(iii) Tax litigations

(a) Property tax demand under litigation

The Company has been discharging property tax in respect of its hotel properties. In this regard, the Company has received a demand notice from the municipal authority assessing the property tax for certain hotel property for the period from financial year 2011-12 to financial year 2021-22 resulting in demand of 19,222 Lakhs including interest and penalty thereon and the Company has subsequently paid 14,093 Lakhs under protest and an additional amount of 1510 Lakhs to be paid under protest, which are provided for. During the previous year ended March 31, 2025, the aforesaid demand was revised by the municipal authority to 12,874 Lakhs (net of payment under protest already provided for) for the financial year 2011-12 to financial year 2023-24 under One time settlement Scheme by a competent authority. The Company has litigated the aforesaid matter, which is pending adjudication. The Company is reasonably confident of a favourable outcome in respect of the aforesaid matter based on the management’s evaluation and the legal opinion obtained by the management. Pending ultimate outcome of the matter, no adjustments have been made in the accompanying standalone financial statements.

(b) Income tax litigationA survey under section 133A of the Income Tax Act ('the Act’) was conducted in December 2025 on the Company. As on the date of the standalone financial statements, the Company has not received any demand or show cause notice from Income tax authorities pursuant to such survey proceedings. The management has confirmed that the Company has complied with the requirements of the Act and does not expect any further liability on final assessment of the aforesaid matter.

28 Leases

A. Company as Lessee during the year

The Company has taken land parcels on lease for operation/construction of hotel units with a lease period of 25-35 years with certain escalation and extension clauses and also certain office equipments for usage with a lease period of 1-4 years. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. The Company also has certain leases with lease terms of 12 months or less. The Company applies the 'short-term lease’ recognition exemptions for these leases.

V. Other information:

The Company had an interest free loan of 117,790 Lakhs (sanctioned - 120,000 Lakhs) from its Holding Company and repayable in quarterly instalments of 11,000 Lakhs each from June 2025 to March 2030 . The Company had accounted the aforesaid loan, being interest-free in nature, as compound financial instruments in accordance with Ind AS 32 with effective interest rate of 12%.

During the year, the Company and its Holding Company have amended the terms of the aforesaid loan, wherein parties have agreed to convert the existing interest free loan into interest bearing loan at 10.50% p.a. with effect from August 1, 2025. Consequently, the Company has accounted for the difference between the contractual value of the loan of 116,790 Lakhs and the carrying value of the loan of 113,297 Lakhs amounting to 12,615 Lakhs (net of tax effect of 1878 Lakhs) as adjustment to other equity - equity component of compound financial instruments.

30 Segment reporting

The Company is engaged in the business of hospitality. The Board of Directors being the Chief Operating Decision Maker (CODM) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by industry classes. All operating segments operating results are reviewed regularly by CODM to make decisions about resources to be allocated to the segments and assess their performance. CODM believes that these are governed by same set of risks and returns hence, CODM reviews them as one component. Hence, there are no additional disclosures to be provided under Ind-AS 108 - Segment information with respect to the single reportable segment, other than those already provided in the accompanying standalone financial statements. Further, the Company is domiciled in India and the Company’s current and non-current assets are located in India. There is no identifiable major customer in the Company who is contributing more than 10% of revenue.

31 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade, other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks and ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

i. 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 of: interest rate risk, currency risk and price risk.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant. The impact on the entity’s profit before tax is due to changes in the fair value of noncurrent and current borrowings and other current and non current financial liabilities.

c) Price risk

The Company is affected by the price volatility of certain commodities. The Company’s management has developed and enacted a risk management strategy regarding commodity price risk and its mitigation. The Company is subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.

ii. Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The Company’s exposure to credit risk arises majorly from trade receivables/ unbilled revenue and other financial assets.

Other financial assets are bank deposits with banks and hence, the Company does not expect any credit risk with respect to these financial assets.

With respect to other financial assets, the Company has constituted teams to review the receivables on periodic basis and to take necessary mitigations, wherever required. The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables and unbilled revenue. The Company follows the simplified approach for recognition of impairment allowance on trade receivables wherein, it recognises impairment allowance based on lifetime ECLs at each reporting date. At the balance sheet date, there was no significant concentration of credit risk and exposure thereon.

iii. Liquidity Risk

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of borrowings and lease contracts. The Company has assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

b) Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates arises on account of purchases from foreign countries. The Company has not taken any derivative instrument during the year and there is no derivative instrument outstanding as at the year end.

32 Defined benefit plan - Gratuity

The Company operates defined gratuity plan for its employees. Under the plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

The following tables summarises the components of net benefit expenses recognised in the statement of profit and loss and amount recognised in the balance sheet with respect to gratuity. The defined benefit plan is unfunded, except as otherwise stated.

The sensitivity analysis above has been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation.

Maturity profile of defined benefit obligation

Weighted average duration (based on on discounted cashflows) - 6 years (March 31, 2025: 5 years)

Expected contributions to the defined benefit plan asset (investment in insurance fund) for the next annual reporting period is 178 Lakhs (March 31, 2025: 129 Lakhs)

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above gratuity benefit, the most significant of which are as follows:

Interest Rate risk : The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

Liquidity Risk : This is the risk that the Company is not able to meet the short term gratuity pay-outs. This may arise due to non availability of sufficient cash/cash equivalents to meet the liabilities.

Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Demographic Risk : The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Note:

The Government of India has implemented four new Labour Codes ('Codes’), including the Code on Wages, 2019, with effect from November 21, 2025. The Company has carried out actuarial valuation as on March 31, 2026 basis uniform definition of wages considering the provisions of the Code on Wages and recorded additional obligation of 154 Lakhs, which has been recorded as Employee benefits expense in the standalone financial statements for the year ended March 31, 2026. The Company will continue to monitor the developments pertaining to Labour Codes and will evaluate and provide necessary accounting effect on the basis of such developments as required.

33 Fair values

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

i) The management assessed that the carrying values of cash and bank balances, trade receivables, trade payables, and other financial assets and liabilities approximate their fair values largely due to their short-term maturities.

ii) The management assessed that the carrying values of bank deposits, borrowings and other financial assets and liabilities approximate their fair values based on cash flow discounting using parameters such as interest rates, tenure of instrument, creditworthiness of the customer and the risk characteristics of the financed project, as applicable.

These financial assets and financial labilities are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs as explained above. There have been no transfers between levels during the year. The investment in equity of subsidiary is measured at cost.

34 Capital management

The Company’s objectives of capital management is to maximize the shareholder value. In order to maintain or adjust the capital structure, the Company may adjust the return to shareholders, issue/ buyback shares or sell assets to reduce debt. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

36 The Company has defined process to take daily back-up of books of account in electronic mode on servers physically located in India. However, the backup of the books of account and other books and papers maintained in electronic mode with respect to individual hotel units of the Company has not been maintained on servers physically located in India on daily basis.

Further, the Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software, except that audit trail feature is not enabled for certain changes, if any, made using privileged/ administrative access rights to the SAP S/4 HANA application and the underlying database and in respect of individual hotel units of the Company wherein its accounting software did not have the audit trail feature enabled throughout the year. Further no instance of audit trail feature being tampered with was noted in respect of the accounting software to the extent audit trail feature is enabled. Additionally, the audit trail in respect of the relevant prior years has not been preserved by the company as per the statutory requirements for record retention.

38 Initial Public Offering (IPO)

During the year ended March 31, 2026,

(a) The Company has allotted an aggregate of 14,000,000 equity shares of face value of 110 each aggregating to 112,600 Lakhs at an issue price of 190 per equity share (including a premium of 180 per equity share) on a preferential basis (Pre-IPO Placement).

(b) The Company has completed its Initial Public Offering (IPO) comprising fresh issue of 84,412,565 equity shares of face value of 110 each aggregating to 175,960 Lakhs (which comprises of 376,986 number of equity shares issued to employees at premium of 111 per equity share and balance 84,035,519 number of equity shares issued at premium of 180 per equity share). The Company's equity shares were listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on July 31, 2025.

(c) I n accordance with Ind AS 32, the transaction costs amounting to 14,515 Lakhs in relation to IPO and Pre-IPO Placement has been accounted for as a deduction from equity under securities premium.

(d) During the year, the maximum amount of gross proceeds temporarily invested in deposit accounts with bank and held in current accounts with banks is 188,560 Lakhs (comprising Pre-IPO gross proceeds of 112,600 Lakhs and IPO gross proceeds of 115,960 Lakhs).

(e) As at March 31, 2026, the gross proceeds amounting to 166,586 Lakhs (comprising Pre-IPO gross proceeds of 1310 Lakhs and IPO gross proceeds of 166,216 Lakhs) has been utilised for the purpose for which they have been raised and the balance unutilised amount of 121,914 Lakhs (comprising Pre-IPO amount of 112,290 Lakhs and IPO amount of 19,684 Lakhs), have been temporarily invested in deposit accounts with bank and held in current accounts with banks.

39 Additional regulatory information not disclosed elsewhere in the financial information

(i) There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(ii) 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.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ('Intermediaries’), with the understanding, whether recorded in writing or otherwise, that the Intermediaries shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) No funds have been received by the Company from any persons or entities, including foreign entities ('Funding Parties’), with the understanding, whether recorded in writing or otherwise, 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 Parties ('Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company has not any such 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.

(viiii)The Company is not a declared wilful defaulter by any bank or financial institution or any other lender.

40 Standards issued but not yet effective

The new and amended standards that are notified by the Ministry of Corporate Affairs (MCA), but not yet effective, up to the date of issuance of the Company’s standalone financial statements are disclosed below. The Company will adopt these amendments to the standards, when they become effective.

Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants

In accordance with Ind AS 1 currently applicable, breach of an immaterial covenant is ignored deciding in current vs. non-current classification of liabilities. Also, in case of breach of a material covenant of a non-current loan on or before the reporting date, the entity can obtain waiver from the lender after the reporting date and continue to classify the loan as non-current liability. In accordance with changes to Ind AS 1 already notified by the MCA, the above relaxations to classify loan as non-current liability will not be available from FY 2026-21 onward and need to be applied retrospectively. Consequently:

a) A breach of either material or immaterial covenant will trigger current classification of liability.

b) To continue classifying loan as non-current liability, entities will need to obtain waiver from the breach on or before the reporting date.

The Company is currently assessing the impact the amendments will have on its standalone financial statements.