(q) Accounting for Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions are recognised when the Company has a binding present obligation. This may be either legal because it derives
from a contract, legislation or other operation of law because the Company created valid expectations on the part of the third
parties by accepting certain responsibilities. To record such an obligation it must be probable that an outflow of resources will
be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(ii) Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made.

(iii) Disclosure of the contingent assets are made when it is probable that there is an inflow of future economic benefits. However,
when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as
an asset.

(r) Exceptional items:

The company discloses certain financial information both including and excluding exceptional items. The presentation of information
excluding exceptional items allows a better understanding of the underlying performance of the company and provides consistency
with the company's internal management reporting. Exceptional items are identified by virtue of either their size or nature so as to
facilitate comparison with prior periods and to assess underlying trends in the financial performance of the company.

(s) Statement of Cash Flows:

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flow for the year are classified by operating,
investing and financing activities.

(t) Earnings per Share:

Basic earnings per share is computed, by dividing the profit or loss after tax by the weighted average number of equity shares
outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend,
interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic earnings per share.

(u) Financial Instruments:

(1) Financial assets

(i) Initial recognition and measurement

Financial assets are recognised when and only when, the Company becomes a party to the contractual provisions of the
financial instrument. The Company determines the classification of its financial assets at initial recognition.

When financial assets are recognised initially, they are measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets, which are not at fair value through profit or loss, are adjusted to
the fair value on initial recognition.

(ii) Classification:

a. Cash and Cash Equivalents

Cash comprises cash/cheques on hand and demand deposits with banks. Cash equivalents are short-term balances
with an original maturity of three months or less from the date of acquisition, highly liquid investment that are readily
convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

b. Debt Instruments

The Company classifies its debt instruments, as subsequently measured at amortised cost or fair value through Other
Comprehensive Income or fair value through profit or loss based on its business model for managing the financial assets
and the contractual cash flow characteristics of the financial asset.

(i) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held for collection of
contractual cash flows where those cash flows represent solely payments of principal and interest. Interest income
from these financial assets is included as a part of the Company's income in the Statement of Profit and Loss using the
effective interest rate method.

(ii) Financial assets at fair value through Other Comprehensive Income (FVOCI)

Financial assets are subsequently measured at fair value through Other Comprehensive Income if these financial assets
are held for collection of contractual cash flows and for selling the financial assets, where the assets cash flows represent
solely payments of principal and interest. Movements in the carrying value are taken through Other Comprehensive
Income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses
which are recognised in the Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain
or loss previously recognised in Other Comprehensive Income is reclassified from Other Comprehensive Income to the
Statement of Profit and Loss. Interest income on such financial assets is included as a part of the Company's income in
the Statement of Profit and loss using the effective interest rate method.

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

Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain
or loss on such debt instrument that is subsequently measured at FVTPL and is not part of a hedging relationship as well
as interest income is recognised in the Statement of Profit and Loss.

c. Equity Instruments

The Company subsequently measures equity investment at cost. Dividends from such investments are recognised in the
Statement of Profit and Loss as other income when the Company's right to receive payment is established.

De-recognition

A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial
asset. Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the
Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is
not derecognised. Where the Company retains control of the financial asset, the asset is continued to be recognised to
the extent of continued involvement in the financial asset.

(2) Financial liabilitiesInitial recognition and measurement

Financial liabilities are recognised when and only when, the Company becomes a party to the contractual provisions of the
financial instrument. The Company determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at fair value. Transaction costs that are directly attributable to the acquisition or issue
of financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

Subsequent measurement

After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at
amortised cost using the effective interest method. Gains and losses are recognised in the Statement of Profit and Loss when
the liabilities are derecognised, and through the amortisation process.

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 a de-recognition of the original liability and the
recognition of a new liability, and the difference in the respective carrying amounts is recognised in the Statement of Profit and
Loss.

(3) Impairment of financial assets

The Company assesses, at each reporting date, whether a financial asset or a group of financial assets is impaired and allowance
for losses on such assessment is made in the Statement of Profit and Loss.

(v) Recent accounting pronouncements:a. New Standards/Amendments notified but not yet effective:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2026, MCA has notified following
Amendment to Ind AS, applicable to the Company w.e.f. April 1,2025.

- Ind AS - 21 The Effects of Changes in Foreign Exchange Rates Lack of Exchangeability

- Ind AS 12 - Income Taxes relating to International Tax Reform - Pillar Two Model Rules - Exception to recognition and disclosure
of deferred tax.

- Amendments to Ind AS 7 - Cash flow statement and Ind AS 107 - Financial Instrument Disclosures relating to supplier finance
arrangements.

- Ind AS 1-Presentation of Financial Statements - Classification of Liabilities as current or non- current and non- current liabilities
with covenants.

The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any
significant impact in its Standalone financial statements.

b. New and amended standards issued but not effective:

The MCA has issued certain amendments to Indian Accounting Standards which are not yet effective as at March 31,2026. The
Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

The rupee loan from BMW Financial Services (I) Limited - V is secured against vehicles and is repayable in 60 EMI of Rs.2.09 Lakhs starting from
October 2022 and the balance of Rs. 52.03 lakhs after paying 60 EMI is to be paid in one installment.

Note B :

The rupee loan from Kotak Mahindra Prime Limited is secured against vehicles and is repayable in 36 EMI starting from June 2022. The loan is fully
repaid during the year.

Note C :

The rupee loan from Mercedes-Benz Financial Services India Pvt. Ltd. is secured against vehicles and is repayable in 60 EMI starting from May
2023.

Note D :

The rupee loan from Mercedes-Benz Financial Services India Pvt. Ltd. is secured against vehicles and is repayable in 48 EMI starting from March
2025.

The Company has availed Overdraft facility from Punjab national Bank amounting to Rs. 600 Lakhs (PY Rs. 600 Lakhs) against the security of fixed
deposit amounting to Rs. 700 Lakhs (PY Rs. 700 lakhs).

Note F :

The Company has availed working capital facility of Rs. 1000 Lakhs and taken term loan sanction of Rs. 3000 Lakhs from Kotak Mahindra Bank
Limited, which is still pending for disbursement.

The said loans are secured against first and exclusive charge on all existing and future current and fixed assets (including lease rentals) of the
Borrower.

Hypothecation of rent receivables from M/s Totalenergies Marketing India Private Limited, M/s Housing Development Finance Corporation Limited
(now HDFC Bank Limited) and M/s Safran India Private Limited or any other tenants in future of the mortgaged collateral property. Mortgage of
the Unit No. A-14 and A-15 at ground floor, entire 2nd floor, entire 3rd floor, entire 4th floor and entire 5th floor of the building named Leela Galleria
situated at andheri kurla road, Mumbai-400059 held as Investment Property. The loan is secured by personal guarantee of Mr. Dinesh Nair and
Corporate guarantee of Leela Fashion Private Limited. The working capital facility is to be reviewed every year.

The term loan of Rs. 3000 Lakhs is sanctioned for payment of disputed liability. The Bank will disburse as and when the dispute is settled. The said
loan is repayable in 120 installment starting from month following the month of first disbursement. The loan carry MCLR 3% as rate of interest.
During the financial year, the Company has discharged its entire loan facility.

37. Additional information to the Financial Statements37.1 Disputes with Airports Authority of India (AAI)

(a) (i) The lease agreement with Airports Authority of India (AAI) for leasing of 18000 sq mtrs of land for Mumbai hotel was valid upto

July 11,2012. AAI vide letter dated 31st March, 2011, had offered to extend the lease for futher period of 30 years on the revised
terms, which the Company had accepted. Pending execution of the lease agreement, AAI had been provisionally extending the
lease for 3 to 6 months at a time and the latest extension was till January 11,2016. AAI Has arbitrarily increased the lease rental
payable for the Mumbai hotel, effective from October 1,2014. The increased rentals on the basis of such arbitrary increased
works out to Rs.17,552 Lakhs for the period upto March 31,2026 (upto March 31,2025 Rs. 15,380 Lakhs). The Company has
objected to the said increased and therefore not provided for the same in the financial statement. AAI has unilaterally terminated
the lease and commenced eviction proceedings. The Hon'ble Bombay High Court vide it's order dated 9th June, 2025 directed
the Eviction Officer (EO) to proceed with the eviction proceeding by on day to day basis in accordance with the law. The Hon'ble
High Court also directed to refer the matter to Arbitration other than the matter related EO. The Hon'ble Supreme Court in an
appeal against the said order held that it shall be open for the Company as well as AAI to put forward their submission before
the “’’Adjudicating Authority”” under the AAI Act. If any adverse order is passed by the Authority under the AAI Act the same is
appealable. The Evication Proceeding has been initiated by EO, however, the Company challanged the jurisdiction of EO before
the Hon'ble Bombay High court. The Hon'ble Bombay High court has directed the EO to decide the issue of settlement between
the Company and AAI. The arbitration proceeding is also pending before the arbitrator. Depreciation on Mumbai hotel building
is provided at the applicable rate, on the assumption that the lease will be renewed.

(ii) In the matter of Special Leave Petition filed by Resources Aviation Redressal Association (ROAR) before the Hon'ble Supreme
Court of India against the rejection of writ petition filed by them against the Company and others before Hon'ble Bombay High
Court regarding granting of adhoc extension of lease of 18,000 Sq. Mtrs. of land belonging to AAI without bidding process, the
Hon'ble Supreme Court of India vide order dated 18th December, 2025 dismissed the petition.

(b) The Company had also entered into another lease agreement on February 7, 1996 with the AAI for a land admeasuring 11,000 sqmt
intended for the construction of a 150-room Hotel at Mumbai. A Supplementry Agreement dated 7th February 1996 was also entered
into between the Company and AAI. The terms of the agreements was royalty on Gross Turnover with minimum guaranteed amount
(MG) for a specfied period and Ground Rent. The terms and conditions specified in the Supplemental Agreement, became impossible
of performance for various reasons and therefore the project could not come through and the proposed150 room hotel could not
be constructed. The Company vide letter dated April 6, 2017 requested AAI to take over immediate physical possession of the land
pending restoration of FSI by the Company. No Provision has been made for the cost of FSI as it is not ascertainable. However, AAI
commenced the eviction proceedings with their claim of MG on projected turnover and enhanced rent. As per the revised claim filed
by the AAI in February 2019 before the eviction officer, the amount claimed by AAI as on January 31,2019 is Rs. 80705 lakhs towards
royalty on projected turnover and rent including interest as against Rs. 28537 lakhs as on January 31, 2017 claimed earlier by AAI,
which the Company is disputing on several grounds. In the eviction proceedings, The Hon'ble Bombay High Court vide it's order
dated June 9, 2025 directed the Eviction Officer (EO) to proceed with the eviction proceeding by on day to day basis in accordance
with the law. The Hon'ble Bombay High Court also directed to refer the matter to Arbitration other than the matter related EO. The
Hon'ble Supreme Court on an appeal against the said order held that it shall be open for the Company as well as AAI to put forward
their submission before the “Adjudicating Authority” under the AAI Act. If any adverse order is passed by the Authority under the AAI
Act the same is appealable. The Evication Proceeding has been initiated by EO, however, the Company challanged the jurisdiction of
EO before the Hon'ble Bombay High court. The Bombay High court has directed the EO to decide the issue of settlement between the
Company and AAI. The arbitration proceedings is also pending before the arbitrator. Based on the legal opinion obtained, the liability
is contingent in nature. Hence, no provision is made for the said claim.

c) The disputes regarding the rent and royalty payable to AAI had been reffered to the Settlement Advisory Committee (SAC) duly
constituted by the Board of AAI. The Company has received an offer letter dated 01/12/2023 from AAI based on the deliberation and
review of SAC report for the renewal of lease of land admeasuring 18,000 sq.mt. subject to certain terms and conditions for which
Company has made representations. The AAI is reviewing the Company's representation on the renewal the lease. The Company is
actively following the matter with AAI and awaiting for the response from AAI.

d) In view of the above the company has not adopted IND AS-116 on the above leased transactions.

37.2 An appeal filed by one of the shareholder claiming to be minority shareholder viz. ITC Ltd. before the Hon'ble Supreme Court of India against
the order of Securities Appellate Tribunal (SAT) in the matter of transfer of Business Undertaking to Brookfield Group is pending for hearing.
Further, The National Company Law Tribunal (NCLT), Mumbai has passed an order dated 24/01/2024 for the petition filed by said ITC Limited
and it's subsidiary alleging oppression and mismanagement, waived the minimum threshold requirement of 10% shareholding for filing
petition under section 241 of Companies Act, 2013. The Company has filed an appeal against the said order before The National Company
Law Appellate Tribunal (NCLAT). The matter is under the hearing stage.

37.3 Going Concern Basis

The financial statements of the Company have been prepared on a ‘Going concern basis', based on the assumption that the Company
shall get favourable judgements and settlements in respect of matters referred in Note No.37.1(a) and (b) including the renewal of lease and
continue the business.

37.6 Employee benefit plansDefined contribution plans

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the plan, the Company is
required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable under these plans by the
Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees :

(i) Gratuity

The Company has a tie-up under Employees' Trust Deed Group Gratuity- cum-Life Assurance Scheme of the Life Insurance Corporation
of India, and has partly funded the defined benefit plan for eligible employees. The scheme provides for lump sum payment to eligible
employees on retirement, death while in employment or on termination of employment, of an amount equivalent to 15 days' salary
payable for each completed year of service or part thereof in excess of six months subject to a limit of Rs.20 lakhs. The unfunded

(ii) Compensated absence liabilities

Present value of compensated absence liabilities (unfunded) recognised in Balance Sheet as per actuarial valuation under Projected
Unit Credit Method.

(iii) Statutory impact of new Labour Codes

On November 21,2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating
29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the
financial impact due to changes in regulations. The Company has considered restructured compensation of its employees from
2026-27 onwards, and assessed the impact of the changes, consistent with the Labour Codes, draft rules, FAQs and legal opinion.
Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company has presented such incremental
impact as “Statutory impact of new Labour Codes” under “Exceptional Items” in the statement of profit and loss for the year ended
March 31,2026. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on
other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.

37.7 Segment Information

The Company has identified single reportable segment, i.e., hotel, as its business. Accordingly, disclosures relating to the segmentation
under Ind AS 108, “Operating Segment” is not required.

37.8 Leases

a) The Company's lease asset primarily consist of lease for buildings. The Company has applied the exemption not to recognize right-of-
use assets and liabilities for leases with:

i) less than 12 months of lease term on the date of contract inception.

ii) either low value or cancellable at the option of lessee.

iii) lease already expired and not renewed till date.

iv) Variable lease payments (including deposit given to the lessor) that do not depend on an index or a rate.

v) Lease payment related to discontinued operations.

b) The Company incurred Rs. 448.57 lakhs for the year ended 31st March, 2026 towards expenses related to either short-term leases or
low value lease or variable lease .

c) The Company incurred Rs. 2,703.86 lakhs for the year ended 31st March, 2026 towards lease with AAI is which is expired and not
renewed.

d) The weighted average effective interest rate applied to lease liabilities is 9%.

f) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
obligations related to lease liabilities as and when they fall due.

g) The Company has entered into Agreement to take land at Vellimon lake side near Kollam on lease basis to construct and operate
a resort hotel, subject to the condition that lessor shall purchase additional adjacent land and lease it to the Company. Hence it is
considered as short term..

37.11 Tax Disclosure

In pursuance to Section 115BAA of the Income Tax Act, 1961 announced by Government of India through Taxation Laws (Amendment)
Ordinance, 2019, Company has an irrevocable option of shifting to a lower tax rate along with consequent reduction in certain tax incentives
including lapse of the accumulated MAT credit. In view of huge accumulated losses of earlier years, Company has exercised this option,
accordingly no provision for Income Tax and deferred tax has been made.

37.12 CSR Disclosure

The Board of Directors has adopted a CSR Policy but did not form the CSR Committee. The Board has decided to discharge the functions
of CSR Committee till the amount required to be spent on CSR activities exceeds the limits provided under section 135(9) of the Companies
Act, 2013 for any financial year. The Disclosure relating to CSR Expenditure are as under:

b) (i) The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMP's and the related

parties defined (as defined under Companies Act, 2013) either severally or jointly with any other person

(ii) The operations of the Company are classified as “’’Infrastructure Facilities”” as defined under Schedule VI to the Act. Accordingly,

the disclosure requirements specified in sub-section 4 of Section 186 of the Act in respect of loans given, guarantee given,
security provided and the related disclosure on purposes/utilisation by recipient companies, are not applicable to the company.

c) The Company was not holding any benami property and no proceeding was initiated or pending against the Company for holding any
benami property under the Benami Transactions (Prohibition) Act,1988.

d) The Company has used funds borrowed for the specific purposes only for the purposes which it has been borrowed.

e) Borrowings as reported in financial statements for the year ended March 31,2026, we confirm that all charges created/ satisfied during
FY 2025-26 have been registered with the Ministry of Corporate Affairs.

f) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds), to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall:

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

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g) The Company has not received any funds from any persons or entities, including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the Company shall:

- directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by
or on behalf of the Funding Party or provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

h) The Company has not traded or invested in crypto currencies or virtual currencies during the year ended 31st March, 2026.

i) Audit Trail:

The Company has audit trail feature enabled from April 01, 2023 with respect to application layer changes in Payroll, Material
Management and revenue related software which has worked effectively throughout the year except software related to maintenance
of Property, plant & equipment, Intangible assets and Investment property. There is no option in the software to disable this features
at application layer. Further, no instance of audit trail feature being tampered was noted in respect of these softwares. Additionally, the
audit trail of the 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 prior year. In addition to these the Company is using two database software namely Oracle and SQL,
for which no information on audit trail being featured within these softwares at data base level.

Note 38: Fair value measurement:

1. The fair value 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.

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

(a) The fair value of trade receivables, trade payables and other current financial assets and liabilities are considered to be equal to
the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has
been classified as Level 3.

(b) The fair value of security deposits are calculated using effective interest rate. They are classified as level 3 fair values in the fair
value hierarchy due to the use of unobservable inputs.

(c) Considering the contracted rate of interest, the carrying amounts of all other term borrowings that are measured at fair value are
reasonable approximation of fair value.

(d) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair values.

3. Analysis of fair value measurement:

(a) The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

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.

(b) Financial Instruments by category:

Note 39: Financial Risk Management
Risk Management Framework

The activities of the Company expose it to market risk, credit risk and liquidity risk.

The Company's principal financial liabilities comprise, long term security deposits received, trade and other payables. The group has trade
and other receivables and cash and short term deposits that arrive directly from its operations. The Company has also paid long term lease
deposits.

The Company's Board of Directors has the overall responsibility for the establishment and oversight of the Company's risk management
framework. The company's risk management policies are established to identify and analyse the risk faced by the company,to set appropriate
risk limits and controls and to monitor risks and adherence to limits.Risk management policies and systems are reviewed regularly to reflect
changes in market conditions and the companys activities. The company's Audit Committee overseas how management monitors compliance
with the company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the
risks faced by the company.

A. Market Risk:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates
and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including investments and deposits, foreign currency, payables and loans and borrowings.

The Company manages market risks through finance department, which evaluates and exercises independent control over the entire
process of market risk management. The finance department recommends risk management objectives and policies which are
approved by the finance committee and Audit Committee. The activities of the department includes management of cash resources,
borrowing strategies and ensuring compliance with market risk limits and policies.

- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in
market interest rates. The Company's exposure to the risk changes in the market interest rates relates primarily to the Company's debt
obligations which is fully repaid during the year as a part of settlement with lenders.

- Foreign currency risk

Foreign currency risk is the risk that the fair value of the future cash flows of a financial instrument will fluctuate due to the changes in
the foreign exchange rates. However, as on the date of balance sheet, the Company has no foreign currency denominated assets and
liabilities except nominal trade payable which does not have any major impact on the financial statement.

B Credit Risk:

Credit risk arises from the possibility that the counter party may not be able to settle their obligation as agreed. Customer credit
risk is managed by each business unit subject to Company's established policy, procedure and control relating to customer risk
management. Further, the Company periodically assesses financial reliability of customers and other counter parties, taking into
account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual
risk limits are set and periodically reviewed on the basis of such information.

Financial assets are written off when there is no reasonable expectations of recovery, such debtor failing to engage in a repayment
plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity
to attempt to recover the receivables due. Where recoveries are made, these are recognised as income in the statement of profit and
loss.

The Company measures the expected credit loss of trade receivables and advances based on historical trend, industry practices and
the business environment in which the entity operates. Based on the historical data the provision for loss on receivables is made.

C Liquidity Risk :

The Company's principal sources of liquidity are cash and equivalents and the cash flow that is generated from operations. Competitive
intensity has adversely impacted revenue and consequent cash accruals during the year. The Company closely monitors its liquidity
position to ensure that the operations of the Company are not affected adversely due to liquidity and is attempting to enhance its
sources of funding by increasing cash flow generated from its operations and realisations from other proposed measures.

D Capital Risk Management:

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns
to our shareholders and to service debt obligations, whilst maintaining maximum operational flexibility. Consistent with others in the
industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by Equity. Net debt
is calculated as total borrowings less cash and cash equivalents and current investments.