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 assets and contingent liabilities are reviewed at each reporting period.
n) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the Statement of Cash Flows, cash and cash equivalents include cash on hand, balances with banks, and
short-term fixed deposits with a maturity period of 3 months.
o) Investments
A joint venture is a type of joint arrangement where under the parties that have joint control of the arrangement have rights
to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.
The considerations made in determining whether significant influence or joint control are similar to those necessary to
determine control over the subsidiaries.
The Company has accounted for its investment in joint ventures at cost. The share of profit/(loss) of the JV is consolidated
into the standalone comprehensive income /(loss) of the Company.
Other investments
Any investments other than the above and to be held beyond 12 months, are classified as Non-Current Investments. All
other investments for a period less than 12 months are classified as Current Investments.
Transition to Ind-AS:
On transition to Ind AS, the Company has elected to continue with the carrying value of all its Investment in joint ventures
and other investments recognised as at 1 April 2015 measured as per previous GAAP.
Impairment:
The Company reviews its carrying value of investments carried at cost or amortised cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is
accounted for.
p) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Financial Assets
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.
AH financial assets are recognised initially at fair value plus transaction costs that are attributable to the acquisition of
the financial asset, in the case of financial assets not recorded at fair value through Statement of profit and loss except
investments in Joint Venture and other equity investment, which is a statutory obligation, are recognized at cost. However,
trade receivables that do not contain a significant financing component are measured at transaction price.
All financial assets, excluding trade receivables, are recognised initially at fair value plus, in the case of financial assets not
measured at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Investments in Joint Ventures and other equity investments, which are statutory obligations, are recognised at cost. Trade
receivables that do not contain a significant financing component are measured at the transaction price.
Subsequent measurement:
Financial Assets at Amortised Cost
Other 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.
De-recognition:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognized when:
• The rights to receive cash flows from the asset have expired or
• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a 'pass-th rough' arrangement and either (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of Financial Assets
The Company assesses, at each reporting date, whether a financial asset or a group of financial assets is impaired. Ind AS 109
on Financial Instruments, requires expected credit losses to be measured through a loss allowance. For trade receivables
only, the Company recognises expected lifetime losses using the simplified approach permitted by Ind AS 109, from initial
recognition of the receivables. As a practical expedient, the Company uses a provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over
the expected life of the trade receivables and is adjusted for forward-looking estimates
For other financial assets (not being equity instruments or debt instruments measured subsequently at FVTPL) the expected
credit losses are measured at the 12 month expected credit losses or an amount equal to the lifetime expected credit losses
if there has been a significant increase in credit risk since initial recognition.
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.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, or as loans
and borrowings and payables, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.
The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial instruments.
Subsequent measurement:
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss.
Loans and borrowings
Interest-bearing borrowings from banks are initially recognized at fair value, net of transaction costs incurred. After initial
recognition, Interest-bearing borrowings from banks are subsequently measured at amortised cost using the Effective
Interest Rate (EIR) method. Gains and losses are recognized in profit or loss when the borrowings are derecognized, as well
as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
Derecognition :
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the
statement of profit or loss
q) 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, 2023:
Ind AS 1 - Presentation of Financial Statements
The amendments to Ind AS 1 provide guidance and examples to help entities apply materiality judgements to accounting
policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by
replacing the requirement for entities to disclose their 'significant' accounting policies with a requirement to disclose their
'material' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions
about accounting policy disclosures. This amendment does not have any material impact on the Company's financial
statements and disclosures.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The amendments to Ind AS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies
and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting
estimates.
Ind AS 12 - Income Taxes
The amendments to Ind AS 12 Income Taxes narrow the scope of the initial recognition exception, so that it no longer applies
to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning
liabilities.
The above amendments did not have any material impact on the amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.
(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, 2025, MCA has notified Ind
AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements. During the year ended March 31, 2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
i) Term Loans from Banks:
a) Rs.NiL (2024: Rs.18.75 crores) from HDFC Bank Ltd at an interest rate of 1 year MCLR spread of 140 bps.viz. 10.35% p.a is
secured by first charge on all assets of Taj Chandigarh, Chandigarh repayable in 32 equal quarterly instalments starting
from 1st November 2016.
b) Rs.Nil (2024: Rs.8.44 crores) of short term loan from HDFC Bank under the Emergency Credit Line Guarantee Scheme (ECLGS
2.0) notified by the Government of India, to meet the working capital requirement and repayable in 48 equated monthly
instalments after a 12 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a
c) Rs.Nil (2024: Rs.15.82 crores) of short term loan from HDFC Bank under the Emergency Credit Line Guarantee Scheme
(ECLGS 3.0) notified by the Government of India, to meet the working capital requirement and repayable in 48 equated
monthly instalments after a 24 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a
d) Rs.Nil (2024: Rs.8.16 crores) of short term loan from Federal Bank under the Emergency Credit Line Guarantee Scheme
(ECLGS 2.0) notified by the Government of India, to meet the working capital requirements and repayable in 48 equated
monthly instalments after a 12 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a.
e) Rs.Nil (2024: Rs.15.30 crores) of short term loan from Federal Bank under the Emergency Credit Line Guarantee Scheme
(ECLGS 3.0) notified by the Government of India, to meet the working capital requirements and repayable in 48 equated
monthly instalments after a 24 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a.
f) Yelahanka Hotel Project:
Federal Bank Limited has sanctioned a Rs.200 crores term loan limit to the Company towards construction of the Yelahanka
Bengaluru hotel project with a tenure of 114 months including a 3 year moratorium. The loan is secured by exclusive charge
on leasehold rights of 7.22 acres of land at Yelahanka site and all moveable and immoveable assets pertaining to Yelahanka
hotel project.
ii) Loans repayable on demand from Banks
a). The Company has been sanctioned an Bank Overdraft limit of Rs.3000 Lakhs by Federal Bank Limited, and as at 31.03.2025
the overdraft limit is not yet utilized / drawn (2024: Nil). The said overdraft limits are secured by first charge on current
assets of the Company.
25. (a) The Company received notice during FY 2020-21, from TSSPDCL (Telangana State Southern Power Distribution Company
Limited), pertaining to wheeling charges for FY 2002-2003 to FY 2018-2019 at Taj Krishna, Taj Deccan and Taj Banjara
aggregating to Rs.2,129.97 lakhs. The Company filed a Writ petition with the Honourable High Court of Telangana for a stay
on the recovery of the demand and the Honourable High Court of Telangana vide Order dated 17/08/2020 granted stay on
recovery and also directed TSSPDCL to not take any coercive action including that of disconnection of the power supply
pending disposal of the writ petitions of the company.
(b) The Company has received a demand notice from Telangana State Southern Power Distribution Company Limited (TGSPDCL)
during the 2nd and 4th quarter of the financial year under review towards cross-subsidy surcharge amounting to Rs. 1161
lakhs on electricity units procured from a third-party producer i.e. M/s Ind Barath Energies Limited, Hyderabad, during the
financial years 2004-05 to 2015-16, by Taj Krishna, Taj Deccan and Taj Banjara hotels. The Company has made a provision for
the entire amount in the books of account. The Company has filed a writ petition with the Hon'ble High Court of Telangana
and Hon'ble High Court of Telangana disposed of the writ petition directing the TGSPDCL to verify whether the Company's
purchase of electricity units in those years from third party distribution Licensee is covered under the Electricity (Removal
of Difficulties Second) Order dated 08th June, 2005 issued by the Ministry of Power, Government of India.
26. Land under lease cum sale:
(a) Bangalore hotel project - The Company was allotted 7.22 acres of land at Shivanahalli village, Yelahanka, Bangalore
North for construction of a 5-star hotel. The land is under a lease-cum-sale agreement with KIADB, Bangalore and upon
completion of the project as per the terms of allotment, the sale deed will be registered in favour of the Company by KIADB.
The company has started the construction of the hotel during FY22-23 and expect to complete the project during last
quarter of FY25-26.
(b) The Company was allotted 4255 sq.yds of land at Survey No.1/1, Hardware Park at Kancha Imarat Village, Maheshwaram
mandal, RR Disctrict, Telangana for construction of a hotel. The land is under agreement for sale from TGIIC, Hyderabad.
The Company requested TGIIC to grant time for initiation and execution of the project.
27. In respect of the year ended Mar 31, 2024, the Board of directors recommended a final dividend of Rs.1.50 per share be
paid on fully paid equity shares of Rs.2 each, which was approved by the shareholders at the Annual General Meeting held
on August 17th, 2024. The total amount of final dividend so declared and paid in FY 24-25 amounts to Rs.940.52 Lakhs.
The Board of Directors of the Company have recommended a dividend of 100% .ie. Re.2/- per equity share of Rs.2/- each
for the year ended 31st March 2025 (2024: 75% i.e Rs.1.50/- per equity share of Rs.2/ each). The dividend will be paid to all
the shareholders who hold equity shares as on the cut- off date subject to the approval of the shareholders at the ensuing
Annual General Meeting.
28. Managerial Remuneration:
Mrs. G. Indira Krishan Reddy -Managing Director (Upto 24.04.2025):
For the current financial year, the salary paid to the Managing Director is as approved by the shareholders at the Annual
General Meeting of the Company held on 24th September 2020.. The company also provided in the books of account
for the commission of Rs.94.00 Lakhs equivalent to 1% of the net profits after tax of the company and Annual Bonus of
Rs.128.80 Lakhs to her as per the terms of appointment which were recommended by the Nomination and Remuneration
Committee (NRC) and approved by the Board of Directors at their meetings held on 12th May, 2025 and 13th May, 2025
respectively. The total remuneration i.e.( salary, perks, commissioned annual bonus) falls within the overall ceiling limit
of 5% individually on the net profits calculated as per Sections 197, 198 read with Section I of Part II of Schedule V to the
Companies Act, 2013.
Mrs. Shalini Bhupal - Managing Director (with effect from 25.04.2025)
For the current financial year, the total salary of Rs.465.39 Lakhs was paid to the Mrs. Shalini Bhupal as Joint Managing
Director was as approved by the shareholders at the Annual General Meeting of the Company held on 17th August 2024
In addition, she also drew remuneration of Rs.245.77 Lakhs as the Chief Executive Officer of Greenwoods Palaces and
Resorts Private Limited a joint venture company who owns the Taj Santacruz Hotel.
Accordingly, the cumulative remuneration drawn by her was Rs.711.15 lakhs from both the Companies as per the terms of
her respective appointments,. In terms of the provisions of Sections 197 and 198, read with Schedule V of the Companies
Act, 2013, she is not eligible for any commission or annual bonus. Hence the total remuneration paid to her from both the
companies falls with the overall ceiling of 5% of the net profits calculated under the Act.
Independent Directors:
The Company also took approvals of the Nomination and Remuneration Committee (NRC) at their meeting held on
12th May, 2025 and approval and recommendation of the Board of Directors at their meeting held on 13th May, 2025
for payment of commission to Non-Executive Independent Directors amounting to Rs.70.00 Lakhs for the FY2024-2025,
subject to approval of the shareholders at the ensuing annual general meeting. The payment of commission to Non¬
Executive Independent Directors is within the overall ceiling of 1% on the net profits calculated as per Sections 197 and 198
of the Companies Act, 2013. The company has made necessary provision in the books of accounts.
31. Employee benefits:
Defined contribution plan:
Amount recognized as an expense in statement of profit and loss Rs.123.23 lakhs (2024: Rs. 117.85 lakhs) on account of
provident fund and Rs.67.31 lakhs (2024: Rs. 58.67 lakhs) on account of Superannuation.
Defined benefit plan:
Gratuity:
The Company has a funded defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service as per the provision of the
Payment of Gratuity Act,1972 with a tax exemption ceiling on gratuity of Rs.2,000,000/-. The liability of Gratuity is recognized
on the basis of actuarial valuation.
The following tables summarize the components of net expense recognized in the Statement of Profit and Loss and amounts
recognized in the Balance Sheet for the respective employee gratuity plans.
a. Statement of Profit and Loss and Statement of Other Comprehensive Income
Compensated Absences:
The Company's liability towards un-funded leave encashment is determined by independent actuarial valuation using the
projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement
and measures each unit separately to build up the final obligation.
The Defined Benefit Obligation of compensated absence in respect of the employees of the Company as at 31 March 2025
works out to Rs. 42,475,436/- (2024: Rs. 3,35,56,896/-)
The discount rate and salary escalation rate is the same as adopted for gratuity liability valuation.
The estimates of future salary increases (which has been set in consultation with the company) takes account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.
The provision is presented as current and non-current based on the actuarial report obtained by the Company.
32. Corporate Social Responsibility Expenditure
Ongoing Project: The Company has signed Memorandum of Understanding (MOU) with Bangalore Development Authority
(BDA), to rejuvenate and restore the Shivanahalli lake, Yelahanka, Bengaluru. The company is taking up the restoration works
as per the approved plans of BDA.
For the FY2023-24, the company was required to spend an amount of Rs. 68.56 lakhs as per the provisions of Section 135 of
the Companies Act, 2013. The company utilized the brought forward excess spend of Rs.24.48 lakhs from the FY 2022-23 to
set off the current FY23-24 expenditure, thus leaving a balance unspent amount of Rs. 44.08 lakhs for FY 2023-24, which was
transferred to a separate suspense account as required under the provisions of Companies Act 2013. This amount of Rs.44.08
lakhs was spent in FY 2024-25.
Further, for the FY 2024-25, the company is required to spend an amount of Rs. 163.34 lakhs as per the provisions of Section
135 of the Companies Act, 2013. This amount was transferred to a separate suspense account as required under the provisions
of Companies Act 2013, after making necessary provision in the books of account.
Other than ongoing Project: Nil
34. The Company has recognised in the earlier years an amount of Rs.25 crores as Key Money receivable from Indian Hotels
Company Limited ("IHCL or Operator").The Operator agreed to pay the key money to secure the hotel operating rights
of Taj Krishna and Taj Deccan for a further period of 20 years, as per the terms agreed between the parties and also as
approved in the Audit Committee and Board
35. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realize in
the ordinary course of business approximately the value at which they are stated in accounts.
36. Segmental Reporting:
The Company's only business being hoteliering, disclosure of segment-wise information under Accounting Standard (AS)
108 "Segmental Information" notified by the Companies (Accounting Standards) Rules, 2006 (as amended) does not arise.
There is no geographical segment to be reported since all the operations are undertaken in India.
37. Audit Trail: The Company has used accounting softwares for maintaining its books of account, which have a feature of
recording audit trail (edit log) facility and audit trail feature with respect to application and database layer changes in
accounting software, has operated effectively throughout the year, except:
i) Access management tool was implemented during the year for revenue softwares on premise with effect from September
6, 2024 and audit trail (edit log) on database was hence enabled effective that date.
ii) In respect of a revenue software migrated to cloud infrastructure during the year and as confirmed directly by the
software product owner, access to database is not available to any of their customers and database audit trails are
active by default and cannot be disabled.
The audit trail has been preserved by the Company as per the statutory requirements for record retention.
38. Risk Management, Objectives and Policies:
Risks and Concerns
Economic Risks: Hotel business in general is sensitive to fluctuations in the economy. The hotel sector may be unfavourably
affected by changes in global and domestic economies, changes in local market conditions, excess room supply, reduced
international or local demand for hotel rooms and associates services, competition in the industry, government policies
and regulations, fluctuations in interest rates and foreign exchange rates and other natural and social factors. Since
demand for hotels is affected by world economic growth, a global recession could lead to a downturn in the hotel industry.
Socio-Political Risks: The Hotel industry faces risk from volatile socio-political environment, internationally as well as
within the country. India, being one of the fastest growing economies of the world in the recent past, continues to attract
investments. However, any adverse events such as political instability, conflict between nations, terrorist attacks or spread
of any epidemic or security threats to any countries may affect the level of travel and business activity.
Security Risks: The Hotel industry demands peace at all times to flourish. The biggest villain in South East Asia has been
terrorism supplemented by political instability. Subsequent to the Mumbai terror attacks in November 2008, the hotel
industry has invested substantially on security and intelligence. The security concerns have been duly addressed instilling
confidence in the customer by providing international standards of safety.
Business interruption risk on account of unprecedented events like a pandemic: A pandemic like the Covid-19 outbreak
confronts the hospitality industry with an unprecedented challenge. It causes a severe downturn in all streams of business.
With lockdowns and resultant travel and mobility restrictions, all corporate and leisure travel comes to a halt. With the fear
of pandemic spread in enclosed spaces, stay-at-home orders, social distancing and community lockdowns, all restaurants
and banquet business get severely affected with restaurants resorting to business from take-outs and banquet functions
being conducted with limited attendance. Hygiene standards and pandemic protocols need to be strictly implemented to
instill confidence into the customer and recover from any such incidence.
Company-specific Risks
Heavy Dependence on India
Risk of wage inflation: The hotel industry needs quality employees and with demand for the same improving across the
industry, the Company feels that wage inflation would be a critical factor in determining costs for the Company. Thus, your
Company will continue to focus on improving manpower efficiencies and creating a lean organization, while maximizing
effectiveness in terms of customer service and satisfaction, which is an area of great importance for your Company.
Foreign Exchange Risk: Your Company may be impacted by the fluctuation of the Indian Rupee against other foreign
currencies. To mitigate this risk the Company is operating on single currency billing in Indian Rupees.
Project Implementation Risk: Your Company may be impacted by delays in implementation of projects which would result
in increasing project cost and loss of potential revenue. To mitigate this risk, the Company has in place an experienced
project team supported by the leading external technical consultants and a dedicated project management company. The
Company will endeavour to complete its projects on time at optimal cost so as to maximize the profitability.
39. Capital Management
The Company's policy is to maintain strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of business.
The Company manages its Capital structure through a balanced mix of debt and equity. The Company's capital structure is
influenced by the changes in the regulatory frameworks, government policies, available options of financing and impact of
the same on liquidity position.
The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash
equivalents. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
The table below shows the Gearing ratio for FY 2024-25 and FY 2023-24.
42. Financial risk management objectives and policies
The Company is exposed to financial risk such as Market Risk (Interest Rate Risk, fluctuation in foreign exchange rates and
price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability
of the financial markets and attempts to minimize their potential negative influence on the financial performance of the
Company. The Company continueously reviews its risk exposures and takes measures to limit it to acceptable levels. The
Board of Directors have the overall responsibility for the establishment and oversight of the Company's risk management
framework.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk i.e. interest rate risk, foreign currency risk and other price risk.
Financial instruments of the Company affected by market risk include borrowings and deposits.
The sensitivity analysis in the following sections relate to the position as at 31 March 2025 and 31 March 2024.
The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other post¬
retirement obligations; provisions; and the non-financial assets and liabilities.
The following assumptions have been made in calculating the sensitivity analysis:
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.
Interest rate risk
The interest rate risk arise from long term borrowing of the company with variable interest rates (Bank one year MCLR
plus spread). Although the spread is fixed, it is subject to change at fixed time interval or occurrence of specified event(s).
Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by
restructuring its financing arrangement.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held
constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:
Price risk
Price risk is the risk of fluctuations in the change in prices of equity Investments. The Company's investment in JV company is
of strategic in nature rather than for trading purpose.
Credit risk
Credit risk is the risk arising from credit exposure to customers and the counterparty will default on its contractual obligations.
The Company has adopted a policy of only dealing with creditworthy customers/ corporates to minimise collection losses.
Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and
other relevant factors. Advance payments are obtained from customers in banquets, as a means of mitigating the risk of
financial loss from defaults.
The carrying amount of trade and other receivables, advances to suppliers, cash and short-term deposits and interest
receivable on deposits represents company's maximum exposure to the credit risk. No other financial asset carry a significant
exposure with respect to the credit risk. Deposits and cash balances are placed with Schedule Commercial banks.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number
of minor receivables are assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is
the carrying value of each class of financial assets. The Company also holds advances as security from customers to mitigate
credit risk.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in
accordance with the Company's policy. Investments held by the Company are in the nature of investment in jointly controlled
entity and also an investment in an alternate energy supply company as required under the respective State energy policy.
Both the categories are unquoted non-trade equity.
Liquidity risk
Liquidity risk is the risk that the Company will have difficulty in raising the financial resources required to fulfil its commitments.
Liquidity risk is held at low levels through effective cash flow management. Cash flow forecasting is performed internally
by rolling forecasts of the Company's liquidity requirements to ensure that it has sufficient cash to meet operational
requirements, to fund scheduled capex and debt repayments and to comply with the terms of financing documents.
The Company primarily uses short-term bank facilities in the nature of bank overdraft facility to fund its ongoing working
capital requirements.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted
payments.
Explanations to variance in Ratios:
1) Current ratio decreased due to repayment of all current borrowings
2) The debt-equity ratio and debt service coverage ratio is currently nil as there are no outstanding debts.
3) Interest service coverage has increased due to improvement in business as also repayment of borrowings.
4) Trade Receivable turnover has increased because of reduction in average debtors outstanding achieved by robust collections.
5) Net profit ratio improved due to an increase in net profit after tax from improvement in business volumes.
6) Return on capital employed and return on equity improved with improvement in operating margins during the year.
7) Return on investments increased with increase in yields of the fixed deposits.
8) 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.
44. The company has a policy of conducting physical verification of fixed assets once every three years in a phased manner. In
line with this policy, physical verification was carried out during the financial year 2022-23. No physical verification was
conducted during the current financial year. Discrepancies identified during the previous verification were duly adjusted
in the books of account.
45. The Company does not have any transactions with companies struck off under section 248 of Companies Act 2013 or
Section 560 of Companies Act 1956.
46. The Company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory period.
47. The Company has not revalued its PPE including Right-of-Use assets and Intangible Assets during the year.
48. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
49. The Company has not advanced, loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
50. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
51. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.
52. The Company has not been declared as a willfull defaulter by any bank or financial institution or other lender.
53. The Company had been sanctioned working capital limits in excess of Rs. Five crores in aggregate from banks on the basis
of security of current assets of the Company. These limits include an overdraft facility, for which the Company is not
required to submit periodic returns or statements to the bank, as per the terms of the Sanction. The Company is regular
in complying with all the covenants and requisites to such sanctioned limits.
54. No proceedings have been initiated or are pending against the Company as at 31st March, 2025 for holding any Benami
property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) and rules made thereunder.
55. Balances in the accounts of various parties are subject to confirmation and reconciliation.
56. Previous year figures have been regrouped / reclassified, wherever necessary, to correspond with the current year
classification. Figures in brackets relate to the previous year.
57. The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval
of financial statements to determine the necessity for recognition and/or reporting of any ofthese events and transactions
in the financial statements. As of May 13, 2025, there are no subsequent events to be recognized or reported that are not
already disclosed.
As per our report of even date For and on behalf of the Board
For M.BHASKARA RAO & CO., Shalini Bhupal Dr. G V K Reddy
Chartered Accountants Managing Director & CEO Non-Executive Chairman
Firm Regn No.000459S DIN: 00005431 DIN: 00005212
D. Bapu Raghavendra j Srinivasa Murthy
Partner CFO & Company Secretary
Membership No.213274 M. No. : FCS4460
Place : Hyderabad
Date : May 13, 2025
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