2.18. Provisions, contingent liabilities and contingent assets

A provision is recognised 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 recognised 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 standalone financial
statements if the inflow of economic benefits is
probable. 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.

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

2.19. Non-current assets held for sale and discontinued
operations

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through
a sale transaction rather than through continuing use
and a sale is considered highly probable. They are
measured at the lower of their carrying amount and
fair value less costs to sell, except for assets such
as deferred tax assets, assets arising from employee
benefits and financial assets which are specifically
exempt from this requirement.

An impairment loss is recognised for any initial or
subsequent write-down of the asset (or disposal group)
to fair value less costs to sell. A gain is recognised for
any subsequent increases in fair value less costs to
sell of an asset (or disposal group), but not in excess of
any cumulative impairment loss previously recognised.
A gain or loss not previously recognised by the date of
the sale of the non-current asset (or disposal group) is
recognised at the date of de-recognition.

Non-current assets (including those that are part of a
disposal group) are not depreciated or amortised while
they are classified as held for sale.

Non-current assets and liabilities classified as held for
sale are presented separately from the other assets
and liabilities in the balance sheet.

2.20. 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.

2.21. 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 recognised immediately in the statement of profit
or loss.

2.21.1. 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 recognised financial assets are
subsequently measured in their entirety at either
amortised 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
amortised 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 amortised 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 recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised 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 recognised 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 recognised 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 recognised
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
recognised in profit or loss. The net gain or
loss recognised 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
recognised 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-recognises 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 recognises 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 collateralized
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 recognised in other comprehensive
income and accumulated in equity is recognised
in profit or loss if such gain or loss would have
otherwise been recognised 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 recognises
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 recognised and the sum of
the consideration received for the part no longer
recognised and any cumulative gain or loss
allocated to it that had been recognised in other
comprehensive income is recognised in profit or
loss if such gain or loss would have otherwise
been recognised in profit or loss on disposal of
that financial asset. A cumulative gain or loss
that had been recognised in other comprehensive
income is allocated between the part that
continues to be recognised and the part that is no
longer recognized on the basis of the relative fair
values of those parts.

21.2. 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
recognised at the proceeds received, net of direct
issue costs. Repurchase of the Company's own
equity instruments is recognised and deducted
directly in equity. No gain or loss is recognised
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 amortised 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 recognised 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 recognised 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; or

• 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 recognised in profit or loss. The
net gain or loss recognised 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 recognised 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 recognised in profit or loss. The remaining
amount of change in the fair value of liability is
always recognised in profit or loss. Changes in fair
value attributable to a financial liability's credit
risk that are recognised 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 recognised in profit
or loss.

Financial liabilities subsequently measured at
amortised cost

Financial liabilities that are not held-for-trading
and are not designated as at FVTPL are measured
at amortised cost at the end of subsequent
accounting periods. The carrying amounts
of financial liabilities that are subsequently
measured at amortised cost are determined
based on the effective interest method. Interest
expense that is not capitalized 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 amortised 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 recognised less, when
appropriate, the cumulative amount of
income recognised in accordance with the
principles of Ind AS 115.

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 recognised less, when
appropriate, the cumulative amount of
income recognised in accordance with the
principles of Ind AS 115.

Compound financial instruments

The liability component of a compound financial
instrument is recognised initially at fair value of
a similar liability that does not have an equity
component. The equity component is recognised
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 amortised 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.

Offsetting of financial instruments

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

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 recognised 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.

9.2 Company has made a strategic and long term investment of Rs. 533.00 lakhs (Previous year: Rs.533.00 lakhs) in
earlier years in the equity shares of Ilex Developers & Resorts Limited (Ilex), a 32.92% joint venture of the Company.
In the earlier years, the Company had made full provision for impairment of investment based on assessment carried
out by the management

9.3 Company's investment in equity shares of wholly owned subsidiaries [Kamats Restaurants (India) Private Limited, Fort
Jadhavgadh Hotels Private Limited, Mahodadhi Palace Private Limited, Orchid Hotels Eastern (India) Private Limited,
and Orchid Hotels Pune Private Limited] and equity shares held in joint venture entity [ILEX Developers and Resorts
Limited] is given as security against issue of 14% Rated Listed Secured Redeemable Non-Convertible Debentures by
the Company (Refer note no. 26.1).

26.1 29,750, 14% redeemable non-convertible debentures of Rs.1,00,000/- each

26.1.1 In earlier years, the Company has allotted 29,750 "14% Rated Listed Secured Redeemable Non-Convertible
Debentures" (NCDs) having face value of Rs. 1 lakh each amounting to Rs. 29,750.00 lakhs through private placement.
The Company has utilized the issue proceeds towards settlement of secured debts of the Company, a subsidiary
company, joint venture company and loan to a company belonging to the promoter. The redemption of NCDs shall be
as per repayment schedule of Debenture Trust Deeds.

During the previous year, the Company partially redeemed debentures amounting to ? 23,951.68 lakhs. In the current
year, the Company has fully redeemed the remaining outstanding debentures.

26.1.2 Nature of securities/ guarantees of secured debentures

(a) Non-convertible debenture aggregating to Rs. 29,420 lakhs are secured by:

(i) First ranking exclusive charge on lands at "The Orchid" at Vile Parle (East) (owned by Plaza Hotels
Private Limited (PHPL)) together with hotel buildings and all appurtenances thereon; Hotel "VITS" at
Andheri (East); hotel property at Lotus Goa, land and building belonging to promoter's company at
Nagpur, hypothecation of all receivable and current assets of the Company, Orchid Hotels Pune Private
Limited (OHPPL), Mahodadhi Palace Private Limited (MPPL), Ilex Developers and Resorts Limited
(IDRL), Plaza Hotels Private Limited (PHPL) & Savarwadi Rubber Agro Private Limited (SRPL);

(ii) Pledge of equity shares of the Company held by promoters and promoter companies, pledge of equity
shares held by the Company in subsidiaries & joint venture and pledge of security held by promoter,
promoter company and other group company in PHPL and IDRL.

(b) NCDs are secured by corporate guarantee of subsidiaries, joint venture, PHPL, SRPL, Greenboom Developers
& Resorts Limited, Vishal Amusements Limited & Kamat Development Private Limited and personal guarantee
of Dr. Vithal V. Kamat and Mr. Vishal V. Kamat..

26.2 Term loan sanctioned of Rs. 19,425.00 lakhs from Axis Finance Limited

26.2.1 Nature of securities/ guarantees w.r.t term loan

(a) First exclusive charge by way of registered / equitable mortgage over land along with the hotel structure -
'The Orchid Mumbai' along with 'KHIL House' (except 5th and 6th floor). along with all borrowers development
rights, title, interest of the borrower on the property, claims, benefits & the amenities thereon, both present
and future.

(b) Negative lien on the land along with hotel structure Lotus Eco Beach Resort Goa' along with deposit of title
deeds, along with all borrower's development rights, title, interest of the borrower on the property, claims,
benefits and the amenities thereon, both present and future.

(c) First exclusive charge by way of hypothecation over all accounts, cashflows from all Hotels of the Borrower
and Operating Companies group and current assets of the borrower and Operating companies group, both
present and future.

(d) First exclusive charge by way of hypothecation over the movable fixed assets of the borrower and corporate
guarantor group, both present and future, including any insurance proceeds from the security in clause (a)
and (b).

(e) First exclusive charge by way of mortgage over Sewage Treatment Plant owned by Savarwadi Rubber Agro
Private Limited.

(f) Pledge of 100% of shares of the corporate guarantor group

(g) Corporate Guarantee of corporate guarantor group

(h) Personal Guarantee of promoters i.e. Dr. Vithal Kamat, Mr. Vishal Kamat

(i) Corporate guarantors group:

(i) Orchid Hotels Pune Private Limited

(ii) Envotel Hotels Himachal Private Limited

(iii) Ilex Developers and Resorts limited

(iv) Plaza Hotels Private Limited

(v) Savarwadi Rubber Argo Private Limited

26.2.2 Rate of interest will be "Axis Finance Reference Rate" (AFL RR) less spread, payable monthly. The spread will be
(5.4%) i.e., applicable rate will be 10.75% p.a.p.m.

48.4 Capital commitments and other commitments

(i) Estimated amount of capital commitments to be executed on capital accounts and not provided for Rs. 120.84 lakhs
as at 31st March 2025 (Previous year: Rs. 67.61 lakhs) (Net of advances).

(ii) The Company had put up Sewage Treatment Plant ("STP") on an adjacent immovable property owned by Savarwadi
Rubber Agro Private Limited (previously known as Kamats Amusements Private Limited) in earlier years for its
Orchid Hotel, Mumbai and continues to use the same. The Company is obliged to compensate appropriately to the
owner for such use of the property. The modalities of the same being worked out.

48.5 Other litigations

Refer note no. 14.1 in respect of dispute regarding Bandra Kurla Project.

49. In respect of the Enforcement Directorate (ED) investigation which commenced in the earlier year, the Company had
deposited Rs. 1,567.00 lakhs in Prothonotary Account, during the previous year, as per interim order dated 28th June,
2023 of the Hon'ble Bombay High Court, the management believes that the said deposit of Rs. 1,567.00 lakhs would
be released upon the matter being heard. In the interim, the management, out of abundant caution and without
prejudice to its rights and contentions in connection to the pending legal proceedings, had made provision of Rs.

300.00 lakhs in its books and disclosed the same as an exceptional expense in the year ended 30th June, 2023.

During the year, Company has received order from PMLA court dated 9th January, 2025 allowing Company to
withdraw the deposited amount from Prothonotary Account and deposit Rs. 500.00 lakhs with ED till finality reached
in the said matter. In the interim, the management without prejudice to its rights and contentions in connection to
the pending legal proceedings, have made additional provision of Rs. 200.00 lakhs (cumulative provision of Rs.

500.00 lakhs) in its books and disclosed the same as an exceptional expense.

Consequent to the order for withdrawing the deposited amount from Prothonotary Account, during the current year
the Company has accrued interest at the rate of 6% on the deposits made with the Bombay High Court for the period
from 26th June, 2023 to 31st March 2025, amounting to Rs. 165.31 lakhs, which has also been disclosed as an
exceptional income.

51.4 Transactions with related parties and outstanding balances at the year end are disclosed at transaction value/ carrying

value. In addition to above transactions,,

(i) Mahodadhi Palace Private Limited, Kamats Restaurant (India) Private Limited, Fort Jadhav Gadh Hotels Private
Limited, Ilex Developers & Resorts Limited, Plaza Hotels Private Limited, Kamats Development Private Limited,
Orchid Hotels Pune Private Limited, Orchid Hotels Eastern (India) Private Limited, Savarwadi Rubber Agro
Private Limited, Greenboom Developers & Resorts Limited, Vishal Amusements Limited, Dr. Vithal V. Kamat,
Mr. Vishal V. Kamat had given joint corporate / personal guarantee amounting to Rs. 29,750.00 lakhs against
issue of Secure 14% Rated Listed Redeemable Non Convertible Debentures face value of Rs. 1 lakh each [Share
of respective entities / persons is not quantifiable]. As the NCDs have been fully repaid during the year, the
associated guarantee has been released.

(ii) Securities held by promoter, promoter Company and others in Mahodadhi Palace Private Limited, Kamats
Restaurant (India) Private Limited, Fort Jadhav Gadh Hotels Private Limited, Ilex Developers & Resorts Limited,
Plaza Hotels Private Limited, Orchid Hotels Pune Private Limited, Orchid Hotels Eastern (India) Private Limited
pledged with debenture trustee to secure 29,750 14% Secured Rated Listed Redeemable Non Convertible
Debentures face value of Rs.1 lakh each. As the NCDs have been fully repaid during the year, the associated
pledge has been released.

(iii) Plaza Hotels Private Limited had mortgaged its property situated at Vile Parle East Mumbai as security in favour
of debenture trustee to secure 29,750 14% Secured Rated Listed Redeemable Non Convertible Debentures face
value of Rs.1 lakh each. As the NCDs were fully repaid during the year, the associated mortgaged have been
released.

(iv) Mahodadhi Palace Private Limited, Ilex Developers & Resorts Limited, Plaza Hotels Private Limited, Savarwadi
Rubber Agro Private Limited & Orchid Hotels Pune Private Limited, had hypothecated its current asset and all
receivable with debenture trustee to secure 29,750 14% Secured Rated Listed Redeemable Non Convertible
Debentures face value of Rs 1 lakh each. As the NCDs were fully repaid during the year, the associated
hypothecation have been released.

(v) KMP, relatives of KMP and entities in which KMP has significant influence have pledged equity shares held
by them in the Company and other specified investments to the trustee against issue of Secure 14% Rated
Listed Redeemable Non Convertible Debentures by Company. As the NCDs were fully repaid during the year, the
associated pledge have been released.

(vi) Orchid Hotels Pune Private Limited, Envotel Hotels Himachal Private Limited, Ilex Developers and Resorts
limited, Plaza Hotels Private Limited and Savarwadi Rubber Argo Private Limited have given joint corporate
guarantee amounting to Rs. 19,425.00 lakhs against loan sanctioning from Axis Finance Limited. [Share of
respective entities/ persons is not quantifiable]. Refer note no. 26.2.1.

51.5 Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.
Outstanding balances at the year-end are unsecured and settlement occurs through bank transactions. The Company
has not recorded any impairment of receivables relating to amounts owed by related parties except for the impairment
of receivable and investment in MPPL in earlier years. This assessment is undertaken each financial year through
examining the financial position of the related party and the market in which the related party operates.

51.6 Breakup of compensation to key managerial personnel

Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of
that entity.

59.2 Above disclosure excludes investments (gross) in subsidiaries and joint venture amounting to Rs. 9,866.75 lakhs as
on 31st March, 2025 (Previous year: Rs.9,865.75 lakhs) as these are valued at cost in accordance with Ind AS 27 -
'Separate Financial Statement''.

59.3 Carrying amounts of cash and cash equivalents, trade receivables, loans and trade payables as at 31st March, 2025
and 31st March, 2024, approximate the fair value due to their nature. Carrying amounts of bank deposits, other
financial assets, other financial liabilities and borrowings which are subsequently measured at amortised cost also
approximate the fair value due to their nature in each of the periods presented. Fair value measurement of lease
liabilities is not required.

59.4 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:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs are not based on observable market data (unobservable inputs). 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.

Management of the company considers that the carrying amounts of financial assets and financial liabilities
recognised in the balance sheet approximate their fair values.

The following tables provides the fair value measurement hierarchy of the Company's financial assets and liabilities
that are measured at fair value or where fair value disclosure is required.

There have been no transfers between Level 1 and Level 2 for the years ended 31st March, 2025 and 31st March, 2024.

59.5 Valuation technique to determine fair value

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

(i) Short-term financial assets and liabilities such as cash and cash equivalents, trade receivables, trade payables,
other current financial assets and other current financial liabilities are stated at carrying value because their
carrying amounts are a reasonable approximation of the fair values due to their short-term nature.

(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.

60. Financial risk management

The Company has exposure to credit risk, funding / liquidity risk and market risk. The Company's overall risk management
programme focuses on the unpredictability of financial environment 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 arising from counterparty failure to repay or service debt according to
the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of
deterioration of credit worthiness as well as concentration of risks. Credit risk is controlled by analysing credit
limits and credit worthiness of customers on a continuous basis to whom the credit has been granted after
obtaining necessary approvals for credit.

The financial guarantee disclosed under note no. 46.2 represents the maximum exposure to credit risk. In this
regards the Company does not foresee any significant credit risk exposure.

Financial instruments that are subject to credit risk consist of trade receivables, loans, investments, cash and
cash equivalents, bank deposits and other financial assets. For expected credit loss of trade receivable, company
follows simplified approach as per which provision is made for receivable exceeding six months/ one year based
on category of receivable. This is based on historically observed default rates over the expected life of trade
receivables. The maximum exposure to credit risk at the reporting date is the carrying value of each class of
financial assets. None of the other financial instruments of the company result in material concentration of
credit risk.

(b) Liquidity risk :

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements. The Company consistently generated sufficient cash flows from operations to meet its financial
obligations including lease liabilities as and when they fall due.

(c) 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. In order to optimize the company's position with regards to interest
income and interest expenses and to manage the interest rate risk, Board of Directors perform a comprehensive
corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial
instruments in its total portfolio. The company's interest rate risk exposure is only for floating rate borrowings.
For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end
of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when
reporting interest rate risk internally to key management personnel and represents management's assessment
of the reasonably possible change in interest rates.

(d) Market risk

The company does not deal in transaction in currency other than its functional currency therefore it is not
exposed to foreign currency exchange risk. Similarly, the company does not have exposures to interest bearing
securities.

61. Capital risk management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all
other equity reserves attributable to the equity 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.

63.1 Exceptional income is not considered while calculating the above ratios, in order to make the ratios comparable.

63.2 Due to repayment of borrowings and settlement of property tax dues during the year.

63.3 Due to repayment of borrowings during the year and issuance of shares on account of conversion of share warrants.

63.4 Due to increase in revenue and profit during the year vis-a-vis last year.

63.5 Due to decrease in fair value of investments..

64. Following are additional regulatory information in terms of Division II to Schedule III of the Act:

64.1 Wilful defaulter

As on 31st March, 2025, the Company has not been declared wilful defaulter by any bank/financial institution or other
lender.

64.2 Details of crypto currency or virtual currency

The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence
no disclosure is required.

64.3 Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company does not have any charges or satisfaction yet to be registered with the registrar of companies(ROC)
beyond the statutory period as at 31st March, 2025.

64.4 Compliance with number of layers of companies

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

64.5 Utilisation of borrowed funds

The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or
entities, including foreign entities ("Intermediaries"), with the understanding that the intermediary shall whether
directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the Company
(Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of ultimate beneficiaries.

The Company has not received any funds from any person(s) or entities including foreign entities ("Funding Parties")
with the understanding that the Company shall whether, 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 provide guarantee,
security or the like on behalf of the Ultimate beneficiaries.

64.6 Borrowings secured against current assets

The Company had obtained term loans which was secured against current assets, however the Company was not
required to file quarterly returns or statement of current assets.

64.7 Benami property

No proceedings have been initiated or are pending against the Company as on 31st March, 2025 for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

64.8 Relationship with struck off companies

The Company does not have any transaction with companies struck off under section 248 of Companies Act, 2013 or
section 560 of Companies Act, 1956 and hence no disclosure is required.

64.9 Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangements in terms of sections 230 to 237 of the Companies
Act, 2013.

64.10 Undisclosed income

There is no transaction that is not recorded in the books of accounts of the enterprise that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

65. Previous year figures have been regrouped/rearranged wherever necessary. This mainly pertains to:

(a) The Company has reclassified the current year's tax impact under 'Current tax liabilities (net)' (Refer Note 37),
which was previously included under 'Non-current: Income tax assets (net)' (Refer note no. 13).

(b) The Company has now disclosed the amount under 'Impairment loss (including reversal of impairment loss)
on financial assets' (Refer note no. 43) separately on the face of the Statement of Profit and Loss, which was
previously included under 'Other operating revenue' and 'Other expenses' (Refer note no. 38 and 44). However
due to this regrouping there is no impact on profit and loss of the Company.

As per our audit report of even date

For N.A.Shah Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants Kamat Hotels (India) Limited

Firm Registration No. 116560W/ W100149

Milan Mody Dr. Vithal V. Kamat Ramnath P. Sarang

Partner Executive Chairman & Managing Director Director

Membership No. 103286 (DIN : 00195341) (DIN : 02544807)

Pl_ace: Mu_mbai Smita B.Nanda Nikhil Singh

Dat_e: 26th April, 2025 Chief Financial Officer Company Secretary

Place: Mumbai
Date: 26th April, 2025