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Notes to Accounts of EIH Ltd.

Mar 31, 2023

Asset held for sale includes:

(a) During the year, the Company has reclassified the Company''s vacant freehold land measuring 13.8375 acres situated at village Mohammadpur, Gujjar, near Sohna Road, Gurugram, Haryana, from held for sale to property, plant and equipment.

(b) The Board of Directors of the Company, at its meeting held on March 16, 2022, approved the sale of the entire shareholding in the wholly-owned subsidiary viz. EIH Flight Services Ltd., Mauritius (EIHFSL) subject to regulatory approvals. Accordingly, the investment in the wholly-owned subsidiary EIHFSL was classified as "assets held for sale" in the Standalone Financial Statements as on March 31, 2022.

During the year ended March 31, 2023, on receipt of regulatory approvals, the Company transferred its entire shareholding in the wholly-owned subsidiary to the buyer (an unrelated party). [refer note 54]

Nature and purpose of Reserves

(i) Capital redemption reserve

Capital redemption reserve represents the statutory reserve created by the Company for the redemption of its preference share capital. The same can be utilised by the Company for issuing fully paid bonus shares.

(ii) Securities premium

This reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.

(iii) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

(iv) Retained earnings - Surplus

Retained earnings represents accumulated profits of the Company. It can be utilised in accordance with the provisions of the Companies Act, 2013.

Particulars of term loans : i) Security

The sanctioned term loan facilities of '' 2,035.70 million (March 31, 2022: '' 2,785.70) from ICICI Bank Limited are secured by way of first pari passu charge by way of equitable mortgage on the Company''s hotel - The Oberoi, New Delhi.

During the year ended March 31,2023, the term loan facilities of '' 750.00 million have been repaid and charge has been satisfied.

ii) Terms of repayment and Interest rate :

Term loans from ICCI Bank Limited amounting to '' 565.48 million (non-current borrowings '' 359.85 million and

current maturities in respect thereof '' 205.63 million) comprised:

(a) Term loan I outstanding of '' 565.48 million (including current maturities '' 205.63 million) is repayable in 11 equal quarterly installments of '' 51.41 million. The term loan is repayable by December 2025. The rate of interest on such term loan is based on the bank''s one-year MCLR plus spread, subject to annual reset and is in the range of 7.55% p.a. to 7.80% p.a. Interest is payable on a monthly basis.

(b) Term loan II outstanding of '' Nil (March 31,2022: '' 564.76 million). The rate of interest on such term loan was based on the bank''s one-year MCLR plus spread, subject to annual reset and was in the range of 7.55% p.a. to 8.00% p.a. Interest was payable on a monthly basis.

Notes:

(a) Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits will be available for recovery of these assets.

(b) As at March 31,2023, the Parent company has unutilised long-term capital loss of '' 1,796.92 million (as at March 31, 2022''161.48 million), short-term capital loss of '' 299.56 million (as at March 31, 2022 '' Nil million) and the impairment loss of '' Nil million (as at March 31, 2022: '' 1,345.49 million) for which no deferred tax assets have been recognised in the absence of reasonable certainty that there will be sufficient future taxable income relating to long-term capital gains to realise such assets.

Particulars of short-term borrowings :

i) Security

Cash credit facilities from banks are secured by way of hypothecation of all stock of inventories, book debts and other current assets of the Company, both present and future, ranking pari passu.

Cash credit with PNB was additionally secured by way of second charge on the movable and immovable fixed assets of the Company''s hotel in Kolkata known as The Oberoi Grand. The facility was withdrawn and charge satisfied during the financial year 2021 -22.

Non-fund based facility with HSBC is secured by way of first pari passu charge by way of equitable mortgage on the immovable fixed assets of the Company''s hotel in Delhi known as Maidens Hotel.

ii) Terms of repayment and Interest rateCash credit from banks - Secured

Cash credit facility from ICICI having Nil outstanding (March 31,2022: '' 73.29 million) is repayable on demand and carries interest linked to the bank''s six months MCLR plus 0.30% p.a. on the draw down date.

Cash credit facility from HSBC having Nil outstanding (March 31,2022: '' 0.64 million) is repayable on demand and carries interest linked to the bank''s overnight MCLR on the draw down date.

Cash credit facility from HDFC having Nil outstanding is repayable on demand and carries interest linked to the bank''s three months MCLR plus 1.00% p.a. on the draw down date.

Short-term loan from banks - Unsecured

Short-term loan from ICICI for '' 500.00 million outstanding as on March 31, 2022 was repayable on April 14, 2022 and carried interest linked to the bank''s repo rate on the draw down date, i.e. 5.50% p.a.

Short-term loan from ICICI for '' 500.00 million outstanding as on March 31,2022 was repayable on September 18, 2022 and carried interest linked to the bank''s repo rate on the draw down date, i.e. 5.90% p.a.

(a) Includes '' 15.77 million (Previous year: Nil) received by the Company in respect of additional consideration as per the terms of Share Purchase Agreement dated July 31, 2018 in relation to divestment of entire holding in an associate during the year ended March 31, 2019.

(b) Includes '' 21.77 million (Previous year: Nil) received as per the Orders of the Government of Rajasthan, Finance Department (Tax Division) issued from time to time, towards reimbursement of State Tax due and deposited by entities registered under the Rajasthan Goods and Services Tax Act, 2017.

(i) The Company does not have average net profits in the past three years for the financial years ended March 31, 2023 and March 31, 2022 and therefore was not required to spend any amount towards Corporate Social Responsibility (CSR) during the year ended March 31, 2023 and March 31, 2022. Accordingly, there are no unspent CSR amounts for the year requiring a transfer to a Fund specified in Schedule VII to the Companies Act or special account in compliance with the provisions of sub-section (6) of Section 135 of the said Act.

(ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its standalone financial instruments into the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed financial instruments that have quoted price. The fair value of all financial instruments which are traded in the stock exchanges is valued using the closing price as at the end of the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, security deposits included in level 3.

(iii) Assets and liabilities which are measured at amortised cost for which fair values are disclosed

For all the financial assets and financial liabilities measured at amortised cost, carrying value is an approximation of their respective fair value.

(iv) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

Investment in Green Infra Wind Generation Limited and ReNew Wind Energy (Karnataka) Private Limited are made pursuant to the contract for procuring electricity supply at the hotels units. Investment in the said companies is not usually traded in the market. Considering the terms of the electricity supply contract, the management of the Company has assessed that cost represents the best estimate of its fair value.

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

43 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

The Company''s risk management is carried out by the treasury department under policies approved by the Board of Directors. The Company''s treasury department identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The Board of Directors provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.

(A) Market risk

(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognised assets or liabilities denominated in a currency that is not the Company''s functional currency ('').

(iii) Price risk

The Company''s exposure to equity securities'' price risk arises from investments held by the Company in equity securities and classified in the balance sheet as fair value through profit or loss (refer note 8). However, the Company does not have a practice of investing in equity securities with a view to earn gain from change in fair value. As per the Company''s policies, whenever any investment is made by the Company in equity securities, the same is made either with some strategic objective or as a part of contractual arrangement.

(B) Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company.

Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the Company does not allow any credit period and therefore, is not exposed to any credit risk.

The Company does not have any derivative transactions and therefore is not exposed to any credit risk on account of derivatives. The Company does not have any long-term contracts for which there are any material foreseeable losses.

The Company has a liquidity risk management framework for managing its short-term, medium-term and long-term sources of funding vis-a-vis short-term and long-term utilisation requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.

(i) Employee benefit plans

a) Gratuity

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

b) Leave encashment

As per the policy of the Company, obligations on account of encashment of accumulated leave of an employee is settled only on separation of the employee. Such liability is recognised on the basis of actuarial valuation following the projected unit credit method. It is an unfunded plan.

(ii) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees as per applicable regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contribution plan is '' 158.40 million (March 31, 2022 - '' 142.70 million).

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method i.e. projected unit credit method has been applied as that used for calculating the defined benefit liability recognised in the balance sheet.

Sensitivities due to change in demographic and investment assumptions are not material and hence the impact of change due to these is not disclosed.

(vii) Risk exposure

The defined benefit obligations have the undermentioned risk exposures :

interest rate risk: The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation is likely to increase.

Salary Inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation depends upon the combination of salary increase, discount rate and vesting criteria.

investment risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. LIC of India primarily invests in debt instruments such as Government securities and highly rated corporate bonds wherein the risk of downward fluctuation in value is minimal.

(viii) Defined benefit liability and employer contributions

Expected contribution to post employment benefit plan during the year ending March 31,2024 is '' 191.52 million.

The weighted average duration of the defined benefit obligation is 5.1 years (2022 - 6 years) in case of Gratuity and 6 years (2022- 6 years) in case of leave encashment.

46 CONTINGENT LIABILITIES The Company had contingent liabilities at March 31, 2023 in respect of: (a) Claims against the Company pending appellate/judicial decisions not acknowledged as debts: ('' in million)
	Â¦March 31, 2023	March 31, 2022
i. Sales Tax and Value Added Tax	70.54	73.37
ii. Goods and Service Tax	4.24	4.24
iii. Income Tax	300.20	288.20
iv. Service Tax	11.30	13.61
v. Property Tax	11.29	287.69
vi. Customs Duty	-	429.66
vii. Luxury Tax	3.50	3.50
viii. Others	5.30	5.30

Note:

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

(b) Guarantees:

i. Guarantees given to banks for '' Nil (2022- '' 622.67 million) against financial facilities availed by a subsidiary company, EIHFSL, classified as held for sale.

ii. Counter guarantees issued to banks and remaining outstanding '' 44.46 million (2022- '' 34.70 million).

46A During the year, the Company has recognised an obligation of '' 189.27 million, including custom duty on import an asset, consequent to an order of the High Court of Delhi dated January 31,2023, as disclosed under Exceptional Items in the Standalone Statement of Profit and Loss for the year ended March 31, 2023. The Company has preferred an appeal against the said order before the Supreme Court of India.

46B Pursuant to the Supreme Court order dated November 7, 2022 with respect to levy and computation of property tax under the provisions of the Mumbai Municipal Corporation Act, 1888, an expense of '' 192.59 millions has been recognised in ''Other expenses - Rates and taxes'' in the Standalone Statement of Profit and Loss for the year ended March 31, 2023.

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

(ii) Other commitments:

a) EIH Flight Services Ltd. ("EIHFSL"), Mauritius had availed borrowing facilities of '' 610.97 million [MUR 365.5 million] from State Bank (Mauritius) Ltd. ("SBM") which, amongst others, was secured by corporate guarantees of '' 622.67 million [MUR 372.5 million] by the Company. The unprecedented adversity in business conditions resulting from COVID-19 continued to prevail resulting in an uncertainty for EIHFSL to be able to fund the loan repayment obligations amounting to MUR 98.10 million (equivalent to '' 162.41 million) up to March 31, 2022 from internal generations. In view of this uncertainty, the Company had infused funds amounting to MUR 100.00 million (equivalent to '' 176.67 million) during the year ended March 31, 2022 towards shareholder''s equity against which equity shares were issued by March 31, 2022. Further, the Company invested MUR 287.20 million (equivalent to '' 499.30 million) during the year ended March 31,2023 pursuant to the approval of the Board of Directors of the Company in its meeting dated March 16, 2022, for the purpose of repayment of all borrowings and liabilities of EIHFSL for the purpose of sale of EIHFSL to an identified buyer (refer note 54). Accordingly, the outstanding borrowings were repaid, EIHFSL ceased to be a subsidiary and corporate guarantees were cancelled by SBM during the year ended March 31, 2023.

b) The Company had provided a letter of support confirming that financial support to its subsidiary, EIHFSL classified as held for sale as at March 31, 2022 which was sold during the current year.

48	COMMITMENTS
(i)	Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:
			('' in million)
		Â¦March 31, 2023	March 31, 2022
	Property, plant and equipment (net of capital advances)	658.25	236.00

54 The Board of Directors of the Company, at its meeting held on March 16, 2022, had approved the sale of the entire shareholding in the wholly-owned subsidiary viz. EIH Flight Services Ltd., Mauritius (EIHFSL), subject to regulatory approvals. Accordingly, the investment in the wholly-owned subsidiary EIHFSL was classified as "assets held for sale" in the Standalone Balance Sheet as on March 31, 2022, in line with the requirements of Ind AS 105, "Non-current Assets Held for Sale and Discontinued Operations".

The Company had received a firm offer from an interested buyer (an unrelated party) during the year ended March 31, 2022 and a "Share Purchase Agreement" ("SPA") was executed by and between the parties in this respect during the year ended March 31, 2023. The sale consideration was considered as the fair market value of the enterprise. The fair value of the enterprise was adjusted with net financial debt at the closing date (as defined in the offer letter/"SPA"), along with costs to sell to arrive at fair value less costs to sell. The Company recognised an impairment loss in investment in EIHFSL amounting to '' 694.23 million and '' 95.20 million during the year ended March 31, 2022 and March 31, 2023, respectively, which has been disclosed under "Exceptional items" in the Standalone Statement of Profit and Loss.

Further, on receipt of regulatory approvals, the Company transferred its entire shareholding in the wholly-owned subsidiary to the buyer and EIHFSL ceased to be a subsidiary of the Company. The Company has received the sale consideration as per the terms and conditions stipulated in the Share Purchase Agreement and has consequently recorded a loss on sale of subsidiary amounting to '' 21.09 million which has been disclosed under "Exceptional items" in the Standalone Statement of Profit and Loss for the year ended March 31, 2023.

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

56 Pursuant to the approval of the Board of Directors of the Company at its meeting held on March 2, 2022, the Company, during the year ended March 31, 2022, sold the assets of it''s EIH Printing Press unit located at Manesar, Haryana. The assets comprised 7,875 square meters of land, 3-storied building including basement covering total area of approximately 13,750 square meters. The assets sold comprising property, plant and equipment included generators, air-conditioners, electrical fittings, furniture and fixtures, printing machinery, computers and vehicles. The total consideration from the sale of these assets amounted to '' 952.90 million resulting in a profit of '' 552.43 million which was recognised as an "Exceptional Item" in the Standalone Statement of Profit and Loss for the year ended March 31, 2022.

59 IMPACT OF COVID-19 ON BUSINESS OPERATIONS

The consequences of the COVID-19 outbreak on the Company''s business for the year ended March 31, 2022 and March 31, 2021 had been severe. However, with vaccination programmes being implemented in India and across the globe, domestic air travel improved and international flights resumed. Consequently, both business and leisure travel resumed, resulting in improved revenue during the year ended March 31, 2023 as compared to the period prior to outbreak of COVID-19 i.e. the corresponding year in FY 2019-20. With improved business conditions, management based on its assessment, does not foresee stress on liquidity. Based on current indicators of future economic conditions, the Company expects to recover the carrying amounts of its assets as on March 31, 2023. The impact of COVID-19 on the business may be different from that estimated on the date of approval of these Standalone Financial Statements. The management of the Company will continue to closely monitor any material changes to future economic conditions.

60 other statutory information

i. Title deeds of Immovable Properties are in the name of the Company, other than as disclosed in the note 57.

ii. The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

iii. The Company has been sanctioned a fund based and non-fund based working capital limit from banks on the basis of security of current assets, including fixed deposits. Based on the sanction letter/acknowledgement of correspondence with the bank, no returns or statements were required to be filed by the Company with one such bank till the date of approval of these financial statements and the quarterly returns/statements comprising stock statements and book debt statements filed by the Company with three such banks are in agreement with unaudited books of account of the Company of the respective quarters.

iv. The Company was not holding any benami property and no proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

v. The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

ix. The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) any funds to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

x. The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi. The Company did not have any transaction which had not been recorded in the books of account that had been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

xii. The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

61 The standalone financial statements were approved for issue by the Board of Directors on May 22, 2023.

vii. The Company did not have any charges or satisfaction which were yet to be registered with ROC beyond the statutory period.

viii. The Company has not traded or invested in Crypto currency or Virtual Currency during year ended March 31, 2023.

Mar 31, 2022

Asset held for sale includes:

(a) The Board of Directors of the Company, at its meeting held on February 3, 2022, approved the sale of the Companyâs vacant freehold land measuring 13.8375 acres situated at village Mohammadpur, Gujjar, near Sohna Road, Gurugram, Haryana for a consideration of INR 130.00 million and brokerage of 1.14% of sale value amounting to INR 1.49 million. Accordingly the land has been classified as held for sale in the standalone financial statements for the year ended March 31, 2022.

The necessary steps for sale of the aforementioned land are being taken and it is expected that the sale will be completed during the year ending March 31, 2023.

(b) The Board of Directors of the Company, at its meeting held on March 16, 2022, approved the sale of entire shareholding in the wholly owned subsidiary viz. EIH Flight Services Limited, Mauritius (EIHFSL) subject to regulatory approvals. The Company has received a firm offer from a proposed acquirer (an unrelated party) and intends to enter into an agreement with the said acquirer in due course which will result in a loss of control of the subsidiary.

Management has assessed the conditions required to be satisfied for classification of investment as assets held for sale as per Ind AS 105 - Non-current Assets Held for Sale and Discontinued Operations and has assessed that the sale is highly probable and that no significant changes are expected to be made to the plan. The necessary steps for sale of the aforementioned subsidiary including execution of the share purchase agreement and necessary regulatory approvals will be taken and the management expects the sale to be completed in the next twelve months from the end of the financial year. Accordingly, the investment in EIHFSL has been classified as âassets held for saleâ in the standalone financial statements.

Nature and purpose of Reserves

(i) Capital redemption reserve

(ii) Securities premium

This reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.

(iii) General reserve

General reserve represents profits transferred from retained earnings from time to time to general reserve for appropriate purposes based on the provisions of the erstwhile Companies Act, 1956. Consequent to introduction of the Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. It can be utilised in accordance with the provisions of the Companies Act, 2013.

(iv) Retained earnings - Surplus

Retained earnings represents accumulated profits of the Company. It can be utilised in accordance with the provisions of the Companies Act, 2013.

Particulars of term loans:

i) Security

The sanctioned term loan facilities of INR 2,785.70 million from ICICI Bank Limited are secured by way of first pari-passu charge by way of equitable mortgage on the Companyâs hotel - The Oberoi, New Delhi.

ii) Terms of repayment and Interest rate:

Term loans from ICICI Bank Limited amounting to INR 2,261.18 million (non - current borrowings INR 1,647.44 million and current maturities in respect thereof INR 613.74 million) comprised:

(a) Term loan I outstanding of INR 1,696.42 million (including current maturities INR 452.38 million) is repayable in 15 equal quarterly installments of INR 113.09 million. The term loan is repayable by December 2025. The annual rate of interest is based on the bankâs one-year MCLR plus spread, subject to annual reset and is in the range of 7.55% p.a. to 7.95% p.a.. Interest is payable on a monthly basis.

(b) Term loan II outstanding of INR 564.76 million (including current maturities INR 161.36 million) is repayable in 14 equal quarterly installments of INR 40.34 million. The term loan is repayable by August 2025. The annual rate of interest is based on the bankâs one-year MCLR plus spread, subject to annual reset and is in the range of 7.55% p.a. to 8.00% p.a. Interest is payable on a monthly basis.

Notes:

(b) As at March 31, 2022, the Company has unutilised long term capital loss of INR 161.48 million (as at March 31, 2021 INR 160.31 million) and the impairment loss of INR 1,345.49 million (as at March 31, 2021: INR 651.26 million) for which no deferred tax assets have been recognised in the absence of reasonable certainty that there will be sufficient future taxable income relating to long term capital gains to realise such assets.

Cash credit from banks - Secured

Cash credit from ICICI for INR 73.29 million (March 31, 2021: INR 0.96 million) is repayable on demand and carries interest linked to the bankâs six months MCLR plus 0.30% p.a. on the draw down date.

Cash credit from HSBC for INR 0.64 million is repayable on demand and carries interest linked to the bankâs overnight MCLR on the draw down date.

Cash credit from HDFC having Nil outstanding is repayable on demand and carries interest linked to the bankâs one year MCLR plus 0.15% p.a. on the draw down date.

Short term loan from banks - Unsecured

Short term loan from ICICI for INR 500.00 million is repayable on April 14, 2022 and carries interest linked to the bankâs repo rate on the draw down date, i.e. 5.50% p.a.

Short term loan from ICICI for INR 500.00 million is repayable on September 18, 2022 and carries interest linked to the bankâs repo rate on the draw down date, i.e. 5.90% p.a.

Short term loan from ICICI for INR 100.00 million outstanding on March 31, 2021 was repayable on July 6, 2021 and carried interest linked to the bankâs six months MCLR plus spread on the draw down date, i.e. 7.55% p.a.

Particulars of short term borrowings:

i) Security

Short term loans and cash credit facilities from banks are secured by way of hypothecation of all stock of inventories, book debts and other current assets of the Company, both present and future, ranking pari passu.

Cash credit with PNB was additionally secured by way of second charge on the movable and immovable fixed assets of the Companyâs hotel in Kolkata known as The Oberoi Grand. The facility was withdrawn and charge satisfied during the financial year 2021-22.

Non-fund based facility with HSBC is secured by way of first pari passu charge by way of equitable mortgage on the immovable fixed assets of the Companyâs hotel in Delhi known as Maidens Hotel.

ii) Terms of repayment and Interest rate Short term loan from banks - Secured

Short term loan from HSBC for INR 20.15 million outstanding on March 31, 2021 was repayable on April 2, 2021 and carried interest linked to the bankâs MCLR on the draw-down date i.e. 7% p.a.

Short term loan from ICICI bank for INR 49.21 million outstanding on March 31, 2021 was repayable on April 7, 2021 and carried interest linked to the bankâs MCLR on the draw down date i.e. 7.55% p.a.

Exceptional items represent:

(a) Provision for impairment in value of investment in EIH Flight Services Ltd, Mauritius INR 694.23 Million (March 31, 2021: INR 464.92 Million) (Refer Note 54 and 19-Assets classified as held for sale);

(b) Profit on sale of the assets of EIH Press unit located at Manesar, Haryana, for INR 552.43 Million (Refer Note 59);

(c) Impairment loss in respect of certain property, plant and equipment at The Oberoi Motor Vessel Vrinda amounting to INR Nil (March 31, 2021: INR 24.93) [Refer Note 58].

(ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.

(iii) Assets and liabilities which are measured at amortised cost for which fair values are disclosed

For all the financial assets and financial liabilities measured at amortised cost, carrying value is an approximation of their respective fair value.

(iv) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

â¢ Investment in Green Infra Wind Generation Limited and ReNew Wind Energy (Karnataka) Private Limited are made pursuant to the contract for procuring electricity supply at the hotels units. Investment in the said companies is not usually traded in the market. Considering the terms of the electricity supply contract and best information available in the market, cost of investment is considered as fair value of the investments.

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

43 FINANCIAL RISK MANAGEMENT

The Companyâs activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

The Companyâs risk management is carried out by the treasury department under policies approved by the Board of Directors. The Companyâs treasury department identifies, evaluates and hedges financial risks in close co-operation with the Companyâs operating units. The Board of Directors provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.

(A) Market risk

(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognised assets or liabilities denominated in a currency that is not the Companyâs functional currency (INR).

(iii) Price risk

The Companyâs exposure to equity securitiesâ price risk arises from investments held by the Company in equity securities and classified in the balance sheet as fair value through profit or loss (note 8). However, the Company does not have a practice of investing in equity securities with a view to earn gain from change in fair value. As per the Companyâs policies, whenever any investment is made by the Company in equity securities, the same is made either with some strategic objective or as a part of contractual arrangement.

(B) Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company.

The Company has a liquidity risk management framework for managing its short term, medium term and long term sources of funding vis-a-vis short term and long term utilisation requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.

(i) Defined benefit plans

a) Gratuity

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

b) Leave encashment

(ii) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees as per applicable regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contribution plan is INR 142.70 Million (March 31, 2021 - INR 159.07 Million).

Sensitivities due to change in demographic and investment assumptions are not material and hence the impact of change due to these is not disclosed.

(vii) Risk exposure

The defined benefit obligations have the undermentioned risk exposures:

Interest rate risk: The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation is likely to increase.

Salary Inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

Investment risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. LIC of India primarily invests in debt instruments such as Government securities and highly rated corporate bonds wherein the risk of downward fluctuation in value is minimal.

(viii) Defined benefit liability and employer contributions

Expected contribution to post employment benefit plan during the year ending March 31, 2023 is INR 1295.73 million.

The weighted average duration of the defined benefit obligation is 6 years (2021 - 6 years) in case of Gratuity and 6 years (2021- 6 years) in case of leave encashment.

46 CONTINGENT LIABILITIES

The Company had contingent liabilities at March 31, 2022 in respect of:

(a) Claims against the Company pending appellate/judicial decisions not acknowledged as debts:

INR in Million
	Â¦March 31, 2022	March 31, 2021
i. Sales Tax and Value Added Tax	73.37	54.97
ii. Goods and Service Tax*	4.24	-
iii. Income Tax**	288.20	266.05
iv. Service Tax	13.61	13.61
v. Property Tax	287.69	262.06
vi. Customs Duty	429.66	429.66
vii. Luxury Tax	3.50	3.50
viii. Others	5.30	5.30

Notes:

(i) In respect of a corporate guarantee amounting to INR 622.67 million [MUR 372.5 million] as at March 31, 2022, issued by the Company for the term loan facilities (including short term loan) availed by EIH Flight Services Ltd (âEIHFSLâ), the Company has provided a repayment undertaking to the State Bank (Mauritius) Ltd to infuse an amount of MUR 50.00 million (equivalent to INR 83.58 million as at March 31, 2021) as shareholderâs equity by June 30, 2021, and such additional funds by way of shareholder equity as required during the year ending March 31, 2022 so as to match all loan instalments falling due at the bank and thereafter, to infuse adequate funds to cater for any shortfall in the cash flow of EIHFSL so that it can repay the same on the agreed terms and conditions. Towards this, the Board of Directors of the Company, in its meeting held on March 26, 2021, had approved further investment of MUR 100.00 million in the equity share capital of EIHFSL. Thereafter, the Company has infused funds amounting to MUR 100.00 million (equivalent to INR 176.67 million) during the year ended March 31, 2022 towards shareholderâs equity against which equity shares have been issued by March 31, 2022.

Further, the Board of Directors of the Company, in its meeting dated March 16, 2022, approved further investment of INR 480.08 million (equivalent to MUR 287.20 million) in EIHFSL. The purpose of this investment is to repay all borrowings and liabilities of EIHFSL for the purpose of sale of EIHFSL to an identified buyer (Refer note 19).

(ii) Total amounts outstanding in respect of borrowings (including overdraft facilities) availed by EIHFSL as at the year end aggregated to INR 446.38 million (March 31, 2021 - INR 623.44 million).

(iii) The Company has provided a letter of support confirming that financial support will be provided to its subsidiary, EIHFSL classified as held for sale.

*During the year, the Company has received a demand order from the Deputy Commissioner of State Tax with respect to Goods and Service tax under Goods and Service Tax Act, 2017 for the period July 2017- Mar 2018 amounting to INR 4.24 million and the Company intends to file an appeal in respect thereof with the appropriate authorities.

**During the year, an order has been received from the Assessing officer with respect to income tax for the assessment year 2017-18, wherein contingent liability amounting to INR 23.72 million have been disclosed/ reported while an amount of INR 6.47 million remains unpaid. The Company has filed an appeal with the Income Tax Appellate Tribunal subsequent to the year end within the stipulated time for such appeal.

Note:

(b) Guarantees:

i. Guarantees given to banks for INR 622.67 million (2021- INR 655.10 million) against financial facilities availed by a subsidiary company, EIHFSL, classified as held for sale.

ii. Counter guarantees issued to banks and remaining outstanding INR 34.70 million (2021- INR 49.07 million).

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

48 COMMITMENTS

(i) Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

INR in Million
	As at	As at
	March 31, 2022	March 31, 2021
Property, plant and equipment (net of capital advances)	236.00	223.25

(ii) Other commitments:

a. EIH Flight Services Ltd (âEIHFSLâ), Mauritius had availed a term loan of INR 556.64 million [MUR 333 Million] from State Bank (Mauritius) Ltd (âSBMâ) which, amongst others, is secured by a Corporate Guarantee of INR 568.34 million [MUR 340 Million] by the Company. Repayment of this loan in quarterly installments commenced in September 2019 and the balance outstanding on March 31, 2020 was INR 596.41 million [MUR 310.50 Million]. In view of adverse business conditions arising from the worldwide lockdown announced by different countries due to COVID-19 during FY 2020-21, the loan was restructured by SBM whereby interest payments were kept on

hold from April 1, 2020 to December 31, 2020 with principal repayments of the said loan due to recommence from June 30, 2021. The unprecedented adversity in business conditions continue to prevail resulting in an uncertainty for EIHFSL to be able to fund the loan repayment obligations amounting to MUR 98.10 million (equivalent to INR 162.41 million as on March 31, 2021) upto March 31, 2022 from internal generations. In view of this uncertainty, the Company committed to invest MUR 100 million (equivalent to INR 179.46 million as on March 31, 2021) in EIHFSL within one year from the reporting date to enable EIHFSL to meet its loan repayment obligations. Thereafter, the Company has infused funds amounting to MUR 100.00 million (equivalent to INR 176.67 million) during the year ended March 31, 2022 towards shareholderâs equity against which equity shares have been issued by March 31, 2022.

b. The Company has provided a letter of support confirming that financial support will be provided to its subsidiary,

EIHFSL classified as held for sale.

53 DISCLOSURE ON CONTRACT BALANCES: a) Trade receivables

A trade receivable is recorded when the Company has an unconditional right to receive payment. In respect of revenue from rooms, food and beverages and other services invoice is typically issued as the related performance obligations are satisfied as described in note 1(b)-Significant accounting policies-Revenue Recognition (refer note 14-Trade receivables).

54 (a) The Board of Directors of the Company, at its meeting held on March 16, 2022, approved the sale of the entire

shareholding in the wholly owned subsidiary, EIH Flight Services Ltd, Mauritius (EIHFSL) subject to regulatory approvals. The Company intends to enter into an agreement with the buyer in due course which will result in a loss of control of the subsidiary. The Company has issued guarantees to State Bank of Mauritius amounting to INR 622.67 million against financial facilities availed by EIHFSL and the carrying value of the investment at the year end is INR 41.00 million (net of provision for impairment INR 1,320.55 million).

The Company has received a firm offer from a proposed acquirer (an unrelated party). The sale consideration of such offer of INR 553.00 million (MUR 325.00 million) has been considered as the fair value of the enterprise. The fair value of the enterprise has been adjusted by net financial debt as at March 31, 2022 as defined in the offer letter along with costs to sell amounting to INR 512.01 million (MUR 320.40 million) to arrive at fair value less costs to sell. Accordingly, the Company has accounted for an impairment loss in investment in EIHFSL amounting to INR 694.23 million during the year 2021-22 which has been recognised and disclosed as âExceptional itemâ in the standalone financial statements (refer note 40-Exceptonal items).

Management has assessed the conditions required to be satisfied for classification of investment as assets held for sale as per Ind AS 105, âNon-current Assets Held for Sale and Discontinued Operationsâ and has assessed that the sale is highly probable and that no significant changes are expected to be made to the plan. The necessary steps for sale of the aforementioned subsidiary including execution of the share purchase agreement and necessary regulatory approvals will be taken and the management expects the sale to be completed in the next twelve months from the end of the financial year. Accordingly, the investment in EIHFSL has been classified as âassets held for saleâ in the standalone financial statements.

(b) As at March 31, 2021, EIHFSLâs total liabilities had exceeded total assets, resulting in a shareholderâs deficit of INR 262.67 million.

The Company had performed an impairment assessment at the previous year end and concluded that the carrying amount exceeded the recoverable amount and accordingly, the Company had recognised an impairment loss of INR 464.92 million during the previous year which had been disclosed under âExceptional itemsâ in the Statement of Profit and Loss (refer note 40-Exceptional items).

The Company had assessed that the operations of EIHFSL represented a single cash-generating unit (CGU). The recoverable amount of the CGU at the previous year end had been determined based on the value-in-use using discounted value of projected future cash flows approved by the Board of Directors. The projected cashflows beyond the five year period were extrapolated using a steady long term growth rate (estimated based on the country and passenger growth rate). The future cash flows considered potential risks given the then economic environment (COVID-19 Pandemic) and key assumptions, such as volume forecasts and margins. The discount rate was based on the weighted average cost of capital comprising the risk-free rate based on 10 year yield of Government of Mauritius bonds and a market participant risk premium and an additional risk premium to factor in the risk of achieving the projections.

Based on the above, Management had estimated the overall recoverable amount of the CGU as at March 31, 2021 at INR 558.55 million against a carrying cost of INR 1,184.88 million as at March 31, 2021.

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

56 During the FY 2020-21, in accordance with Regulations 6(a) and 7 of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, the Company had voluntarily delisted its equity shares from Calcutta Stock Exchange Limited (CSE) w.e.f. March 5, 2021. However, equity shares of the Company continue to remain listed on National Stock Exchange Limited (NSE) and BSE Limited (BSE).

57 During the FY 2020-21, the Company in its Letter of Offer dated September 21, 2020 offered 53,794,768 shares by way of Rights issue at a face value of INR 2 each and at a price of INR 65 per equity share (including a premium of INR 63 per equity share). The issue opened on September 29, 2020 and closed on October 13, 2020 with a subscription of 1.60 times the issue size. Subsequently, the Company allotted 53,794,768 shares on October 20, 2020, on the basis of allotment approved by the Rights Issue Committee of the Board of Directors aggregating to INR 3,496.66 million including securities premium of INR 3,389.07 million. Issue expenses incurred in connection with the Rights issue, amounting to INR 32.02 million have been charged to securities premium.

58 The Company had recognised an impairment loss in respect of certain property, plant and equipment amounting to INR Nil (March 31, 2021: INR 24.93 million) on account of continuing losses in respect of, The Oberoi Motor Vessel Vrinda, a luxury cruiser in the backwaters of Kerala. The same had been charged in the Statement of Profit and Loss, which had been disclosed under âExceptional itemsâ (Refer Note 40-Exceptional Items).

The recoverable amount of the aforementioned luxury cruiser was determined by the Companyâs management based on a value-in-use calculation of the recoverable amount which uses cash flow projections and a discount rate of 11.47% per annum. The recoverable amount has been calculated as per the provisions of Ind AS 36, âImpairment of Assetsâ. Cash flow projections are based on the expected future occupancy, average room rate, expected payroll and other costs.

59 Pursuant to the approval of the Board of Directors of the Company at its meeting held on March 2, 2022 the Company, during the year ended March 31, 2022, sold the assets of itâs EIH Printing Press unit located at Manesar, Haryana. The assets comprised 7,875 square meters of land, 3-storied building including basement covering total area of approximately 13,750 square meters. The assets sold comprising property, plant and equipment included generators, air-conditioners, electrical fittings, furniture and fixtures, printing machinery, computers and vehicles. The total consideration from the sale of these assets amounted to INR 952.90 million resulting in a profit of INR 552.43 million which has been recognised as an âExceptional Itemâ in the Standalone Statement of Profit and Loss for the year ended March 31, 2022.

60 The Board of Directors of the Company, at its meeting held on February 3, 2022, approved the sale of the Companyâs vacant land measuring 13.8375 acres situated at village Mohammadpur, Gujar, near Sohna Road, Gurugram, Haryana for a consideration of INR 13 crore. Brokerage will be 1.14% of the sale value amounting to INR 14.86 lakhs.

The necessary steps for sale of the aforementioned land are being taken.

60A. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

63 IMPACT OF COVID-19 ON BUSINESS OPERATIONS

The second wave of COVID-19 has had severe impact on human lives and the economy across various states in India during April and May 2021. Different states in India imposed curfew restrictions in phases throughout April and May,

2021, with gradual easing in a phased manner effective June 2021.

The consequences of the COVID-19 outbreak on the Companyâs business for the year ended March 31, 2022 and March 31, 2021 have been severe. Based on current indicators of future economic conditions, the Company expects to recover the carrying amounts as on March 31, 2022 of its assets. Various cost rationalisation measures that were initiated during financial year 2020-21 have continued through the financial year 2021-22. Whilst most of the Companyâs hotels remained operational throughout April, 2021 to June, 2021 to accommodate in-house guests who preferred to stay on, all hotels in India remained open to business throughout the remaining period of the current year. Subsequent to the gradual lifting of restrictions across the country in June 2021, business at the Companyâs hotels in India have generally picked up. The Companyâs flight kitchens catered to various airlines operating repatriation flights, crew meals, cargo flights, domestic flights and to international âAir Bubbleâ flights during the year ended March 31, 2022, witnessing a significant reduction in volume during the year as compared to pre-COVID volumes. The adverse effects of the new variant, âOmicronâ on the business of the Company was restricted to the first few weeks of January 2022. With international flights from India resuming on March 27, 2022, the Companyâs business is expected to improve.

Notwithstanding the impact of the reduction in business volumes of the Company, Management, based on its assessment, does not foresee stress on liquidity, as it either has access to sufficient sanctioned borrowing facilities for working capital requirements or has sufficient liquid funds available as on the Balance Sheet date. The Company has access to borrowing facilities worth INR 5,300.00 million, of which INR 4,226.07 million remained unutilised as on March 31,

2022.

Management has assessed the potential impact of COVID-19 in preparation of the standalone financial statements, including, but not limited to its assessment of liquidity and going concern assumption, the carrying value of assets including property, plant and equipment, right of use assets, capital work-in-progress, intangible assets, intangible assets under development, investment property, investments, assets classified as held for sale, trade receivables, inventories, and other current and non-current assets of the Company as on March 31, 2022. Based on current indicators of future economic conditions, the Company expect to recover the carrying amounts as on March 31, 2022 of these assets.

The impact of COVID-19 on the business may be different from that estimated on the date of approval of these standalone financial statements. The management of the Company will continue to closely monitor any material changes to future economic conditions.

64 OTHER STATUTORY INFORMATION

1. Title deeds of Immovable Properties are in the name of the Company, other than as disclosed in the note 61.

2. The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

3. The Company was not holding any benami property and no proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

4. The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters.

5. The Company did not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

6. The Company did not have any charges or satisfaction which were yet to be registered with ROC beyond the statutory period.

7. The Company has not traded or invested in Crypto currency or Virtual Currency during year ended March 31, 2022.

8. The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) any funds to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

9. The Company has not received any funds from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

10. The Company did not have any transaction which had not been recorded in the books of account that had been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

65 The standalone financial statements were approved for issue by the Board of Directors on May 4, 2022

Mar 31, 2019

1. General Information

EIH LIMITED ("the Company") is a public Company limited by shares, incorporated and domiciled in India having its Registered Office at 4, Mangoe Lane, Kolkata - 700 001. The company is primarily engaged in owning and managing premium luxury hotels and cruisers under the luxury ''Oberoi'' and ''Trident'' brands. The Company is also engaged in flight catering, airport restaurants, project management and corporate air charters.

2 (i) Assets held as security

Refer to note 19 & 24 for disclosure of assets held as security.

(ii) Interest capitalised to qualifying assets

Refer to note 34 for disclosure of amount capitalised to qualifying assets.

(iii) Contractual obligations

Refer to note 45 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

The assets relating to The Oberoi Corporate Tower, Gurgaon has been classified as Investment Property as per IndAS 40. The fair value of the same is INR 1,726.60 Million.

The rental income generated from Investment property is INR 88.01 Million The expenses incurred by investment property are as follows :

i) Directly relating to rental income - INR 73.39 Million

ii) Not Directly relating to rental income - INR 26.22 Million

(ii) Rights and preferences attached to equity shares :

The Company has one class of equity shares having a par value of INR 2 per share. These shares rank pari passu in all respects including voting rights and entitlement to dividend.

Nature and purpose of Reserves

(i) Capital Redemption Reserve

Capital Redemption Reserve represents the statutory reserve created by the company for the redemption of its preference share capital issued and redeemed under previous GAAP. The same can be utilised by the company for issuing fully paid bonus shares.

(ii) Securities Premium

This Reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.

(iii) Revaluation Reserve

Revaluation Reserve was created under previous GAAP on upward revaluation on land and building. The balance in Revaluation Reserve has been transferred to General Reserve during the previous year.

PARTICULARS OF TERM BORROWINGS :

i) Security

Term loan from The Hong Kong & Shanghai Banking Corporation Limited (HSBC) is secured by way of equitable mortgage by deposit of title deeds in respect of the Company''s hotel in Delhi known as The Oberoi, New Delhi.

The Finance Lease Obligations are secured by hypothecation of vehicles taken under Lease.

ii) Terms of repayment and Interest rate :

Term loan from The Hong Kong & Shanghai Banking Corporation limited (HSBC) is repayable in 28 quarterly installments of INR 107.14 Million starting from February 2018 and ending on November 2024 and carries interest which is linked to banks MCLR, presently effective rate is 9.10%.

The Finance Lease Obligations are secured by hypothecation of vehicles taken under lease. Repayments are done by equated monthly installments over 36 to 60 months.

Two pieces of land under finance lease are under Lease upto 2064-65. Another piece of land is under perpetual lease. Rent is payable on a monthly basis.

PARTICULARS OF SHORT TERM BORROWINGS :

i) Security :

Cash Credit facilities from banks are secured by way of hypothecation of all stock of inventories, book debts and other current assets of the company, both present and future, ranking pari passu. Cash credit with UBI is additionally secured by way of second charge in respect of the Company''s hotel in Kolkata known as The Oberoi Grand.

ii) Terms of repayment and Interest rate :

Cash credit from UBI is repayable on demand and carries Interest at bank''s base rate 0.80%

Cash Credit from HSBC is repayable on demand and carries Interest at MCLR 2.25%

Cash Credit from ICICI is repayable on demand and carries Interest at 6 months MCLR 1.15%

Cash Credit from HDFC is repayable on demand and carries Interest at 1 year MCLR 0.15%

Short term loan from ICICI for INR 500 Million is repayable on June 25, 2019 and carries Interest @ 8.40%.

Short term loan from ICICI for INR 250 Million is repayable on June 28, 2019 and carries Interest @ 8.40%.

Short term loan from Federal bank limited INR 500 Million is repayable on June 21, 2019 and carries Interest @ 8.60%.

Short term loan from Federal bank limited INR 500 Million is repayable on September 13, 2019 and carries Interest @ 7.98%.

Exceptional Items include (a) a one-off provision of INR 847.49 Million against receivable from a single customer in the flight catering business, due to uncertainty over business continuity of the afore-referred customer and (b) Profit of INR 116.83 Million on sale of investment in an associate. There was no corresponding exceptional item in Financial Year 2017-18.

(ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are

(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, security deposits included in level 3.

(iii) Assets and liabilities which are measured at amortised cost for which fair values are disclosed

All the financial asset and financial liabilities measured at amortised cost, carrying value is an approximation of their respective fair value.

(iv) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- Investment in Green Infra Wind Generation Limited and ReNew Wind Energy (Karnataka) Pvt. Ltd. are made pursuant to the contract for procuring electricity supply at the hotels units. Investment in said companies is not usually traded in market. Considering the terms of the electricity supply contract and best information available in the market, cost of investment is considered as fair value of the investments.

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

FINANCIAL RISK MANAGEMENT

The company''s activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

The company''s risk management is carried out by the treasury department under policies approved by the Board of Directors. Company''s Treasury identifies, evaluates and hedges financial risks in close co-operation with the company''s operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.

(A) Market risk

(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognised assets or liabilities denominated in a currency that is not the Company''s functional currency (INR).

The exposure of the Company to foreign currency risk is not significant. However, this is closely monitored by the Management to decide on the requirement of hedging. The position of foreign currency exposure to the Company as at the end of the year expressed in INR are as follows :

(iii) Price risk

The company''s exposure to equity securities price risk arises from investments held by the company in equity securities and classified in the balance sheet as at fair value through profit or loss (note 7). However, company does not have a practice of investing in market equity securities with a view to earn fair value changes gain. As per the company policies, whenever any investment is made by the company in equity securities, the same is made either with some strategic objective or as a part of contractual arrangement.

(B) Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the company.

Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the company does not allow any credit period and therefore, is not exposed to any credit risk.

The company does not have any derivative transaction and therefore is not exposed to any credit risk on account of derivatives.

(C) Liquidity risk

"The Company has a liquidity risk management framework for managing its short term, medium term and long term sources of funding vis-a-vis short term and long term utilization requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.

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

(ii) Maturities of financial liabilities

The table below analyses the company''s all non-derivative financial liabilities into relevant maturity based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows.

(D) Capital management Risk management

The company''s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

3. (i) Defined benefit plans

a) Gratuity

The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The Company operates a gratuity plan through the "EIH Employees'' Gratuity Fund". Gratuity plan is a funded plan and the Company through Gratuity Trust makes contributions of funds to Life Insurance Corporation of India.

b) Leave Encashment

As per the policy of the company, obligations on account of encashment of accumulated leave of an employee is settled only on separation of the employee. Such liability is recognised on the basis of actuarial valuation following Project Unit Credit Method. It is an unfunded plan.

(ii) Defined contribution plans

The company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

Sensitivities due to Demographic and Investment are not material and hence the impact of change due to these is not disclosed

(vii) Risk exposure

The defined benefit obligations have the under mentioned risk exposures :

Interest rate risk : The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

(vii) Defined benefit liability and employer contributions

Expected contribution to post employment benefit plan during the year ending March 31, 2020 is INR 128.44 Million (March 31, 2019-INR 174.40 Million).

The weighted average duration of the defined benefit obligation is 7 years (2018 - 7 years) in case of Gratuity and 8 years (2018- 11 years) in case of Leave encashment.

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

(b) Guarantees :

i. Guarantees given to Banks & Financial Institutions for INR 755.55 Million (2018-INR 651.74 Million) against financial facilities availed by the subsidiary company

ii. Counter guarantees issued to banks and remaining outstanding INR 15.66 Million (2018-INR 31.83 Million).

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

(ii) Investment commitments in subsidiary and joint venture companies - INR NIL (2018-INR 681.10 Million).

5. LEASES

(a) Non-cancellable operating leases As a Lessee

The Company has entered into operating lease arrangements primarily for office premises, site offices, airport/flight services, land for hotels and residential premises for its employees. These leases are generally not non-cancellable in nature and may generally be terminated by either party by serving a notice. During the year, the company has recognised lease rent expense of INR 100.66 Million (2018: INR 177.12 Million) related to non-cancelable operating lease. The future minimum lease payments payable by the company taken under non-cancellable operating lease, are as under:-

As a Lessor

The Company gives shops located at various hotels on operating lease arrangements. These leases are generally not non-cancellable in nature and may generally be terminated by either party by serving notice. Some shops have been given under non-cancellable operating lease, for which the future minimum lease payments recoverable by the company are as under :-

(b) Finance Lease As a lessee

The Company acquired motor vehicles and land under finance lease. Generally, tenure of finance lease of vehicles varies between 3 to 5 years.

In case of leasehold land, tenure of the lease varies from 90 to 99 years. The leases are renewed on mutually agreed terms on the expiry of current lease period.

The year wise break-up of the outstanding lease obligations as on March 31, 2019 in respect of these assets are as under:

6. Segment reporting

There are no reportable segments other than hotels as per Ind AS 108, "Operating Segment" .

The Company does not have transactions of more than 10% of total revenue with any single external customer.

7. The Company has adopted Ind AS 115, Revenue from contract with customers, using the cumulative catch-up transition method, applied to contracts that were not completed as of 1st April 2018. Accordingly, the prior period information has not been restated. Under the new standard, revenue is recognised upon the satisfaction of the performance obligations for the goods or services. Application of this standard resulted into reduction in opening reserves amounting to INR 112.14 Million net of tax (Gross amount-INR 172.36 Million) and impact on the current year income statement amounting to INR 34.82 Million net of tax respectively.

8. Disclosure on Contract balances :

a) Trade receivable

b) Advance from Customers

Advance from Customers is recognised when payment is received before the related performance obligation is satisfied.

9. In the recent case of The Regional Provident Fund Commissioner (II) West Bengal vs. Vivekananda Vidyamandir and Others, Supreme Court has ruled that special allowances paid by an establishment to its employees would fall within the expression "basic wages" under Section 2(b)(ii) read with Section 6 of the Act for computation of contribution towards Provident Fund.

As legally advised, the incremental liability has been ascertained prospectively, effective 1st March, 2019 and provided for in the books of account of the Company.

10. The Company has a non-current investment in EIH Flight Services Limited (EIHFSL), Mauritius, a wholly owned subsidiary of the company, amounting to INR 1,184.88 Million. As at March 31, 2019 EIHFSL total liabilities exceeded total assets by INR 133 Million.

The Company performed an impairment assessment and concluded that the recoverable amount exceeded the carrying amount as at March 31, 2019 and accordingly, there was no impairment loss.

The recoverable amount was determined on the basis of a valuation performed by an external valuer. The recoverable amount was estimated using discounted value of projected future cash flows for a period of five years approved by the Board of Directors and a long-term growth rate (estimated based on the country and passenger growth rate) was used to extrapolate cash flows beyond the five years period covered by the projections. The discount rate was based on the weighted average cost of capital comprising risk free rate based on 10 year yield of Government of Mauritius bonds and a market participant risk premium.

The valuation based on key assumptions in respect of current revenue projections and the discount rates, is sensitive to changes, which, if adverse, may cause the carrying amount of this subsidiary to exceed its recoverable amount."

11. The financial statements were authorised for issue by the Board of Directors on May 30, 2019.

Mar 31, 2018

General Information

EIH LIMITED (âthe Companyâ) is a public Company limited by shares, incorporated and domiciled in India having its Registered Office at 4, Mangoe Lane, Kolkata - 700 001. The company is primarily engaged in owning and managing premium luxury hotels and cruisers under the luxury âOberoiâ and âTridentâ brands. The Company is also engaged in flight catering, airport restaurants, project management and corporate air charters.

1 RECENT ACCOUNTING PRONOUNCEMENTS

Introduction of Ind AS 115, Revenue from Contracts with Customers

Ministry of Corporate Affairs has notified Ind AS 115 âRevenue from Contracts with Customersâ, which is effective from April 1, 2018, early adoption of which is not permitted. The new standard outlines the principle that revenue should be recognised when an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled. The Company is evaluating the requirements of Ind AS 115 and its effect on the financial statements.

Amendments to Ind AS 21, The Effects of Changes in Foreign Exchange Rates

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is evaluating the requirements of Ind AS 21 and its effect on the financial statements.

2 SIGNIFICANT ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the companyâs accounting policies.

This note provides information about the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances.

A. Significant estimates :

i) Useful life of the Hotel Building

The Company has adopted useful life of fixed assets as stipulated by Schedule II to the Companies Act, 2013 except for the hotel buildings for computing depreciation. In the case of the hotel building of the Company, due to superior structural conditio/n, management decided to assess the balance useful life by independent technical expert. As per the certificates of the technical expert, the balance useful life of the hotel buildings ranges between 27 years and 57 years with effect from March 31, 2018 and the total useful life of the buildings are higher than those specified by Schedule II to the Companies Act, 2013. The carrying amount of the hotel building is being depreciated over its residual life.

ii) Recognition of Revenue (customer loyalty programs)

The company is running certain customer loyalty programs for which revenue is being deferred on the basis of total loyalty points/complimentary nights outstanding. As required by Ind AS 18, while calculating fair value of the loyalty points/complimentary nights, expected lapses are also considered by the company (loyalty points/complimentary nights which will not be redeemed by the customers). On the basis of past trend, a significant portion of the loyalty points/complimentary nights has been estimated to be lapsed. Estimated lapse ratio is periodically evaluated by the company and in case there is any change in the trend, the deferred revenue is adjusted accordingly. The fair value of loyalty points/complimentary nights is calculated on the basis of relative benefit passed on to the customers.

iii) Claims, Provisions and Contingent Liabilities:

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on managementâs assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the financial statements.

B. Significant judgements :

Advance towards Equity Shares

In the case of Mashobra Resort Limited (âMRLâ), several disputes with the Government of Himachal Pradesh, the joint venture partner, were referred by the High Court of Himachal Pradesh by an order dated 17th December, 2003 to an Arbitral Tribunal consisting of a single Arbitrator. The Arbitratorâs award award dated 23rd July, 2005 was challenged both by the Company and MRL, amongst others, before the High Court of Himachal Pradesh. The operation of the Arbitration Award was stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter was restored to the position as on 17th December, 2003 and the hotel is being operated by MRL accordingly. The Company vide its letter dated 4th April, 2012 requested MRL to account for the entire amount of INR 1,361.93 million provided to MRL upto 31st March, 2012 as âAdvance Towards Equityâ, including INR 130.00 Million being the opening balance of âAdvance Towards Equityâ. In view of the above, the Company has shown the said amount of INR 1,361.93 Million as âAdvance Towards Equityâ under Other non-current financial assets in its books of account.

The High Court, by virtue of an order dated 25th February, 2016 which was made available to the Company in May 2016, decided not to interfere with the order of the Arbitrator. The Company amongst others, have preferred an appeal before the Division Bench of the High Court of Himachal Pradesh. By an Order dated 27th June, 2016, Division Bench has stayed the Single Bench Judge Order dated 25th February, 2016 and directed the parties to maintain status quo till the matter is finally heard and disposed off. The matter is pending before the Division Bench of the High Court of Himachal Pradesh for adjudication.

3 (i) Capitalisation of The Oberoi, New Delhi

One of the Companyâs hotels, The Oberoi, New Delhi, which was under renovation since April, 2016, has opened in January, 2018. Addition to Property, Plant & Equipment includes Rs.5078.75 million being capitalisation of this renovation project.

(ii) Assets held as security

Refer to note 18 & 23 for disclosure of assets held as security.

(iii) Interest capitalised to qualifying assets

Refer to note 32 for disclosure of amount capitalised to qualifying assets.

(iv) Contractual obligations

Refer to note 42 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

Nature and purpose of Reserves

(i) Capital Redemption Reserve

(ii) Securities Premium Reserve

This Reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.

(iii) Revaluation Reserve

Revaluation Reserves was created under previous GAAP on upward revaluation on land and building. The balance in Revaluation Reserve at the beginning of the current year has been transferred to General Reserve during the year.

PARTICULARS OF TERM BORROWINGS :

i) Security

Term loan from The Hong Kong & Shanghai Banking Corporation Limited (HSBC) is secured by way of equitable mortgage by deposit of title deeds in respect of the Companyâs hotel in Delhi known as The Oberoi, New Delhi.

The Finance Lease obligations are secured by hypothecation of vehicles taken under Lease.

ii) Terms of repayment and Interest rate :

Term Loan from The Hong Kong & Shanghai Banking Corporation Limited (HSBC) is repayable in 28 quarterly installments of INR 107.14 Million starting from February 2018 and ending on November 2024 and carries interest which is linked to banks MCLR, presently effective rate is 8.50%

The Finance Lease obligations are secured by hypothecation of vehicles taken under Lease. Repayments are done by equated monthly installments over 36 to 60 months.

Two pieces of land under Finance Lease are under Lease upto 2064-65. Another piece of land is under perpetual lease. Rent is payable on a monthly basis.

(ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard.

(iii) Assets and liabilities which are measured at amortised cost for which fair values are disclosed

All the financial asset and financial liabilities measured at amortised cost, carrying value is an approximation of their respective fair value.

(iv) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- Fair valuation of Mercury Travels Limited has been computed using discounted cash flow valuation method (âDCF Methodâ).

(vii) Valuation processes

The fair value of unlisted equity securities has been determined on the basis of valuation done by independent valuer. The main level 3 inputs for unlisted equity securities used by the company are derived and evaluated as follows:

As per the independent valuer, the discounted cash flow valuation method (âDCF Methodâ) provides the most appropriate basis for valuing the equity shares of MTL. However, to reduce the bias of this single valuation methodology, value of equity shares of MTL has been also determine under the Net Asset Value method (âNet Asset Valueâ) and, thereafter, final value of the equity shares of MTL has been determine giving appropriate weightage to the value per equity share under the foregoing DCF Method and Net Asset Value Method respectively.

The discount rates are determined using the capital asset pricing model to calculate pre-tax rate that reflects current market assessment of time value of money and the risk specific to the asset.

Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

FINANCIAL RISK MANAGEMENT

The companyâs activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

The companyâs risk management is carried out by the treasury department under policies approved by the Board of Directors, Company Treasury identifies, evaluates and hedges financial risks in close co-operation with the companyâs operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.

(A) Market risk

(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognised assets or liabilities denominated in a currency that is not the Companyâs functional currency (INR).

(ii) Interest rate risk

The exposure of the companyâs borrowing to interest rate changes at the end of the reporting period depends on the mix of fixed rate and floating rate of the borrowings and the expected movement of market interest rate. The status of borrowings in terms of fixed rate and floating rate are as follows:

(iii) Price risk

The companyâs exposure to equity securities price risk arises from investments held by the company in equity securities and classified in the balance sheet as at fair value through profit or loss (note 6). However, company does not have a practice of investing in market equity securities with a view to earn fair value changes gain. As per the company policies, whenever any investment is made by the company in equity securities, the same is made either with some strategic objective or as a part of contractual arrangement.

(B) Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the company.

Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the company does not allow any credit period and therefore, is not exposed to any credit risk.

The company does not have any derivative transaction and therefore is not exposed to any credit risk on account of derivatives.

(C) Liquidity risk

(D) Capital management Risk management

The companyâs objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

(i) Defined benefit plans

a) Gratuity

The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The Company operates a gratuity plan through the âEIH Employeesâ Gratuity Fundâ. Gratuity plan is a funded plan and the Company through Gratuity Trust makes contributions of funds to Life Insurance Corporation of India.

The Government vide notification S.O. 1420 (E) dated 29.03.2018 increased the limit of amount of gratuity payable to an employee under sub-section (3) of section 4 of the Payment of Gratuity Act, 1972 (39 of 1972) from from the existing limit of INR 10 Lakh to INR 20 Lakhs. The company has taken into consideration the effect of this increase as applicable.

b) Leave Encashment

(ii) Defined contribution plans

(iii) Movement of defined benefit obligation and fair value of plan assets :

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows:

Sensitivities due to Demographic and Investment are not material and hence the impact of change due to these is not disclosed

* Gratuity trust pays contribution to LIC which in turn invests the amount in various instruments. As it is done by LIC in totality basis along with contributions from other participants, the Company wise investment in planned assets - category / class wise is not available.

(vii) Risk exposure

The defined benefit obligations have the under mentioned risk exposures :

Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

Investment risk : This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. LIC of India primarily invests in debt instruments such as Government securities and highly rated corporate bonds wherein the risk of downward fluctuation in value is minimal.

(vii) Defined benefit liability and employer contributions

Expected contribution to post employment benefit plan for the year ending March 31, 2019 is INR 174,403,000.

The weighted average duration of the defined benefit obligation is 7 years (2017 - 9 years) in case of Gratuity and 11 years (2017- 11 years) in case of Leave encashment.

RELATED PARTY TRANSACTIONS

4 (a) List of Related Parties

In accordance with the requirements of Indian Accounting Standard (Ind AS) - 24 âRelated Party Disclosuresâ the names of the related party where control exists/able to exercise significant influence along with the aggregate transactions and year-end balance with them in the ordinary course of business and on armsâ length basis are given below

5 CONTINGENT LIABILITIES

The company had contingent liabilities at March 31, 2018 in respect of:

(a) Claims against the Company pending appellate/judicial decisions not acknowledged as debts :

(b) Guarantees :

i. Guarantees given to Banks & Financial Institutions for INR 651.74 Million (2017- INR 675.60 Million) against financial facilities availed by the subsidiary company.

ii. Counter guarantees issued to banks and remaining outstanding INR 31.83 Million (2017-INR 184.23 million).

6 COMMITMENTS

(i) Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

(ii) Investment commitments in subsidiary and joint venture companies - INR 681.10 Million (2017-INR 681.10).

7 LEASES

(a) Non-cancellable operating leases As a Lessee

The Company has entered into operating lease arrangements primarily for office premises, site offices, airport/flight services, land for hotels and residential premises for its employees. These leases are generally not non-cancellable in nature and may generally be terminated by either party by serving a notice. During the year, the company has recognised lease rent expense of INR 177.12 Million (2017: INR 155.01 Million) related to non-cancelable operating lease. The future minimum lease payments payable by the company taken under non-cancellable operating lease, are as under:-

As a Lessor

(b) Finance Lease As a lessee

The Company acquired motor vehicles and land under finance lease. Generally, tenure of finance lease of vehicles varies between 3 to 5 years. After completion of the lease term, vehicles are transferred in the name of company.

In case of leasehold land, tenure of the lease varies from 90 to 99 years. The leases are renewed on mutually agreed terms on the expiry of current lease period.

8. Segment reporting

There are no reportable segments other than hotels as per Ind AS 108, âOperating Segmentâ .

The Company does not have transactions of more than 10% of total revenue with any single external customer.

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

10 During the year, âAdvances paid under protestâ of INR 145.78 Million has been reclassified to âOther Non Current Assetsâ. Previously this was included and presented as âOther Advancesâ under âOther Current Assetsâ.

11 The financial statements were authorised for issue by the Board of Directors on 30th May, 2018.

Mar 31, 2017

1 SIGNIFICANT ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgment in applying the company''s accounting policies.

This note provides information about the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances.

i) Useful life of the Hotel Building

The Company has adopted useful life of fixed assets as stipulated by Schedule II to the Companies Act, 2013 except for the hotel buildings for computing depreciation. In the case of the hotel building of the Company, due to superior structural condition, management decided to assess the balance useful life by independent technical expert. As per the certificates of the technical expert, the balance useful life of the hotel buildings ranges between 30 years and 60 years with effect from 31st March, 2015 and are higher than those specified by Schedule II to the Companies Act, 2013. The carrying amount of the hotel building is being depreciated over its residual life.

ii) Advance towards Equity Shares

In the case of Mashobra Resort Limited ("MRL"), several disputes with the Government of Himachal Pradesh, the joint venture partner, were referred by the High Court of Himachal Pradesh on 17th December, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MRL, amongst others. The operation of the arbitration award was stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter was restored to the position as on 17th December, 2003 and the hotel is being operated by MRL accordingly. The Company vide its letter dated 4th April, 2012 requested MRL to account for the entire amount of INR 1,361.93 Million provided to MRL upto 31st March, 2012 as ''Advance Towards Equity'', including INR 130.00 Million being the opening balance of ''Advance Towards Equity''. In view of the above, the Company has shown the said amount of INR 1,361.93 Million as ''Advance Towards Equity'' in its books.

The High Court passed an order dated 25th February, 2016 which was made available to the Company in the month of May 2016. The Court has decided not to interfere with the order of the Arbitrator. The Company amongst others, preferred an appeal before the Division Bench of the High Court of Himachal Pradesh. By an order dated 27th June, 2016 the Division Bench stayed the Single Judge Order dated 25th February, 2016 and directed the parties to maintain status quo till the matter is finally heard and disposed off. Final hearing is yet to commence.

iii) Recognition of Revenue (customer loyalty programs)

The company is running certain customer loyalty programs for which revenue is being deferred on the basis of total loyalty points/complimentary nights outstanding. As required by Ind AS 18, while calculating fair value of the loyalty points/complimentary nights, expected lapses are also considered by the company (loyalty points/complimentary nights which will not be redeemed by the customers). On the basis of past trend, a significant portion of the loyalty points/ complimentary nights has been estimated to be lapsed. Estimated lapse ratio is periodically evaluated by the company and in case there is any change in the trend, the deferred revenue is adjusted accordingly. The fair value of loyalty points/ complimentary nights is calculated on the basis of relative benefit passed on to the customers.

Nature and purpose of Reserves

(i) Capital Redemption Reserve

Capital Redemption Reserve represents the statutory reserve created by the company for the redemption of its preference share capital issued and redeemed under previous GAAP. The same can be utilized by the company for issuing fully paid bonus shares.

(ii) Revaluation Reserve

Revaluation Reserves was created under previous GAAP on upward revaluation on land and building. An amount equivalent to additional amortization/depreciation charged during the period on leased land and building due to upward revaluation is transferred directly from Revaluation Reserve to General Reserve at each reporting period.

PARTICULARS OF TERM BORROWINGS :

i) Security :

Term loan from ICICI is secured by way of equitable mortgage by deposit of title deeds in respect of the Company''s hotel in Delhi known as Maidens Hotel, ranking pari passu .

The Finance Lease obligations are secured by hypothecation of vehicles taken under Lease.

ii) Terms of repayment and Interest rate :

Term Loan From The Hong Kong & Shanghai Banking Corporation Limited (HSBC) is repayable in 28 quarterly installment starting from February 2018 and carries interest which is linked to banks MCLR, presently effective rate is 8.88%

Term Loan From ICICI Bank carries interest at the rate of 0.55% above bank''s base rate, repayable in quarterly installments of INR 100.00 Million each. Repayment will be complete in July 2017.

The Finance Lease obligations are secured by hypothecation of vehicles taken under Lease. Repayments are done by equated monthly installments over 36 to 60 months.

Two pieces of land under Finance Lease are under Lease upto 2064-65. Another piece of land is under perpetual lease. Rent is payable on a monthly basis.

(i) Defined benefit plans

a) Gratuity

b) Leave Encashment

As per the policy of the company, obligations on account of encashment of accumulated leave of an employee is settled only on termination/ retirement of the employee. Such liability is recognized on the basis of actuarial valuation following Project Unit Credit Method. It is an unfunded plan.

(ii) Defined contribution plans

(vii) Risk exposure

The defined benefit obligations have the under mentioned risk exposures :

Interest rate risk : The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

(viii) Defined benefit liability and employer contributions

Expected contribution to post employment benefit plan for the year ending March 31, 2018 is INR 117.25 Million.

The weighted average duration of the defined benefit obligation is 9 years in case of Gratuity and 11 years in case of Leave encashment in all the three years.

* Net of current account balances.

PARTICULARS OF SHORT TERM BORROWINGS : i) Security :

Cash Credit facilities from banks and short term loan from HSBC are secured by way of hypothecation of all stock of inventories, book debts and other current assets of the company, both present and future, ranking pari passu. Cash Credit with United Bank of India is additionally secured by way of second charge in respect of the Company''s hotel in Kolkata known as The Oberoi Grand.

ii) Terms of repayment and Interest rate :

Cash Credit from United Bank Of India is repayable on demand and carries Interest at bank''s base rate 0.80%

Cash Credit from HSBC is repayable on demand and carries Interest at banks base rate 2.90%

Cash Credit from ICICI is repayable on demand and carries Interest at 6 months MCLR 1.15%

Short term loan from HSBC is repayable on maturity and carries Interest @ 8.90%.

Short term loan from Federal Bank Limited is repayable on maturity and carries Interest @ 8.70%.

*The Company''s investments (Note No. 6) include holding of 16% equity shares in the capital of Golden Jubilee Hotels Private Limited (GJHPL). GJHPL has failed to service its debts. Some of the lending banks have recalled the loan given to GJHPL and declared the same as NPA. There is also winding up petition filed by a creditor. Company generally follows an accounting policy of making provision in case of permanent diminution only. However, considering the facts of the case, Company feels that the viability of GJHPL is at stake and provision has been made for abundant caution.

(ii) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(iii) Assets and liabilities which are measured at amortized cost for which fair values are disclosed

All the financial asset and financial liabilities measured at amortized cost, carrying value is an approximation of their respective fair value.

(iv) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

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

- Fair valuation of Mercury Travels Limited has been computed using discounted cash flow valuation method ("DCF Method").

*There were no significant inter-relationships between unobservable inputs that materially affect fair values.

(vii) Valuation processes

As per the independent valuer, the discounted cash flow valuation method ("DCF Method") provides the most appropriate basis for valuing the equity shares of MTL. However, to reduce the bias of this single valuation methodology, value of equity shares of MTL has been also determine under the Net Asset Value method ("Net Asset Value") and, thereafter, final value of the equity shares of MTL has been determine giving appropriate weight age to the value per equity share under the foregoing DCF Method and Net Asset Value Method respectively.

The discount rates are determined using the capital asset pricing model to calculate pre-tax rate that reflects current market assessment of time value of money and the risk specific to the asset.

Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

4 FINANCIAL RISK MANAGEMENT

The company''s activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

The company''s risk management is carried out by a treasury department under policies approved by the Board of Directors, Company Treasury identifies, evaluates and hedges financial risks in close co-operation with the company''s operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.

(A) Market risk

(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognized assets or liabilities denominated in a currency that is not the Company''s functional currency (INR).

⁽ⁱⁱⁱ⁾ Price risk

The company''s exposure to equity securities price risk arises from investments held by the company in equity securities and classified in the balance sheet as at fair value through profit and loss (note 6). However, company does not have a practice of investing in market equity securities with a view to earn fair value changes gain. As per the company policies, whenever any investment is made by the company in equity securities, the same is made either with some strategic objective or as a part of contractual arrangement. Further, at the reporting date company does not hold material value of quoted securities. Accordingly, company is not exposed to significant market price risk.

(B) Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the company.

Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the company does not allow any credit period and therefore, is not exposed to any credit risk.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due.

(C) Liquidity risk

The Company has a liquidity risk management framework for managing its short term, medium term and long term sources of funding vis-a-vis short term and long term utilization requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.

(ii) Maturities of financial liabilities

The table below analyses the company''s all non-derivative financial liabilities into relevant maturity based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows.

RELATED PARTY TRANSACTIONS 40 (a) List of Related Parties

Key Management Personnel of the company and close member of Key Enterprises in which Key Management Personnel and close member of

Management Personnel of the company Key management Personnel have Joint Control

Mr. P.R.S. Oberoi Oberoi Hotels Private Limited

Mr. S.S. Mukherji Oberoi Properties Private Limited

Mr. Vikram Oberoi Oberoi Holdings Private Limited

Mr. Arjun Oberoi Oberoi Investments Private Limited

Mrs. Nita M. Ambani Oberoi Buildings and Investments Private Limited

Mrs. Renu Sud Karnad Oberoi Plaza Private Limited

Mr. Manoj Harjivandas Modi Oberoi Leasing and Finance Company Private Limited

Mr. Rajeev Gupta Bombay Plaza Private Limited

Mr. S.K. Dasgupta Oberoi International LLP

Mr. Anil K. Nehru Aravalli Polymers LLP

Mr. Sudipto Sarkar Oberoi Holdings Hong Kong Limited

Mr. L. Ganesh Bhagwanti Oberoi Charitable Trust

Mr. S.N. Sridhar Ishran Devi Oberoi Family Trust

Mr. Biswajit Mitra Oberoi Foundation

Mrs. Goodie Oberoi (Wife of Mr. P.R.S. Oberoi) Vikramaditya Exports Private Limited

Ms. Priyanka Mukherjee (Daughter of Mr. S.S. Mukherji) Arpwood Consultants LLP

Arpwood Partners Investments Advisors LLP

Subsidiaries Arpwood Investments Advisors LLP

Mumtaz Hotels Limited Vidhya Bharati Trust

Mashobra Resort Limited M/s Krishna Enterprises

Oberoi Kerala Hotels & Resorts Limited M/s Durga Enterprises

EIH International Ltd M/s Deepak Associates

EIH Flight Services Limited M/s Sonal Enterprises

EIH Holdings Ltd M/s Alpha Enterprises

EIH Marrakech Ltd* M/s Balaji Realty

J&W Hong Kong Limited M/s TMP Enterprises LLP

EIHH Corporation Limited** Reliance Group Corp.

EIH Investments N.V. Reliance Corp.

EIH Management Services B.V. Shivapriya Corporation

PT Widja Putra Karya Chakradev Enterprises LLP

PT Waka Oberoi Indonesia Janardan Commercials LLP

Pt Astina Graha Ubud Shripal Enterprises LLP

Shivangi Commercials LLP

Associates & Joint Ventures Rane Foundation, Chennai

Mercury Car Rentals Private Limited Oberoi Investments (BVI) Limited

Oberoi Mauritius Ltd Oberoi Services International Limited

EIH Associated Hotels Limited Oberoi Services Pte Limited

Island Resort Ltd Oberoi Holdings (Singapore) Pte. Ltd

Oberoi Corporation Limited

Enterprises which are post employment benefit plan for the Komensi Pty Limited benefit of employees

EIH Employees'' Gratuity Fund Oberoi UK Limited

EIH Executive Superannuation Scheme Oberoi Hotels (Australia) Pty Limited

OBHR Pty Limited OBHR (Australia) Pty Limited Saudi Oberoi Company Limited La Roseraie De L''atlas Silhouette Beauty Parlour

5 LEASES (a) Non-cancellable operating leases As a Lessee

The Company has entered into operating lease arrangements primarily for office premises, site offices, airport/flight services, land for hotels and residential premises for its employees. These leases are generally not non-cancellable in nature and may generally be terminated by either party by serving a notice. During the year, the company has recognized lease rent expense of INR 15.46 Million (2016: INR 13.61 Million) related to such non-cancelable operating lease. The future minimum lease payments payable by the company taken under non-cancellable operating lease, are as under:-

6 First-time adoption of Ind AS Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended March 31, 2017,the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 1, 2015 (date of transition to Ind AS). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act.

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Exemptions and exceptions availed A.1 Ind AS optional exemptions

(a) Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption is also used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value, which has been considered as deemed cost.

(b) Investments in subsidiaries, joint ventures and associates

Ind AS 101 permits a first-time adopter to measure its investments in subsidiaries, joint ventures and associates at deemed cost, which should be either:

(i) fair value at the entity''s date of transition to Ind ASs in its separate financial statements; or

(ii) previous GAAP carrying amount at that date

The company has elected to measure in its separate financial statements all of its investments in subsidiaries, joint ventures and associates at their previous GAAP carrying amount on the date of transition.

(c) Classification and measurement of Lease land

In accordance with Ind AS 101, when a lease includes both land and building elements, a first time adopter may assess the classification of each element as finance or an operating lease at the date of transition to Ind AS on the basis of the facts and circumstances existing as at the date of transition. Accordingly, applying the same exemption, the Company has classified its land leases into finance lease and operating lease on the basis of the facts and circumstances existing as at the date of transition.

A.2 Ind AS mandatory exceptions (a) Estimates

Estimates made under Ind AS as at April 1, 2015 are consistent with the estimates as under previous GAAP.

(b) Classification and measurement of financial assets

Ind AS 101 requires that an entity should assess the classification of its financial assets on the basis of facts and circumstances exist on the date of transition. Accordingly, in its Opening Ind AS Balance Sheet, the company has classified all the financial assets on basis of facts and circumstances that existed on the date of transition, i.e. April 1, 2015.

i. Deferred revenue on Customer Loyalty Programs

The company operates multiple customer reward points program under its hotel business. The programs allows customers to accumulate points/complimentary room nights on hotel bookings. The points can be redeemed by the customers on future bookings and other services such as dinning, SPA, etc. Under the previous GAAP, the company was creating provision towards its liability under the programs on full value without considering the estimated lapses.

Under Ind AS, sales consideration received has been allocated between the hospitality services and the reward points/ complimentary room nights issued. The consideration allocated to the customer reward points/complimentary room nights has been deferred and will be recognized as revenue when the reward points/complimentary room nights are redeemed or lapsed. The consideration to be allocated to the customer reward points/complimentary room nights has been determined considering the past estimated lapses on the basis of past trend. Accordingly, the company has recognized deferred revenue with corresponding adjustment to retained earnings. The provision created under previous GAAP has been reversed with a credit to retained earnings.

ii. Fair valuation of equity investments

The company holds investment in Equity Shares of entities other than subsidiaries, associate and joint venture. Under previous GAAP such investments were measured at cost less provision for other than temporary nature diminution in the value of investment.

Under Ind AS, these investments has been measured at fair value. The company has categorized these investments as fair value through profit and loss (FVTPL) and any changes in fair value of those investment has been recognized in the statement of profit and loss.

iii. Fair valuation of security deposits

Under the previous GAAP, interest free lease security deposits assets (that are refundable in cash on completion of the contract term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value at initial recognition and subsequently at amortized cost. Accordingly, The company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent.

Under the previous GAAP, interest free lease security deposits liability (that are refundable in cash on completion of the contract term) are recorded at their transaction value. Under Ind AS, these financial liabilities are required to be recognized at fair value at initial recognition and subsequently at amortized cost. Accordingly, The company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as advance rent.

iv. Reclassification of leases

Under Previous GAAP due to no availability of guidance on how land leases should be classified, the company has capitalized the leasehold land with the initial cost incurred to enter into the lease agreement along with the upfront payment of future lease rent. Annual lease rent payment were charged to the profit and loss on annual basis.

Under Ind AS, land lease has been classified into finance and operating leases. In cases where land leases has been classified as finance lease on the basis of factors such as renewal right with the company, etc., finance lease obligations has been recognized for the future lease rent payable over the primary period of lease with corresponding impact to the retained earnings as these lands were already revalued at their fair value under previous GAAP.

In cases where land leases has been classified as operating leases, carrying value of the respective leasehold land has been reclassified to prepaid rent from property, plant and equipments.

v. Other GAAP adjustments

Other GAAP adjustments include adjustment related to remeasurnment and recognition of certain assets and liabilities in accordance with Ind AS which are not material in nature.

vi. Proposed Dividend including dividend tax

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend included under provisions has been reversed with corresponding adjustment to retained earnings.

vii. Tax effects of adjustments

Additional deferred tax asset/(liability) has been recognized corresponding to the adjustments to retained earnings/profit and loss as a result of Ind AS Implementation.

viii. Remeasurement of Post-employment benefit obligations (Net of Tax)

Under Ind AS, all items of income and expense recognized in a period should be included in profit and loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit and loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans. The concept of other comprehensiveincomedidnotexistunderpreviousGAAP.Accordingly,lossonremeasurementsofpost-employmentbenefitobligation has been reclassified to the Other Comprehensive Income for the period.

7. The financial statements were authorized for issue by the Board of Directors on 30th May, 2017.

Mar 31, 2014

1. (A) Contingent Liabilities and commitments (to the extent not provided) -

(i) Claims against the Company pending appellate/judicial decisions not acknowledged as debts :

(a) Value Added tax Rs. 38.76 Million (2013 - Rs. 20.08 Million)

(b) Income-tax Rs. 717.50 Million (2013 - Rs. 603.90 Million)

(c) tax deducted at source Rs. 28.87 Million (2013 - Rs. 14.16 Million)

(d) service tax Rs. 132.60 Million (2013 - Rs. 103.71 Million)

(e) property tax Rs. 50.43 Million (2013 - Rs. 5.93 Million)

(f) entertainment tax Rs. 4.31 Million (2013 - Rs. 10.45 Million)

(g) Customs duty Rs. 429.66 Million (2013 - Rs. 429.66 Million)

(h) employees state Insurance dues Rs. nil (2013 - Rs. 1.57 Million) (i) excise duty Rs. 99.07 Million (2013 - Rs. 99.07 Million) (j) others Rs. 13.48 Million (2013 - Rs. 15.36 Million)

(ii) Guarantees :

a. Guarantees given to Banks & Financial Institutions for Rs. 1,199.19 Million (2013 - Rs. 1,086.89 Million) against financial facilities availed by the subsidiary companies.

b. Counter guarantees issued to banks and remaining outstanding Rs. 199.45 Million (2013 - Rs. 32.72 Million).

(B) Commitments:

a. the estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 581.64 Million (2013 - Rs. 602.23 Million).

b. Investment commitment in subsidiary and joint venture companies Rs. 365.63 Million (2013 - Rs. 424.63 Million)

2. the Company sold part of its shareholding in Mercury Car rentals Limited (MCrL) to the other joint venture partner on 30.09.2013. the profit arising from this sale has been shown as exceptional item during the year ended 31.03.2014. As a result of this sale Company''s ownership interest in MCrL was reduced from 66.67% to 40% and MCrL ceased to be a subsidiary of the Company with effect from 30.09.2013. subsequently, with effect from 17.01.2014 MCrL was converted to a private limited company.

3. details of dues to Micro enterprises and small enterprises as Defined under Micro, small & Medium enterprises development Act, 2006 are given below. this is based on information made available to the Company.

4. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of Rs. 2,863.88 Million which is included in the original cost. the valuation was carried out by an approved valuer on the basis of depreciated replacement cost. the surplus was transferred to revaluation reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to Rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMrd Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of re.1 per annum as a condition precedent to the lease of the land for the Company''s hotel in Mumbai known as trident, Bandra Kurla.

(c) By virtue of West Bengal estate Land Acquisition Act, 1953, the Company became the owner of Leasehold Land of erstwhile the oberoi, Mount everest at darjeeling which has been included in Freehold Land during the year at a nominal value.

5. (a) depreciation has been provided for in the Accounts on "straight Line Method" at the rates prescribed in schedule XIV to the Companies Act, 1956 except for Specific assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) depreciation for the year as per Fixed Assets schedule (note-12) includes Rs. 29.99 Million (2013 - Rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from revaluation reserve Account.

6. Fixed Assets acquired under finance lease amounted to Rs. 369.20 Million (2013 - Rs. 391.32 Million) being assets acquired between 1st April, 2001 to 31st March, 2014. these include an amount of Rs. 26.03 Million (2013 - Rs. 32.74 Million) being assets acquired during the year under finance lease and capitalised in line with the requirements of Accounting standard (As-19). depreciation for the year includes an amount of Rs. 84.45 Million (2013 - Rs. 120.93 Million) being depreciation charged on these assets.

7. disclosures in respect of Company''s operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

8. In the case of Mashobra resort Limited ("MrL"), several disputes with the Government of Himachal pradesh, the joint venture partner, were referred by the High Court of Himachal pradesh on 17th december, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MrL, amongst others. the operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th december, 2003 and the hotel is being operated by MrL accordingly. the Company vide its letter dated 4th April, 2012 requested MrL to account for the entire amount of Rs. 1,361.93 Million provided to MrL upto 31st March, 2012 as ''Advance towards equity'', including Rs. 130.00 Million being the opening balance of ''Advance towards equity''. In view of the above, the Company has shown the said amount of Rs. 1,361.93 Million as ''Advance towards equity'' in its books.

An extraordinary general meeting of MrL was called on 14.10.2010 to pass a resolution for issue and offer of equity shares of MrL to the Company against the above advance for shares. the Government of Himachal pradesh obtained a stay order from the High Court of Himachal pradesh and the passing of the said resolution was deferred by the High Court. Consequently the issue of equity shares against the said advance has become subjudice and dependent upon the resolution of the legal cases.

ML is earning profits in the last couple of years and has proposed dividend for the year 2013-14. It also has accumulated funds of Rs. 310.48 Million in fixed deposit pursuant to Court direction.

9. (a) Inventory of provision, Wines & others includes stock of paper, Ink etc. at year end Rs. 69.66 Million (2013 - Rs. 56.92 Million) (b) Consumption of provisions, Wines and others includes consumption of paper, Ink etc. Rs. 356.74 Million (2013 - Rs. 325.62 Million)

10. segment reporting :

There are no reportable segments other than hotels as per Accounting standard (As-17) on segment reporting.

11. the previous year''s figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Mar 31, 2013

1 EXTRAORDINARY ITEMS

L&T Bangalore Airport Hotel Limited (BAHL), a joint venture with L&T Urban Infrastructure Limited started construction of a hotel on the land alloted by Bangalore International Airport Limited (BIAL) pursuant to the Framework Agreement with them. The same had to be abandoned due to extraordinary circumstances involving refusal by Airport Authority of India (AAI) to permit the agreed height of the building as per Framework Agreement. BIAL also failed to honour their commitment to give additional land to compensate the reduction in height. BAHL went for arbitration proceedings and the Arbitral Tribunal gave the award directing BIAL to take over the incomplete building and pay compensation fixed by the Tribunal. BAHL has accounted for the award and the resultant loss in its account for the year ended 31.03.13. Consequently, there is a diminution in value of Company''s investments to the extent of Rs. 116.96 million, being loss due to extraordinary unusual events.

2. Contingent Liabilities and commitments (to the extent not provided)

(A) Contingent Liabilities not provided for in respect of :

(i) Claims against the Company pending appellate/judicial decisions not acknowledged as debts :

(a) Value Added Tax Rs. 20.08 Million (2012 - Rs. 25.92 Million)

(b) Income Tax Rs. 603.90 Million (2012 - Rs. 528.18 Million)

(c) Tax Deducted at Source Rs. 14.16 Million (2012 - Rs. 25.88 Million)

(d) Service Tax Rs. 103.71 Million (2012 - Rs. 64.03 Million )

(e) Property Tax Rs. 5.93 Million (2012 - Rs. 75.36 Million)

(f) Entertainment Tax Rs. 10.44 Million (2012 - Rs. 11.62 Million)

(g) Customs Duty Rs. 429.66 Million (2012 - Rs. 429.66 Million)

(h) Employees State Insurance dues Rs. 1.57 Million ( 2012 - Rs. 12.61 Million)

(i) Excise Duty Rs. 99.07 Million (2012 - Rs. 99.07 Million)

(j) Others Rs. 15.36 Million (2012 - Rs. 22.45 Million)

(ii) Guarantees :

a. Guarantees given to Banks & Financial Institutions for Rs. 1,089.89 Million (2012 - Rs. 1,591.00 Million) against financial facilities availed by the subsidiary companies.

b. Counter guarantees issued to banks and remaining outstanding Rs. 32.72 Million (2012 - Rs. 30.31 Million).

(B) Commitments:

a. The estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 602.23 Million (2012 - Rs. 340.23 Million).

b. Investment commitment in subsidiary companies Rs. 424.63 Million (2012 - Rs. 353.92 Million)

3. Details of dues to Micro Enterprises and Small Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 are given below. This is based on information made available to the Company.

4. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of Rs. 2,863.88 Million which is included in the original cost. The valuation was carried out by an approved valuer on the basis of depreciated replacement cost. The nature of indices was not mentioned in the report. The surplus was transferred to Revaluation Reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to Rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMRD Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of Rs. 1 per annum as a condition precedent to the lease of the land for the Company''s hotel in Mumbai known as Trident, Bandra Kurla.

5. (a) Depreciation has been provided for in the Accounts on "Straight Line Method" at the rates prescribed in Schedule XIV to the Companies Act, 1956 except for specific assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) Depreciation for the year as per Fixed Assets Schedule (Note-12) includes Rs. 29.99 Million (2012 - Rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from Revaluation Reserve Account.

6. Fixed Assets acquired under finance lease amounted to Rs. 391.32 Million (2012 - Rs. 390.41 Million) being assets acquired between 1st April, 2001 to 31st March, 2013. These include an amount of Rs. 32.74 Million (2012 - Rs. 44.32 Million ) being assets acquired during the year under finance lease and capitalised in line with the requirements of Accounting Standard (AS-19). Depreciation for the year includes an amount of Rs. 120.93 Million (2012 - Rs. 103.43 Million) being depreciation charged on these assets.

7. Disclosures in respect of Company''s operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

a) The Company gives shops located at various hotels on operating lease arrangements. These leases are generally not non- cancellable in nature and may generally be terminated by either party by serving a notice. some shops have been given under non-cancellable operating lease, the future minimum lease payments recoverable by the company are as under:-

b) The Company has entered into operating lease arrangements primarily for office premises, site offices, airport/flight services and residential premises for its employees. these leases are generally not non-cancellable in nature and may generally be terminated by either party by serving a notice. the future minimum lease payments payable by the company for office space taken under non-cancellable operating lease, are as under:-

8. In the case of Mashobra Resort Limited ("MRL"), several disputes with the Government of Himachal Pradesh, the joint venture partner, were referred by the High Court of Himachal Pradesh on 17th December, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MRL, amongst others. The operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th December, 2003 and the hotel is being operated by MRL accordingly. The Company vide its letter dated 4th April, 2012 requested MRL to account for the entire amount of Rs. 1,361.93 Million provided to MRL upto 31st March, 2012 as ''Advance Towards Equity'', including Rs. 130.00 Million being the opening balance of ''Advance Towards Equity''. In view of the above, the Company has shown the said amount of Rs. 1,361.93 Million as ''Advance Towards Equity'' in its books.

An extraordinary general meeting of MRL was called on 14.10.2010 to pass a resolution for issue and offer of equity shares of MRL to the Company against the above advance for shares. The Government of Himachal Pradesh obtained a stay order from the High Court of Himachal Pradesh and the passing of the said resolution was deferred by the High Court. Consequently the issue of equity shares against the said advance has become subjudice and dependent upon the resolution of the legal cases.

MRL is earning profits in the last couple of years and has accumulated funds of Rs. 247.51 Million in fixed deposit pursuant to Court direction.

9. The Company has calculated its tax liability after considering Minimum Alternate Tax (MAT). MAT credit entitlement has been shown under Long Term Loans & Advances.

10. (a) Inventory of Provision, Wines & Others includes Stock of Paper, Ink etc. at year end Rs. 56.92 Million (2012 - Rs. 58.42 Million)

(b) Consumption of Provisions, Wines and Others includes consumption of Paper, Ink etc. Rs. 325.62 Million (2012 - Rs. 355.60 Million)

11. segment Reporting :

There is no reportable segment other than hotel as per Accounting standard (As-17) on segment Reporting.

a) Contingent liability that EIH Limited has incurred in relation to its interests in joint ventures and its share in each of the contingent liabilities which have been incurred jointly with other venturers :-

Guarantees given to Banks & Financial Institutions for Rs. nil (2012 - Rs. 610.00 Million) against financial facilities availed by the jointly controlled entities.

b) EIH Limited''s share of the contingent liabilities of the joint ventures themselves: Rs. 141.55 Million (2012 - Rs. 12.98 Million)

c) EIH Limited is not liable for the liabilities of the other venturers of any joint venture.

d) EIH Limited has a capital commitment for Rs. 260.20 Million (2012 - Rs. nil) in relation to its interest in joint ventures and there are no other capital commitments that have been incurred jointly with other venturer.

e) EIH Limited''s share of capital commitments of the joint ventures themselves amounts to Rs. 171.05 Million (2012 - Rs. 162.18 Million).

12. The previous year''s figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Mar 31, 2012

1. Contingent Liabilities and commitments (to the extent not provided)

(A) Contingent Liabilities not provided for in respect of :

(i) Claims against the Company pending appellate/judicial decisions :

(a) Value Added tax Rs. 25.92 Million (2011 - Rs. 31.17 Million)

(b) Income tax Rs. 528.18 Million (2011 - Rs. 593.62 Million)

(c) Tax deducted at source Rs. 25.88 Million (2011 - Rs. 14.62 Million)

(d) Service tax Rs. 64.03 Million (2011 - Rs. 50.38 Million )

(e) Property tax Rs. 75.36 Million (2011 - Rs. 7.40 Million)

(f) Entertainment tax Rs. 11.62 Million (2011 - Rs. 12.93 Million)

(g) Customs duty Rs. 429.66 Million (2011 - Rs. 429.66 Million) (h) esi dues Rs. 12.61 Million ( 2011 - Rs. 12.22 Million)

(i) Excise duty Rs. 99.07 Million (2011 - Rs. 35.33 Million) (j) others Rs. 22.45 Million (2011 - Rs. 14.92 Million)

(ii) Guarantees :

a. Guarantees given to Banks & Financial institutions for Rs. 1,591.00 Million (2011 - Rs. 1,947.00 Million) against financial facilities availed by the subsidiary companies.

b. Counter guarantees issued to banks and remaining outstanding Rs. 30.31 Million (2011 - Rs. 128.91 Million).

(B) Commitments:

a. The estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 340.23 Million (2011 - Rs. 357.28 Million).

b. Investment in EIH international Limited, a wholly owned subsidiary Rs. 353.92 Million (2011 - Rs. Nil)

2. The Company issued 178,615,442 equity shares of Rs. 2 each on rights basis at a premium of Rs. 64 per share. These shares were allotted on 26th March, 2011 and the total proceeds of the rights issue were Rs. 11,788.62 Million the Gratuity expenses have been recognised in "Contribution to provident Fund and other Funds" and Leave encashment in "salaries & Wages".

3. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of Rs. 2,863.88 Million which is included in the original cost. The valuation was carried out by an approved valuer on the basis of depreciated replacement cost. the nature of indices was not mentioned in the report. The surplus was transferred to revaluation reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to Rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMrd Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of Rs. 1 per annum as a condition precedent to the lease of the land for the Company's hotel in Mumbai known as trident, Bandra Kurla.

4. (a) depreciation has been provided for in the Accounts on "straight Line Method" at the rates prescribed in schedule XIV to the Companies Act, 1956 except for specific assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) Depreciation for the year as per Fixed Assets schedule (Note-12) includes Rs. 29.99 Million (2011 - Rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from revaluation reserve Account.

5. Fixed Assets acquired under finance lease amounted to Rs. 390.41 Million (2011 - Rs. 379.52 Million) being assets acquired between 1st April, 2001 to 31st March, 2012. these include an amount of Rs. 44.32 Million (2011 - Rs. 56.30 Million) being assets acquired during the year under finance lease and capitalised in line with the requirements of Accounting standard (As-19). depreciation for the year includes an amount of Rs. 103.43 Million (2011 - Rs. 48.46 Million) being depreciation charged on these assets.

6. Disclosures in respect of Company's operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

(a) General description of the Company's operating lease arrangements :

The Company has entered into operating lease arrangements primarily for office premises, site offices, airport/fight services and residential premises for its employees. some of the significant terms and conditions of the arrangements are :

Ã Agreements are not non-cancellable in nature and may generally be terminated by either party by serving a notice;

Ã The lease arrangements which are not non cancellable are generally renewable by mutual consent on mutually agreeable terms.

(b) The Company has given shops on rental basis which are not non cancellable and can be terminated by either party by serving a notice.

(c) Rent in respect of the above is charged/credited to the statement of profit and Loss.

7. In the case of Mashobra resort Limited ("MRL"), several disputes with the Government of Himachal pradesh, the joint venture partner, were referred by the High Court of Himachal pradesh on 17th December, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MRL, amongst others. the operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th December, 2003 and the hotel is being operated by MRL accordingly. the Company vide its letter dated 4th April, 2012 requested MRL to account for the entire amount of Rs. 1,361.93 Million provided to MRL upto 31st March, 2012 as 'Advance towards equity', including Rs. 130.00 Million being the opening balance of 'Advance towards equity'. In view of the above, the Company has shown the said amount of Rs. 1,361.93 Million as 'Advance towards equity' in its books.

An extraordinary general meeting of MRL was called on 14.10.2010 to pass a resolution for issue and offer of equity shares of MRL to the Company against the above advance for shares. the Government of Himachal pradesh obtained a stay order from the High Court of Himachal pradesh and the passing of the said resolution was deferred by the High Court. Consequently the issue of equity shares against the said advance has become subjudice and dependent upon the resolution of the legal cases.

However, MRL has now started earning profits in the last couple of years and has accumulated funds of Rs. 184.52 Million in fixed deposit pursuant to Court direction.

7. The Company has calculated its tax liability after considering Minimum Alternate tax (MAT). this has resulted in an additional expense of Rs. 260.24 Million and balance carried forward is to be set off against any future liability. MAT credit entitlement has been shown under Long term Loans & Advances.

Auditors remuneration excludes Rs. 6.62 Million paid to auditors during the year ended 31st March, 2011 for services rendered in connection with the rights issue and debited to securities premium Account.

8. The Company and L&T urban infrastructure Limited, the two joint venture partners in L&T Bangalore Airport Hotel Limited (BAHL), had decided to terminate the joint venture, by transfer of the shareholding to a prospective buyer. The negotiation with the buyer is still continuing. in the opinion of the Company, the cost at which the investment in BAHL appears in the Balance sheet of the Company, will be recovered in full.

a) Contingent liability that EIH Limited has incurred in relation to its interests in joint ventures and its share in each of the contingent liabilities which have been incurred jointly with other venturers :- Guarantees given to Banks & Financial institutions for Rs. 610.00 Million (2011 - Rs. 1,024.00 Million) against financial facilities availed by the jointly controlled entities.

b) EIH Limited's share of the contingent liabilities of the joint ventures themselves: Rs. 12.98 Million (2011 - Rs. 39.95 Million)

c) EIH Limited is not liable for the liabilities of the other venturers of any joint venture.

d) There are no capital commitments of EIH Limited in relation to its interest in joint ventures and there are no capital commitments that have been incurred jointly with other venturer.

e) EIH Limited's share of capital commitments of the joint ventures themselves amounts to Rs.162.18 Million (2011 - Rs. 414.65 Million).

9. The previous year's figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Mar 31, 2011

1. the estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 357.28 Million (2010 - Rs. 597.03 Million).

2. Contingent Liabilities not provided for in respect of -

(i) Claims against the Company pending appellate/judicial decisions :

(a) sales tax Rs. 31.17 Million (2010 - Rs. 24.64 Million)

(b) income tax Rs. 593.62 Million (2010 - Rs. 572.07 Million)

(c) tax deducted at source Rs. 14.62 Million (2010 - Rs. Nil)

(d) service tax Rs. 50.38 Million (2010 - Rs. Nil)

(e) property tax Rs. 7.40 Million (2010 - Rs. 170.64 Million)

(f) entertainment tax Rs. 12.93 Million (2010 - Rs. 9.65 Million)

(g) Customs duty Rs. 429.66 Million (2010 - Rs. 452.50 Million) (h) esi dues Rs. 12.22 Million (2010 - Rs. 11.12 Million)

(i) excise duty Rs. 35.33 Million (2010 - Rs. 19.49 Million)

(j) others Rs. 14.92 Million (2010 - Rs. 21.47 Million)

(ii) Guarantees given to Banks & Financial institutions for Rs. 1,947.00 Million (2010 - Rs. 2,249.50 Million) against financial facilities availed of by the subsidiary, joint venture and associate companies.

(iii) Counter guarantees issued to banks and remaining outstanding Rs. 128.91 Million (2010 - Rs. 14.27 Million)

3. the Company issued 178,615,442 equity shares of Rs. 2 each on rights basis at a premium of Rs. 64 per share. these shares were allotted on 26th March, 2011 and the total proceeds of the rights issue was Rs. 11,788.62 Million. Accordingly, share Capital of the Company has gone up by Rs. 357.23 Million and securities premium has gone up by Rs. 11,431.39 Million. expenses incurred in relation to the rights issue, Rs. 111.14 Million have been written off against securities premium.

4. (i) the Company accounted for Rs. 967.60 Million and Rs. 526.76 Million under the head "other incomeÃ during the Financial Years 2008-09 and 2009-10 respectively, on estimated basis on account of claims for loss of Profit due to business interruption caused by terrorist attack on 26th November, 2008 in Mumbai. during the year, the insurance Company fnally assessed the claim at Rs. 1,124.53 Million. Accordingly the resultant defcit of Rs. 369.83 Million has been treated as exceptional loss.

(ii) the claim of the Company for material damage caused by terrorist attack on 26th November, 2008 in Mumbai has been assessed by the insurance Company at Rs. 174.22 Million on replacement value basis. the net book value of the assets damaged was Rs. 107.17 Million. the resultant surplus of Rs. 67.05 Million has been treated as exceptional income.

5. details of dues to Micro enterprises and small enterprises as defned under Micro, small & Medium enterprises development Act, 2006 are given below. this is based on information made available to the Company.

6. Fixed deposits & 7 Year National savings Certifcates aggregating to Rs. 13.38 Million (2010 - Rs. 20.17 Million) have been lodged with the Banks/Government Authorities for obtaining guarantees or as security deposits.

7. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of Rs. 2,863.88 Million which is included in the original cost. the valuation was carried out by an approved valuer on the basis of depreciated replacement cost. the nature of indices was not mentioned in the report. the surplus was transferred to revaluation reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to Rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMrd Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of re. 1 per annum as a condition precedent to the lease of the land for the Companys hotel in Mumbai known as trident, Bandra Kurla.

8. (a) depreciation has been provided for in the Accounts on "straight Line MethodÃ at the rates prescribed in schedule xiv to the Companies Act, 1956 except for specifc assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) depreciation for the year as per Fixed Assets schedule (schedule-6) includes Rs. 29.99 Million (2010 - Rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from revaluation reserve Account.

9. Fixed Assets acquired under fnance lease amounted to Rs. 379.52 Million (2010 - Rs. 346.77 Million) being the assets acquired between 1st April, 2001 to 31st March, 2011. these include an amount of Rs. 56.30 Million (2010 - Rs. 32.39 Million) being assets acquired during the year under fnance lease and capitalised in line with the requirements of Accounting standard (As-19). depreciation for the year includes an amount of Rs. 48.46 Million (2010 - Rs. 42.08 Million) being depreciation charged on these assets.

10. disclosures in respect of Companys operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

(a) General description of the Companys operating lease arrangements : the Company has entered into operating lease arrangements primarily for offce premises, site offces, airport/fight services and residential premises for its employees. some of the signifcant terms and conditions of the arrangements are :

- agreements are not non-cancellable in nature and may generally be terminated by either party by serving a notice;

- the lease arrangements which are not non-cancellable are generally renewable by mutual consent on mutually agreeable terms.

(b) the Company has given shops on rental basis which are not non cancellable and can be terminated by either party by serving a notice.

(c) rent in respect of the above are charged/credited to the Profit and Loss Account.

11. investments held by the Company which are long term in nature are stated at cost unless there is any permanent diminution in value where provision for diminution is made on individual investment basis. earnings on investments are accounted for on accrual basis.

12. inventories are valued at cost which is based on First-in-First-out method or net realisable value, whichever is lower. unserviceable / damaged / discarded stocks and shortages are charged to the Profit and Loss Account.

13. in the case of Mashobra resort Limited ("MrLÃ), several disputes with the Government of Himachal pradesh, the joint venture partner, were referred by the High Court of Himachal pradesh on 17th december, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MrL, amongst others. the operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th december, 2003 and the hotel is being operated by MrL accordingly. the Company vide its letter dated 4th April, 2011 requested MrL to account for the entire amount of Rs. 1,293.03 Million provided to MrL upto 31st March, 2011 as ÃAdvance towards equity, including Rs. 130.00 Million being the opening balance of ÃAdvance towards equity. in view of the above, the Company has shown the said amount of Rs. 1,293.03 Million as ÃAdvance towards equity in its books. Considering this and the intrinsic value of the hotel property, the ÃAdvance towards equity in MrL has been considered good.

14. interest debited to the Profit and Loss Account is net of interest capitalised amounting to Rs. 17.73 Million (2010 - Rs. 253.14 Million).

15. the Company has calculated its tax liability after considering Maximum Alternative tax (MAt). this has not resulted in an additional expense as MAt is to be set off against any future tax liability and accordingly MAt credit entitlement has been shown under Loans & Advances in the Balance sheet.

16. the Company is not required to give any quantitative and value-wise information in respect of purchase, consumption, turnover, stocks etc. as the same is exempted vide Notifcation No. s.o. 301(e) dated 8th February, 2011 issued under section 211(3) of the Companies Act, 1956 by the Ministry of Corporate Affairs, Government of india.

17. in respect of printing business, the installed printing capacity as on 31st March, 2011 was 850 Million standard impressions (2010 Ã 850 Million). the actual production during the year was 690 Million standard impressions (2010 Ã 575 Million). the installed printing capacity and actual production have have been certifed by the management and relied upon by the Auditors, being a technical matter.

18. (a) inventory of provision, Wines & others includes stock of paper, ink etc. at year end Rs. 57.19 Million (2010 - Rs. 50.87 Million)

(b) Consumption of provisions, Wines and others includes consumption of paper, ink etc. Rs. 382.28 Million (2010 - Rs. 402.27 Million)

19. the Company and L&t urban infrastructure Limited, the two joint venture partners in L&t Bangalore Airport Hotel Limited (BAHL), have decided, subsequent to Balance sheet date, to terminate the joint venture, by transfer of the shareholding to a prospective buyer. in the opinion of the Company, the cost at which the investment in BAHL appears in the Balance sheet of the Company will be recovered in full.

20. the details of transactions entered into with related parties during the year are as follows:

NAMES OF THE RElATED PARTIES

(I) Subsidiary companies country of

Incorporation

(i) Mercury Car rentals Limited india

(ii) Mashobra resort Limited india

(iii) oberoi Kerala Hotels and resorts Limited india

(iv) Mumtaz Hotels Limited india

(v) eiH Flight services Limited Mauritius

(vi) eiH international Ltd. British virgin islands

(vii) eiH Holdings Limited British virgin islands

(viii) eiH Marrakech Ltd. British virgin islands

(ix) J&W Hongkong Ltd Hongkong

(x) oberoi turtle Bay Ltd. Mauritius

(xi) eiHH Corporation Ltd. Hongkong

(xii) eiH investments Nv Netherlands Antilles

(xiii) eiH Management services Bv the Netherlands

(xiv) pt Widja putra Karya indonesia

(xv) pt Waka oberoi indonesia indonesia

(xvi) pt Astina Graha ubud indonesia

(II) Associates & Joint Ventures

(i) EIH Associated Hotels Limited india

(ii) L & t Bangalore Airport Hotel Limited india

(iii) Golden Jubilee Hotels Limited india

(iv) oberoi Mauritius Ltd. British virgin islands

(III) Enterprises in which key Management Personnel have signifcant infuence

(i) oberoi Hotels private Limited india

(ii) oberoi properties private Limited india

(iii) oberoi Holdings private Limited india

(iv) oberoi investments private Limited india

(v) oberoi Buildings and investments private Limited india

(vi) oberoi plaza private Limited india

(vii) Bombay plaza private Limited india

(viii) oberoi Leasing & Finance Company private Limited india

(ix) Aravali polymers LLp india

(x) island Hotel Maharaj Limited india

(IV) key Management Personnel

(i) Mr. p.r.s. oberoi - Chairman & Chief executive

(ii) Mr. s.s. Mukherji - vice Chairman

(iii) Mr. v.s. oberoi - Chief operating officer and Joint Managing director

(iv) Mr. A.s. oberoi - Chief planning officer and Joint Managing director

a) Contingent liability that eiH Limited has incurred in relation to its interests in joint ventures and its share in each of the contingent liabilities which have been incurred jointly with other venturers :- Guarantees given to Banks and Financial institutions for Rs. 1,024.00 Million (2010 - Rs. 1,150.00 Million) against financial facilities availed by the jointly controlled entities.

b) eiH Limiteds share of the contingent liabilities of the joint ventures themselves : Rs. 39.95 Million (2010 - Rs. 11.87 Million).

c) eiH Limited is not liable for the liabilities of the other venturers of any joint venture.

d) there are no capital commitments of eiH Limited in relation to its interest in joint ventures and there are no capital commitments that have been incurred jointly with other venturers.

e) eiH Limiteds share of capital commitments of the joint ventures themselves amounts to Rs. 414.65 Million (2010 - Rs. 209.42 Million).

21. the previous years fgures have been regrouped, rearranged and reclassifed wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Mar 31, 2010

1. (a) The oberoi, Mumbai was operational in the previous year upto 25th November, 2008. the hotel remained out of operation throughout the fnancial year ended 31st March, 2010.

(b) Trident, Bandra Kurla, Mumbai started operation from 1st december, 2009.

(c) Trident, Nariman point, Mumbai remained out of operation from 26th November, 2008 upto 20th december, 2008.

2. The estimated amount of contracts remaining to be executed on capital account and not provided for net of advances rs. 597.03 Million (2009-rs. 423.65 Million).

3. Contingent Liabilities not provided for in respect of -

(i) Claims against the Company pending appellate/judicial decisions :

(a) Sales tax rs. 24.64 Million (2009-rs. 24.52 Million)

(b) Income-tax rs. 572.07 Million (2009-rs. 394.50 Million)

(c) property tax rs. 170.64 Million (2009-rs. 217.58 Million)

(d) Entertainment tax rs. 9.65 Million (2009-rs. 9.13 Million)

(e) Customs duty rs. 452.50 Million (2009-rs. 452.50 Million)

(f) Esi claims rs. 11.12 Million (2009-rs. 3.13 Million)

(g) Excise duty rs. 19.49 Million (2009-rs. 9.86 Million) (h) others rs. 21.47 Million (2009-rs. 14.59 Million)

(ii) Guarantees given to Banks & Financial institutions for rs. 2,249.50 Million (2009-rs. 1,349.50 Million) against fnancial facilities availed of by the subsidiary, joint venture and associate companies.

4. The Company is adequately insured against damage caused by terrorist attack on its two Mumbai Hotels, i.e., trident, Nariman point, Mumbai and the oberoi, Mumbai. the insurance coverage is on replacement value basis. No fnal adjustment has been made in the books of account in respect of damage to the properties pending settlement of claim.

The Company has recognised rs. 526.76 Million (2009-rs. 967.60 Million) as income during the fnancial year on account of insurance claim for losses due to business interruption in respect of trident, Nariman point, Mumbai and the oberoi, Mumbai. Against the total claim of rs. 1,494.36 Million recognised as income by the Company, the insurance company has paid rs. 800 Million. Final settlement of the claim is pending.

5. There are no reportable amount of dues on account of principal and interest or any such payments during the year as required by Micro, small and Medium enterprises development Act, 2006, in respect of Micro enterprises and small enterprises as defned in the Act. this is based on information made available to the Company by such enterprises.

6. Fixed deposits & 7 Year National savings Certifcate aggregating to rs. 20.17 Million (2009-rs. 23.13 Million) have been lodged with the Banks/Government Authorities for obtaining guarantees or as security deposits.

7. Defned Beneft plans/Long term Compensated Absences on 31st March, 2010 as per Actuarial valuations using projected unit Credit Method and recognised in the Financial statements in respect of employee Beneft schemes:

8. (a) Freehold/Leasehold Land of perpetual nature and Buildings at some locations were revalued on 31st March, 1982 and 31st March, 1993 resulting in a surplus of rs. 2,863.88 Million which is included in the original cost. the valuation was carried out by an approved valuer on the basis of depreciated replacement cost. the nature of indices was not mentioned in the report. the surplus was transferred to revaluation reserve.

(b) Buildings include construction cost of 850 car parking spaces amounting to rs. 292.81 Million which as per the lease agreement dated 4th May, 2001 with MMrd Authority will have to be transferred to the said Authority through a licence agreement for a licence fee of re. 1 per annum.

9. (a) Depreciation has been provided for in the Accounts on Ãstraight Line MethodÃ at the rates prescribed in schedule xiv to

The Companies Act, 1956 except for specifc assets which are depreciated over the useful lives of the assets, which are not less than those prescribed under the Companies Act, 1956.

(b) Depreciation for the year as per the Fixed Assets schedule (schedule-6) includes rs. 29.99 Million (2009-rs. 29.99 Million) being depreciation on the increased value of building due to the effect of revaluation and, accordingly, the same has been adjusted from the revaluation reserve Account.

10. Fixed Assets acquired under fnance lease amounted to rs. 346.77 Million (2009-rs. 345.01 Million) being the assets acquired between 1st April, 2001 to 31st March, 2010. these include an amount of rs. 32.39 Million (2009-rs. 272.68 Million) being assets acquired during the year under fnance lease and capitalised in line with the requirements of Accounting standard (As-19). depreciation for the year includes an amount of rs. 42.08 Million (2009-rs. 23.64 Million) being depreciation charged on these assets.

11. Disclosures in respect of Companys operating lease arrangements entered on or after 1st April, 2001 under Accounting standard (As-19) on Leases.

(a) General description of the Companys operating lease arrangements :

The Company has entered into operating lease arrangements primarily for offce premises, site offces, airport/fight services and residential premises for its employees. some of the signifcant terms and conditions of the arrangements are :

- Agreements may generally be terminated by either party by serving a notice;

- The lease arrangements are generally renewable on the expiry of the lease period subject to mutual agreement;

- The Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

(b) Rent in respect of the above are charged to the proft and Loss Account.

12. Investments held by the Company which are long term in nature are stated at cost unless there is any permanent diminution in value where provision for diminution is made on individual investment basis. earnings on investments are accounted for on accrual basis.

13. Inventories are valued at cost which is based on First-in-First-out method or net realisable value, whichever is lower. unserviceable / damaged / discarded stocks and shortages are charged to the proft and Loss Account.

14. In the case of Mashobra resort Limited (ÃMrLÃ), several disputes with the Government of Himachal pradesh, the joint venture partner, were referred by the High Court of Himachal pradesh on 17th december, 2003 to an arbitral tribunal consisting of a single arbitrator whose award has been challenged by both the Company and MrL, amongst others. the operation of the arbitration award has been stayed pending substantive hearing of the applications by the High Court. Consequently, the status quo ante of the entire matter stands restored to the position as on 17th december, 2003 and the hotel is being operated by MrL accordingly. the Company, by its letter dated 15th June, 2009, requested MrL to convert rs. 1,005.63 Million of loans provided by the Company to MrL into its equity. MrL is in the process of holding the meeting of the Board of directors for which it has requested the nominees of Himachal pradesh Government on the Board, for a suitable date for holding the meeting which is still awaited. the Company has now been legally advised to take necessary steps in this matter. in view of the above and the proposed conversion of loan into equity, loan to MrL has been considered good as the net worth of MrL will become positive on conversion.

15. Interest debited to the proft and Loss Account is net of interest capitalised amounting to rs. 253.14 Million (2009-rs. 218.34 Million).

a) Contingent liability that eiH Limited has incurred in relation to its interests in joint ventures and its share in each of the contingent liabilities which have been incurred jointly with other venturers :- Guarantees given to Banks and Financial institutions for rs. 1,150.00 Million (2009-rs. 1,110.00 Million) against fnancial facilities availed of by jointly controlled entities.

b) EIH Limiteds share of the contingent liabilities of the joint ventures themselves : rs. 11.87 Million (2009-rs. 27.61 Million).

c) EIH Limited is not liable for the liabilities of the other venturers of any joint venture.

d) There are no capital commitments of eiH Limited in relation to its interest in joint ventures and there are no capital commitments that have been incurred jointly with other venturers.

e) EIH Limiteds share of capital commitments of the joint ventures themselves amounts to rs. 209.42 Million (2009-rs. 295.41 Million).

f) CCA Leisure services private Limited has ceased to be a jointly controlled entity during the year.

16. The previous years fgures have been regrouped, rearranged and reclassifed wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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