Notes to Accounts of Vikram Kamats Hospitality Ltd.

Mar 31, 2025

3.15. Provisions, contingent liabilities, contingent assets

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. If the effect of time value of money is
material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognized as a finance cost. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an
outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no
provision or disclosure is made.

The Company does not recognize a contingent asset but discloses its existence in the financial statements if the inflow of economic benefits is
probable. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an
asset.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

3.16. Earnings per share

Basic earnings per share is computed using the net profit for the year attributable to the shareholders'' and weighted average number of shares
outstanding during the year. The weighted average numbers of shares also includes fixed number of equity shares that are issuable on conversion of
compulsorily convertible preference shares, debentures or any other instrument, from the date consideration is receivable (generally the date of their
issue) of such instruments.

Diluted earnings per share is computed using the net profit for the year attributable to the shareholder'' and weighted average number of equity and
potential equity shares outstanding during the year including share options, convertible preference shares and debentures, except where the result
would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the
beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

3.17. 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 and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

3.17.1. Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are
purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the
financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortized cost (except for debt instruments that are designated as
at fair value through profit or loss on initial recognition):

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

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

All other financial assets are subsequently measured at fair value.

Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant
period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the gross carrying amount on initial recognition.

Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Interest income is
recognized in profit or loss and is included in the “Other income” line item.

Investments in equity instruments at FVTOCI

On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in fair
value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for
trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains
and losses arising from changes in fair value recognized in other comprehensive income and accumulated in the ‘Reserve for equity instruments
through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

A financial asset is held for trading if:

• It has been acquired principally for the purpose of selling it in the near term; or

• On initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern
of short-term profit-taking; or

• It is a derivative that is not designated and effective as a hedging instrument or a financial guarantee. Dividends on these investments in equity
instruments are recognized in profit or loss when the Company''s right to receive the dividends is established, it is probable that the economic benefits
associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of
dividend can be measured reliably. Dividends recognized in profit or loss are included in the ‘Other income'' line item.

Financial assets at fair value through profit or loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent
changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement
recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset and is
included in the ‘Other income'' line item. Dividend on financial assets at FVTPL is recognized when the Company''s right to receive the dividends is
established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of
part of cost of the investment and the amount of dividend can be measured reliably.

Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model based on ‘simplified approach'' for the financial assets which are
not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to
lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the twelve month ECL, unless there has been a
significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an
impairment gain or loss in statement of profit and loss.

De-recognition of financial asset

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all
the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial
asset, the Company continues to recognize the financial asset and also recognizes a collateralised borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and
receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit
or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.

On de-recognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a transferred asset), the
Company allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and
the part it no longer recognized on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying
amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any
cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss if such gain or loss would
have otherwise been recognized in profit or loss on disposal of that financial asset. A cumulative gain or loss that had been recognized in other
comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized osses (including
impairment gains or losses) or interest

3.17.2. Financial liability and equity instrument
Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments
issued by the Company are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company''s own equity instruments is
recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company''s
own equity instruments.

Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for de-recognition or when the continuing involvement
approach applies, financial guarantee contracts issued by the Company, and commitments issued by the Company to provide a loan at below-market
interest rate are measured in accordance with the specific accounting policies set out below.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognized by the Company as an acquirer
in a business combination to which Ind AS 103 applies or is held for trading or it is designated as at FVTPL.

A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose of repurchasing it in the near term; or

• on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern
of short-term profit-taking; or

• it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading or contingent consideration recognized by the Company as an acquirer in a business
combination to which Ind AS 103 applies, may be designated as at FVTPL upon initial recognition if:

• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;

• the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a
fair value basis, in accordance with the Company''s documented risk management or investment strategy, and information about the grouping is
provided internally on that basis; or

• it forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire combined contract to be designated as
at FVTPL in accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognized in profit or loss. The net gain or
loss recognized in profit or loss incorporates any interest paid on the financial liability and is included in the ‘Other income'' line item.

However, for non-held-for-trading financial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial liability that
is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes
in the liability''s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss, in which case these effects
of changes in credit risk are recognized in profit or loss. The remaining amount of change in the fair value of liability is always recognized in profit or
loss. Changes in fair value attributable to a financial liability''s credit risk that are recognized in other comprehensive income are reflected immediately
in retained earnings and are not subsequently reclassified to profit or loss.

Gains or losses on financial guarantee contracts and loan commitments issued by the Company that are designated by the Company as at fair value
through profit or loss are recognized in profit or loss.

Financial liabilities subsequently measured at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at the end of subsequent
accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the
effective interest method. Interest expense that is not capitalised as part of costs of an asset is included in the ‘Finance costs'' line item. The effective
interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability or (where
appropriate) a shorter period, to the gross carrying amount on initial recognition.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a
specified debtor fails to make payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued by the Company are initially measured at their fair values and, if not designated as at FVTPL, are subsequently
measured at the higher of:

• the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and

• the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of Ind AS
18.

Commitments to provide a loan at a below-market interest rate

Commitments to provide a loan at a below-market interest rate are initially measured at their fair values and, if not designated as at FVTPL, are
subsequently measured at the higher of:

• the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and

• the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of Ind AS
18.

Compound financial instruments

The liability component of a compound financial instrument is recognized initially at fair value of a similar liability that does not have an equity
component. The equity component is recognized initially as the difference between the fair value of the compound financial instrument as a whole and
the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and the equity components, if material, in
proportion to their initial carrying amounts.

Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective
interest rate method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition except on
conversion or expiry.

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 recognized amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Reclassification

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for
financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if
there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The management
determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. A change in
the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company
reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next
reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment
gains or losses) or interest.

De-recognition of financial liabilities

The Company de-recognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An
exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not
attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of the financial liability de-recognized and the consideration paid and payable is
recognized in profit or loss.

4. New Ind AS & amendments to existing Ind AS issued and changes in Schedule III

Ministry of Corporate Affairs has notified new standards or amendments to the existing standards effective from 1^st April, 2022.

Ind AS 16 - Proceeds before intended use

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognized 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 period beginning on or after 1st April, 2022. The Company has evaluated the amendment and there is no impact on its
financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify 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. The Company has evaluated the amendment and there is no impact on its financial statements.

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities
assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards
(Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change
the requirements of Ind AS 103. The Company has evaluated the amendment and there is no impact on its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10%'' test of Ind AS 109 in assessing whether to de-recognize a financial
liability. The Company has evaluated the amendment and there is no impact on its financial statements.

Changes in Schedule III Division II of Companies Act, 2013 notified and adopted by the Company:

On March 24, 2021, the Ministry of Corporate Affairs (“MCA”) through a notification, amended Schedule III of the Companies Act, 2013 to be effective
from April 1, 2021. Key amendments relating to Division II which relate to companies whose financial statements are required to comply with
Companies (Indian Accounting Standards) Rules 2015 are:

In Balance Sheet:

i) Lease liabilities should be separately disclosed under the head duly distinguished as current or non-current.

ii) Certain additional disclosures in the statement of changes in equity.

iii) Specified format for disclosure of shareholding of promoters.

iv) Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible asset under development.

v) If a company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions, then disclosure of details
of where it has been used.

vi) Specific disclosure under regulatory such as compliance with approved schemes of arrangements, compliance with number of layers of companies,
title deeds of immovable property not held in name of company, loans and Advances to Promoters, Directors, Key Managerial Personnel (KMP) and
related parties, details of benami property held, relationship with struck-off companies, financial ratios, etc.

In Statement of Profit and Loss:

i) Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency specified under the head
“additional information” in the notes forming part of financial statements.

The amendments are extensive, and the Company has given effect to them as required by law in the current year financial statements to the extent
applicable.

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Mar 31, 2024

20.2 Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

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 all preferential amounts. The distribution will be in proportion to the number of equity share held by the Shareholders.

22.1 The Term loan of f 1891.91 lakhs (Prev. year f Nil) @ rate of Interest 10.90% p.a. is taken from NBFC during the year for 144 months (w.e.f. 29th February 2024), The repayment is being done on 1st of every month through EMI from 1st April 2024. The loan is secured by (a) mortgage of (i) hotel property of the promoter company situated at Silvassa (ii) commercial property of the company situated at Bhandup West, Mumbai - 400078 (iii) commercial property of the company situated at Nahur, Mumbai - 400 078 (b) Escrow arrangement for receivables; (c) lien on a residential property of promoters situated in Mumbai; and Managing Director and a Director (d) co-borrowers - (i) Dr. Vidhi Vikram Kamat (ii) Dr. Vikram Vithal Kamat (iii) Vitizen Hotels Limited (iv) Kamats Worldwide Food Services Pvt. Ltd

22.2 The movable and current assets of the company have been hypothected for the above term loan of f 1,891.91 lakhs (Prev. year f Nil) taken from NBFC during the year for 144 months (w.e.f. 29th February 2024),

22.3 The Term loan of f Nil (Prev. Year f 103.07 lakhs) @ rate of Interest 9.35% p.a. is taken from a bank for 190 months (w.e.f 5th September 2017), The repayment is being done on 5th of every month through EMI. The loan is secured by mortgage of the commercial property of the company situated at commercial property situated at Bhandup West, Mumbai - 400078 and the personal gurantee of director. This loan from a bank has been taken over by an NBFC through balance transfer.

22.4 Company has availed Credit Facility under Emergency Credit Line Guaranteed Scheme by way of top up loan of f NIl (Prev. year f 13.36 lakhs) from a bank. The loan is secured by extension of second ranking charge over all the existing securities created in favour of the ICICI Bank by the commercial property situated at Bhandup West, Mumbai - 400078 and the personal gurantee of director. The tenure of loan is 4 years. This loan from a bank has been taken over by an NBFC through balance transfer.

22.5 The Term loan of f Nil (Prev. year f 80.00 lakhs) @ rate of Interest 9.75% p.a. is taken from a bank for 180 months (w.e.f. 27th May, 2022), The repayment is being done on 5th of every month through EMI. The loan is secured by mortgage of the commercial property of the company situated at Nahur, Mumbai - 400078 and the personal gurantee of director.This loan from a bank has been taken over by an NBFC through balance transfer.

22.6 The Term loan of f 100.00 lakhs (Prev. year f Nil) @ rate of Interest 8.75% p.a. is taken during the year for 84 months (w.e.f. 31st July 2023), The repayment is being done end of every month through EMI. The loan is secured by mortgage of the commercial property of the company situated at Bhandup West, Mumbai - 400078.

Note:

The Company offsets tax assets and liabilities in 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 authority.

Current tax is provided as per old tax regime. Deferred tax asset has been created on losses incurred during the year, considering there is a deferred tax liability on net basis.

(ii) Defined benefit plans and other long term benefits a) Gratuity

The Company provides for gratuity of employees as per the Payment of Gratuity Act, 1972. As per the policy of the Company, obligations on account of payment of gratuity of an employee is settled only on termination / retirement of the employee. Gratuity is provided in the books on the basis of actuarial valuation. It is an unfunded plan.

In the previous year, the Company had taken Hotel Building in Silvassa to renovate, manage and operate under Business Contract Agreement for a period of 10 years. The Company pays management fees calculated based on percentage of revenue earned from this property.The Company has recognised management fees expense of Rs. 162.94 lakhs during the year (Previous year Rs.154.27 lakhs). Since future revenue is based on percentage of revenue which is contingent in nature, no accounting / disclosures are required under Ind AS 116 - ''Leases''.

45.1 During the year, the Company had entered in to business Leave and License agreement with a third party for the Restaurant property situated at Nariman Point, Mumbai for a period of 5 years. The Company pays monthly compensation for this property. The Company has accounted lease rent of Rs.18.89 lakhs during the year (Previous year Rs. Nil).

45.2 During the year, the Company had entered in to business Leave and License agreement with a third party for the Restaurant property situated at

Vashi, Navi Mumbai for a period of 5 years. The Company pays monthly compensation for this property. The Company has accounted lease rent of

Rs.5.86 lakhs during the year (Previous year Rs. Nil).

45.3 During the year, the Company had entered in to business Leave and License agreement with a third party for the Restaurant property situated at

Bhandup, Mumbai for a period of 5 years. The Company pays monthly compensation for this property. The Company has accounted lease rent of

Rs. 0.57 lakhs during the year (Previous year Rs. Nil).

47 Disclosures as required by Indian Accounting Standard (Ind AS) 108 - Operating Segments

There are no reportable segments under Ind AS-108 ‘Operating Segments'' as the Company is operating only in the hospitality service segment,

therefore, disclosures of segment wise information is not applicable. Further, no single customer represents 10% or more of the Company''s total revenue during the year ended 31st March, 2024 and 31st March, 2023.

48 Foreign currency exposure outstanding as on 31st March 2024: Nil (31st March 2023: Nil). There are no outstanding derivative contracts as on 31st March 2024 (31st March 2023: Nil).

49 During the year under review there is no satisfication charge or modification of charge is pending with ROC.

50 The Company has made disclosures in the financial statements in respect of changes/new requirements under Schedule III to the Companies Act, 2013 to the extent applicable

(b) Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount 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.

The following method and assumptions are used to estimate the fair values:

(i) The management assessed that fair value of cash and cash equivalents, trade receivables (net), other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Further, the management has assessed that fair value of non-current financial liabilities - borrowings will be approximate to their carrying amounts. With respect to deposit given under long term operating and management agreement, same is stated at fair value of the deposit given.

(c) Fair value hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Notes:

(i) The Company has not disclosed the fair value of financial instruments such as trade receivables, trade payables, short term loans, deposits, borrowings etc. because their carrying amounts are a reasonable approximation of fair value.

(ii) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(iii) There have been no transfers between Level 1 and Level 2 for the years ended March 31,2024 and March 31,2023.

(e) Financial guarantee contracts : Corporate guarantee gven by the Company is Nil 52 Financial risk management

The Company has exposure to the three risks mainly funding/ liquidity risk, credit risk, market risk. The Company''s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company''s financial performance. The Company does not have any derivative financial instruments. The Board of directors has overall responsibility for the establishment of the Company''s risk management framework. Risk management systems are reviewed periodically to reflect changes in market conditions and Company''s activities.

(a) Credit Risk :

Credit risk is the risk of financial loss to the Company if a counterparty to a financial instruments fail to meet its contractual obligations. The Company is exposed mainly to credit risk which arises from cash and cash equivalents and deposit with banks.

(i) Cash and cash equivalent

The Company considers factors such as track record, size of institution, market reputation and service standards to select the banks with which balances and deposits are maintained. The bank balance and fixed deposits are generally maintained with the banks with whom the Company has regular transactions. Further, the Company does not maintain significant cash in hand other than those required for its day to day operations. Considering the same, the Company is not exposed to expected credit loss of cash and cash equivalent and bank deposits.

(b) Liquidity Risk :

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligation on time. The Company relies on mix of borrowings, capital and operating cash flows to meet its needs for funds. The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on the undiscounted payments.

(c) Interest rate risk

Company has taken term loans from a bank. It carries fixed rate of interest rate. Hence, borrowing of the Company are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(d) Market risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The pre dominant currency of the Company''s revenue and operating cash flows is Indian Rupees (INR). Company did not have earnigs in foreign currency. There is no foreign currency risk as there are no foreign currency transactions.

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 shareholders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder''s value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

54 Other Statutory Information

(i) The Company does not have any Benami property. No proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not advanced to or loaned to or invested funds in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that such 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.

(iii) 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.

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

(v) The Company has not been declared as a wilful defaulter as prescribed by Reserve Bank of India.

(vi) The Company has not invested in any crypto or vIrtual currency.

55 Relationship with Struck off Companies

During the year, the Company had no transactions with a company which was struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

54 Other Statutory Information

(i) The Company does not have any Benami property. No proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not advanced to or loaned to or invested funds in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that such 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.

(iii) 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.

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

(v) The Company has not been declared as a wilful defaulter as prescribed by Reserve Bank of India.

(vi) The Company has not invested in any crypto or vIrtual currency.

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Mar 31, 2016

1.1 Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

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 all preferential amounts. The distribution will be in proportion to the number of equity share held by the Shareholders.

2. Related Party Disclosures :

Related Parties:

(a) Holding Company :

- Vits Hotels Worldwide Private Limited (cease to be holding company w.e.f 11th February 2016)

(b) Fellow Subsidiary Company :

- Conwy Finance and Leasing Private Limited (cease to be fellow subsidiary w.e.f 11th February 2016)

- Kamats Amusements Private Limited (cease to be fellow subsidiary w.e.f 11th February 2016)

(c) Associate Company where control exits and Transaction have taken place during the year:

- Idlinow Eventures (India) Limited

- Kamat Holiday Resorts (Silvassa) Limited

(d) Key Management Personnel :

Mr. Babu Devadiga (Resigned w.e.f 20th November 2015)

Mr. G N Shenoy (Resigned w.e.f 25th December 2015)

Mrs. Vidhi V. Kamat

(e) Other related parties with whom transactions have taken place during the year:

Dr. Vithal V. Kamat - Relative

Mr. Vikram V. Kamat - Relative

(f) Summary of transactions during the year with Related Parties entered into on commercial basis in the interest of the Company and approved by the Board and status of outstanding balances as on 31st March, 2016:

3. Segment Reporting:

The Company''s activities involve predominantly providing hospitality related services, which is considered to be a single business segment since these are subject to similar risks and returns. Further, services are not provided out of India and hence there are no reportable geographical segments. Accordingly, the financial statements are reflective of the information required by Accounting Standard 17 - Segment Reporting (AS-17).

4. Leases:

The Company''s significant leasing arrangements are in respect of operating leases for premises. These leasing arrangements, which are not non-cancelable, range between eleven months and nine years generally or longer and are usually renewable by mutual consent on mutually agreeable terms.

The aggregate lease rentals payable are charged as rent and aggregate license fees income from shops and other spaces on leave and license basis are shown as License Fees.

Future commitments in respect of minimum lease payments payable for non-cancelable operating leases (other than land) entered into by the Company:

5. Pursuant to notification of Schedule II to the Companies Act, 2013 with effect from 1st April, 2014, depreciation for the year ended 31st March, 2015 has been provided on the basis of useful lives as prescribed therein. Accordingly, depreciation for the year ended 31st March, 2015 is higher by Rs. 40,905/- due to change in the estimate of useful life of certain assets.

6. Figures of the previous year have been regrouped / reclassified wherever necessary to confirm to the Current year''s presentation.