Notes to Accounts of Lemon Tree Hotels Ltd.

Mar 31, 2025

(m) Provisions
General

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic

benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation. The expense relating to
a provision is presented in the statement of profit
and loss net of any reimbursement.

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

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage
of time is recognised as a finance cost.

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

Contingent Assets/ Liabilities

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

Contingent liabilities are disclosed in notes to
accounts when there is a possible obligation
arising from past events, the existence of which
will be confirmed only by the occurrence or nonÂ¬
occurrence of one or more uncertain future events
not wholly within the control of the Company or
a present obligation that arises from past events
where it is either not probable that an outflow of
resources will be required to settle or a reliable
estimate of the amount cannot be made.

(n) Deferred Revenue

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

(o) Retirement and other employee benefits

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

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

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

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

â¢ The date of the plan amendment or
curtailment, and

â¢ The date that the Company recognises
related restructuring costs

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

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

â¢ Net interest expense or income

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

Short-term and other long-term employee
benefits

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

Liabilities recognised in respect of shortÂ¬
term employee benefits are measured at the
undiscounted amount of the benefits expected to
be paid in exchange for the related service.

Liabilities recognised in respect of other longÂ¬
term employee benefits are measured at the
present value of the estimated future cash
outflows expected to be made by the Group in
respect of services provided by employees up to
the reporting date.

The Company treats leaves expected to be
carried forward for measurement purposes. Such
compensated absences are provided for based on
the actuarial valuation using the projected unit
credit method at theyear-end. Remeasurement
gains/losses are immediately taken to the
statement of profit and loss and are not deferred.
The Company presents the entire leave as a
current liability in the balance sheet, since it
does not have an unconditional right to defer
its settlement for 12 months after the reporting
date. Where Company has the unconditional legal
and contractual right to defer the settlement for a
period beyond 12 months, the same is presented
as non-current liability.

(p) Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

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

Subsequent measurement
Forpurposesofsubsequentmeasurement, financial
assets are classified in following categories:

â¢ Debt instruments at amortised cost

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

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

â¢ Equity instruments in subsidiaries/associates
carried at cost

Debt instruments at amortised cost

A debt instrument is measured at the amortised
cost if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

This category is the most relevant to the Company.
The difference between the transaction amount
and amortized cost in case of interest free loan
to subsidiaries based on the expected repayment
period is considered as ''deemed investment on
account of interest free loan to subsidiaries''
(Refer Note 8(i)). After initial measurement, such
financial assets are subsequently measured at
amortised cost using the effective interest rate
(EIR) method. Amortised cost is calculated by
taking into account any discount or premium on

acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in
finance income in the profit or loss. If there is any
change in estimate for payment of loan (provided
that there was no error in original estimate),
difference in carrying amount and repayment has
been adjusted as return on capital by the parent,
based on condition/ situation prevailing on that
date. The losses arising from impairment are
recognised in the profit or loss.

Debt instrument at FV TPL

FVTPL is a residual category for debt instruments.

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

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

Equity instruments

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

Derecognition

A financial asset (or, where applicable, a part
of a financial asset or part of a Company of
similar financial assets) is primarily derecognised
(i.e. removed from the Company''s balance
sheet) when:

â¢ The rights to receive cash flows from the
asset have expired, or

â¢ The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a ''pass-through''
arrangement; and either (a) the Company
has transferred substantially all the risks and
rewards of the asset, or (b) the Company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

Impairment of financial assets

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

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

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

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

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

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

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

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

â¢ Debt instruments measured at FVTOCI: There
are no instruments measured at FVTOCI

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

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

Financial liabilities

Initial recognition and measurement

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

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

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

Subsequent measurement

The measurement of financial liabilities depends

on their classification, as described below:

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of
repurchasing in the near term. This category also
includes derivative financial instruments entered
into by the Company that are not designated as
hedging instruments in hedge relationships as
defined by Ind AS 109.

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

Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated as such at the initial date of
recognition, and only if the criteria in Ind AS 109

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

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

Amortised cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the
EIR. The EIR amortisation is included as finance
costs in the statement of profit and loss.

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

Financial guarantee

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

its insurance liabilities is inadequate in the light
of the estimated future cash flows, the entire
deficiency is recognised in profit or loss.

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

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original

liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the statement of profit or loss.

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

(q) Cash and cash equivalents

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

(r) Share-based payments

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

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

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part
of the Company''s best estimate of the number of
equity instruments that will ultimately vest.

When the terms of an equity-settled award are
modified, the minimum expense recognised is the
expense had the terms not been modified, if the

original terms of the award are met. An additional
expense is recognised for any modification that
increases the total fair value of the share-based
payment transaction, or is otherwise beneficial
to the employee as measured at the date of
modification. Where an award is cancelled by
the entity or by the counterparty, any remaining
element of the fair value of the award is expensed
immediately through profit or loss.

(s) Measurement of EBITDA

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

(t) Cash Flow Statement

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

(u) Indirect taxes

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

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

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

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

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

(v) Earnings Per Share (EPS)

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

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

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

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

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

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

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

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

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

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

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

29. Significant accounting judgements, estimates and assumptions

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

Critical judgements, estimates and assumptions

a) Impairment of property, plant and equipment

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

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

Sensitivity analysis of assumptions

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

b) Impairment of Investment in subsidiaries having hotel properties

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

As at March 31, 2025, the estimated recoverable amount of the investments exceeded its
carrying amount.

Sensitivity analysis of assumptions

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

c) Leases

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

d) Loss Allowance on trade receivables (Expected credit loss)

An impairment analysis of trade receivables is performed at each reporting period based on the
Company''s history of collections, customer''s creditworthiness, existing market conditions as well as
forward looking estimates. Basis this assessment, the allowance for doubtful trade receivables as at
March 31, 2025 is considered adequate.

e) Deferred tax asset (DTA)

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

30. Gratuity

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

risk analysis

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

â¢ Investment risk

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

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

â¢ Interest risk

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

â¢ Longevity risk/life expectancy

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

â¢ Salary growth risk

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

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

31. Commitments and contingencies

a) Leases

Operating lease commitments â Company as lessee

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

The weighted average of incremental borrowing rate applied to lease liabilities is 9.39% (March 31, 2024:
9.39%)

b) Commitments

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

Estimated amount of contracts remaining to be executed and not provided as at March 31,2025 is H 2,682.17
lakhs (March 31,2024 H 3,246.66 lakhs).

c) Contingent liabilities
Legal claim contingency

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

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

d) During the earlier years, the Company has taken land on lease for construction of building from one of the
subsidiary Company for which South Delhi Municipal Corporation (''the Authority'') has raised demand of
H 68.20 lakhs (for the financial Years 2010-11 to financial years 2013-2014) towards annual value in respect
of the hotel property situated in Hospitality District, Aerocity. Considering that the area occupied by the
Company is 41% of the hotel property, it has made provision of H 100.88 lakhs (Previous year: H 91.76
lakhs) in this regard.

e) Note on Provident Fund:

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

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

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

f) Financial guarantees

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

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

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length
transactions. Outstanding balances with related parties at the year-end are unsecure and settlement occurs
in cash. For the year ended March 31, 2025, the Company has not recorded any impairment of receivables
relating to amounts owed by related parties (March 31, 2024: Nil). This assessment is undertaken each
financial year through examining the financial position of the related party and the market in which the related
party operates.

Commitments with related parties

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

34. Fair value measurement

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

c) Fair value measurement hierarchy for assets and liabilities
Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date under current market conditions.

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

i) Level 1

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

ii) Level 2

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

iii) Level 3

Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable
related market data or Company''s assumptions about pricing by market participants.

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

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

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

35. Financial risk management objectives and policies

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

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

Market risk

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

Interest rate risk

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

Foreign currency risk

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

Credit risk

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

a) Trade receivables

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

An impairment analysis is performed at each reporting date on an individual basis for major clients.
In addition, a large number of minor receivables are grouped into homogenous groups and assessed
for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in Note 12. The Company does not hold collateral
as security.

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury
department in accordance with the Company''s policy. Investment of surplus funds are made only
with approved counterparties and within credit limits assigned to each counterparty. The Company''s
maximum exposure to credit risk for the components of the balance sheet at March 31, 2025 and
March 31, 2024 is the carrying amount as given in Note 12(ii).

Liquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The
Company''s objective is to maintain a balance between continuity of funding and flexibility through the
use of bank overdrafts, cash credit facilities and bank loans. The Company assessed the concentration
of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a
sufficient variety of sources of funding and debt maturity within 12 months can be rolled over with
existing lenders. As at March 31, 2025, the Company had no available (March 31, 2024: H Nil) undrawn
committed borrowing facilities.

36. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new
shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus
net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables,
less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims
to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that
define capital structure requirements.

Breaches in meeting the financial covenants would permit the bank to immediately call loans and
borrowings. There have been no significant breaches in the financial covenants of any interest-bearing
loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended
March 31, 2025 and March 31, 2024.

37. Recent pronouncements

a) New amendments adopted during the year

The Ministry of Corporate Affairs (''MCA''), vide notification no. G.S.R. 492(E) dated August 12, 2024, issued
the Companies (Indian Accounting Standards) Amendment Rules, 2024, introducing a new accounting
standard, Ind AS 117 relating to the accounting of Insurance Contracts and MCA through notification
no. G.S.R. 554(E) dated September 9, 2024, issued the Companies (Indian Accounting Standards)
Second Amendment Rules, 2024, amending Ind AS 116 relating to the accounting for sale and leaseback
transactions with variable lease payments. Both these amendments were applicable for annual periods
beginning on or after April 1, 2024. The Company has reviewed both these pronouncements and based on
its evaluation has determined that it does not have any significant impact in its financial statements.

b) Amendments to Ind AS issued but not yet effective

MCA has notified amendment to Ind AS 21, The Effects of Changes in Foreign Exchange Rates, vide the
Companies (Indian Accounting Standards) Amendment Rules, 2025 through Notification No. G.S.R. 291(E)
dated May 7, 2025. The amendment provide comprehensive guidance on assessing the exchangeability of
currencies, determining spot exchange rates when currencies are not exchangeable and enhancing related
disclosures. The amendment is effective for annual reporting periods beginning on or after April 1, 2025.
The Company will evaluate the impact of this amendment and implement the necessary changes in its
financial reporting for periods commencing on or after the effective date.

c) Note on Social Security:

The Code on Wages, 2019 and Code on social security, 2020 ("the codes") relating to employee
compensation and post-employment benefits that received Presidential assent have not been notified.
Further, the related rules for quantifying the financial impact have not been notified. The Company will
assess the impact of the codes when the rules are notified and will record any related impact in the period
in which the Codes become effective.

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

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

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

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

(iv) Working Capital= Current Assets- Current liabilities

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

39. Segment Reporting

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

Information about geographical areas

The Company has only domestic operations and hence no information required for the Company as per
the requirements of Ind AS 108 - "Operating Segments".

Information about major customers

No customer individually accounted for more than 10% of the revenue.

40. During earlier year, the Company had issued equity shares to APG Strategic Real Estate Pool N.V. (''the
investor'') and the investor had 41.09% (March 31, 2024 41.09%) equity stake of Fleur Hotels Limited
(formerly known as Fleur Hotels Private Limited) (a subsidiary Company) as on Balance sheet date. As per
the Shareholder''s agreement, all new hotel projects will first be offered to the subsidiary. There are no
other significant commitments towards the investor.

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

42. During the previous year, the scheme of Amalgamation (''the scheme'') between the Lemon Tree Hotels
Limited (''Transferee Company'') and its wholly owned subsidiaries (''Transferor Company'')viz. Valerian
Management Services Private Limited (Transferor Company 1"Valerian"), Grey Fox Project Management
Private Limited (Transferor Company 2"Grey Fox"), PSK Resorts & Hotels Private Limited (Transferor
Company 3 "PSK") and Dandelion Hotels Private Limited (Transferor Company 4"Dandelion") as approved
by the National Company Law Tribunal (''NCLT'') has become effective w.e.f. the appointed date i.e. April
01, 2022 on approval of NCLT on December 14, 2023 and filing of order received from NCLT in Form INC-
28 with Registrar of Companies (ROC) on January 19, 2024.

On this Scheme becoming effective, with effect from the Appointed Date, the Transferee Company has
given accounting treatment in its books of accounts as per Ind AS - 103, as under:

a) Upon the scheme becoming effective The Transferee Company has accounted for the amalgamation
of the Transferor Companies in the books of accounting in accordance with the applicable accounting
standards prescribed under Section 133 of the Companies Act, 2013 read with the Companies (India
Accounting standards) Rules,2015 as amended,("Ind AS") and other accounting principles generally
accepted in India and specifically under "Pooling of Interest Method" of accounting as laid down in
Appendix C of Ind-AS 103 ''Business Combination of entities under Common Control''.

b) The Transferee Company has recorded all Assets, Liabilities and Reserves of the Transferor Companies
vested in the Transferee Company pursuant to this scheme, at the respective carrying amounts in the
same form as appearing in the books of the Transferor Companies, on the Appointed Date.

c) The carrying amount of investments in the equity shares of the Transferor Companies held by
transferee Company, shall stand cancelled and there shall be no further obligation in that behalf.

d) Upon the scheme coming into effect, the surplus/deficit, if any of the net value of assets, liabilities
and reserves of the Transferor Companies acquired and recorded by the Transferee Company over the
value of investments cancelled pursuant to Clause 11.1.c, has been transferred to "Capital Reserve
Account" in the financial statements of the Transferee Company.

e) To the extent there are inter corporate loans, investments or other balances between the Transferor
Companies and Transferee Company, the same thereof shall stand cancelled. Inter Company
transactions, if any, between the Transferor Companies and the Transferee Company has been
eliminated in the Transferee Company''s financial statements.

f) The financial statements of the Transferee Company (including comparative period presented in the
financial statements of the Transferee Company) has been restated for the accounting impact of
merger, as stated above, as if the merger had occurred from the beginning of the comparative period
in the financial statements.

43 As per the proviso to Rule 3(1) of Companies (Accounts) Rules, 2014, every company which uses accounting
soft

Mar 31, 2024

(m) Provisions General

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic

benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

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

Contingent Assets/ Liabilities

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

Contingent liabilities are disclosed in notes to accounts when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

(n) Deferred Revenue

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

(o) Retirement and other employee benefits

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

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

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

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

â¢ The date of the plan amendment or curtailment, and

â¢ The date that the Company recognises related restructuring costs

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

â¢ Service costs comprising current service costs, past-service costs, gains and

losses on curtailments and non-routine settlements; and

â¢ Net interest expense or income

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

Short-term and other long-term employee benefits

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

Liabilities recognised in respect of shortterm employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other longterm employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Group in respect of services provided by employees up to the reporting date.

The Company treats leaves expected to be carried forward for measurement purposes. Such compensated absences are provided for based on the actuarial valuation using the projected unit credit method at theyear-end. Remeasurement gains/losses are immediately taken to the statement of profit and loss and are not deferred. The Company presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date. Where Company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.

(p) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

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

Subsequent measurement

Forpurposesofsubsequentmeasurement, financial assets are classified in following categories:

â¢ Debt instruments at amortised cost

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

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

â¢ Equity instruments in subsidiaries/associates carried at cost

Debt instruments at amortised cost

A debt instrument is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. The difference between the transaction amount and amortized cost in case of interest free loan to subsidiaries based on the expected repayment period is considered as ''deemed investment on account of interest free loan to subsidiaries'' (Refer Note 8(i)). After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on

acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. If there is any change in estimate for payment of loan (provided that there was no error in original estimate), difference in carrying amount and repayment has been adjusted as return on capital by the parent, based on condition/ situation prevailing on that date.The losses arising from impairment are recognised in the profit or loss.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments.

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

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

Equity instruments

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

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

â¢ The rights to receive cash flows from the asset have expired, or

â¢ The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially

all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

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

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

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

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

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

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

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

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

â¢ Debt instruments measured at FVTOCI: There are no instruments measured at FVTOCI

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

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

Financial liabilities

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

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

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

Subsequent measurement

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

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

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

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

Financial liabilities at amortised cost

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

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

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

Financial guarantee

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

If a financial guarantee is an integral element of debts held by the entity, it is not accounted for separately.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or

cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Offsetting of financial instruments

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

(q) Cash and cash equivalents

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

(r) Share-based payments

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

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

Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood

of the conditions being met is assessed as part of the Company''s best estimate of the number of equity instruments that will ultimately vest.

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

(s) Measurement of EBITDA

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

(t) Cash Flow Statement

or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

(u) Indirect taxes

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

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

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

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

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

(v) Earnings Per Share (EPS)

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

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

29. Significant accounting judgements, estimates and assumptions

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

Critical judgements, estimates and assumptions

a. Impairment of property, plant and equipment

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

While assessing the recoverable amount, the Company used the discounted cash flow approach including various significant estimates and assumptions such as forecast of future revenue, operating margins, growth rate and selection of the discount rates. The key assumptions used for the calculations are as follows:

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

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

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

b. Impairment of Investment in subsidiaries having hotel properties

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

While assessing the recoverable amount, the Company used the discounted cash flow approach including various significant assumptions such as such as forecast of future revenue, operating margins, growth rate and selection of the discount rates. The key assumptions used for the calculations are as follows:

c. Leases

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

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

An impairment analysis of trade receivables is performed at each reporting period based on the Company''s history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates. Basis this assessment, the allowance for doubtful trade receivables as at March 31, 2024 is considered adequate.

30. Gratuity

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

Risk analysis

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

â¢ Investment risk

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

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

â¢ Interest risk

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

â¢ Longevity risk/life expectancy

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

â¢ Salary growth risk

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

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

31. Commitments and contingencies

a. Leases

Operating lease commitments â Company as lessee

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

The weighted average of incremental borrowing rate applied to lease liabilities is 9.39% (March 31, 2023: 9.39%)

b. Commitments

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

Estimated amount of contracts remaining to be executed and not provided as at March 31,2024 is 13,246.66 lakhs (March 31,2023 1284.22 lakhs).

f. Financial guarantees

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

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

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

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

d. During the earlier years, the Company has taken land on lease for construction of building from one of the subsidiary company for which South Delhi Municipal Corporation (''the Authority'') has raised demand of 1 68.20 lakhs (for the financial Years 2010-11 to financial years 2013-2014) towards annual value in respect of the hotel property situated in Hospitality District, Aerocity. Considering that the area occupied by the Company is 41% of the hotel property, it has made provision of 1 91.76 lakhs (Previous year: 1 82.64 lakhs) in this regard.

e. Note on Provident Fund:

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

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

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

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances with related parties at the year-end are unsecure and settlement occurs in cash. For the year ended March 31, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2023: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Commitments with related parties

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

34. Fair value measurement

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

c. Fair value measurement hierarchy for assets and liabilities Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

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

i) Level 1

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

ii) Level 2

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

iii) Level 3

Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

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

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

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

35. Financial risk management objectives and policies

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

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

Market risk

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

Interest rate risk

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

(b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investment of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 and March 31, 2023 is the carrying amount as given in Note 12(ii).

Liquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturity within 12 months can be rolled over with existing lenders. As at March 31, 2024, the Company had no available (March 31, 2023: I Nil) undrawn committed borrowing facilities.

Foreign currency risk

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

Credit risk

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

(a) Trade receivables

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

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12. The Company does not hold collateral as security.

Reconciliation of provision for doubtful debts - Trade receivables (including provision for expected credit loss)

36. Capital management

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

39. Segment Reporting

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

Information about geographical areas

The Company has only domestic operations and hence no information required for the Company as per the requirements of Ind AS 108 - "Operating Segments".

Information about major customers

No customer individually accounted for more than 10% of the revenue.

40 During earlier year, the Company had issued equity shares to APG Strategic Real Estate Pool N.V. (''the investor'') and the investor had 41.09% (March 31, 2023 41.09%) equity stake of Fleur Hotels Private Limited (a subsidiary Company) as on Balance sheet date. As per the Shareholder''s agreement, all new hotel projects will first be offered to the subsidiary. There are no other significant commitments towards the investor.

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

42. The scheme of Amalgamation (''the scheme'') between the Lemon Tree Hotels Limited (''Transferee Company'') and its wholly owned subsidiaries (''Transferor Company'')viz. Valerian Management Services Private Limited (Transferor Company 1"Valerian") , Grey Fox Project Management Private Limited (Transferor Company 2"Grey Fox" ), PSK Resorts & Hotels Private Limited (Transferor Company 3 "PSK") and Dandelion Hotels Private Limited (Transferor Company 4"Dandelion" ) as approved by the National Company Law Tribunal (''NCLT'') has become effective w.e.f. the appointed date i.e. April 01, 2022 on approval of NCLT on December 14, 2023 and filing of order received from NCLT in Form INC-28 with Registrar of Companies (ROC) on January 19, 2024.

On this Scheme becoming effective, with effect from the Appointed Date, the Transferee Company has given accounting treatment in its books of accounts as per Ind AS - 103, as under:

a. Upon the scheme becoming effective The Transferee Company has accounted for the amalgamation of the Transferor Companies in the books of accounting in accordance with the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 read with the Companies (India Accounting standards) Rules,2015 as amended,("Ind AS") and other accounting principles generally accepted in India and specifically under "Pooling of Interest Method" of accounting as laid down in Appendix C of Ind-AS 103 ''Business Combination of entities under Common Control''.

b. The Transferee Company has recorded all Assets, Liabilities and Reserves of the Transferor Companies vested in the Transferee Company pursuant to this scheme, at the respective carrying amounts in the same form as appearing in the books of the Transferor Companies, on the Appointed Date.

c. The carrying amount of investments in the equity shares of the Transferor Companies held by transferee Company, shall stand cancelled and there shall be no further obligation in that behalf.

d. Upon the scheme coming into effect, the surplus/deficit, if any of the net value of assets, liabilities and reserves of the Transferor Companies acquired and recorded by the Transferee Company over the value of investments cancelled pursuant to Clause 11.1.c, has been transferred to "Capital Reserve Account" in the financial statements of the Transferee Company.

e. To the extent there are inter corporate loans, investments or other balances between the Transferor Companies and Transferee Company, the same thereof shall stand cancelled. Inter Company transactions, if any, between the Transferor Companies and the Transferee Company has been eliminated in the Transferee Company''s financial statements.

f. The financial statements of the Transferee Company (including comparative period presented in the financial statements of the Transferee Company) has been restated for the accounting impact of merger, as stated above, as if the merger had occurred from the beginning of the comparative period in the financial statements.

The debit balance in Statement of Profit and Loss taken over as at April 1, 2022 amounted to 1621.44 Lakhs.

Consequent to takeover of net assets, cancellation of share capital, Transferee Company has accounted for 1319.11 Lakhs as debit balance under the head Capital Reserve

The net assets i.e. total assets net of liabilities and reserves/(deficit) taken over as at April 01, 2022 amounted to 12,470.17 Lakhs.

The employees of the Transferor Company have been transferred to the Transferree Company on their exisiting terms of employment with the Transferor Company.

The losses of Transferor Company for the year ended March 31, 2023 has also been accounted for in the Statement of Profit and Loss of the Transferee Company amounting to 1163.87 Lakhs. Accordingly, the profit after tax for the year ended March 31,2023 is lower by 1163.87 Lakhs.

Further, Other equity as at March 31, 2023 has been restated from 127,867.41 lakhs to 126,763.31 lakhs.

>. As per the proviso to Rule 3(1) of Companies (Accounts) Rules, 2014, for the financial year commencing on or after the 1st day of April 2023, every company which uses accounting software for maintaining its

books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses SAP S/4 HANA as its accounting software operated for recording all the accounting transactions for the year ended March 31, 2024. SAP S/4 HANA has a feature of recording audit trail (edit log) facility which has not been enabled throughout the year.

In respect of maintaining revenue records, the Company has used revenue management software. The said software has a feature of recording audit trail (edit log) facility from July 1, 2023, except the software does not have feature of audit trail at database level.

The Management has adequate internal controls over financial reporting which were operating effectively for the year ended March 31, 2024. The Management is in the process of evaluating the options to ensure compliance with the requirements of proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 referred above in respect of audit trail (edit log).

45. The Company does not have any long term contracts including derivative contracts for which there are any material foreseeable losses.

46. There has been no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

47. Other Statutory Information

(i) . The Company have not traded or invested in Crypto currency or Virtual currency during the

financial year.

(ii) . The Company have not any such transaction which is not recorded in the books of accounts that has

been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(iii) . The Company do not have any Benami property, where any proceeding has been initiated or pending

against the Company for holding any Benami property

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

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

the statutory period.

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

(vii) .During the year, the Company has received approval from NCLT in terms of section 230 to 232 of the Companies Act, 2013 and accordingly, the prescribed disclosures of Schedule III has been given. Refer note 42.

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

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

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

(ix) The Company have not received any funds from any person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

48. Previous year figures have been regrouped/ reclassified wherever necessary to correspond with the current year classification.

For and on behalf of the Board of Directors of Lemon Tree Hotels Limited

Sd/- Sd/- Sd/-

Patanjali Govind Keswani Kapil Sharma Jyoti Verma

(Chairman & Managing Director) (Chief Financial Officer) (Group Company Secretary)

DIN-00002974 Mem. no. - F7210

Place: Gurugram Place: Mumbai

Date: May 29, 2024 Date: May 29, 2024

Mar 31, 2023

The Company''s investment properties consist of a commercial property in Pune, India. The management has determined that the investment property consist of one classes of asset - office space - based on the nature, characteristics and risks of the property.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties.

As at March 31, 2023 and March 31, 2022, the fair values of the property is I 258.89 lakhs and I 258.89 lakhs respectively.

These valuations are based on valuations performed by an external independent valuer at the time of acquisition of property dated March 25, 2014

The valuer has considered these valuations on the basis that there is no material change in the value of property since acquired, hence no impairtment is made during the year

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

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

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

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

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

A The cash credit facility and working capital loan from HDFC Bank Limited was repayable on demand and carries interest rate of 9.20% p.a. (March 31, 2022: 7.45% p.a.) and is secured by way of:

a) First Exclusive charge by way of equitable mortgage on Select properties.

b) First exclusive charge by way of hypothecation in favor of the lender on all current assets and movable fixed assets including movable plant and machinery, machinery spares, tools and accessories, furniture and fixtures, vehicles and all other movable assets, present and future of Select Properties as below:

Properties:- Hotel Lemon Tree, Udyog Vihar

- Hotel Lemon Tree, Pune

- Hotel Lemon Tree, Ahemdabad

- Hotel Lemon Tree, Chennai

- Lemon Tree Premier, Bangalore

- Lemon Tree Hotel, Chandigarh

29. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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

Critical judgements, estimates and assumptions

a. Impairment of property, plant and equipment

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

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

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

b. Impairment of Investment in subsidiaries having hotel properties

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

c. Leases

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

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

An impairment analysis of trade receivables is performed at each reporting period based on the Company''s history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates. Basis this assessment, the allowance for doubtful trade receivables as at March 31, 2023 is considered adequate.

30. GRATUITY

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

Risk analysis

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

- Investment risk

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

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

- Interest risk

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

- Longevity risk/life expectancy

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

- Salary growth risk

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

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

31. COMMITMENTS AND CONTINGENCIES

a. Leases

Operating lease commitments â Company as lessee

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

The weighted average of incremental borrowing rate applied to lease liabilities is 9.39% (March 31, 2022: 9.39%)

b. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for: Estimated amount of contracts remaining to be executed and not provided as at March 31, 2023 is I 284.22 lakhs (March 31, 2022 I 459.06 lakhs).

c. Contingent liabilities

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

f. Financial guarantees

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

Legal claim contingency		I in lakhs
	As at	As at
	March 31, 2023	March 31, 2022
Counter guarantees issued in respect of guarantees issued by company''s bankers	29.80	35.22
Service tax	70.05	70.05
Luxury tax	36.00	36.00
Total	135.85	141.27

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

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

d. During the earlier years, the Company has taken land on lease for construction of building from one of the subsidiary company for which South Delhi Municipal Corporation (''the Authority'') has raised demand of I 68.20 lakhs (for the financial Years 2010-11 to financial years 2013-2014) towards annual value in respect of the hotel property situated in Hospitality District, Aerocity. Considering that the area occupied by the Company is 41% of the hotel property, it has made provision of I 82.64 lakhs (Previous year: I 73.63 lakhs) in this regard.

e. Note on Provident Fund:

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

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

34. FAIR VALUE MEASUREMENT

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

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances with related parties at the year-end are unsecure and settlement occurs in cash. For the year ended March 31, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2022: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Commitments with related parties

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

c. Fair value measurement hierarchy for assets and liabilities Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

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

i) Level 1

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

ii) Level 2

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

iii) Level 3

Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

35. Financial risk management objectives and policies

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

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

Market risk

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

Interest rate risk

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

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

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

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

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at March 31, 2023 and March 31, 2022 are as shown below:

Foreign currency risk

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

Credit risk

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

(a) Trade receivables

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

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12. The Company does not hold collateral as security.

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investment of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 and March 31, 2022 is the carrying amount as given in Note 12(ii).

Liquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to below. The Company has access to a sufficient variety of sources of funding and debt maturity within 12 months can be rolled over with existing lenders. As at March 31, 2023, the Company had no available (March 31, 2022: Nil) undrawn committed borrowing facilities.

36. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no significant breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023 and March 31, 2022.

37. Amendements/Standards notified but not yet effective

a) The Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, the MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, which are applicable for annual reporting periods beginning from April 01, 2023, as below:

Ind AS 1 - Presentation of Financial Statements- This amendment require companies to disclose their material accounting policies information rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect to have any significant impact in its financial statements due to this amendment.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors- This amendment will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". The Company does not expect to have any significant impact in its financial statements due to this amendment.

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

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

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

(iv) Working Capital = Current Assets - Current liabilities

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

Ind AS 12 - Income Taxes- The amendment has narrowed the scope of the recognition exemption so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect to have any significant impact in its financial statements due to this amendment.

Other amendments- Other amendments include amendments in Ind AS 102, Share-based Payments, Ind AS 103, Business Combination, Ind AS 109, Financial Instruments, Ind AS 115, Revenue from Contract with Customers, are mainly editorial in nature in order to provide better clarification of respective Ind AS. The Company does not expect to have any significant impact in its financial statements due to these amendments.

b) Note on Social Security: The Code on Wages, 2019 and Code on social security, 2020 ("the codes") relating to employee compensation and post-employment benefits that received Presidential assent have not been notified. Further, the related rules for quantifying the financial impact have not been notified. The Company will assess the impact of the codes when the rules are notified and will record any related impact in the period in which the Codes become effective.

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

39. Segment Reporting

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

Information about geographical areas

The Company has only domestic operations and hence no information required for the Company as per the requirements of Ind AS 108 - "Operating Segments".

Information about major customers

No customer individually accounted for more than 10% of the revenue.

40. During earlier year, the Company had issued equity shares to APG Strategic Real Estate Pool N.V. (''the investor'') and the investor had 41.09% (March 31, 2022 41.09%) equity stake of Fleur Hotels Private Limited (a subsidiary Company) as on Balance sheet date. As per the Shareholder''s agreement, all new hotel projects will first be offered to the subsidiary. There are no other significant commitments towards the investor.

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

42. The Company has filed second motion Application with NCLT on January 31, 2023 w.r.t the Scheme of Amalgamation ("Scheme") of Wholly Owned Subsidiary(ies) of the Company viz. Valerian Management Services Private Limited ("Transferor Company No. 1"), Grey Fox Project Management Company Private Limited ("Transferor Company No. 2"), PSK Resorts & Hotels Private Limited ("Transferor Company No. 3") and Dandelion Hotels Private Limited ("Transferor Company No. 4") with Lemon Tree Hotels Limited ("Transferee Company") and final date of hearing is fixed for 9^th June, 2023. On the approval of Scheme by NCLT, Transferor Company(ies) shall be amalgamated with the Company w.e.f April 1, 2022 (Appointed date of Scheme).

44. The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.

45. There has been no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

46. Other Statutory Information

(i) . The Company have not traded or invested in Crypto currency or Virtual currency during the financial year.

(ii) . The Company have not any such transaction which is not recorded in the books of accounts that has

been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(iii) . The Company do not have any Benami property, where any proceeding has been initiated or pending

against the Company for holding any Benami property.

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

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

statutory period.

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

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

(vii) . During the year, the Company has not entered into any scheme of arrangements in terms of section 230

to 237 of the Companies Act, 2013 and accordingly, the prescribed disclosures of Schedule III are not required to be given.

(viii) . The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies),

including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

(ix) . The Company have not received any funds from any person(s) or entity(ies), including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

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

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

47. Previous year figures have been regrouped/ reclassified wherever necessary to correspond with the current year classification.

Mar 31, 2022

Notes

a) Title deeds for following immovable properties are submitted to lenders/custodian (on behalf of lenders):

Kotak Mahindra Bank- Lemon Tree Premier City Center, Gurgaon

HDFC Bank- Lemon Tree Hotel, Ahmedabad, Lemon Tree Hotel, Udyog Vihar, Lemon Tree Hotel, Chennai, Lemon Tree Hotel, Pune, Lemon Tree Premier Ulsoor Lake, Bangalore, Lemon Tree Hotel, Chandigarh.

Axis Trustee Services Limited (custodian) on behalf of Aditya Birla Finance Limited- Red Fox Hotel Hyderabad.

b) Refer Note 29 for Estimation of uncertainities related to global health pandemic on COVID-19 and critical judgements, estimates and assumptions wrt Impairment of Property Plant & Equipment.

c) The Property, Plant & Equipment are valued at cost.The company has not revalued these assets during the year.

d) The lease agreement for leasehold properties on which building is constructed is registerd in the name of the company.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties.

As at March 31, 2022 and March 31, 2021, the fair values of the property is H 258.89 lakhs and H 258.89 lakhs respectively.

These valuations are based on valuations performed by an external independent valuer at the time of acquisition of property dated March 25, 2014

The valuer has considered these valuations on the basis that there is no material change in the value of property since acquired, hence no impairtment is made during the year

A The Cash credit facility and working capital loan from Kotak Mahindra Bank was repayable on demand and carries interest rate of 7.90% (March 31, 2021: 8.15% p.a.) and is secured by way of:

a) Exclusive charge on all existing and future current assets of the borrower''s hotels located at Gurgaon (city centre new), Aurangabad, Indore, and Sector-29, Gurgaon.

b) Subservient charge over all existing and future current assets of the Company except current assets of the Company''s hotels located at Gurgaon (city centre new), Aurangabad, Indore, and Sector-29, Gurgaon on which bank has exclusive charge.

c) Equitable Mortgage by way of exclusive charge on the plot of Land at Sector-29, Gurgaon owned by the borrower. Also, exclusive charge over Moveable Fixed assets of the Hotel Property at Sector-29, Gurgaon.

B The Cash credit facility and working capital loan from HDFC Bank Limited was repayable on demand and

carries interest rate of 7.45% p.a. (March 31, 2021: 7.45%) and is secured by way of:

a) First Exclusive charge by way of equitable mortgage on Select properties.

number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

28. EARNINGS PER SHARE (BASIC EPS AND DILUTED EPS)

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

29.SIGNIFICANT ACCOUNTING

JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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

Estimation of Uncertainties related to global health pandemic on COVID-19

The COVID-19 pandemic is affecting major economic and financial markets, and virtually all industries and governments are facing challenges associated with the economic conditions resulting from efforts to address it. As the spread of the pandemic increased, entities are experiencing conditions often associated with a general economic downturn. In many countries, there has been severe disruption in regular business operations due to lockdown, travel bans, quarantines and other emergency measures. Currently there is a particularly high degree of uncertainty about the

ultimate trajectory of the pandemic and the path and time needed for a return to a "steady state." The continuation of these circumstances could have a prolonged negative impact on the financial condition and results of operations.

For the year ended March 31, 2022. the Company has considered possible effects due to COVID 19 in its assessment of the going concern assumption and liquidity position for the next one year, recoverability of assets comprising Property, Plant and Equipment (PPE), Right of use asset, trade receivables and investment in subsidiaries and associates (investments) as at the balance sheet date.

The Management have assessed the effect of these macro-economic conditions into their estimates of future cash flows to determine the values of the Company''s assets including investments and liabilities. The Management has carefully considered these unique circumstances and risk exposures when analyzing how recent events may affect their financial reporting to develop estimates considering all available relevant information.

Specifically for investments, the Management has considered the following in its evaluation:

â¢ The industry in which the investee entity operates

â¢ The geographic location of the investee entity

â¢ The size of the investee entity

â¢ The quantitative significance of the investee entity

â¢ Other factors specific to the investee entity

â¢ Liquidity risk premiums

â¢ Appropriateness of valuation techniques and inputs used including current market assessment of credit risk and liquidity risk.

While assessing the recoverable amount of PPE and investments, the Company has used significant assumptions such as hotel occupancy rates, average room rate per hotel, terminal growth rate and weighted average cost of capital. For assessing the recoverable amount of trade receivables, the Company has calculated the expected credit loss from the debtors considering amount to be realized from them in future after factoring the impact on credit risk due to COVID 19.

Management believes that it has taken into account the possible impact of known events arising from COVID 19 pandemic in the preparation of theses financial statements. The associated economic impact of the pandemic is highly dependent on variables that are difficult to predict including the degree to which governments may further restrict business and other activities. The impact assessment of COVID 19 is a continuing process given the uncertainties associated with its nature and duration and actual results may differ materially from these estimates. The Company will continue to monitor any material changes to future economic conditions and any significant impact of these changes would be recognized in the financial statements as and when these material changes to economic conditions arise. The management believes that it will not have negative impact on future cash flows and the financial position of the Company.

Based on a collective assessment of the above factors management believes that the Company will continue as a going concern for the next one year, has enough liquidity to meet its obligations and based on fair value assessment will be able to recover the carrying amount of its assets as on March 31, 2022.

Estimation of Uncertainties related to global health pandemic on COVID-19

Critical judgements, estimates and assumptions

a. Impairment of property, plant and equipment

Each hotel property is an identifiable asset that generates cash inflows and is independent of

the cash inflows of the other hotel properties, hence identified as cash generating units. The Company assesses the carrying amount of hotel properties (CGU) to determine whether there is any indication that those assets have suffered an impairment loss. Where the carrying amount of CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. An impairment loss (if any) is recognised in the statement of profit and loss.

As at As at

Particulars March 31, March 31,

_2022 2021

Discount Rate (pre tax 12.00% 12.00%

rate of WACC)

Long Term Growth 5.00% 5.00%

Rate

As at March 31, 2022, the estimated recoverable amount of the CGU exceeded its carrying amount and the change in estimated future economic conditions on account of possible effects relating to COVID-19 is unlikely to cause the carrying amount to exceed the recoverable amount of the CGU.

b. Impairment of Investment in subsidiaries and associates

The Company assesses the carrying amounts of investment in subsidiaries and associates to determine whether there is any indication that those investments have suffered an impairment loss. Where the carrying amount of investments exceed its recoverable amount, the investment is considered impaired and is written down to its recoverable amount. An impairment loss (if any) is recognised in the statement of profit and loss.

key assumptions used for the calculations are as follows:

As at As at

Particulars March 31, March 31,

_2022 2022

Discount Rate (pre tax 12.00% 12.00%

rate of WACC)

Long Term Growth Rate 5.00% 5.00%

As at March 31, 2022, the estimated recoverable amount of the investments exceeded its carrying amount and the change in estimated future economic conditions on account of possible effects relating to COVID-19 is unlikely to cause the carrying amount to exceed the recoverable amount of the investments.

c. Leases

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

An impairment analysis of trade receivables is performed at each reporting period based on the Company''s history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates. In calculating expected credit loss, the Company has also considered the likelihood of consequential default considering emerging situations due to COVID-19 and has taken into account estimates of possible effect from the pandemic relating to COVID-19. Basis this assessment, the allowance for doubtful trade receivables as at March 31, 2022 is considered adequate.

30. GRATUITY

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

H In lakhs

March 31, March 31, Benefit Liability ₂₀₂2 ₂₀₂₁''

Gratuity plan 147.57 186.36

Total 147.57 186.36

Risk analysis

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

â¢ Investment risk

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

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

â¢ Interest risk

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

â¢ Longevity risk/life expectancy

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

â¢ Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future

salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

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

31. COMMITMENTS AND CONTINGENCIESa. Leases

Operating lease commitments â Company as lessee

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

The weighted average of incremental borrowing rate applied to lease liabilities is 9.39%

b. Commitments

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

Estimated amount of contracts remaining to be executed and not provided as at March 31, 2022 is H 459.06 lakhs (March 31, 2021 H 280.69 lakhs).

c. Contingent liabilities

Legal claim contingency

	For the year ended March 31, 2022 L in lakhs	For the year ended March 31, 2021 L in lakhs
Counter guarantees issued in respect of guarantees issued by Company''s bankers	35.22	35.22
Service tax	70.05	113.55
Luxury tax	36.00	36.00
Total	141.27	184.77

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

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

d. During the earlier years, the Company has taken building on lease from one of the subsidiary company for which South Delhi Municipal Corporation (''the Authority'') has raised demand of H 68.20 lakhs (for the financial Years 2010-11 to financial years 2013-2014) towards annual value in respect of the hotel property situated in Hospitality District, Aerocity. Considering that the area occupied by the Company is 41% of the hotel property, it has made provision of H 73.63 lakhs (Previous year: H 55.60 lakhs) in this regard.

e. Note on Provident Fund:

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

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

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

f. Financial guarantees

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

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances with related parties at the year-end are unsecure and settlement occurs in cash. For the year ended March 31, 2022, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2021: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Commitments with related parties

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

34. FAIR VALUE MEASUREMENT

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

c. Fair value measurement hierarchy for assets and liabilities

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

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

i) Level 1

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

ii) Level 2

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

iii) Level 3

Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

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

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

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

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

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

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

Market risk

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

Interest rate risk

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

Foreign currency risk

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

Credit risk

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

(a) Trade receivables

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

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12. The Company does not hold collateral as security.

(b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investment of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2022 and March 31, 2021 is the carrying amount as given in Note 12(ii).

Liquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturity within 12 months can be rolled over with existing lenders. As at March 31, 2022, the company had no available (March 31, 2021:H 490 lakhs) undrawn committed borrowing facilities.

36.CAPITAL MANAGEMENT

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2022 and March 31, 2021.

37. AMENDEMENTS/STANDARDS NOTIFIED BUT NOT YET EFFECTIVE

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

Ind AS 16-Property Plant and equipment- The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods begining on or after April 1, 2022. The Company is evaluating the impact of Ind AS 16 and its effect on the financial statements.

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

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

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

(iv) Working Capital= Currrnt Assets- Current liabilities.

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

39.SEGMENT REPORTING

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

Ind AS 37-Provisions, Contingent Liabilities and Contingent Assets- The amendment specifies that the ''cost of fulfilling a contract comprises the "costs that relate directly to the contract. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after April 1. 2022, although early adoption is permitted. The Company is evaluating the impact of Ind AS 37 and its effect on the financial statements

b) Note on Social Security:

The Code on Wages, 2019 and Code on social security, 2020 ("the codes") relating to employee compensation and post-employment benefits that received Presidential assent have not been notified. Further, the related rules for quantifying the financial impact have not been notified. The Company will assess the impact of the codes when the rules are notified and will record any related impact in the period in which the Codes become effective.

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

Information about geographical areas

The Company has only domestic operations and hence no information required for the Company as per the requirements of Ind AS 108 - "Operating Segments".

Information about major customers

No customer individually accounted for more than 10% of the revenue.

40. During earlier year, the Company had issued equity shares to APG Strategic Real Estate Pool N.V. (''the investor'') and the investor had 41.09% (March 31, 2021 41.09%) equity stake of Fleur Hotels Private Limited (a subsidiary Company) as on Balance sheet date. As per the Shareholder''s agreement, all new hotel projects will first be offered to the subsidiary. There are no other significant commitments towards the investor.

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

As on March 2021, the Company had conducted impairment evaluation on value of investments in Hamstede Living Private Limited (HLPL) and recognised provision for diminution/impairment in the value of investment of H 592.07 lakhs as an exceptional item in the Statement of Profit and Loss.

The recoverable amount of HLPL had been considered on the basis of net assets approach for the company.

Due to current COVID 19 situation, the HLPL management had slowed down its expansion plan and had assessed the impact of macro-economic conditions on its business and the carrying value of its assets mainly comprising of Property, Plant and Equipment (PPE), Capital work in progress and security deposits as at the balance sheet date.

Company is of the view that there would be no material increase to the impairment charge which would impact the decision of the user of the financial statements.

44. The Company does not have any long term contracts including derivative contracts for which there are any material foreseeable losses.

45. There has been no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

46. OTHER STATUTORY INFORMATION

(i) . The Company have not traded or invested in Crypto currency or Virtual currency during the financial year.

(ii) . The Company have not any such transaction which is not recorded in the books of accounts that has

been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(iii) . The Company do not have any Benami property, where any proceeding has been initiated or pending

against the company for holding any Benami property

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

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

the statutory period.

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

(vii) .During the year, the company has not entered into any scheme of arrangements in terms of section 230 to 237 of the Companies Act, 2013 and accordingly, the prescribed disclosures of Schedule III are not required to be given.

(viii) . The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies),

including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

(ix) The Company have not received any funds from any person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

47. Previous year figures have been regrouped/ reclassified wherever necessary to correspond with the current year classification.

Mar 31, 2021

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

Retained earnings: Retained earnings represents balances of profit and loss at each period/year end.

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

Share-based payments: The Company has one share option schemes under which options to subscribe for the Company''s shares have been granted to certain executives and senior employees. The share-based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration. Refer to Note 32 for further details of these plans.

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

The Company has not defaulted in the repayment of loans and interest as at Balance Sheet date.

In terms of Loan Agreement with lenders company were to comply with certain covenants which were linked to the operational performance e.g , Net Debt to earnings before interest, tax, depreciation and amortization (EBITDA) and debt service coverage ratio (DSCR) etc. During financial year COVID-19 had impacted the operations of Company which resulted in lower EBITDA and negative profit before tax and as a consequence those covenants could not be met. The Company has taken waiver of these covenants from all its lenders. The Company has complied with all other financial covenants namely debt-to-equity ratio and fixed asset coverage ratio (FACR) etc.

The Cash credit facility and working capital loan from Kotak Mahindra Bank is repayable on demand and carries interest rate of 8.15% p.a. (March 31,2020: 9.20% p.a.) and is secured by way of:

a) Exclusive charge on all existing and future current assets of the borrower''s hotels located at Gurgaon (city centre new), Aurangabad, Indore, and Sector-29, Gurgaon.

The Cash credit facility and working capital loan from HDFC Bank Limited is repayable on demand and carries interest rate of 7.45% p.a. (March 31,2020: 8.40%) and is secured by way of:

a) First Exclusive charge by way of equitable mortgage on Select properties.

. Earnings per share (Basic and Diluted)

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

* The weighted average number of shares takes into account the weighted average effect of changes in share transactions during the year. The shares of the company has been listed on BSE Limited and National Stock Exchange of India Limited with effect from April 9, 2018.

Significant accounting judgements, estimates and assumptions

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

Estimation of Uncertainties related to global health pandemic on COVID-19

For the year ended March 31,2021. the Company has considered possible effects due to COVID 19 in its assessment of the going concern assumption and liquidity position for the next one year, recoverability of assets comprising Property, Plant and Equipment (PPE), trade receivables and investment in subsidiaries and associates (investments) as at the balance sheet date.

The Management have assessed the effect of these macro-economic conditions into their estimates of future cash flows to make good-faith estimates for determining the values of the Company''s assets including investments and liabilities. The Management has carefully considered these unique circumstances and risk exposures when analyzing how recent events may affect their financial reporting to develop estimates considering all available relevant information.

Specifically for investments, the Management has considered the following in its evaluation:

â¢ The industry in which the investee entity operates

â¢ The geographic location of the investee entity

â¢ The size of the investee entity

â¢ The quantitative significance of the investee entity

â¢ Other factors specific to the investee entity

â¢ Liquidity risk premiums

â¢ Appropriateness of valuation techniques and inputs used including current market assessment of credit risk and liquidity risk.

Management has also taken various cost savings initiatives during the months of April and May 2020, which will have a positive impact going forward. Management believes that the easing of lockdown in India including domestic flight operations and expected increase in business travel would be beneficial for the Company. Further, the Company also has undrawn lines of credit amounting to '' 490 lakhs as of date.

Estimation of Uncertainties related to global health pandemic on COVID-19

Critical judgements, estimates and assumptions

1. Impairment of property, plant and equipment

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

2. Impairment of Investment in subsidiaries and associates

As at March 31, 2021, the estimated recoverable amount of the investments exceeded its carrying amount and the change in estimated future economic conditions on account of possible effects relating to COVID-19 is unlikely to cause the carrying amount to exceed the recoverable amount of the investments.

Leases

4. Loss Allowance on trade receivables

An impairment analysis of trade receivables is performed at each reporting period based on the Company''s history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates. In calculating expected credit loss, the Company has also considered the likelihood of consequential default considering emerging situations due to COVID-19 and has taken into account estimates of possible effect from the pandemic relating to COVID-19. Basis this assessment, the allowance for doubtful trade receivables as at March 31, 2021 is considered adequate.

D. Gratuity

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

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

â¢ Investment risk

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

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

â¢ Interest risk

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

â¢ Longevity risk/life expectancy

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

â¢ Salary growth risk

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

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

31. Commitments and contingencies a. LeasesOperating lease commitments â Company as lessee

The Company has entered into operating leases on hotel buildings, office premises, staff hostels and others. These are generally cancellable and are renewable by mutual consent on mutually agreed terms except for few properties (including hotel properties at Indore, Aurangabad, Gurgaon, New Delhi, Hyderabad (Banjara Hills) and Chandigarh.) The lease for the hotel property at Indore, Aurangabad, Gurgaon, New Delhi, Hyderabad (Banjara Hills) and Chandigarh are non-cancellable for a period of twenty-nine, twenty-two, thirty, twenty-seven, thirty and sixty years respectively.

Transition to Ind AS 116

Effective April 1,2019, the Company adopted Ind AS 116 "Leases" and applied the standard to all Lease contracts existing on April 1,2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Consequently, the Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the right of use asset at its carrying amount as if the standard has been applied since the commencement date of the lease, but discounted at the Company''s incremental borrowing rate at the date of initial application.

Company as a lessee:

For transition, the Company has assessed whether the contract is, or contains, the lease. The Company has elected not to apply the requirements of IND AS 116 to leases for which the underlying asset is of low value on a lease-by-lease basis and the leases with less than 12 months of lease term on the date of initial application. The Company has used a single discount rate to a portfolio of leases with similar characteristics. The Company has applied its incremental borrowing rate for lease liabilities recognised in the balance sheet at the date of initial application.

The weighted average of incremental borrowing rate applied to lease liabilities, as at April 01,2019 is 9.39%.

On transition, the Company recognised a lease liability measured at the present value of the remaining lease payments as at April 1, 2019. The right-of-use asset is recognised at its carrying amount as if the standard has been applied since the commencement of the lease, but discounted using the lessee''s incremental borrowing rate as at April 1,2019. Accordingly, a right-of-use asset of '' 12,289.09 lakhs and a corresponding lease liability of '' 16,508.41 lakhs has been recognized. The cumulative effect on transition in retained earnings net of taxes is '' 2,206.16 lakhs (including a deferred tax of '' 744.07 lakhs). On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-of-use asset, and finance cost for interest accrued on lease liability.

d. During the earlier year, the Company has taken building on lease from one of the subsidiary companies for which South Delhi Municipal Corporation (''the Authority'') has raised demand of '' 68.20 lakhs (for the financial Years 201011 to financial years 2013-2014) towards annual value in respect of the hotel property situated in Hospitality District, Aerocity. Considering that the area occupied by the Company is 41% of the hotel property, it has made provision of '' 55.60 lakhs in this regard.

e. Note on Provident Fund:

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

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

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

f. Note on Social Security:

The Code on Wages, 2019 and Code on social security, 2020 ("the codes") relating to employee compensation and postemployment benefits that received Presidential assent have not been notified. Further, the related rules for quantifying the financial impact have not been notified. The Company will assess the impact of the codes when the rules are notified and will record any related impact in the period in which the Codes become effective.

g. Financial guarantees

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

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances with related parties at the year-end are unsecure and settlement occurs in cash. For the year ended March 31,2021, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2020: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Commitments with related parties

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

34. Fair value measurement

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

c. Fair value measurement hierarchy for assets and liabilities Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

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

i) Level 1

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

ii) Level 2

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

iii) Level 3

Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities: Financial assets and liabilities measured at fair value

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

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

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

35. Financial risk management objectives and policies

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

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

Market risk

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

Interest rate risk

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

Foreign currency risk

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

Credit risk

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

(a) Trade receivables

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

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12. The Company does not hold collateral as security.

(b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investment of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31,2021 and March 31,2020 is the carrying amount as given in Note 12(ii).

Liquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturity within 12 months can be rolled over with existing lenders. As at March 31,2021, the company had available '' 490 lakhs (March 31,2020: '' 490 lakhs) of undrawn committed borrowing facilities.

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

36. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,2021 and March 31,2020.

Segment Reporting

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

Information about geographical areas

The Company has only domestic operations and hence no information required for the Company as per the requirements of Ind AS 108 - "Operating Segments".

Information about major customers

No customer individually accounted for more than 10% of the revenue.

Prepaid expenses include prepaid conversion charges of '' 603.98 lakhs in respect of land taken for lease of 60 years for construction of hotel building. The Company has amortized '' 10.07 lakhs (Previous year: March 31,2020''10.07 lakhs) during the year in accordance with its accounting policy of amortizing the conversion charges over the period of lease as mentioned in Note 2.2 (j) above. The balance amount of '' 482.35 lakhs (March 31,2020: '' 492.41 lakhs) has been included in Right to use assets ''.

During an earlier year, the Company had issued equity shares to APG Strategic Real Estate Pool N.V. (''the investor'') and the investor had also acquired 41.09% (March 31,2020 41.76%) stake of Fleur Hotels Private Limited (a subsidiary Company). As per the Shareholder''s agreement, all new hotel projects will first be offered to the subsidiary. There are no other significant commitments to the investor.

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

During the year, the Company has received '' Nil (Previous year: March 31,2020''135 lakhs) towards relinquishment of right according to settlement agreement entered into with the Developer with respect to purchase of certain parts of built-up structure along with proportionate interest in the land to establish and operate a four-star hotel at Jaipur with penalty as per Honorable High Court of Delhi (HC) order.

As on the reporting date, the Company has conducted impairment evaluation on value of investments in Hamstede Living Private Limited (HLPL) and recognised provision for diminution/impairment in the value of investment of '' 592.07 lakhs as an exceptional item in the Statement of Profit and Loss.

The recoverable amount of HLPL has considered on the basis of net assets approach for the company.

Due to current COVID 19 situation, the HLPL management has slowed down its expansion plan and has assessed the impact of macro-economic conditions on its business and the carrying value of its assets mainly comprising of Property, Plant and Equipment (PPE), Capital work in progress and security deposits as at the balance sheet date.

Company is of the view that there would be no material increase to the impairment charge which would impact the decision of the user of the financial statements.

The Company does not have any long term contracts including derivative contracts for which there are any material foreseeable losses.

There has been no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

Mar 31, 2018

* The preference shares are redeemed in current financial year ended March 31, 2018. As per the original term the preference shares were to be redeemed on or after August 1, 2020 but not later than 15 years from the date of allotment. During the year, the terms were varied and the preference shares became redeemable any time on or before March 31, 2018.

** The preference shares are redeemed in current financial year ended March 31, 2018. As per the original term the preference shares were to be redeemed either at the option of the Company or at the option of the subsidiary at anytime on or before October 4, 2027.

*** The preference shares will be redeemed either at the option of the Company or at the option of the subsidiary at any time after the expiry of one year or before expiry often years.

****The preference shares are redeemed in current financial year ended March 31, 2018. As per the original term the preference shares were to be redeemed either at the option of the Company or at the option of the subsidiary at any time after the expiry of one year or before expiry of five years.

# The preference shares are redeemed in current financial year ended March 31, 2018. As per the original term the preference shares were to be redeemed either at the option of the Company or at the option of the subsidiary at any time after the expiry of one year or before expiry of ten years. The terms of the preference shares issued during the year were varied and the shares became redeemable any time on or before March 31, 2018.

Notes:

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

Retained earnings: Retained earnings represents balances of profit and loss at each period/year end.

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

Share-based payments: The Company has two share option schemes under which options to subscribe for the Company''s shares have been granted to certain executives and senior employees. The share-based payment reserve is used to recognize the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration. Refer to Note 33 for further details of these plans.

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

28. Earnings per share (Basic and Diluted)

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

29. Significant accounting judgments, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgments

In the process of applying the Company''s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Operating lease commitments - Company as lessee

The Company has taken certain land and land and building on long term lease basis. The lease agreements generally have an escalation clause. These leases are generally non-cancellable. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life/ remaining economic life of the property and the fair value of the asset, that it does not have all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.

Further, the Company based on an evaluation of the terms and conditions of the respective agreements decided that wherever the escalations (generally 15% every 3 years or 20% every 4 years) are aligned to the average expected general inflation of the lease term period, operating lease payments are not required to be provided on a straight-line basis over the lease term as an expense in the statement of profit and loss and in other cases (including structured payment terms), operating lease payments are expensed on a straight-line basis over the lease term in the statement of profit and loss.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if the revision affects both current and future periods.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using other valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 35 for further disclosures.

Further, the management has estimated the expected future cash receipts through the expected life of the financial asset of loans given to subsidiaries which is repayable on demand based on the financial position of the respective Subsidiaries and repayment period of the borrowings taken by these Subsidiaries.

In case there is a change in original estimated repayment period, amount received over book value of such loans or advances is adjusted from Deemed Investment.

Taxes

Considering that nature of the Company''s operations and history of past tax losses, deferred tax assets (including MAT credit) are recognized to the extent that it is probable that taxable profit will be generated in future against which the deductible temporary differences, carry forward of unabsorbed depreciation and tax losses can be utilized. Accordingly, it is considered prudent to recognize the deferred tax assets only to the extent of deferred tax liabilities and the Company has not recognized deferred tax assets of Rs, 1,526.24 lakhs, Rs, 3,043.92 lakhs as of March 31, 2018 and March 31, 2017 respectively. Breakup of current tax shown in Statement of Profit and Loss is as given below:-

30. Gratuity

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

Risk analysis

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

Investment risk

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

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

Interest risk

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

Longevity risk/life expectancy

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

Salary growth risk

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

Each year, the Board of Trustees reviews the level of funding in the Gratuity plan. Such a review includes the asset

- liability matching strategy and investment risk management policy. The Board of Trustees decides its contribution based on the result of this annual review.

The average duration of the defined benefit plan obligation at the end of the reporting period is 3 years (March 31, 2017: 3 years).

31. Commitments and contingencies

a. Leases Operating lease commitments â Company as lessee

The Company has entered into operating leases on hotel buildings, office premises, staff hostels and others. These are generally cancellable and are renewable by mutual consent on mutually agreed terms except for few properties (including hotel properties at Indore, Aurangabad, Gurgaon, New Delhi, Hyderabad (Banjara Hills) and Chandigarh.) The lease for the hotel property at Indore, Aurangabad, Gurgaon, New Delhi, Hyderabad(Banjara Hills) and Chandigarh are non-cancellable for a period of twenty-nine, twenty-two, twenty two, thirty and sixty years respectively.

The Company has recognized the following expenses as rent in the statement of profit & loss towards minimum lease payment.

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

Estimated amount of contracts remaining to be executed and not provided for March 31, 2018 Rs, 3,171.57 lakhs (March 31, 2017 ^ 2,564.29 lakhs)

(d) During the previous years, the Company had received a show cause notice dated April 25, 2014 from Collector of Stamps, Delhi (''Department''), wherein the Department was of the view that prima facie the Company has not paid stamp duty as per Indian Stamp Act, 1899 on right to use the land given by Delhi International Airport (P) Ltd. (DIAL) under the Development Agreement dated May 25, 2009 (''DA''). The Company contested the matter and the department pursuant to the response received from all the developers of area where the Company''s project is located, and arguments thereon, passed a common order on July 14, 2014 ("Order") and subsequently, the Company and its directors received show cause notice dated August 14, 2014 from the Department as to why criminal prosecution for non- payment of requisite stamp duty should not be initiated against them. The Company along with certain other developers had filed a writ petition before the Honorable High Court of Delhi (HC) and the HC vide its order dated August 25, 2014 has granted ex- parte interim stay from all proceedings under the Order including the said show cause notice dated August 14, 2014. The next date of hearing before the HC is scheduled for October 11, 2018. The Company, based on advice from legal experts, is of the view that there is no likelihood of any liability devolving on the Company on this ground.

(e) One of the subsidiary company. Hyacinth Hotels Private Limited, has received a demand from South Delhi Municipal Corporation (''the Authority'') wherein the Authority has called upon the subsidiary company to pay an amount of Rs, 68.20 lakhs (for the financial Years 2010-11 to financial years 2013-2014) towards annual value in respect of the hotel property situated in Hospitality District, Aerocity. The subsidiary company filed a writ petition in the high court against the said order. Pending adjudication, the High Court had given interim stay directing the subsidiary company to deposit Rs, 25 lakhs. The management based upon its assessment and expert''s advice believes that no further liability will arise against the matter. The Company has made a provision of Rs, 37.48 lakhs in this regard based on area occupied of the above hotel property.

(f) Financial guarantees

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

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

The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

34. Related Party Transactions Names of related parties

Subsidiary Company - Begonia Hotels Private Limited

-Carnation Hotels Private Limited

- Celsia Hotels Private Limited

- Fleur Hotels Private Limited

- Dandelion Hotels Private Limited

- Hyacinth Hotels Private Limited

- Lemon Tree Hotel Company Private Limited

- Manakin Resorts Private Limited

- Meringue Hotels Private Limited

- PSK Resorts & Hotels Private Limited

- Nightingale Hotels Private Limited -Oriole Dr. Fresh Hotels Private Limited

- Red Fox Hotel Company Private Limited

- Sukhsagar Complexes Private Limited

- Pelican Facilities Management Private Limited __(upto 20^th June 2017)_

- Grey Fox Project Management Company Private Limited

- Canary Hotels Private Limited

-Valerian Management Services Private Limited

- Ophrys Hotels Private Limited

- lora Hotels Private Limited

- Inovoa Hotels And Resorts Limited

- Bandhav Resorts Private Limited

Key Management Personnel - Mr. Patanjali Govind Keswani (Chairman and Managing Director)

- Mr. Rattan Keswani (Deputy Managing Director)

- Mr. Sanjeev Kaul Duggal (Independent Director) (upto April 1,2017)

Names of related parties

- Mr. Gopal Sitaram Jiwarajka (Independent Director)

- Mr. Ravi Kantjaipuria (Director)

- Mr. Niten Malhan (Director)

- Mr. Sachin Doshi (Director) (upto August 1, 2017)

- Mr. Pradeep Gupta (Director) (from June 15, 2017 to December 5, 2017)

- Mr. Willem Albertus Hazeleger (Director) (from August 9, 2017)

- Ms. Ila Dubey (Director) (unto May 31, 2017)

- Mr. Aditya Madhav Keswani (Director)

- Mr. Pradeep Mathur (Independent Director) (from December 5, 2017)

- Mr Paramartha Saikia (Independent Director) (from June 15, 2017)

- Ms. Freyan Jamshed Desai (Independent Director) (from June 15, 2017)

- Mr. Ashish Kumar Guha (Independent Director) (from June 15, 2017)

- Mr. Arvind Singhania (Independent Director) (from June 15, 2017) Relatives of key management - Mrs. Sharanita Keswani relative of Mr. Aditya Madhav Keswani personnel

Enterprises owned or significantly - Spank Management Services Private Limited influenced by key management -Toucan Real Estates Private Limited personnel or their relatives

Associate - Mind Leaders Learning India Private Limited (w.e.f June 6, 2017)

- Pelican Facilities Management Private Limited (w.e.f. June 21, 2017)

Additional related parties as per Companies Act 2013 with whom transactions have taken place during the year:

Chief Financial Officer : Mr. Kapil Sharma

Company Secretary : Mr. Nikhil Sethi

1. Fair value measurement

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

Note: The financial assets above do not include investments in subsidiaries and associates which are measured at cost in accordance with Ind AS 101 and Ind AS 27.

c. Fair value measurement hierarchy for assets and liabilities Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

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

i) Level 1

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

ii) Level 2

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

iii) Level 3

Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities:

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

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

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

2. Financial risk management objectives and policies

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

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

Market risk

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

Interest rate risk

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

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

Foreign currency risk

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

Credit risk

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

(a) Trade receivables

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

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 11. The Company does not hold collateral as security.

(b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investment of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2018 and March 31,2017 is the carrying amount as given in Note 11

Liquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturity within 12 months can be rolled over with existing lenders. As at March 31, 2018,the company had available Rs, 2,430 lakhs(March 31, 2017: Nil) of undrawn committed borrowing facilities.

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

3. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2018 and March 31, 2017.

4. Segment Reporting

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

Information about geographical areas

The Company has only domestic operations and hence no information required for the Company as per the requirements of Ind AS 108 - "Operating Segments".

Information about major customers

No customer individually accounted for more than 10% of the revenue

5. The Company in the earlier years paid conversion charges of Rs, 603.98 lakhs in respect of land taken for lease of 60 years for construction of hotel building. The Company has amortized Rs, 10.07 lakhs (Previous year: March 31, 2017: Rs, 10.07 lakhs) during the year in accordance with its accounting policy of amortizing the conversion charges over the period of lease as mentioned in Note 2.2 0 above. The balance amount of Rs, 512.55 lakhs (March 31, 2017: Rs,522.61 lakhs) has been shown in note 9 and note 12 as ''Prepaid conversion charges.''

6. During an earlier year, the Company had issued equity shares to APG Strategic Real Estate Pool N.V. (''the investor'') and the investor had also acquired 42.02% (March 31,2017 42.02%) stake of Fleur Hotels Private Limited (a subsidiary Company). As per the Shareholder''s agreement, all new hotel projects will first be offered to the subsidiary. There are no other significant commitments to the investor.

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

8. During an earlier year, the Company had entered into an agreement to sell with developer to purchase certain parts of built-up structure along with proportionate interest in the land to establish and operate a four star hotel at Jaipur and had given an advance to developer of Rs, 3,519.39 lakhs (including other expenses of Rs, 375.39 lakhs). Due to the delays in the construction, the Developer earlier had also agreed to return the aforesaid amount along with interest through various communications and receipt of such amount from developer would lead to the cancellation of agreement to sell.

During the earlier year, the Company had entered into a binding agreement (''consent terms'') to receive full and final settlement against the aforesaid receivable and had received Rs, 3,360 lakhs till the year ended March 31, 2016. As per the revised consent terms, the developer has agreed to repay the balance amount and interest for delayed payment by August 31, 2016. The Company had accordingly adjusted the amount already received amounting to Rs, 3,360 lakhs against the carrying value of advance to developer and has written off the balance amount of other expenses amounting to Rs, 160.51 lakhs as ''advances written off in the Statement of Profit & Loss.

During the year, the company has receivers, 670 lakhs (previous year: Rs, 600 lakhs)towards relinquishment of right in the said property and recognized the same as other income. The balance amount would be recorded when the uncertainty of ultimate collectability is settled.

9. Scheme of Amalgamation

During the year ended March 31, 2018, the National Company Law Tribunal approved the order of scheme of amalgamation dated December 22, 2017 in respect of amalgamation of Aster Hotels & Resorts Private Limited, Head Start Institute Private Limited and PRN Management Services Private Limited( the Transferor Companies) with Lemon Tree Hotels Limited and the scheme is effective from December 28, 2017. Investment has been nullified w.e.f. the Appointed date i.e. April 01, 2017.The Company has made the allotment of 56,511,722 equity shares to the shareholders of the Transferor Companies on January 22, 2018. The assets, liabilities and reserves of the Transferor Companies as at April 01, 2017 have been taken over at their fair values

10. During the year, the Company has incurred Rs, 839.07 lakhs (March 31, 2017: Rs, 1,140.74 lakhs) on architect and design fees. The management has confirmed that the same has been at arm''s length and for business purpose.

11. The Company does not have any long term contracts including derivative contracts for which there are any material foreseeable losses.

12. There has been no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

13. Previous period''s figures in the financial statements, including the notes thereto, have been reclassified wherever required to confirm to the current period''s presentation/classification. These are not material and do not affect the previously reported net profit or equity.

14. Amounts for year ended March 31, 2017 and as at March 31, 2017 were audited by previous auditors - S.R. Batliboi & Co. LLP.

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