million) and carrying value of property, plant and equipment as at 31 March 2019 is Rs. 436.66 million (31 March 2018: Rs. 449.27 million).

d. The Directorate of Revenue Intelligence (âDRIâ) has issued a show-cause notice dated 29 November 2018 to the Company in respect of import of goods against SFIS Scrip/License under Foreign Trade Policy 2004-09 and 2009-14 and the post-export service benefits availed, under the provisions of the Customs Act, 1962 directing the Company to show cause as to why duty amounting to Rs. 195.18 million and Rs. 23.14 million, plus interest and penalty as may be levied under the Customs Act, should not be recovered.

Note 7 Corporate social responsibility

The Company in light of losses incurred in the past years is not required to spend any amount towards Corporate Social Responsibility for the year ended 31 March 2019 and 31 March 2018.

Note 8 Financial instruments - Fair values and risk management

(A) Accounting classification and fair values

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

(i) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include :

- the fair value of certain unlisted equity shares are determined based on the income approach or the comparable market approach.

- the fair value for the currency swap is determined using forward exchange rate for balance maturity.

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

- the fair value of the forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

- the fair value preference shares and the remaining financial instruments is determined using discounted cash flow analysis. âThe valuation model considers the present value of expected receipt/payment discounted using appropriate discounting rates.

The investments included in level 3 of the fair value hierarchy have been valued using the discounted cash flow technique to arrive at the fair value.

(ii) Fair value measurements using significant unobservable inputs (level 3)

Reconciliation of level 3 fair values

(iv) Valuation inputs and relationships to fair value

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements.

(v) Sensitivity analysis

For the fair values of FVTPL equity shares, reasonably possible changes at the reporting date to one of the significant unobservable inputs, holding other inputs constant, would have the following effects.

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk;

- Market risk;

Risk management framework

The Companyâs board of directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. The board of directors is responsible for developing and monitoring the Companyâs risk management policies.

The Companyâs risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Companyâs risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables from customers, cash and cash equivalents and other bank balances, derivatives and investment securities. The carrying amounts of financial assets represent the maximum credit exposure.

(a) Trade receivables from customers

Impairment

The ageing of trade and other receivables that were not impaired was as follows.

(b) Cash and cash equivalents and other bank balances

The cash and cash equivalents and other bank balances are held with bank and financial institution counterparties with good credit rating.

(d) Other financial assets

Other financial assets are neither past due nor impaired.

(C) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.

Exposure to liquidity risk

The gross outflows / (inflows) disclosed in the above table represent the contractual undiscounted cash flows relating to derivative financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity. The disclosure shows net cash flow amounts for derivatives that are net cash-settled and gross cash inflow and outflow amounts for derivatives that have simultaneous gross cash settlement.

(D) Market risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Companyâs income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivative to manage market risk.

(E) Currency risk

Exposure to currency risk

The summary quantitative data about the Companyâs exposure to currency risk as reported to the management of the Company is as follows. The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Sensitivity analysis

(F) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

Fair value sensitivity analysis for fixed-rate instruments

The Companyâs fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107 Financial Instruments: Disclosures, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. In cases where the related interest rate risk is capitalised to fixed assets, the impact indicated below may affect the Companyâs income statement over the remaining life of the related fixed assets.

Note 9 Capital management

The Companyâs policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company monitors capital using a ratio of âadjusted net debtâ to âadjusted equityâ. For this purpose, adjusted net debt is defined as total borrowings, comprising interest-bearing loans and borrowings, less cash and cash equivalents and bank deposits. Adjusted equity comprises all components of equity.

Note 10 Segment reporting

As per the exemption under Ind AS 108 âOperating Segmentsâ, the disclosure for the segment reporting has been presented as part of the consolidated Ind AS financial statements.

Note 11 Employee Stock Option Schemes Description of share-based payment arrangements:

At 31 March 2019, Company had following share-based payment arrangements:

Employee Stock Option Plan 2018:

The primary objective of the plan is to reward the key employee for his assosciation, dedication and contributions to the goals of the company. The plan is established is with efffect from 13 June 2018 on which the shareholders of the Company have approved the plan by the way of special resolution and it shall continue to be in force until its termination by the Company as per provisions of Applicable laws, or the date on which all of the Options available for issuance under the plan have been issued and exercised , whichever is earlier.

Measurement of Fair value

The fair value of employee share options has been measured using Black Scholes Option Pricing Model and is charged to the statement of Profit and Loss over the vesting year.

The fair value of the options and the key inputs used in the measurement of the grant date fair values of the equity settled share based payment plans are as follows:

The options outstanding at 31 March 2019 have an exercise price of Rs. 320 and a weighted average remaining contractual life of 2.57 year.

The expense recognised for the year ended 31 March 2019 is Rs. 14.64 million.

Note 12 Share issue expenses

During the year the company has made Initial Public Offering of 58,613,571 equity shares of face value of Rs. 10 each for cash at a price of Rs. 280 per equity share (including a share premium of Rs. 270 per equity share) aggregating to Rs. 16,411.80 million comprising a fresh issue of 33,928,571 equity shares aggregating to Rs. 9,500 million and an offer for sale of 24,685,000 equity shares aggregating to Rs. 6,911.80 million.

The proceeds from IPO were Rs. 9,500 million. (Gross of issue related expenses Rs. 309.65 million).

The equity shares of the company were listed on National Stock Exchange of India Limited (NSE) via ID CHALET and BSE Limited (BSE) via ID 542399 on 7 February 2019.

Details of utilisation of net IPO proceeds are as follows:

The Company has incurred Rs. 526.18 millions (excluding GST) of IPO expenses. Of the above IPO expenses, certain expenses (such as listing fees and stamp duty expenses) aggregating to Rs. 11.96 millions are directly attributable to the Company and have been adjusted towards the securities premium account. The remaining expenses aggregating to Rs. 514.22 millions, have been allocated between the Company Rs. 297.69 millions and selling shareholders Rs. 216.53 millions in proportion to the equity shares allotted to the public as fresh issue by the Company and under offer for sale by the selling shareholders. The amount of Rs. 297.69 millions allocated to the Company has also been adjusted towards the securities premium account. The gross share issues expenses include a sum of Rs. 12.11 millions (excluding GST) paid to the statutory auditors, which is included in the amount adjusted towards the securities premium account.

As on 31 March 2019, revenue recognised in the current year from performance obligations satisfied/ partially satisfied in the previous year is NIL

Information on performance obligations in contracts with Customers:

Real Estate Development Project:

The following table includes revenue to be recognised in future related to performance obligations that are unsatisfied towards the real estate development projects as at 31 March 2019

Hospitality and Commercial & Retail

Note 13 Disclosure on transition to Ind AS 115

Changes in accounting policies:

Except for the changes below, the Company has consistently applied the accounting policies to all years presented in these Standalone financial statements.

The Company has adopted Ind AS 115 Revenue from Contracts with Customers (ââ Ind AS 115ââ) with a date of initial application of 1 April 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below.

A. Real Estate development

The Company accounted for its sale of residential flats in their real estate projects on a percentage completion basis as prescribed under the Guidance note for Accounting for Real Estate Trasactions. Under Ind AS 115, the Company recognises the revenue from sale of residential projects at a point in time, i.e. when all the risks and rewards associated are transferred to the customer. Accordingly the Company has reversed the cumulative revenue recognised on sale of residential flats in the opening reserve as on April 1, 2018.

A. Reconciliation between balances without adoption of Ind AS 115 and as reported

Ind AS 8 requires an entity to reconcile equity and total comprehensive income for the reported year.

Note 14 Disclosure under Section 186 of the Companies Act 2013

The operations of the Company are classified as âinfrastructure facilitiesâ as defined under Schedule VI to the Act. Accordingly, the disclosure requirements specified in sub-section 4 of Section 186 of the Act in respect of loans given, guarantee given or security provided and the related disclosures on purposes/ utilisation by recipient companies, are not applicable to the Company.

Note 15:

The MCA vide notification dated 11 October 2018 has amended Schedule III to the Companies Act, 2013 in respect of certain disclosures. The Company has incorporated appropriate changes in the Financial statements.

Mar 31, 2018

1.1 REPORTING ENTITY

Chalet Hotels Limited (âthe Companyâ) is a public limited company, which is domiciled and incorporated in the Republic of India with its registered office situated at Raheja Tower, Plot No. C-30, Block âGâ, Opp. SIDBI, Bandra Kurla Complex, Bandra East, MUMBAI 400 051. The Company was incorporated under the Companies Act, 1956 on January 6, 1986 and has been converted into a public company with effect from June 6, 2018.

The Company is engaged in the business of hospitality (hotels), commercial and retail operations and real estate development. As at March 31, 2018, the Company has, (a) five hotels (and one service apartment building) operating at Powai and Sahar (Mumbai), Vashi (Navi Mumbai), Bengaluru and Hyderabad, (b) developed residential property at Hyderabad (c) Retail block at Sahar, Mumbai and at Bengaluru, (d) commercial property at Bengaluru and (e) is engaged in construction and development of a residential property at Bengaluru and the balance of the Hotel Complex at Sahar (Mumbai) covering Business Centre and Administrative offices.

Notes

1) The Company has considered fair value for freehold land as of April 1, 2016 with impact of Rs.5,887.72 million (related tax: Rs.2163.35 million) based on the deemed cost exemption available under Ind AS 101 with the resultant impact being accounted for in the reserves (refer note 54).

2) The Company has reviewed and revised the estimated economic useful lives of its property, plant and equipment in accordance with the useful lives specified in Schedule II of the Companies Act, 2013 in accordance with an internal evaluation which is more representative of the useful lives of its property, plant and equipment during the year ended March 31, 2018. Consequently, the depreciation expense for the year ended March 31, 2018 is lower by Rs.295.10 million. The change in estimated useful lives has effect of reduction in depreciation charge in future periods.

3) Refer note 21 & 26 for information on property, plant and equipment pledged as security by the Company.

4) Refer note 43 for contractual commitments with respect to property plant and equipments.

5) In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected in the schedule above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on January 22, 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the financial information. The carrying value of property, plant and equipment in respect of the aforementioned hotel as at March 31, 2018 is Rs.449.27 million (March 31, 2017: Rs.474.47 million, April 1, 2016: Rs.510.23 million).

Deemed cost exemption

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its investment properties recognised as at April 1, 2016 measured as per the previous Indian GAAP and use that carrying value as the deemed cost of the investment properties.

Notes:

1. Pursuant to the Companies Act, 2013 being effective from April 1, 2014, the Company has revised the depreciation rates on investment property based on the management estimate of the useful lives of the assets, which are lower than or in accordance with Part âCâ of Schedule II of the Act. Consequently, the depreciation expense for the year ended March 31, 2018 is lower by Rs.52.14 million. The change in estimated useful lives has effect of reduction in depreciation charge in future periods.

2. Refer note 21 & 26 for information on investment property pledged as security by the Company.

B. Fair value measurement

i. Fair value hierarchy

The fair value of investment property was determined by external, independent property valuers, having appropriate recognised professional qualification and experience.

The fair value measurement for all of the investment properties has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

ii. Valuation technique and significant unobservable inputs Valuation technique

The fair value measurement for all of the investment property has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

The Company follows discounted cash flows technique. The valuation model considers the present value of net cash flows to be generated from the property, taking into account the expected rental growth rate, vacant periods, occupancy rate, lease incentive costs such as rent-free periods and other costs not paid by tenants. The expected net cash flows are discounted using risk-adjusted discount rates. Among other factors, the discount rate estimation considers the quality of a building and its location (prime vs secondary), tenant credit quality and lease terms. The land of Commercial complex, Bengaluru - I is valued by residual method.

2 GOODWILL

Impairment testing for cash generating unit (CGU) containing goodwill

For the purpose of impairment testing, goodwill is allocated to the Companyâs operating segments which represent the lowest level within the Company at which goodwill is monitors for internal management purposes. The aggregate carrying amounts of goodwill allocated to each cash generating unit are as follows:

The recoverable amount is based on a value-in-use calculation using the discounted cash flow method.

Value in use has been determined by discounting the future cash flows generated from the continuing use of the unit. The calculation of the value in use in based on the following key assumptions:

Discount rate

Terminal value growth rate

Terminal value growth rate used for the purpose of calculation of terminal value has been determined based on the long-term compound annual growth rate in EBITDA.

Based on the above assumptions and analysis, no impairment was identified for any of the CGU as at March 31, 2018, March 31, 2017 and April 1, 2016 as the recoverable value of the CGU exceeded the carrying value.

With regard to the assessment of value in use, no reasonably possible change in any of the above key assumptions would cause the carrying amount of the CGUs to exceed their recoverable amount.

Deemed cost exemption

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible asset recognised as at April 1, 2016 measured as per the previous Indian GAAP and use that carrying value as the deemed cost of the intangible assets.

In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited (reflected under prepayment and others above). The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 2014-15, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on January 22, 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the financial information. The balance of prepaid lease rental in relation to such leasehold land as of March 31, 2018 is Rs.54.52 million (March 31, 2017: Rs.55.71 million, April 1, 2016: Rs.56.91 million).

Cash and cash equivalents and bank balances includes balances in escrow account which shall be used only for specified purposes as defined under Real Estate (Regulation and Development) Act, 2016.

Loan to related parties include amounts due from a Director Rs.1.41 million (March 31, 2017: Rs.7.50 million, April 1, 2016: Rs.10.00 million) and due from private limited companies aggregating to Rs.2,340.74 million (March 31, 2017: Rs.1,771.66 million, April 1, 2016: Rs.1,358.35 million) in which directors of the Company are directors.

The interest rate applicable to the amounts due from private limited companies in which directors of the Company are directors are 11.00% (March 31, 2017: 12.00%, April 1, 2016: 12.50%). These amounts are unsecured and repayable on demand.

The investment in Genext Hardware & Park Private Limited was acquired exclusively with a view of its subsequent disposal within twelve months from the date of purchase. It was classified as held for sale on acquisition during the year ended March 31, 2014 and consequently measured at the lower of its carrying amount and fair value less costs to sell.

The investment in Genext Hardware & Parks Private Limited required additional time beyond twelve months due to regulatory approvals and approvals from the local state governments.

3 SHARE CAPITAL (CONTD.)

(a) Rights, Preferences and restrictions attached to equity shares.

Nature and purpose of reserves :

Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserves.

Securities premium account

Securities premium account is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act 2013.

Share pending allotment

Shares pending allotment represents consideration to be issued in relation to the merger of Genext Hardware and Parks Private Limited. The issue of such shares was completed in the financial year ended March 31, 2018 on receipt of requisite approvals for the merger (refer note 42).

General reserve

General reserve represents appropriation of retained earnings and are available for distribution to shareholders.

Retained earnings

Retained earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders. It includes impact of fair valuation of land on transition to Ind AS, not presently available for distribution to shareholders (net of related tax impact): Rs.3,710.05 million (March 31, 2017: Rs.3,724.37 million, April 1, 2016: Rs.3,724.37 million).

*1,600 non-cumulative preference shares were payable as consideration pursuant to the Scheme of Arrangement â (âthe Schemeâ) to demerge the Hotel Undertaking and the Retail Undertaking of Genext Hardware & Parks Private Limited (âTransferor Companyâ) with the Company. These shares were issued and allotted during the year ended March 31, 2018. (refer note 42)

(d) Rights, preferences and restrictions attached to preference shares

Non-cumulative redeemable preference shares: 1,600 (March 31, 2017: Nil, April 1, 2016: Nil) 0.001% Non-cumulative redeemable preference shares of Rs.100,000 each.

The Company has only one class of preference shares having a par value of Rs.100,000 per share. The preference shares do not carry any voting rights, even if dividend has remained unpaid for any year or dividend has not been declared by the Company for any year. Preference shares shall, subject to availability of profits during any financial year, be entitled to nominal dividend of Re 1 per preference share per year.

In the event of liquidation of the Company before redemption of the equity shares, the holders of redeemable preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

The Companyâs weighted average tax rates for years ended March 31, 2018 and 2017 were 34.00% and (114.80)%, respectively. The effective tax rate is primarily lower on account of indexation benefit recognised on land and unquoted equity shares. Further unabsorbed tax losses have been utilised during some years to reduce the current tax expense.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

Given that the holding company does not have any intention to dispose investments in subsidiaries in the foreseeable future, deferred tax asset on indexation benefit in relation to such investments has not been recognised.

Unrecognised deferred tax assets

Deferred tax assets (DTA) have not been recognised in respect of the following items, because it is not probable that future taxable profit will be available against which the company can use the benefits therefrom:

The Company has recognised deferred tax asset to the extent that the same will be recoverable using the estimated future taxable income based on the approved business plans and budgets of the Company. The Company is expected to generate taxable income from the financial year ended March 31, 2018 onwards. The business losses can be carried forward for a period of 8 years as per the tax regulations and the Company expects to recover the losses.

The Retail block at Sahar, Mumbai became operational during the financial year ended March 31, 2017 and was expected to generate profits for the Company. Further, the Company also had plans to merge the hotel and retail undertaking from Genext Hardware & Parks Private Limited for which the Scheme was filed in the financial year ended March 31, 2017. The said Scheme received the approval of the National Company Law Tribunal (NCLT) at Mumbai and Bangalore and other statutory and regulatory authorities and became effective from October 1, 2017.

Further, the Company had incurred losses in relation to the residential project at Bengaluru pursuant to litigation which arose during the financial year ended March 31, 2014. During the financial year ended March 31, 2018, without prejudice to its rights and remedies under law and keeping the commercial considerations in perspective, the Board of Directors of the Company, decided that the Company should proactively consider re-commencement of construction up to the minimum permissible limits and engage with the buyers above 10th floor for evaluating possible option. Consequently, the Company has made a provision for estimated losses on such cancellations pertaining to all flats above 10 floors and recognised the same during the financial year ended March 31, 2018 (refer note 37). Further, the Company does not expect any further material losses to be incurred in relation to the said project.

Accordingly, the Company, has recognised deferred tax asset on the carried forward business losses after considering the relevant facts and circumstances during each financial year to the extent that the Company had convincing evidence based on its business plans and budgets to the extent that the deferred tax asset will be realised. Consequently, the Company has recognised deferred tax asset of Rs.828.80 million as at March 31, 2018 (March 31, 2017: Rs.865.20 million, April 1, 2016: Rs.519.12 million) on the carried forward losses of the Company.

There are no material breaches of the covenants associated with the borrowings (referred to above) and none of the borrowings were called back during the period.

Advances from customers towards sale of residential flats includes amount refundable to customers on estimated cancellation of flats for the year ended March 31, 2018 above 10 floors of Rs.944.07 million (refer note 37).

Statutory dues payable include ESIC, TDS payable, provident fund payable, indirect taxes payables, etc.

Current provisions

Bengaluru Residential Project

During the year 2013-14, Hindustan Aeronautics Limited (HAL) had raised an objection with regard to the permissible height of buildings of the Companyâs Bengaluru Residential Project. Pursuant to an interim order passed by the Karnataka High Court, in the petition filed by the Company, the Company had suspended construction activity at the Bengaluru Project and sale of flats.

Pending the outcome of the proceedings and a final closure of the matter, the Company suspended revenue recognition based on the percentage completion method after financial year ended March 31, 2014. Further, in case of cancellations subsequent to March 31, 2014, the Company reversed the revenue and derecognised margins in the respective year of cancellation. The Company also recompensed flat owners, in accordance with mitigation plans framed by the Company on account of the delay in completion of the project.

During the year ended March 31, 2018, without prejudice to its rights and remedies under law and keeping the commercial considerations in perspective, the Board of Directors of the Company, decided that the Company should proactively consider re-commencement of construction up to the minimum permissible limits and engage with the buyers above 10th floor for evaluating possible option. Accordingly, the Company has reassessed the estimated cost of completion of the project up to 10th floor as per the aforementioned plan and has recognised a provision towards the following:

- cost of alteration of superstructure

- estimated cost in relation to potential cancellations.

Further, cost of actual cancellations (where applicable) has also been provided for and included in the provision referred to above.

Notes

During the year 2013-14, Hindustan Aeronautics Limited (HAL) had raised an objection with regard to the permissible height of buildings of the Companyâs Bengaluru Residential Project (âProjectâ). Pursuant to an interim order passed by the Karnataka High Court, in the petition filed by the Company, the Company had suspended construction activity at the Project and sale of flats.

Pending the outcome of the proceedings and a final closure of the matter, the Company suspended revenue recognition based on the percentage completion method after financial year ended March 31, 2014. Further, in case of cancellations subsequent to March 31, 2014, the Company reversed the revenue and derecognised margins in the respective year of cancellation. The Company also recompensed flat owners, in accordance with mitigation plans framed by the Company on account of the delay in completion of the Project.

During the year ended March 31, 2018, without prejudice to its rights and remedies under law and keeping the commercial considerations in perspective, the Board of Directors of the Company, decided that the Company should proactively consider re-commencement of construction up to the permissible limits and engage with the buyers above 10 floors for evaluating possible option. Accordingly, the Company has reassessed the estimated cost of completion of the Project unto the 10th floor as per the aforementioned plan and has recorded the following adjustments as exceptional items as at March 31, 2018:

i) Provision towards impairment of super structure of Rs.350.89 million and expected cost of alteration of super structure of Rs.250 million;

ii) Provision for cost of mitigation program compensation and related expenses of Rs.590.87 million in relation to potential cancellations referred to in above, net of compensation already provided for; and

iii) Impact of revised estimated cost of completion of the project on the net realisable value of inventory resulting in write down of Rs.25.76 million.

iv) In the event all the buyers of flats above 10th floor decide to exercise exit option, the Company has to refund Rs.944.07 million which is presently being accounted as an advance from customers.

Construction of and sales in the Project have been suspended due to an on-going litigation relating to the Project. Parties who have booked flats in the Project, are paid compensation for delay in delivery of their respective units and those who seek to cancel their bookings are repaid the advances / deposits made by them together with interest thereon, leading to considerable cash out flows for the Company.

Subsequent to the Balance Sheet date, the Promoter-Directors of the Company have agreed to provide funds to the Company either by themselves or through their Nominees, to meet its cash flow requirements for the Project to the extent of Rs.200 Crores by way of subscription to â0â% Non-Cumulative Redeemable Preference Shares of the Company, for which a Subscription Agreement has been executed by them.

Note

Weighted average number of shares is the number of equity shares outstanding at the beginning of the year adjusted by the number of equity shares issued during year, multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year.

4 GOVERNMENT GRANT

Export Promotion Capital Goods (EPCG) scheme

The Company has recognised a deferred grant at the point of waiver of import duty in relation to import of capital goods. Given that the grant is conditional on fulfilment of future export obligation, the same is treated as a revenue grant and is accordingly recognised in the Statement of Profit or loss on fulfilment of such obligation.

Served from India scheme (SFIS)/Service exports from India scheme (SEIS)

The Company under SFIS / SEIS receives an entitlement / credit to be sold separately (only in case of SEIS) or utilised against future imports.

The Company recognises income in respect of duty credit entitlement arising from export sales under the SFIS/SEIS of the Government of India in the year of exports, provided there is no significant uncertainty regarding the entitlement and availment of the credit and the amount thereof. Export credit entitlement can be utilized within specified benefit period, by way of adjustment against duties payable on purchase of capital equipments, spare parts and consumables or sale of such licenses.

5 EMPLOYEE BENEFITS

a) Defined contribution plan

The contributions paid/payable to Provident Fund, Employees State Insurance Scheme, Employees Pension Schemes, 1995 and other funds, are determined under the relevant approved schemes and/or statutes and are recognised as expense in the Standalone Statement of Profit and Loss during the period in which the employee renders the related service. There are no further obligations other than the contributions payable to the approved trusts/appropriate authorities.

The Company has recognised the following amounts in the standalone statement of profit and loss for the year.

b) Defined benefit plan Gratuity

The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972.

The company follows unfunded gratuity except for one of its Hotel division (Westin, Hyderabad) where fund is maintained with Life Insurance Corporation of India.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out as at March 31, 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

Fair value of the plan assets and present value of the defined benefit liabilities

The amount included in the Balance sheet arising from the Companyâs obligations and plan assets in respect of its defined benefit schemes is as follows:

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

6 Expected contributions to gratuity fund for the year ended March 31, 2019 is Rs.6.37 million.

c) Short-term compensated absences:

7 OPERATING LEASES

A. Leases as lessor

The Company leases out its investment property on operating lease basis (refer note 4). Also, the Company leases office premises and shops in hotel premises.

i) Amount recognised in standalone statement of profit and loss

8 SCHEME OF ARRANGEMENTS

a. Merger of Magna Warehousing & Distribution Private Limited, wholly owned subsidiary of the Company

The merger is accounted as per the âPooling of Interestâ method as prescribed in the Honâble court order. Further since this is a common control transaction, the financial statements in respect of prior periods have been restated from the earliest period presented. Accordingly, the carrying values of the assets, liabilities and reserves pertaining to the Transferor as appearing in the consolidated financial statements of the Transferee have been recorded.

b. Merger of Hotel and Retail undertaking of Genext Hardware & Parks Private Limited with the Company

The Board of Directors of the Company at its meeting held on January 5, 2017, approved the demerger proposal and approved the âScheme of Arrangementâ (âthe Schemeâ) to demerge the Hotel Undertaking and the Retail Undertaking of Genext Hardware & Parks Private Limited (âTransferor Companyâ) with the Company (âTransferee Companyâ) under Section 230 to 232 of the Companies Act, 2013, with effect from November 01, 2016, (âthe Appointed Dateâ) subject to obtaining necessary approvals of National Company Law Tribunal (NCL T) at Mumbai.

The said Scheme received the approval of the National Company Law Tribunal (NCLT) at Mumbai and Bangalore and other statutory and regulatory authorities on September 11, 2017. The Scheme has become effective October 1, 2017.

The scheme has been accounted in a manner prescribed by the Honâble court order. The book values of the assets, liabilities and reserves of the Transferor company as of November 1, 2016 have been recorded and the identity of the reserves have been maintained. The consideration for such merger was Rs.189.53 million in the form of equity shares. Such equity shares were issued during the year ended March 31, 2018 and accordingly has been presented as shares pending allotment in the financial statements for the year ended March 31, 2017. Further, the effect of shares pending allotment has been appropriately considered for computation of basic and diluted earnings per share from the Appointed Date.

The excess of book value of the net assets and reserves of the Transferor Company taken over, amounting to Rs.189.53 millions over the face value of the shares issued by the transferee Company has been debited to the Goodwill as per the Scheme. Further, the results of the operations of the hotel and retail undertaking have been incorporated with effect from November 1, 2016. Accordingly, the results for the periods covered by Standalone Statement of Profit and Loss may not be comparable.

For five month period ended March 31, 2017, Transferor Company contributed revenue of Rs.716.65 million and loss (before tax) of Rs.34.29 million to the Companyâs results.

If the acquisition had occurred on April 1, 2016, management estimates that consolidated revenue would have been higher by Rs.847.97 Million and profit after tax would have been lower by Rs.73.41 Million.

c. In December 2005, the Company had purchased the entire building comprising of the hotel and apartments therein, together with a demarcated portion of the leasehold rights to land at Vashi (Navi Mumbai) from K. Raheja Corp Private Limited. The Company has been operating the Four Points By Sheraton Hotel at the said premises. Two Public Interest Litigations challenging the allotment of land by CIDCO to K. Raheja Corp Private Limited had been filed in FY 2003-04. During the financial year 201415, the Honourable High Court at Bombay ordered K. Raheja Corp Private Limited to demolish the structure and hand back the land to CIDCO. K Raheja Corp Private Limited has filed a special leave petition against the order in the Supreme Court. The Supreme Court on 22 January 2015 directed the maintenance of a status quo. Pending the outcome of proceedings and a final closure of the matter no adjustments have been made in the financial information. The balance of prepaid lease rental in relation to such leasehold land as of March 31, 2018 is ''54.52 million (March 31, 2017: Rs.55.71 million, April 1, 2016: Rs.56.91 million) and carrying value of property, plant and equipment as at March 31, 2018 is Rs.449.27 million (March 31, 2017: Rs.474.47 million, April 1, 2016: Rs.510.23 million).

9 SPECIFIED BANK NOTES

Schedule III of the Companies Act, 2013 was amended by Ministry of Corporate Affairs vide Notification G.S.R. 308(E) dated 30 March 2017. The said amendment requires the Company to disclose the details of Specified Bank Notes (SBN) held and transacted during the period from 8 November 2016 to 30 December 2016. For the purpose of this clause, the term âSpecific Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407 (E), dated the 8th November, 2016.

The details of Specified Bank Notes (SBN) held and transacted during the period 08/11/2016 to 30/12/2016 are provided in the table below:-

10 CORPORATE SOCIAL RESPONSIBILITY

The Company in light of losses incurred in the past years is not required to spend any amount towards Corporate Social Responsibility for the year ended March 31, 2018 and March 31, 2017.

11 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT

(A) Accounting classification and fair values

(ii) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include :

- the fair value of certain unlisted equity shares are determined based on the income approach or the comparable market approach.

- the fair value for the currency swap is determined using forward exchange rate for balance maturity.

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.

- the fair value of the forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date for residual maturity.

The investments included in level 3 of the fair value hierarchy have been valued using the discounted cashflow technique.

(iii) Fair value measurements using significant unobservable inputs (level 3)

Reconciliation of level 3 fair values

(iv) Valuation inputs and relationships to fair value

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements.

See (ii) above for the valuation techniques adopted.

(v) Sensitivity analysis

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk ;

- Liquidity risk;

- Market risk;

Risk management framework

The audit committee oversees how management monitors compliance with the companyâs risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables from customers, cash and cash equivalents and other bank balances, derivatives and investment securities. The carrying amounts of financial assets represent the maximum credit exposure.

(a) Trade receivables from customers

The Company does not have any significant credit exposure in relation to revenue generated from hospitality business. For other segments, the Company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Company.

Impairment

The ageing of trade and other receivables that were not impaired was as follows.

(b) Cash and cash equivalents and other bank balances

The cash and cash equivalents and other bank balances are held with bank and financial institution counterparties with good credit rating.

(c) Derivatives

(d) Other financial assets

Other financial assets are neither past due nor impaired.

(C) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.

Liquidity risk is managed by Company through effective fund management. The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company has access to funds from debt markets through foreign currency borrowings and other debt instruments.

âGuarantees issued by the Company on behalf of subsidiaries and associates are with respect to borrowings raised by the respective subsidiary and associates. These amounts will be payable on default by the concerned parties. As of the reporting date, none of the subsidiaries have defaulted and hence, the Company does not have any present obligation to third parties in relation to such guarantees. (refer note 51).

(D) Market risk

(E) Currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses derivative instruments, i.e., foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in respect of recognised liabilities. The company enters into foreign currency forward contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables.

Following are the derivative financial instruments outstanding:

Exposure to currency risk

The amounts reflected in the table below represents the INR exposure to the respective currencies.

Sensitivity analysis

(F) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

Fair value sensitivity analysis for fixed-rate instruments

The companyâs fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107 Financial Instruments: Disclosures, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable-rate instruments

12 CAPITAL MANAGEMENT

The Companyâs adjusted net debt to equity ratio is as follows:

13 SEGMENT REPORTING

As per the exemption under Ind AS 108 âOperating Segmentsâ, the disclosure for the segment reporting has been presented as part of the consolidated Ind AS financial statements.

14 FIRST TIME ADOPTION

These are the Companyâs first financial statements prepared in accordance with Ind AS. The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Principles in India (Indian GAAP) as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, which was the âPrevious GAAPâ.

The Significant Accounting Policies set out in Note No. 1 have been applied in preparing the financial statements for the year ended March 31, 2018, March 31, 2017 and the opening Ind AS balance sheet on the date of transition i.e. April 1, 2016.

In preparing its Standalone Balance Sheet as at April 1, 2016 and in presenting the comparative information for the year ended March 31, 2017, the Company has adjusted amounts previously reported in the financial statements prepared in accordance with Previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with Previous GAAP, and how the transition from Previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

1 Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 in relation to Ind AS 103, âBusiness Combinationsâ for business combinations consummated prior to the date of transition (April 1, 2016). Pursuant to this exemption, goodwill arising from business combination has been stated at the carrying amount under Previous GAAP Ind AS 103 will be applied prospectively to business combinations occurring after its transition date.

2 Investment in subsidiaries and associates

As permitted by Ind AS 101, for measuring investment in subsidiaries and associates, the Company has considered their previous GAAP carrying amount as their deemed cost as at 1 April 2016. For the purpose of Proforma Ind AS financial information, the Company has used carrying amount as per previous GAAP as at March 31, 2016, 2015 and 2014 to be the value of Investments for such respective years.

3 Property, plant and equipment

4 Intangible assets and Investment property

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP as âdeemed costâ at April 1, 2016 for all the items of intangible assets and investment property.

5 Classification and measurement of financial assets and financial liabilities

Ind AS 101 requires an entity to assess classification of financial assets and financial liabilities on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets and financial liabilities accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, the Company has determined the classification of financial assets and financial liabilities based on facts and circumstances that exist on the date of transition. Measurement of the financial assets and financial liabilities accounted at amortised cost has been done retrospectively except where the same is impracticable.

6 Estimates

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

V) Impact of Ind AS adoption on the standalone statement of cash flows

There were no material differences between the Standalone Statement of Cash Flows and cash flow statement under previous GAAP (as adjusted for the impact of the demerger of Hotel & Retail undertaking from Magna and merger of Hotel & Retail undertaking from Genext - refer Note 42).

VI) Notes to first time adoption:

1 Fair valuation of land treated as deemed cost

On the date of transition the Company has chosen to reflect the fair value of all freehold land as of April 1, 2016 as their respective deemed cost. All other items of property, plant and equipment have been measured as per the requirements of Ind AS 16 âProperty, Plant and Equipmentâ retrospectively. The impact of both these adjustments has been considered through retained earnings and corresponding assets/liabilities, as appropriate. The fair value has been determined with reference to residual value approach which also involves determining the business value of the respective hotel building. The fair value so determined is categorised as Level 3 in accordance with the requirements of Ind AS 113. The key unobservable inputs used for determination of the fair value referred to above includes the rate use d for discounting (12.10%) and growth rate (5%).

2 Accounting for transaction costs on borrowings as per effective interest method

Under previous GAAP, directly attributable transaction costs were charged to the Statement of Profit and Loss or capitalised as part of property, plant and equipment in the year of disbursement of the loan. As per the requirements of Ind AS, the Company has measured the borrowings at amortised cost (including the directly attributable transaction costs) based on the effective interest rate of the borrowings. Accordingly, suitable restatement adjustments have been made in the Standalone Statement of Profit and Loss and Property, plant and equipment.

3 Fair value movement of FVTPL investments

Under previous GAAP, non-current investments were carried at cost less provision for diminution (other than temporary). Under Ind AS, investment in equity shares (other than subsidiaries and associates) are measured at fair value, with fair value changes being routed through the Standalone Statement of Profit and Loss.

4 Investment in preference shares measured at amortised cost

Under previous GAAP, non-current investments in preference shares were carried at cost less provision for diminution (other than temporary). Under Ind AS, investment in 0.001% non-cumulative redeemable preference shares of Genext Hardware & Parks Private Limited are measured at amortised cost as per Ind AS 109. Accordingly, suitable adjustments have been made in the Standalone Statement of Profit and Loss and Investment in preference shares.

5 Actuarial gain and loss

Under previous GAAP, remeasurement on defined benefit plans of the Company were recognised in the statement of profit or loss. However, as per the requirements of Ind AS, the Company has recognised these in Other comprehensive income.

6 Accounting of EPCG Scheme as a Government grant, including depreciation impact

The Company under the EPCG scheme has received grants from the Government in form of waiver of import duty on purchase of capital goods. These, however are conditional on the Company achieving specified future export obligations.

Under previous GAAP, the Company recognised its property, plant and equipment at the net cost i.e. the import duty was excluded from the cost of the property, plant and equipment and adjusted direclty with the export benefits. Under Ind AS, the Company has recognised the value of import duty waiver as part of the cost of the property, plant and equipment with the corresponding impact to deferred grant. The deferred grant is recognised in Standalone Statement of Profit and Loss on fulfilment of the respective export obligation.

7 Scheme of Arrangement - Hotel and Retail undertaking (Refer Note 42)

The Board of Directors of the Company at its meeting held on January 5, 2017, approved the merger of Magna Warehousing & Distribution Private Limited (âTransferor Companyâ), its wholly owned subsidiary, with the Company (âTransferee Companyâ) under Section 230 to 232 of the Companies Act, 2013, with effect from November 01, 2016, (âthe Appointed Dateâ) subject to obtaining necessary approvals of National Company Law Tribunal (NCLT) at Mumbai and Bangalore. The said Scheme received the approval of the National Company Law Tribunal (NCLT) at Mumbai and Bangalore and other statutory and regulatory authorities on March 21, 2018 and has become effective from April 1, 2018. The merger is accounted as per the âPooling of Interestâ method as prescribed in the Scheme. Further since this is a common control transaction, the financial statements in respect of prior periods have been restated from the earliest period presented.

8 Merger of Genext Hardware & Parks Private Limited (Refer Note 42)

The Board of Directors at their meeting held on January 5, 2017, had approved the merger proposal and approved the âScheme of Arrangementâ to merge the Hotel Undertaking and the Retail Undertaking at Bengaluru from Genext under Section 230 to 232 of the Companies Act, 2013, with effect from November 1, 2016, (âthe Appointed Dateâ) subject to obtaining necessary approvals of the Shareholders, Honourable High Court of Karnataka at Bangalore and Honourable High Court of Bombay and other statutory and regulatory authorities. The Scheme has become effective from October 1, 2017 and has been given effect to from the appointed date (in line with the accounting treatment prescribed in the Scheme).

9 Deferred tax

Previous GAAP requires deferred tax to be recognised with reference to the income statement approach. Ind AS 12 requires entities to determine deferred taxes with reference to the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax related adjustments in relation to certain items such as fair valuation of land, indexation benefit on land, indexation benefit on investment property, fair value of investments which were not required to be considered under the income statement approach.

Further, under the previous GAAP, deferred tax asset on carry forward business losses and unabsorbed depreciation was recognised only on existence of virtual certainty of taxable profits. The application of Ind AS 12 approach has resulted in recognition of deferred tax assets in case of reasonable certainty. The deferred tax impact of all Ind AS adjustments (as applicable) has also been considered.

10 Adjustment for deferred tax

The Company has recognised deferred tax credit pertaining to incorrect computation in deferred taxes for the year ended March 31, 2017.

11 Investment Property

As per the requirements of Ind AS 40, the Company has reclassified land and building held with the intention to earn rental income as Investment property and investment property under construction.

12 Assets held for sale

The investment in associates of the Company were acquired with a view to its subsequent disposal within twelve months from the date of purchase. They are classified as held for sale on acquisition and subsequently measured at the lower of its carrying amount and fair value less costs to sell.

15 DISCLOSURE UNDER SECTION 186 OF THE ACT

Details of investments made during the year ended March 31, 2018 as per section 186(4) of the Act:

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