(m) Provisions, Contingent Liabilities and Contingent
Assets

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, or constructive because the Company
created valid expectations on the part of 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. The amount recognised as a provision and the
indicated time range of the outflow of economic benefits
are the best estimate (most probable outcome) of the
expenditure required to settle the present obligation at
the balance sheet date, taking into account the risks and
uncertainties surrounding the obligation. Non-current
provisions are discounted if the impact is material.

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

A contingent asset is not recognised but disclosed in
the financial statements where an inflow of economic
benefit is probable.

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

(n) Borrowing Costs

General and specific borrowing costs directly
attributable to the acquisition or construction of
qualifying assets that necessarily takes substantial
period of time to get ready for their intended use or sale,
are added to the cost of those assets, until such time as
the assets are substantially ready for their intended use
or sale. Borrowing costs consist of interest and other
costs that the Company incurs in connection with the
borrowing of funds.

Interest income earned on temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs

eligible for capitalization. Borrowing costs that are not
directly attributable to a qualifying asset are recognised
in the Statement of Profit and Loss using the effective
interest method.

(o) 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.

(p) Exceptional items

Exceptional items are disclosed separately in the
financial statements where it is necessary to do so
to provide further understanding of the financial
performance of the Company. These are material items
of income or expense that have to be shown separately
due to their nature or incidence.

(q) Financial Instruments
(I) Financial assets

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, plus, in the case of
financial assets not at fair value through profit or loss
directly attributable transaction costs. Transaction
costs of financial assets carried at fair value through
profit or loss are expensed in the Statement of
Profit and Loss. However, trade receivables that do
not contain a significant financing component are
measured at transaction price.

Classification

- Cash and Cash Equivalents - Cash comprises
cash 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 investments
that are readily convertible into known amounts
of cash and which are subject to insignificant risk
of changes in value.

- Debt Instruments - The Company classifies its
debt instruments as subsequently measured
at amortised cost, 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.

- Equity Instruments - The Company subsequently
measures all equity investments (other than the
investment in subsidiaries, joint ventures and
associates which are measured at cost) at fair
value. Where the Company has elected to present

fair value gains and losses on equity investments
in Other Comprehensive Income ("FVOCI"),
there is no subsequent reclassification of fair
value gains and losses to profit or loss. 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.

The Company has made an irrevocable election
to present in Other Comprehensive Income
subsequent changes in the fair value of equity
investments that are not held for trading.

When the equity investment is derecognised, the
cumulative gain or loss previously recognised in
Other Comprehensive Income is reclassified from
Other Comprehensive Income to the Retained
Earnings directly.

Interest

Interest income is accrued on a time proportion
basis using the effective interest rate method.

Dividend

Dividend income is recognised when the Company's
right to receive the amount 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
continuing involvement in the financial asset.

(II) Financial liabilities

Initial 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, plus, in the case of financial liabilities
not at fair value, through profit or loss directly
attributable transaction costs.

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.

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 recognised at the
proceeds received, net of direct issue costs.

(r) 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 liabilities issued by the
Company are measured initially at their fair values and
recognised as income in the Statement of Profit and Loss.

Where guarantees in relation to loans or other payables
of group companies are provided for no compensation,
the fair value are accounted for as contributions and
recognised as part of cost of investment.

(s) Recent accounting pronouncements

(i) New and amended standards adopted by the
Company:

The Company has applied the following
amendments for the first time for their annual
reporting period commencing April 1, 2025:

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

In May 2025, the Ministry of Corporate Affairs
(MCA) notified amendments to Ind AS 21 - The
Effects of Changes in Foreign Exchange Rates,
applicable for annual periods beginning on or after
April 1, 2025. The amendment introduces a new
framework for assessing whether a currency is
exchangeable into another currency and provides
guidance when exchangeability is lacking.

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

In August 2025, the MCA notified the following
amendments:

• Ind AS 1 - Presentation of Financial

Statements (applicable w.e.f. April 1, 2025)

The amendment relates to classification
of liabilities as current or non-current and
non-current liabilities with covenants. In the
context of classifying a liability as current,
it removes the requirement of existence of
a right to defer settlement for at least 12
months after the reporting date and instead
requires that the said right should exist on
the reporting date and have substance. The
amendment also introduces guidance on
classification of liabilities with covenants.

Based on the Company's assessment, the
Company has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.

• Ind AS 7 - Statement of Cash Flows and Ind
AS 107 - Financial Instruments: Disclosures
(applicable w.e.f. April 1, 2025)

The amendment in Ind AS 7 requires to inform
users of financial statements of the existence
of supplier finance arrangements and explain
the nature of the arrangements, the carrying
amount of liabilities and the range of payment
due dates. Ind AS 107 has been amended to
add supplier finance arrangements as a factor
that may cause concentration of liquidity risk.

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

• Ind AS 12 - International Tax Reform - Pillar
Two Model Rules (applicable immediately)

The amendments provide a temporary
mandatory relief from deferred tax
accounting for top-up tax and disclose that
they have applied the relief. This relief is
immediate and applies retrospectively.

(ii) 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. During the
year ended March 31, 2026, MCA has not notified
any other new standards or amendments to the
existing standards applicable to the Company.

(iv) During the year, the Company has infused additional equity in these subsidiaries. For details Refer Note 30 (a) & (b).

(v) During the year, the Company purchased 9,34,031 equity shares from existing shareholder and subscribed to 51,76,820 equity shares of Sparsh Infratech
Private Limited ("SIPL") for an aggregate investment of ^ 232.21 crore and thus acquired 51.01% of equity share capital of SI PL (Refer Note 28 (a)).

(vi) During the year, the Company subscribed to 322,819 equity shares amounting to ^ 0.32 crore in TP Kirnali Solar Limited, a subsidiary of Tata Power
Limited in order to obtain captive solar power supply for one of its hotel in Mumbai. The Company does not have control nor have any power to
participate in financial and operating policy decision in TP Kirnali Solar Limited.

(vii) During the year, the Company has recognised an impairment loss of ^ 11.59 crores (Previous year ^ 16.24 crores) which represents cash loss in one of its
properties in the United States of America, in the Statement of Profit and Loss which has been classified under "Exceptional items" (Refer Note 27).

(viii) For these investments, the Company has elected the fair value through Other Comprehensive Income irrevocable option since these investments are
not held for trading.

(ix) For these investments, cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements
and cost represents the best estimate of fair value within that range.

(x) The fair value hierarchy and classification are disclosed in Note 36.

(xi) The value of these investments individually is less than ^ 50,000/-

Note 28: Acquisition of controlling stake in certain companies

(a) Sparsh Infratech Private Limited

On November 14, 2025, the Company entered into a Subscription-cum-Shareholders Agreement (SSHA) with Sparsh
Infratech Private Limited ("SIPL"), a company which owns and operates a health and wellness resort by the name
'Atmantan' at Mulshi, Maharashtra. The acquisition was completed on January 16, 2026 by acquiring 61,10,851 equity
shares, representing 51.01% stake, for an aggregate consideration of ^ 232.21 crores at ^ 380 per share as detailed
below:

- Purchase of 9,34,031 equity shares of SIPL having a face value ^ 10 each from an existing shareholder and promoter
for an aggregate consideration of ^ 35.49 crores; and

- Subscription of 51,76,820 equity shares of SIPL having a face value ^ 10 each at ^ 380 per share aggregating to
R 196.72 crores.

Further, pursuant to the SSHA, the Company has the right to appoint two-thirds of the members of the Executive Council
of Brahma Foundation ("the Trust"), a society registered under the Societies Registration Act, 1860 and the Bombay
Public Trust Act, 1950, which was previously controlled by the promoters of SIPL. Accordingly, by virtue of majority
representation on the Executive Council, the Trust has become an entity controlled by IHCL in accordance with Ind
AS 110. The Trust was established with the primary objective of operating and managing yoga therapy, naturopathy,
ayurvedic and wellness centres, healthcare centres, and health resorts.

Note 28: Acquisition of controlling stake in certain companies (contd.)

(b) ANK Hotels Private Limited and Pride Hospitality Private Limited:

On December 1, 2025, Roots Corporation Limited (RCL), a wholly-owned subsidiary of IHCL, has acquired controlling
stake in ANK Hotels Private Limited and Pride Hospitality Private Limited for a total cash consideration of R 190.47 crores
(ANK: R 109.29 crores and Pride: R 81.18 crores) as detailed below:

• ANK Hotels Private Limited ("ANK"):

- Purchase of 3,060 equity shares of ANK having a face value R 10 each from an existing shareholder and promoter
for an aggregate consideration of R 45.00 crores; and

- Subscription of 4,372 equity shares of ANK having a face value R 10 each at R 1,47,059 per share aggregating to
R 64.29 crores.

• Pride Hospitality Private Limited ("Pride"):

- Subscription of 1,14,490 equity shares of Pride having a face value R 10 each at R 7,091 per share aggregating to
R 81.18 crores.

Pursuant to the above, ANK and Pride have become direct subsidiaries of RCL and step-down subsidiaries of IHCL.
ANK and Pride, the Companies are engaged in midscale hotel operations and management business, portfolio details
provided below:

(c) Signing of definitive agreement to acquire Brij Hospitality Private Limited (Brij)

On January 15, 2026, the Company has signed definitive agreements to acquire 51% stake, together with its step-down
subsidiaries namely ANK Hotels Private Limited ("ANK") and Pride Hospitality Private Limited ("Pride"), in Brij Hospitality
Private Limited, which operates and manages hotel assets under the umbrella of 'Brij' brand to be completed after
fulfilment of the condition precedents.

Subsequent to the balance sheet date, the acquisition of 51% of the share capital (on a fully diluted basis) in Brij was
completed on April 21, 2026 consequent to the fulfilment of certain conditions precedent for a total investment of up to
R222 crores (IHCL ~R 127 crores, ANK ~R 34 crores and Pride ~R 61 crores). The acquisition comprises of purchase from
existing shareholders of Brij as well as primary investment in Brij through a combination of Compulsorily Convertible
Preference Shares and partly paid-up equity shares. Consequent to the acquisition, Brij has become a subsidiary of IHCL.

Note 29: Divestment of its stake in Taj GVK Hotels and Resorts Limited

The Company has sold its entire equity stake of 1,60,00,400 equity shares representing 25.52% of the shareholding in
Taj GVK Hotels and Resorts Limited (TajGVK), a Joint Venture, through an execution of a Sale and Purchase Agreement on
December 19, 2025 at a price of R 370 per share for an aggregate consideration of R 592.01 crores. The gain on sale of
stake of R 550.12 crores is disclosed as exceptional item (Refer Note 27). Pursuant to this transaction, the Shareholders'
Agreement has been terminated. However, the Company continues to operate the existing hotels under the TajGVK portfolio
in accordance with the provisions contained in the respective Hotel Operating Agreements, which have also been executed
on December 19, 2025, post termination of the Shareholders' Agreement.

Note 30: Investments in subsidiaries

(a) During the year, the Company has infused additional equity in certain subsidiaries as per the details below:

(i) Invested ^ 265.85 crores in ELEL Hotels and Investments Limited ("ELEL"), a wholly-owned subsidiary, through a
subscription to its Equity Issue, and was allotted 5,31,702 shares. Resultantly, the Company's total investment
in ELEL increased from ^ 250.04 crores to ^ 515.89 crores. The issue proceeds are being utilised towards the
development of a greenfield hotel (Taj Bandstand) in Mumbai.

(ii) Invested ^ 56.10 crores in Genness Hospitality Private Limited ("GHPL"), a wholly-owned subsidiary, through a
subscription to its Equity Issue, and was allotted 56,10,00,000 shares. Resultantly, the Company's total investment
in GHPL increased from ^ 104.90 crores to ^ 161.00 crores. The issue proceeds were utilised for the development
of a greenfield hotel (Vivanta) in Ekta Nagar, near the site of Statue of Unity, Gujarat. The hotel has commenced
its operations in October 2025.

(iii) Invested ^ 17.00 crores in Qurio Hospitality Private Limited ("QHPL"), a wholly-owned subsidiary, through a
subscription to its Equity Issue, and was allotted 17,00,00,000 shares. Resultantly, the Company's total investment
in QHPL increased from ^ 84.90 crores to ^ 101.90 crores. The issue proceeds were utilised for the development
of a greenfield hotel (Ginger) in Ekta Nagar, near the site of Statue of Unity, Gujarat. The hotel has commenced its
operations in October 2025.

(iv) Invested ^ 219.69 crores in IHOCO B.V., a direct Wholly Owned Subsidiary (WOS) in the Netherlands, through a
subscription to its Equity Issue, and was allotted 25,69,373 shares. Resultantly, the Company's total investment in
IHOCO B.V. increased from R 3,400.19 crores to R 3,619.88 crores.

Note 31: Contingent Liabilities (to the extent not provided for) and Contingent Assets:

The Company is involved in a number of appellate, judicial and arbitration proceedings (including those described below)
concerning matters arising in the course of conduct of the Company's businesses and is exposed to other contingencies
arising from having issued guarantees to lenders of its subsidiaries and other entities. Some of these proceedings in respect
of matters under litigation are in early stages, and in some other cases, the claims are indeterminate.

(a) On account of matters in dispute:

Amounts in respect of claims asserted by various revenue authorities on the Company, in respect of taxes, etc., which
are in dispute, are as under:

Footnotes:

i) The above figures exclude interest demands of ^ 57.03 crores (Previous year ^ 55.48 crores).

ii) In respect of Income Tax matters, the Company has ongoing disputes with Income Tax Authorities relating to treatment of certain items/
adjustments carried out by the Department for which the Company has got favourable outcome at DRP/CIT(A) in some of the years. These issues
are being contested and are pending before various Appellate Authorities. The Company expects to receive favourable order and sustain its
position at higher appellate level, thus same has been excluded from tax litigations of ^ 483.61 crores (Previous year ^ 483.61 crores) in the above
disclosure.

iii) In respect of regulatory matters please refer Note 39.

(b) On account of lease agreements:

In respect of a plot of land, on which the Company has constructed a hotel, the lessor had made a claim during financial
year ("FY") 2006-07 for the period September 1, 2006 to March 31, 2007, which exceeded the amount payable as per
the lessor's own proposal by ^ 13.97 crores. The said proposal of the lessor had been accepted by the Company in
FY 2001-02, without prejudice to its rights under the lease deed that it had originally entered with the lessor. The claim
of the lessor is also inconsistent with the decision of the Honorable Supreme Court of India ("SC") in 2004 which decided
on the quantification of lease rent up to FY 2011-12. From FY 2006-07, the lessor has been raising excessive claims, which
as of March 31, 2026, aggregate to ^ 2,095 crores for periods commencing from September 1, 2006.

Note 31: Contingent Liabilities (to the extent not provided for) and Contingent Assets: (contd.)

Based on legal advice, the Company has disputed the claims in a suit in the Honorable High Court of Judicature at Bombay
("Bombay HC"). The Bombay HC stayed the lessor's notices in FY 2018-19. Pending final disposal of the suit, the lessor
has been restrained from disturbing or prejudicing the Company's possession of the plot/operation thereon, subject
to the Company paying lease rentals as per the lessor's proposal that was accepted by the Company. The Company
continues to pay lease rentals on this basis and accounts for these payments in accordance with its Accounting Policy
2(h) which explains the accounting of the Company's leases. The amount and timing of outflow of economic resources
would depend on the outcome of the litigation.

(c) Others:

Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes other than
those included in the estimate above, including where:

(i) plaintiffs/parties have not claimed an amount of money damages, unless management can otherwise determine
an appropriate amount;

(ii) the proceedings are in early stages;

(iii) there is uncertainty as to the outcome of pending appeals or motions or negotiations; and

(iv) there are significant factual issues to be resolved; and/or there are novel legal issues presented

The Company's management does not believe, based on currently available information, that the outcomes of the above
matters will have a material adverse effect on the Company's financial position, though the outcomes could be material
to the Company's operating results for any particular period, depending, in part, upon the operating results for such
period. It is not practicable for the Company to estimate the timings of cash flows, if any, in respect of the above.

(d) Claims filed by the Company:

The Company has filed claims for Government incentives in case of a Greenfield project and an expansion hotel project.
The claims are in initial stage of verification and in the absence of reasonable certainty at this stage, no income has been
recognised in the financial statements.

Note 32: Guarantees given

(a) Guarantees/ Letters of Comfort given by the Company in respect of loans obtained by the company's subsidiaries and
outstanding as on March 31, 2026 - ^ 94.83 crores (Previous year - ^ 90.73 crores). Further guarantees given by the
Company in connection to leases entered by the company's subsidiary and outstanding as on March 31, 2026 - ^ 108.55
crores (Previous year - ^ 93.08 crores).

(b) The Company has given letter of financial support to one subsidiary (Previous year - two subsidiaries) during the year.

Note 33: Capital Commitments

Commitments includes the amount of purchase order (net of advance) issued to parties for completion of assets. Estimated
amount of contracts remaining to be executed on capital account net of capital advances and not provided for is ^ 92.64
crores (Previous year - ^ 163.28 crores).

Note 34: Revenue from contracts with customers (contd.)

iii) Contract Balances

The contract liabilities primarily relate to the unredeemed customer loyalty points and the advance consideration
received from customers for which revenue is recognized when the performance obligation is over/ services delivered.

a) Advance Collections is recognised when payment is received before the related performance obligation is satisfied.
This includes advances received from the customer towards rooms/restaurant/banquets. Revenue is recognised
once the performance obligation is met i.e., on room stay/ sale of food and beverage/provision of banquet services.
It also includes membership fee received for Chambers Membership, Epicure membership and Spa and Health
Club Memberships and disclosed as Income received in advance.

Note 35: Leases

The Company leases several assets including land, building and plant and equipment which are generally long term in nature
with varying terms, escalation clauses and renewal rights expiring within five to one hundred and ninety-eight years. On
renewal, the terms of the leases are renegotiated.

Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either

observable or unobservable and consists of the following three levels:

(a) Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This
includes listed equity instruments, traded debentures and mutual funds that have quoted price/ declared NAV.
The fair value of all equity instruments (including debentures) which are traded in the stock exchanges is valued
using the closing price as at the reporting period.

(b) Level 2: Level 2 hierarchy includes financial instruments that are not traded in an active market (for example, traded
bonds/debentures, over the counter derivatives). The fair value in this hierarchy is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included
in level 2.

(c) Level 3: If one or more of the significant Inputs is not based on observable market data, the instrument is included
in level 3. Fair values are determined in whole or in part using a valuation model based on assumptions that are
neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data. Financial instruments such as unlisted equity shares, loans are included in this
hierarchy.

c) Inter level transfers:

There are no transfers between levels 1 and 2 as also between levels 2 and 3 during the year.

d) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices for the equity instruments

- the fair value of certain unlisted shares is determined based on the income approach or the comparable market
approach. For these unquoted investments categorised under Level 3, their respective cost has been considered as an
appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents
the best estimate of fair value within that range.

- the fair value of the remaining financial instruments is determined using the discounted cash flow analysis

Note 37: Financial risk management

Risk management framework

The Company's Board of Directors has the overall responsibility for the establishment and oversight of the Company's risk
management framework. The Board of Directors has established a Risk Management Committee, which is responsible for
developing and monitoring the Company's risk management policies. The Committee reports regularly to the Board of
Directors on its activities.

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 Company's activities. The Company's Audit Committee
oversees 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. The Audit Committee is
assisted in its oversight role by the internal audit team. The internal audit team undertakes both regular and ad hoc reviews
of risk management controls and procedures, the results of which are reported to the audit committee.

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk;

- Market risk

a) Credit risk

Credit risk arises from the possibility that customers or counterparty to financial instruments may not be able to
meet their obligations. To manage this, the Company periodically assesses the financial reliability of customers, taking
into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts
receivable. Credit risks arises from cash and cash equivalents, deposits with banks, financial institutions and others, as
well as credit exposures to customers, including outstanding receivables.

The Company's policy is to place cash and cash equivalents and short-term deposits with reputable banks and financial
institutions.

Note 37: Financial risk management (contd.)

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness
before entering into contract. Credit limits are established for each customer, reviewed regularly and any sales exceeding
those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within
the Company. The carrying amount of Trade Receivables was ^ 513.70 crores and ^ 450.66 crores as at March 31, 2026
and 2025 respectively.

The Company's exposure to credit risk for Trade Receivables based on geography is as follows -

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to Company's reputation.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis
of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom
on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or
covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company's debt financing
plans, covenant compliance and compliance with internal statement of financial position ratio targets.

iii) Capital Risk Management

The Company manages its capital to ensure that it will be able to continue as a going concern. The structure is
managed to maintain an investment grade credit rating, to provide ongoing returns to 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 (including 'current and non¬
current term loans' as shown in the balance sheet) less cash and cash equivalents and current investments.

There are no borrowings as at March 31, 2026 and March 31, 2025.

c) 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 Company uses derivatives to manage its exposure to foreign currency risk and interest rate risk. All such transactions
are carried out within the guidelines set by the risk management committee.

i) Foreign Currency risk

The predominant currency of the Company's revenue and operating cash flows is Indian Rupees (INR). Movements
in foreign exchange rates can affect the Company's reported profit, net assets.

The Company has foreign currency exposure for equity investments in its international subsidiaries. These
investments are long term and strategic in nature with no immediate plan for its disposal, hence these investments
are not being hedged.

The Company uses interest rate swaps and currency swaps to hedge its exposure in foreign currency and interest
rates. However, there are no such instruments outstanding at the year end.

Sensitivity

For the year ended March 31, 2026 and March 31, 2025, every 3% depreciation/ appreciation in the exchange rate
between the Indian rupee and US dollar, shall affect the Company's profit before tax by approximately -0.01% and
-0.01% respectively.

Note 37: Financial risk management (contd.)

ii) Interest rate risk

The Company adopts a policy to hedge the interest rate movement in order to mitigate the risk with regards to
floating rate linked loans based on the market outlook on interest rates. This is achieved partly by entering into
fixed rate instruments and partly by borrowing at a floating rate and using interest rate swaps as hedges of the
variability in cash flows attributable to interest rate risk.

There are no borrowings as at March 31, 2026 and March 31, 2025.

iii) Other market price risks

The Company's exposure to equity securities price risk arises from investments held by the Company and classified
in the balance sheet as fair value through Other Comprehensive Income. If the equity prices of quoted investments
are 3% higher/ lower, the Other Comprehensive Income for the year ended March 31, 2026 would increase/
decrease by 4.30% (for the year ended March 31, 2025: increase/ decrease by 25.98%).

(b) The Company operates post retirement defined benefit plans as follows:

a. Funded:

i. Provident Fund

ii. Post Retirement Gratuity

iii. Pension to Employees - Post retirement minimum guaranteed pension scheme for certain categories of
employees, which is funded by the Company and the employees.

b. Unfunded:

i. Pension to Executive Directors and Employees - Post retirement minimum guaranteed pension scheme for
select existing and retired executive directors and certain categories of employees, which is unfunded.

ii. Post-Employment Medical Benefits to qualifying employees

(c) Provident Fund:

The Company operates Provident Fund Scheme through a Trust - 'The Indian Hotels Company Limited Employees
Provident Fund' ('the Plan'), set up by the Company and for certain categories contributions are made to State Plan.

The Plan guarantees minimum interest at the rate notified by the Provident Fund Authorities. The contribution by
the employer and employee together with the interest accumulated thereon are payable to employees at the time of
separation from the Company or retirement, whichever is earlier. The benefit vests immediately on rendering of the
services by the employee. In terms of the guidance note issued by the Institute of Actuaries of India for measurement of
provident fund liabilities, the actuary has provided a valuation of provident fund liability and based on the assumptions
provided below, there is no shortfall as at March 31, 2026 and March 31, 2025.

The Company contributed ^ 16.00 crores and ^ 15.47 crores towards provident fund to the Plan during the year ended
March 31, 2026 and March 31, 2025 respectively and the same has been recognised in the statement of profit and loss.

In light of the Supreme Court judgement dated February 28, 2019 regarding the definition of wages for calculation of
Provident fund contribution, the Company as advised, on a prudent basis, has provided for the liability prospectively
from date of judgement.

(d) Pension Scheme for Employees:

The Company has formulated a funded pension scheme for certain employees. The actuarial liability arising on the
above, after allowing for employees' contribution is determined as at the year end, on the basis of uniform accrual
benefit, with demographic assumptions taken as Nil.

(e) Post retirement Gratuity:

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 assessed and accounted
the incremental impact of these changes, consistent with the Labour Codes, draft rules, FAQs and on the basis of the
best information available. Considering the regulatory-driven and non-recurring nature, the impact has been disclosed
under Exceptional Items in the financial results 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.

(f) The above defined benefit plans typically expose the Company to actuarial risks such as: investment risk,
interest rate risk, longevity risk and salary risk.

Due to the restrictions in the type of investments that can be held by the gratuity and pension fund as per the prevalent
regulations, it is not possible to explicitly follow an asset-liability matching strategy to manage risk actively.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority,
promotions and other relevant factors. The above information has been certified by the actuary and has been
relied upon by the Auditors.

Note 39: Other regulatory matters

The Company, on a review of its foreign operations had, in the past, made voluntary disclosures to the appropriate regulator,
of what it considered to be possible irregularities, in relation to foreign exchange transactions relating to the period prior
to 1998. Arising out of such disclosures, the Company received show cause notices and the Company had replied to the
notices. The Company has received adjudication cum demand of ^ 12.06 crores (Previous year: ^ 12.06 crores) on certain
matters which has been disputed by the Company. This has been disclosed as Contingent Liability. The Company has filed
appeals against these adjudication cum demand orders and the same are pending. For the balance Show Cause Notices,
adjudication proceedings are pending. During the year, the Appellate Tribunal directed the Company to deposit 10% of the
total adjudicated demand amount i.e., ^ 1.20 crores during the pendency of the Appeals, which stand complied with. The
Company has subsequently filed a writ petition before the Bombay High Court challenging the issuance of certain show
cause notices and the same is pending.

Note 43: Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision¬
maker. The Managing Director and Chief Executive Officer who is responsible for allocating resources and assessing performance
of the operating segments, has been identified as the chief operating decision-maker. From the internal organisation of the
Company's activities and consistent with the internal reporting provided to the chief operating decision-maker and after
considering the nature of its services, the ultimate customer availing those services and the methods used by it to provide those
services, "Hotel Services" has been identified to be the Company's sole operating segment. Hotel Services include "Revenue
from Operations" including Management and Operating Fees where hotels are not owned or leased by the Company. The
organisation is largely managed separately by property based on centrally driven policies and the results and cash flows of the
period, financial position as of each reporting date aggregated for the assessment by the Managing Director and Chief Executive
Officer. The Company's management reporting and controlling systems principally use accounting policies that are the same
as those described in Note 2 in the summary of significant accounting policies under Ind AS. As the Company is engaged in a
single operating segment, segment information that has been tabulated below is Company-wide:

Note 46: Additional disclosure under the regulatory requirements: (contd.)

Explanations to variance in Ratios:

1. Current ratio increased due to increase in current assets primarily attributable to internal accruals deployed in
mutual fund.

2. The debt-equity ratio is currently nil as there are no outstanding debts.

3. Net capital turnover ratio has reduced due to surplus fund temporarily invested in mutual fund and fixed deposits.

4. Net profit ratio improved due to an increase in net profit after tax from improvement in business volumes.

5. Return on capital employed and return on equity improved with improvement in operating margins during the year.

6. Decreased in line with eased interest rate cycle.

7. The Company has not presented Inventory turnover ratio since it holds inventory for consumption in the service
of food and beverages and the proportion of such inventory is insignificant to total assets.

b) Transaction with Struck off Companies:

The Company has reviewed transactions to identify if there are any transactions with struck off companies. To the extent
information is available on struck off companies, there are 22 transactions with struck off companies.

c) Title deeds of leased assets not held in the name of the Company:

The title deeds, comprising all the immovable properties of land and buildings, are held in the name of the Company as
at the balance sheet date except in respect of one commercial/residential building aggregating to ^ 0.64 crores (Gross
block ^ 1.30 crores) constructed on the leased land, which is in the possession of the Company, acquired pursuant to a
scheme of amalgamation of TIFCO Holding Limited (a wholly owned subsidiary). The lease of the said land has expired
in the year 2000. Erstwhile TIFCO Holdings Limited has filed a writ Petition in High Court of Mumbai on 15 January 2013
for renewal of lease.

d) There are no borrowings from banks or financial institutions on the basis of security of current assets of the company.

e) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) any funds other than as disclosed in Note 30(b) & 30(c), 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.

f) 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.

Note 47: Audit Trail

The Company has conducted a greenfield implementation of SAP S/4HANA RISE and migrated from its legacy accounting
system with effect from April 1, 2025. During the hypercare period, post go live, certain privileged users were granted access
to transactional data to support and stabilise the application, including monitoring system integrations and accounting
transactions. Such access was granted and used under Company's supervision and was progressively withdrawn by June 26,
2025 once system stability was achieved.

The feature of recording audit trail (edit log) facility has been activated in SAP S/4HANA RISE and has operated effectively
throughout the year for all relevant transactions recorded in the software.

Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record retention.

Note 48: Dividends

Dividends paid during the year ended March 31, 2026 out of Retained Earnings was ^ 2.25 per equity share for the year ended
March 31, 2025, aggregating to R 320.27 crores.

The dividends declared by the Company are based on the profits available for distribution as reported in the standalone
financial statements of the Company. Accordingly, the retained earnings reported in these financial statements may not
be fully distributable. As of March 31, 2026, retained earnings not transferred to reserves available for distribution was
R 4,743.72 crores.

On May 11, 2026, the Board of Directors of the Company have proposed a final dividend of ^ 3.25 per equity share in respect
of the year ended March 31, 2026, subject to the approval of shareholders at the Annual General Meeting. If approved, the
dividend would result in a cash outflow of ^ 462.62 crores.

As per our report of even date as attached For and on behalf of the Board

Sd/- Sd/-

For B S R & Co. LLP N. Chandrasekaran Puneet Chhatwal

Chartered Accountants Chairman Managing Director & CEO

Firm's Registration No.: 101248W/W-100022 DIN: 00121863 DIN: 07624616

Sd/- Sd/-

Farhad Bamji Nasser Munjee

Partner Director

Membership No.: 105234 DIN: 00010180

Sd/- Sd/-

Ankur Dalwani Melisa Alva

Executive Vice President & Senior Vice President

Mumbai, May 11, 2026 Chief Financial Officer & Company Secretary