Notes to Accounts of Ventive Hospitality Ltd.

Mar 31, 2025

Description of valuation method

These valuations are based on valuations performed by Siddharth S. Thite & Associates for the year ended March 31, 2025 and March 31, 2024, accredited independent and registered valuers as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The valuations were conducted through a market rate approach. Under this approach the market value of land has been obtained by considering the sale consideration of the similar properties. Under this method average rate has been obtained from various sale instances for similar properties after adjusting various positive and negative factors associated with the property under valuation. For constructed properties depreciated market rate is taken for valuation.

Note A

(i) The Company acquired 100% equity share capital of EHIPL vide Shareholders Agreement dated August 06, 2024 entered into between the Company, Atul I. Chordia, Meena Chordia, Yashika Shah, Yash Chordia, Sagar I. Chordia, Premsagar Infra Realty Private Limited and EHIPL. EHIPL is in business of hospitality (Courtyard by Marriott, Pune) and Commercial leasing (Panchshil Tech Park, Pune).

(ii) The Company acquired 100% equity share capital of KHRPL vide Shareholders Agreement dated August 06, 2024 entered into between the Company, Panchshil Trade and Techpark Private Limited, Premsagar Infra Realty Private Limited and KHRPL. KHRPL is in business of hospitality (Varanasi Hotel under a non-binding MOU with Marriott).

(iii) The Company acquired 100% equity share capital of NTPPL vide two Shareholders Agreements dated August 06, 2024 and August 08, 2024 respectively entered into between the Company, NTPPL and its various erstwhile shareholders. NTPPL is in business of hospitality (Aloft in Outer Ring Road, Bengaluru) which was acquired by NTPPL from Cessna Garden Developers Private Limited ("CGDPL”) vide business transfer agreement dated August 6, 2024 between NTPPL and Cessna Garden Developers Private Limited.

(iv) The Company acquired 100% equity share capital of RHPL which has acquired 100% equity share capital of SS & L Beach Private Limited (SS & L) vide Shareholders Agreement dated August 07, 2024 entered into between the SS & L, RHPL, Lagoon Holding Company and S&S Holding Company and 100% equity share capital of Maldives Property Holdings Private Limited ("MPHPL”) vide Shareholders Agreement dated August 07, 2024 entered into between MPHPL, RHPL, Maldives Hotel Holdings II Ltd., BREP Asia II Maldives Hotel SBS Limited and BREP VIII Maldives Hotel SBS Limited. Both SS&L and MPHPL operate in hospitality business located in Maldives.

(v) The Company acquired 100% equity share capital of WIPL vide Shareholders Agreement dated August 06, 2024 entered into between the Company, Prateek Chordia, Priyanka Chordia, and WIPL. WIPL is in business of hospitality (DoubleTree by Hilton, Pune).

(vi) The Company acquired 98.69% of the equity share capital of UHPL vide Shareholders Agreement dated August 07, 2024 and September 07, 2024 entered into between the Company, Balewadi Techpark Private Limited and UHPL. UHPL is in business of hospitality (Marriott Aloft Whitefield, Bengaluru).

(vii) The Company incorporated Nagenahira Resorts Private Limited in Sri Lanka as a wholly owned subsidiary of the Company on September 01, 2024. The Company is in the process of constructing a hotel in Sri Lanka (Sri Lanka hotel under a nonbinding MOU with Marriott).

(viii) The Company acquired 50.28% stake in Kudakurathu Island Resort Private Limited (KIRPL) with effect from August 12,

2024 involved in hospitality industry. The shareholders of KIRPL entered into an amendment agreement dated March 31,

2025 to the Investment Agreements (entered into with initial investors) which is effective from January 1, 2025 resulting in changes in rights and obligations of the shareholder. Accordingly, KIRPL has been considered it as a subsidiary with effect from January 1, 2025.

(ix) The Company via its newly incorporated subsidiary RHPL acquired 100% equity share capital of SS & L vide Shareholders Agreement dated August 07, 2024 entered into between the SS & L, RHPL, Lagoon Holding Company and S&S Holding Company.

(x) The Company via its newly incorporated subsidiary RHPL acquired 100% equity share capital of MPHPL vide Shareholders Agreement dated August 07, 2024 entered into between MPHPL, RHPL, Maldives Hotel Holdings II Ltd., BREP Asia II Maldives Hotel SBS Limited and BREP VIII Maldives Hotel SBS Limited.

Note B

The Company has given loans in the form of inter-corporate deposits to some of its subsidiaries at nil rate of interest. The net

proceeds received from issue of these deposits have been split between the equity and loan component in accordance with

Ind AS 109.

I. During the year ended March 31, 2025, the loan of INR 5.00 million has been utilised by Panchshil Trade and Techpark Private Limited for general corporate purpose.

II. During the year ended March 31, 2025, the loan of INR 650.00 million has been utilised by Live Park Realty Private Limited for acquisition of land.

III. During the year ended March 31, 2025, the loan of INR 3,608.40 million has been utilised by EON-Hinjewadi Infrastructure Private Limited for acquisition of shares. The amount of INR 136.20 million has been utilised for the purpose of repayment of Intercorporate deposit. The loan of INR 543.00 million has been utilised for general corporate purpose.

IV. During the year ended March 31, 2025, the loan of INR 133.94 million has been utilised by Kudakurathu Island Resort Private Limited for general corporate purpose.

V. During the year ended March 31, 2025, the loan of INR 520.00 million has been utilised by Wellcraft Infraprojects Private Limited for acquisition of hotels. The loan of INR 11.00 million has been utilised for general corporate purpose.

VI. During the year ended March 31, 2025, the loan of INR 366.85 million has been utilised by KBJ Hotel & Restaurants Private Limited for repayment of ICD of Panchshil Trade and Techpark Private Limited. The loan of INR 80.00 million has been utilised for general corporate purpose.

VII. During the year ended March 31, 2025, the loan of INR 17,357.00 million has been utilised by Restocraft Hospitality Private Limited for the acquisition of shares or advancing of inter-corporate deposits to step- down subsidiaries. For details, refer note 47. Remaining loan of INR 172.50 million has been utilised for general corporate purpose.

VIII. During the year ended March 31, 2025, the loan of INR 257.25 million has been utilised by Novo Themes Properties Private Limited for repayment of ICD. The amount of loan of ?60.00 million has been used for the purpose of acquisition of Hotels from Cessna Garden Developers Private Limited. The loan of INR 51.75 million has been utilised by Novo Themes Properties Private Limited for general corporate purpose.

* The classification of loans given is on the basis of management''s expectation of its realisation.

Management believes that for the purpose of the compliance with Section 186 of the Companies Act, 2013, the Company is

considered as infrastructure company as per Schedule VI of the Companies Act, 2013 as the Company is engaged in real estate

development and tourism. Accordingly, the provisions of section 186 (2) to section 186 (11) are not applicable to the Company.

* On and from the Record Date of July 12, 2024, the equity shares of the Company have been sub- divided, such that 1 (one) equity share having face value of INR 10/- each, fully paid-up, stands sub-divided into 10 (ten) equity shares having face value of INR 1/- each, fully paid-up, ranking pari-passu in all respects.”

# (1) During the year ended March 31, 2025, the Company has completed its Initial Public Offering (IPO) of 2,48,83,778

fresh equity shares of face value of Re. 1 each at an issue price of ?643 per share except for 8,993 shares issued to eligible employees under the "Employee Reservation Portion” of the IPO for which a discount of ?30 per share was provided. The Company''s equity shares were listed on the National Stock Exchange of India Limited and BSE Limited on December 30, 2024. The total proceeds on account of the IPO amounted to ''15,331.52 million (net of issue expenses). Refer Note 45 for details.

(2) During the year ended March 31, 2025, the Company issued 8,07,53,110 equity shares of INR 1 each as part of a rights issue on August 12, 2024 and 2,34,65,150 shares of INR 1 each through preferential allotment on August 27, 2024.

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of INR 1 per share (March 31, 2024: INR 10 per share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

- The Board of Directors of the Company at its meeting held on November 16, 2022 and the shareholders by way of Special Resolution on November 17, 2022, approved the buy back of the fully paid equity shares of the face value of INR 10 each of the Company from its shareholder including promoters and promoter group of the Company as on the record date, on a proportionate basis at a price of INR 2,520 per share for an aggregate amount not exceeding INR 680.51 million. The Company completed the buy back process on November 21, 2022 and has complied with all the requisite formalities with Registrar of Companies and other regulatory authorities.

- In accordance with section 69 of the Companies Act, 2013, the Company has created ''Capital Redemption Reserve'' of INR 2.70 million equal to the nominal value of the shares bought back as an appropriation from Securities Premium Account.

As at March 31, 2020

- The Board of Directors of the Company at its meeting held on July 17, 2019 and the shareholders by way of Special Resolution on July 18, 2019, approved the buy back of the fully paid equity shares of the face value of INR 10 each of the Company from its shareholder including promoters and promoter group of the Company as on the record date, on a proportionate basis at a price of INR 1,507 per share for an aggregate amount not exceeding INR 1,169.43 million. The Company completed the buy back process on July 22, 2019 and has complied with all the requisite formalities with Registrar of Companies and other regulatory authorities.

- In accordance with section 69 of the Companies Act, 2013, the Company has created ''Capital Redemption Reserve'' of INR 7.76 million equal to the nominal value of the shares bought back as an appropriation from Securities Premium Account. "

Capital redemption reserve

During financial year ended March 31, 2013, March 31, 2014, March 31, 2020 and March 31, 2023 the Company bought back its shares and in order to comply with the requirements of the Company law, the Company has created capital redemption reserve.

# Share issue expenses adjusted against securities premium comprises of expenses of INR 52.40 million pertaining to preferential and rights issue and expenses of INR 607.39 million pertaining to Initial Public Offering (IPO) completed by the Company during the year ended March 31, 2025.

Nature and purpose of reserves Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Retained earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

The Maturity analysis of borrowings is disclosed in note 40.

All term loans have been utilised for the purpose for which they were raised.

Note 1: Indian rupee loan 1 of 3,345.85 million

The Company has availed loan from bank, secured by first charge over land and building of the project, receivables from all tenants pertaining to ICC Tech Park, first charge over collection generated from ICC Tech Park. The loan carries interest at the rate of 7.93%-9.33% ( March 31, 2024 : 8.18% - 8.95% p.a) payable monthly. The loan is repayable in 120 months from September 2022. The Company has satisfied all debt covenants prescribed in the terms of bank loan. The Company has not defaulted on any loans payable.

Note 2: Indian rupee loan 2 of INR 1,397.63 million

The Company has availed loan from bank, which carries the rate of interest of 8.03% - 9.23% (March 31, 2024: 8.69% - 9.17% p.a.) payable monthly. The entire loan shall be repayable in 120 monthly instalments, starting from September 2022. The term loan is secured by first charge over land, building & receivable pertaining to ICC Trade Tower, first charge over collections generated from ICC Trade Tower. The Company has satisfied all debt covenants prescribed in the terms of bank loan. The Company has not defaulted on any loans payable.

Note 3: Indian rupee loan 3 of INR 3,608.54 million

The Company has availed loan from bank, which carries the rate of interest of 7.93% - 8.29% (March 31, 2024: Nil) payable monthly. The entire loan shall be repayable in 97 monthly instalments, starting from August 2024. The term loan is secured by first charge over land & building pertaining to ''The Pavillion'' and ''J.W. Marriott Hotel'', receivables from mortgaged properties except ''J.W. Marriott Hotel'', borrower''s share of profits in relation to ''JW Marriott Hotel''. The Company has satisfied all debt covenants prescribed in the terms of bank loan. The Company has not defaulted on any loan payable.

Note 4: Bank Overdraft of INR 103.73 million

The bank overdrafts are secured by a portion of the Company''s short-term deposits.

* Advance from customers is recognized when payment is received before the related performance obligation is satisfied. This includes advances received from the customer towards Rooms/food & beverage/banquets/other services. Revenue is recognized once the performance obligation is met i.e. on room stay / sale of food and beverage / provision of other hospitality Services. Performance obligations are satisfied within a period of 12 months. Revenue recognised during the year includes INR 35.24 million (March 31, 2024: INR 38.70 million) from amounts included in contract liabilities at the beginning of the year.

** Includes membership fee received in advance from customers / members as part of membership program offered from time to time. Performance obligations are satisfied within a period of 12 months. Revenue recognised during the year includes INR 23.81 million (March 31, 2024: INR 21.02 million) from amounts included in contract liabilities at the beginning of the year.

~ Deferred revenue pertains to the difference between the discounted value of security deposits in accordance with Ind AS 109 and the agreement value. This deferred revenue is recognised as revenue on straight line basis over the lease term.

Earnings per share (EPS)

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

On and from the record date of July 12, 2024, the equity shares of the Company have been sub- divided, such that 1 (one) equity share having face value of INR 10/- each, fully paid-up, stands sub-divided into 10 (ten) equity shares having face value of INR 1/- each, fully paid-up, ranking pari-passu in all respects. The earnings per share for prior year have been restated considering the face value of INR 1/- each in accordance with Ind AS 33 -”Earnings per share”.

# During the year ended March 31, 2024, deferred tax asset is recognised to the extent of Deferred tax liability based on assessment carried out by management and in view of there being no reasonable certainty for availability of sufficient future taxable income against which the deferred tax assets can be realised, the same has not been recognised. Accordingly, tax asset has been recognised only to the extent of deferred tax liability in previous year.

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

Note 34Segment Information

The Board of Directors is the Chief Operating Decision Maker (CODM) and monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the Financial Statements. The Company''s financing (including finance costs and finance income) is managed on a Company basis and is not allocated to operating segments.

As permitted by paragraph 4 of Ind AS- 108 ''Operating Segments'', if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need be presented only on the basis of the consolidated financial statements.

Note 35Disclosure pursuant to Employee benefits

A. Defined benefit plans:

The Company operates a defined benefit gratuity plan. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The scheme is non-funded. There are no plan amendments or curtailments during the years presented.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis are based on a change in a significant assumption, keeping all other assumptions constant. The sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another.

Note 37B
Capital commitments and contingent liabilities a. Capital commitments
Particulars	March 31, 2025	March 31, 2024
Estimated amount of contracts remaining to be executed on other account and not provided for (net of advances)	69.24	57.12
b. Contingent Liabilities
Particulars	March 31, 2025	March 31, 2024
Guarantees excluding financial guarantees Corporate Guarantee to the banks	9,413.80	-

The Company has assessed that it is only possible, but not probable, that outflow of economic resources will be required.

The Company is contesting Income tax demands/notices and the management, including its tax advisors, believe that it''s position will likely be upheld in the appellate process.

No expense has been accrued in the financial statements for the tax demands/notices raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company''s financial position and results of the operations.

The management assessed that cash and cash equivalents (including bank balances), trade receivables, loans, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values :

Current investments

The Company''s current investments consist of investment in units of mutual funds. The fair value of investments in mutual funds is derived from the NAV of the respective units at the measurement date. The Company has realised all of its current investments during the year.

Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company''s financial instruments measured at fair value after initial recognition:

There were no transfers between level 1, level 2 and level 3 during the years ended March 31, 2025 and March 31, 2024.

Note 40Financial risk management objectives and policies

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

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised 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 prices comprise three types of risk: interest rate risk, currency risk and other price risk such as equity price risk and commodity price risk. Financial instruments affected by market risk include borrowings and investments.

The sensitivity analyses in the following sections relate to the position as at March 31, 2025 and March 31, 2024.

The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed-to floating interest rates of the debt are all constant as at March 31, 2025 and March 31, 2024.

Commodity Price risk

The Company does not carry any significant commodity price risk.

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 has not hedged its exposure to fluctuations in the interest rates on account of the insignificant impact of any changes in the interest rate to its operations.

Credit risk is the risk that a 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 from its financing activities, including deposits with banks, if any, investment in mutual fund and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. For the fixed lease income, the billing is done in advance i.e. at the beginning of the month and for variable lease rent and other maintenance charges, the credit period provided is of 7 to 10 days. Thus there are no major trade receivable balances outstanding at the year end.

In case of hospitality business, credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 39.

The Company assesses at each reporting date whether a trade receivable or a group of trade receivables is impaired. The Company recognises lifetime expected credit losses for all trade receivables that do not constitute a financing transaction and which are due for more than six months. The expected credit losses are measured at an amount equal to 12 month expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the trade receivables has increased significantly since initial recognition. The Company uses a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix.

* Provision is made for receivables where recovery is considered doubtful irrespective of due date. Where an amount is outstanding for more than 365 days the Company usually provides for the same unless there is clear visibility of recovery.

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''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). The Company has not hedged its exposure to fluctuations in the foreign exchange rates on considering that the Company will settle the entire exposure within a period of 12 months and the insignificant impact of any fluctuations in the rate to its operations.

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and polices related to such risk are overseen by Senior management. Management monitors the Company''s net liquidity position on a monthly and quarterly basis through its Senior management meeting and board meetings. They use rolling forecasts on the basis of expected cash flows.

The Senior management ensures that the future cash flow needs are met through cash flow from the operating activities and short term borrowings from banks.

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

Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it 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 the capital using gearing ratio. The Company includes within net debt, lease liabilities, interest bearing loans and borrowings, less cash and cash equivalents.

D. Details of acquisition

The Company acquired the business undertaking of PIHPL comprising Marriott Suites, Pune and Oakwood Residences, Pune vide Shareholders Agreement dated August 06, 2024 read with amendment agreement dated September 7, 2024 entered into between the Company and PIHPL. This acquisition has been accounted as common control transaction in accordance with Appendix ''C'' of Ind AS 103 ''Business Combinations''. The difference between purchase consideration and the carrying amount of net assets acquired has been adjusted in retained earnings.

From the date of acquisition, hotel business of PIHPL has contributed INR 576.68 million of revenue and INR 228.41 million to the profit before tax from continuing operations of the Company. If the combination had taken place at the beginning of the year, revenue from continuing operations would have been INR 853.64 million and the profit before tax from continuing operations for the Company would have been INR 269.68 million.

Note 43Social Security Code

The Code on Social Security 2020 (''the Code'') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Certain sections of the Code came into effect on 3 May 2024. However, the final rules/interpretation have not yet been issued. Based on a preliminary assessment, the Company believes the impact of change will not be significant.

Note 44Exceptional Item

Exceptional item represents expenses incurred by the Company in relation to the Initial Public Offering which is charged to the statement of profit and loss.

Note 45Utilisation of IPO Funds

During the year ended March 31, 2025, the Company has completed its Initial Public Offering (IPO) of 2,48,83,778 fresh equity shares of face value of Re. 1 each at an issue price of ?643 per share except for 8,993 shares issued to eligible employees under the "’’Employee Reservation Portion”” of the IPO for which a discount of ?30 per share was provided. The Company''s equity shares were listed on the National Stock Exchange of India Limited and BSE Limited on December 30, 2024 The utilisation of the IPO proceeds of ''15,331.52 million (net of issue expenses) is summarised below:

Note 46 Other note

The Company has used two accounting software (in case of Opera and SAP S4 HANA) for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that audit trail feature is not enabled for certain changes made, if any, using privileged/ administrative access rights.

The Company has used an accounting software (in case of Yardi) for maintaining its books of account for mall operation which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that, audit trail feature is not enabled for direct changes to data when using certain access rights for the period April 01, 2024 to August 29, 2024,

The Company has used accounting software (in case of WINHMS) for maintaining its books of account for one hotel software which has a feature of recording audit trail (edit log) facility except that, audit trail feature is not enabled for changes made in the masters and for direct changes made, if any, using privileged/ administrative access rights,

Further, the Company did not come across any instance of audit trail feature being tampered with, in respect of accounting software(s) where the audit trail has been enabled.

Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the respective year except the audit trail for one software used in the hotel business in respect of the year ended March 31, 2024 has not been preserved by the Company as per the statutory requirements for record retention.

Further, the Company has used three accounting software (Peoplesoft, Infrasys and Birchstreet) in the hotel business which are operated by third-party software service providers. In the absence of any observations on audit trail feature in the respective Service Organisation Controls (SOC) reports, the Company is unable to comment on whether audit trail feature of these software was enabled and operated throughout the year for all relevant transactions recorded in this software or whether there were any instances of the audit trail feature being tampered with.

Note 47

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

ii) The Company has borrowings from banks and details of charge are mentioned in Note 18.

iii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

iv) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

v) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall: a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

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

viii) The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

Note 48

The Board of Directors of the Company at its meeting dated May 12, 2025 has approved the draft scheme of amalgamation of the wholly owned subsidiaries viz. Eon-Hinjewadi Infrastructure Private Limited, Restocraft Hospitality Private Limited and Wellcraft Infraprojects Private Limited with Ventive Hospitality Limited under Section 230-232 of the Companies Act, 2013 (''Act'') along with other applicable provisions and the rules subject to the requisite approvals under the Act and sanction of the scheme by the National Company Law Tribunal ("NCLT”) or any other competent authority. The appointed date of the said scheme is April 01, 2025 or any other date as may be approved by NCLT or any other competent authority.

Note 49

Previous year figures have been regrouped/ reclassified wherever necessary to conform to this year''s classification.

---

Mar 31, 2024

(n) Provisions

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. When the Company
expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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.

(o) Contingent liabilities

Contingent liability is:

(a) a possible obligation arising from past events and whose existence will be confirmed only by the

occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity or

(b) a present obligation that arises from past events but is not recognized because;

- it is not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation or

- the amount of the obligation cannot be measured with sufficient reliability.

The Company does not recognize a contingent liability but discloses the same as per the requirements of Ind

AS 37.

(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

Classification

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value
through other comprehensive income (‘FVTOCI’) or fair value through profit or loss (‘FVTPL’).

Initial recognition and measurement

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash
flow characteristics and the Company’s business model for managing them. With the exception of trade
receivables that do not contain a significant financing component or for which the Company has applied the
practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain
a significant financing component or for which the Company has applied the practical expedient are
measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section (d)
Revenue from contracts with customers.

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

The Company’s business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at
amortised cost are held within a business model with the objective to hold financial assets in order to collect
contractual cash flows while financial assets classified and measured at fair value through OCI are held
within a business model with the objective of both holding to collect contractual cash flows and selling.

Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the marketplace (regular way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell the asset.

Subsequent measurement

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

• At amortised cost

• At fair value through other comprehensive income (FVTOCI)

• At fair value through profit or loss (FVTPL)

Financial assets classified as measured at amortised cost

A financial asset shall be measured at amortised cost if both of the following conditions are met:

• the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows and

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

After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (‘EIR’) method, less impairment. 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 expense/ (income) in the profit and loss statement. The losses arising from impairment
are recognised in the statement of profit and loss. This category generally applies to trade receivables,
security and other deposits receivable by the company.

Financial assets classified as measured at FVTOCI

There are no financial assets which are measured at FVTOCI.

Financial assets classified as measured at FVTPL

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of profit and loss. Such instruments are measured at fair
value at initial recognition as well as at each reporting date. The fair value changes are recognised in the
statement of profit and loss eg mutual fund. Further, the Company may make an irrevocable election to
designate a financial asset as FVTPL, at initial recognition, to reduce or eliminate a measurement or
recognition inconsistency.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily de-recognised (i.e. removed from the Company’s balance sheet) when

• the rights to receive cash flows from the asset have expired, or

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

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

Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss
on the following financial assets and credit risk exposure:

• Trade receivables

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.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in
the statement of profit and loss except for impairment loss / (gain) on financial assets measured at FVTOCI,
which shall be recognized in the OCI.

Financial liabilities
Classification

Financial liabilities are classified, at initial recognition, and subsequently measured at amortised cost or fair
value through profit or loss (‘FVTPL’).

Initial recognition and measurement

Financial liabilities are recognised initially at fair value net off in the case of financial liabilities not classified
as fair value through profit or loss (‘FVTPL’), transaction costs that are attributable to the issue of the financial
liability. Financial liabilities are recognised in the Balance Sheet when the Company becomes a party to the
contractual provisions of the instrument.

Financial liabilities at amortised cost

This is the most relevant category to the Company. The Company generally classifies interest bearing
borrowings as financial liabilities at amortised cost. After initial recognition, these instruments are
subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the
statement of profit and 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.

Financial liabilities at FVTPL

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated as such upon initial recognition. 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. Separated embedded derivatives are also classified as held for trading
unless they are designated as effective hedging instruments.

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

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

The Company has not designated any financial liability as at fair value through profit and loss.

De-recognition

A financial liability is de-recognised 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 de-recognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the statement of profit and loss.

Offsetting of financial instruments

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

Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts
of cash and are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Company’s cash management.

(r) Provision for employment benefits
Defined contribution plans

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contributions payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expenditure in the statement of profit and loss, when an
employee renders the related service.

Defined benefit plans

Post-employment benefit in the form of gratuity fund scheme is a defined benefit plan. The present value of
obligation under the scheme is determined based on actuarial valuation using the projected unit credit
method (‘PUCM’). The scheme is non-funded.

Re-measurements, comprising of actuarial gains and losses 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. Re-measurements are not reclassified to the statement of profit and loss in subsequent periods.

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

• The date of the plan amendment or curtailment and

• The date on which 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 under ‘employee benefit
expenses’ in the statement of profit and loss:

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

• Net interest expense or income

Refer Note 34 for additional disclosures relating to Company’s defined benefit plan.

Provision for compensated absences

Provision for short term compensated absences is recognised for accumulated leaves that are expected to
be utilized within a period of twelve months from the balance sheet date. Long term compensated absences
are provided for on the basis of an actuarial valuation, using projected unit credit method, as at each
reporting date. The Company recognises the entire changes in provision for compensated absences,
including re-measurements in the statement of profit and loss for the year.

(s) Earnings per share (EPS)

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.

(t) Segment reporting

An operating segment is a component of a company whose operating results are regularly reviewed by the
Company’s chief operating decision maker (CODM) to make decisions about resource allocation and
assess its performance and for which discrete financial information is available. The Company has identified
the Board of Directors of the Company as its CODM.

(u) Other income
Interest Income:

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate (‘EIR’) applicable. For all financial instruments measured at amortized cost, interest income is
recorded using the effective interest rate (EIR). The EIR is the rate that exactly discounts the estimated future

cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the
net carrying amount of the financial asset. Interest income is included in other income in the statement of
profit and loss.

(v) 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 statement of profit and loss. The Company measures EBITDA on the basis
of profit/ (loss) from continuing operations. In its measurement, the Company does not include depreciation
and amortization expense, finance costs and tax expense.

Note 3A : Significant accounting judgements, estimates and assumptions

The preparation of the Financial Statements requires management to make judgements, 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 asset or
liability affected in future periods.

Judgements

In the process of applying the accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the financial statements:

Operating lease commitments - Company as lessor

The Company has entered into commercial property leases on its investment property portfolio. 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 of the commercial property and the fair value
of the asset, that it retains all the significant risks and rewards of ownership of these properties and accounts
for the lease contracts as operating leases.

Estimates and assumptions

The Company based its assumptions and estimates, 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, 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 beyond the Company’s control. Such
changes are reflected in the assumptions when they occur.

Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment testing for an asset is required, the Company estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating
unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an
individual asset, unless the asset does not generate cash inflows that are largely incremental costs and an
allocation of costs directly related to contract activities.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed
at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for
plans operated in India, the management considers the interest rates of government bonds in currencies
consistent with the currencies of the post-employment benefit obligation. The mortality rate is based on
publicly available mortality tables. Those mortality tables tend to change only at interval in response to
demographic changes. Future salary increases and gratuity increases are based on expected future inflation
rates.

Others

Certain tenants have not paid service tax charged by the Company on lease rents during the year ended March
31,2010 and March 31,2011 and disputed levy of service tax through ‘Retailers Association’. In said case,
Hon''ble Supreme Court has vide order dated October 14, 2011, directed the service receivers to deposit 50%
of tax liability in three installments and granted stay on balance dues and the matter is sub judice.

Based on legal advice, the Company is no longer liable to pay service tax in present case as the service
receivers were directed by Hon''ble Supreme Court to pay the service tax and matter is sub judice.

Accordingly, the Company will adjust service tax liability remaining outstanding as at March 31,2023 of Rs.
72.22 lakhs (March 31,2022 of Rs.72.22 lakhs) with corresponding trade receivables on the basis of evidence
of service tax payments provided by tenants."

Note 3B: New and amended standards

Amendments to Standards effective 1 April 2023

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules,
2023 dated 31 March 2023 to amend the following Ind AS which are effective from 01 April 2023 which have
been considered by the Company for the reporting period commencing from April 1,2023.

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies 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.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed the scope of the recognition exemption in
paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on
initial recognition, give rise to equal taxable and deductible temporary differences.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments 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".

Entities develop accounting estimates if accounting policies require items in financial statements to be
measured in a way that involves measurement uncertainty.

The amendments listed above did not have any impact on the amounts recognised in current period and are
not expected to significantly affect the future periods.

Note:

As at March 31, 2023

- The Board of Directors of the Company at its meeting held on November 16, 2022 and the shareholders by way of Special Resolution on November 17, 2022, approved the buy back of the fully paid equity
shares of the face value of INR 10 each of the Company from its shareholder including promoters and promoter group of the Company as on the record date, on a proportionate basis ata price of INR 2,520
per share for an aggregate amount not exceeding INR 680.51 million. The Company completed the buy back process on November 21, 2022 and has complied with all the requisite formalities with Registrar
of Companies and other regulatory authorities.

- In accordance with section 69 of the Companies Act, 2013, the Company has created ''Capital Redemption Reserve'' of INR 2.70 million equal to the nominal value of the shares bought back as an
appropriation from Securities Premium Account.

As at March 31, 2020

- The Board of Directors of the Company at its meeting held on July 17, 2019 and the shareholders by way of Special Resolution on July 18, 2019, approved the buy back of the fully paid equity shares of the
face value of INR 10 each of the Company from its shareholder including promoters and promoter group of the Company as on the record date, on a proportionate basis ata price ofINR 1,507 per share for
an aggregate amount not exceeding INR 1,169.43 million. The Company completed the buy back process on July 22, 2019 and has complied with all the requisite formalities with Registrar of Companies and

other regulatory authorities.

- In accordance with section 69 of the Companies Act, 2013, the Company has created ''Capital Redemption Reserve'' of INR 7.76 million equal to the nominal value of the shares bought back as an
appropriation from Securities Premium Account.

(f) Share Split:

- On and from the Record Date of July 12, 2024, the equity shares of the Company have been sub- divided, such that 1 (one) equity share having face value of INR 10/- each, fully paid-up, stands sub-divided
into 10 (ten) equity shares having face value of INR 1/- each, fully paid-up, ranking pari-passu in all respects.

Nature and purpose of reserves
Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as
issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Retained Earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit
plans, net of taxes that will not be reclassified to the Statement of Profit and Loss.

Capital redemption reserve

During financial year ended March 31, 2013, March 31, 2014, March 31, 2020 and March 31, 2023 the Company bought back its
shares and in order to comply with the requirements of the Company law, the Company has created capital redemption reserve.

Note 33

Segment Information

The Board of Directors is the Chief Operating Decision Maker (CODM) and monitors the operating results of its business units separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the Restated Summary Statements. The
Company''s financing (including finance costs and finance income) is managed on a Company basis and is not allocated to operating segments.

The Company does not have any non-current investments and any investment in associates and joint-ventures. There are no non-current financial assets, income tax and deferred tax assets
outside India.

For management purposes, the Company is organised into business units based on its products and services and has three reportable segments, as follows:

(i) Commercial leasing - Commercial leasing includes revenue from leasing operations comprising of lease rentals from the properties given under lease. (Office space and Mall)

(ii) Hospitality - Hospitality includes revenue from hotel operation comprise of revenue from sale of room, food and beverages and allied services related to hotel operation, including income
from telecommunication and internet services.

Note 39

Financial risk management objectives and policies

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

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised 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 prices comprise three types of risk: interest rate risk, currency risk and other price risk
such as equity price risk and commodity price risk. Financial instruments affected by market risk include borrowings and investments.

The sensitivity analyses in the following sections relate to the position as at March 31, 2024 and March 31, 2023.

The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed-to floating interest rates of the debt are all constant as at March 31, 2024 and March 31, 2023.

Price risk

There is no investment in equity shares, hence there is no equity price risk. Further, the Company does not carry any significant commodity price risk.

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 has not hedged its exposure to fluctuations in the interest rates on account of the insignificant impact of any changes in the interest
rate to its operations.

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 the Company profit before tax is affected through the impact on floating rate
borrowings, as follows:

Credit risk

Credit risk is the risk that a 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 from its financing activities, including deposits with banks, if any, investment in mutual fund and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. For the fixed lease income, the billing is done in advance i.e. at the beginning of the month
and for variable lease rent and other maintenance charges, the credit period provided is of 7 to 10 days. Thus there are no major trade receivable balances outstanding at the year and period end.

In case of hospitality business, credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed
based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 39.

The Company assesses at each reporting date whether a trade receivable or a group of trade receivables is impaired. The Company recognises lifetime expected credit losses for all trade receivables that do not constitute a financing
transaction and which are due for more than six months. The expected credit losses are measured at an amount equal to 12 month expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk
on the trade receivables has increased significantly since initial recognition. The Company uses a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s finance department is responsible for liquidity, funding as well as settlement
management. In addition, processes and polices related to such risk are overseen by Senior management. Management monitors the Company''s net liquidity position on a monthly and quarterly basis through its Senior management
meeting and board meetings. They use rolling forecasts on the basis of expected cash flows.

The Senior management ensures that the future cash flow needs are met through cash flow from the operating activities and short term borrowings from banks.

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

Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital
management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it 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 the capital using gearing ratio. The Company includes within net debt, lease liabilities, interest bearing loans and
borrowings, less cash and cash equivalents.