l) 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 for giving the effect of time value of money.

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
balance sheet date.

m) Financial instruments

(i) Classification

The company classifies its financial assets in the following measurement
categories

• those to be measured subsequently at fair value (either through
other comprehensive income, or through profit or loss), and

• those to be measured at amortised cost.

The classification depends on the entity’s business model for managing
the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded
in profit or loss or other comprehensive income.

(ii) Recognition

Regular way purchases and sales of financial assets are recognised on
trade-date, being the date on which the company commits to purchase or
sale the financial asset.

(iii) Measurement

At initial recognition, the Company measures a financial asset at its fair
value (trade receivables is measured at transaction price) plus, in the case
of a financial asset not at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at fair value through
profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their
entirety when determining whether their cash flows are solely payment of
principal and interest.

- Debt instruments

Subsequent measurement of debt instruments depends on the company’s
business model for managing the asset and the cash flow characteristics
of the asset. There are three measurement categories into which the
Company classifies its debt instruments:

• Amortised cost: Assets that are held for collection of contractual
cash flows where those cash flows represent solely payments of
principal and interest are measured at amortised cost. Interest
income from these financial assets is included in Other Income
using the effective interest rate method. Any gain or loss arising on
derecognition is recognised directly in profit or loss and presented
in other gains/(losses). Impairment losses are presented as separate
line item in the statement of profit and loss.

• Fair value through profit or loss: Assets that do not meet the criteria
for amortised cost or FVOCI are measured at fair value through profit
or loss. A gain or loss on a debt investment that is subsequently
measured at fair value through profit or loss is recognised in profit
or loss and presented net within other gains/(losses) in the period
in which it arises. Interest income from these financial assets is
included in other income.

- Equity instruments

The company subsequently measures all equity investments at fair value.
Where the company’s management has elected to present fair value gains
and losses on equity investments in other comprehensive income, there
is no subsequent reclassification of fair value gains and losses to profit or
loss following the derecognition of the investment. Dividends from such
investments are recognised in profit or loss as other income when the
company’s right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit
or loss are recognised in other gain/(losses) in the statement of profit
and loss. Impairment losses (and reversal of impairment losses) on equity
investments measured at FVOCI are not reported separately from other
changes in fair value.

Compound financial instruments

Compound financial instruments issued by the Company comprise
convertible debentures denominated in INR that can be converted to equity
shares at the option of the holder during the tenure of the instrument,
when the number of shares to be issued is fixed and does not vary with
changes in fair value. The liability component of compound financial
instruments is initially recognised at the fair value of a similar liability
that does not have an equity conversion option. The equity component
is initially recognised at 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 equity components in proportion to their initial carrying
amounts. Subsequent to initial recognition, the liability component of
a compound financial instrument is measured at amortised cost using
the effective interest method. The equity component of a compound
financial instrument is not remeasured subsequently. Interest related to
the financial liability is recognised in profit or loss (unless it qualified for
inclusion in the cost of an asset). On conversion at maturity, the financial
liability is reclassified to equity and no gain or loss is recognised.

Trade and other receivables

A trade receivable without a significant financing component is initially
measured at the transaction price in accordance with Ind AS 115 revenue
from contract with customers.

Other receivables are recognised initially at fair value plus or minus
transaction costs and subsequently measured at amortised cost using the
effective interest method, less loss allowance.

Classification & measurement of financial liabilities
Trade and other payables

Trade payables are initially measured at fair value, and are subsequently
measured at amortised cost, using the effective interest rate method. If
payment is expected in one year or less, they are classified as current
liabilities. If not, they are presented as non-current liabilities.

Borrowings

Borrowings are recognized initially at fair value, net of transaction
costs incurred. Borrowings are subsequently carried at amortised cost.
Any difference between the proceeds (net of transaction costs) and the
redemption value is recognized in the statement of profit or loss over the
period of the borrowings using the effective interest rate method.

Borrowings are classified as non-current liabilities if the Company has
an unconditional right to defer settlement of the liability for at least 12
months after the statement of financial position date. If not, they are
presented under current borrowings.

Covenants that the company is required to comply with, on or before
the end of the reporting period, are considered in classifying loan
arrangements with covenants as current or non-current. Covenants that
the company is required to comply with after the reporting period do not
affect the classification.

Derecognition of financial asset & financial liabilities

A financial asset (or, a part of a financial asset) is primarily derecognized
when:

(i) The contractual right to receive cash flows from the financial assets
expire, or

(ii) The Company transfers the financial assets or its right to receive
cash flow from the financial assets and substantially all the risks and
rewards of ownership of the asset to another party.

A financial liability (or, a part of financial liability) is derecognized when
the obligation specified in the contract is discharged or cancelled or
expires.

Gain or loss on derecognition

Gain or loss on derecognition of a financial asset or liability measured at
amortised cost is recognized in the statement of profit and loss at the
time of derecognition. Derecognition gain/loss on financial assets other
than equity instruments measured at FVOCI is recycled to profit or loss.
Gain or loss on derecognition of equity instruments measured at FVOCI is
never recycled to profit or loss.

Impairment of financial assets

The Company assesses on a forward-looking basis the expected credit
losses associated with its financial assets carried at amortised cost. The

impairment methodology applied depends on whether there has been a
significant increase in credit risk.

For trade receivables, the Company applies the simplified approach
permitted by Ind AS 109, which requires expected lifetime losses to be
recognized from initial recognition of the receivables. The expected credit
loss allowance is based on the ageing of the receivables that are due
and rates used in a provision matrix. 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.

Offsetting of financial asset and liabilities

Financial assets and liabilities are offset and the net amount reported
in the balance sheet where Company currently has a legally enforceable
right to offset the recognized amounts, and there is an intention to settle
on a net basis or realize the asset and settle the liability simultaneously.

n) Leases

i. As a lessee

On inception of a contract, the Company assesses whether it contains a
lease. A contract contains a lease when it conveys the right to control the
use of an identified asset for a period of time in exchange for consideration.
The right to use the asset and the obligation under the lease to make
payments are recognised in the Company’s statement of financial position
as a right-of-use asset and a lease liability.

Right of use assets

The right-of- use asset recognised at lease commencement includes the
amount of lease liability recognised, initial direct costs incurred, and lease
payments made at or before the commencement date, less any lease
incentives received. Right-of-use assets are depreciated over the shorter
of the asset’s estimated useful life and the lease term. Right-of-use assets

are also adjusted for any re-measurement of lease liabilities and are
subject to impairment testing. Residual value is reassessed annually.

Lease Liabilities

The lease liability is initially measured at the present value of the lease
payments to be made over the lease term. The lease payments include
fixed payments (including ‘in-substance fixed’ payments) and variable
lease payments that depend on an index or a rate, less any lease incentives
receivable, lease payments in an optional renewal period if the Company
is reasonably certain to exercise an extension option and payments of
penalties for terminating the lease, if the lease term reflects the exercise
of an option to terminate the lease. ‘In-substance fixed’ payments are
payments that may, in form, contain variability but that, in substance,
are unavoidable. In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the lease commencement
date if the interest rate implicit in the lease is not readily determinable.

The lease term includes periods subject to extension options which the
Company is reasonably certain to exercise and excludes the effect of early
termination options where the Company is reasonably certain that it will
not exercise the option. Minimum lease payments include exercise price a
purchase option if the Company is reasonably certain it will purchase the
underlying asset after the lease term.

After the commencement date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced for lease payments made.
In addition, the carrying amount of lease liabilities is re-measured if there
is a modification, a change in the lease term, a change in the ‘in-substance
fixed’ lease payments or as a result of a rent review or change in the
relevant index or rate.

Variable lease

Variable lease payments that do not depend on an index or a rate are
recognised as an expense in the period over which the event or condition
that triggers the payment occurs.

Short-Term Leases and Leases of Low-Value Assets
The Company has opted not to apply the lease accounting model to leases
of low-value assets or leases which have a lease term of 12 months or less
and don’t contain purchase option. Costs associated with such leases are
recognised as an expense on a straight-line basis over the lease term.

Disclosure of lease liabilities and assets in balance sheet

The Company presents right-of-use assets that do not meet the definition
of ‘investment property’ and ‘property, plant and equipment’ separately
in the balance sheet and lease liabilities separately in the balance sheet
within ‘Financial Liabilities’.

ii. As a lessor

Leases for which the Company is a lessor is classified as a finance or
operating lease. For operating leases, rental income is recognized on a
straight line basis over the term of the relevant lease.

iii. Classification of lease

To classify each lease the Company makes an overall assessment of
whether the lease transfers substantially all of the risks and rewards
incidental to ownership of the underlying asset. If this is the case, then
the lease is a finance lease, if not, it is an operating lease. As part of this
assessment, the Company considers certain indicators such as whether
the lease is for the major part of the economic life of the asset.

o) Borrowing costs

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

Interest income earned on temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalisation. Borrowing costs that are not directly attributable to
a qualifying asset are recognised in the Statement of Profit and Loss using the
effective interest rate method.

2.6 Recent pronouncements

The Ministry of Corporate Affairs vide notification dated 7 May 2025 and 13 August
2025 notified the Companies (Indian Accounting Standards) Amendment Rules, 2025
and Companies (Indian Accounting Standards) Second Amendment Rules, 2025,
respectively, which amended certain accounting standards (see below), and are
effective for annual reporting periods beginning on or after 1 April 2025

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

As a result of the adoption of the amendments to Ind AS 1, the company changed its
accounting policy for the classification of borrowings:

Borrowings are classified as current liabilities unless, at the end of the reporting
period, the company has a right to defer settlement of the liability for at least 12
months after the reporting period.

Covenants that the company is required to comply with, on or before the end of the
reporting period, are considered in classifying loan arrangements with covenants as
current or non-current. Covenants that the company is required to comply with after
the reporting period do not affect the classification.

This new policy did not result in a change in the classification of Company’s
borrowings. The Company did not make retrospective adjustments as a result of
adopting the amendments to Ind AS 1.

Supplier Finance Arrangements - Amendments to Ind AS 7 and Ind AS 107

As a result of the adoption of the amendments to Ind AS 7 and Ind AS 107, the
Company does not expect material impact of these amendments in its financial
statements.

International Tax Reform - Pillar Two Model Rules - Amendments to Ind AS 12

The Company is not within the scope of the OECD Pillar Two Model Rules, as Pillar
Two legislation has not yet been enacted in any of the jurisdictions in which the
company operates.

Lack of Exchangeability - Amendments to Ind AS 21

The amended Ind AS 21 have added requirements to help entities to determine
whether a currency is exchangeable into another currency, and the spot exchange
rate to use where it is not. These amendments did not have any material impact
on the amounts recognised in current periods and are not expected to significantly
affect the future periods.

2.7 Recent Indian Accounting Standards (Ind AS) issued not yet effective

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

This amendment also includes specific provisions that will take effect for reporting
periods beginning on or after 1 April 2026, as outlined below.

Under the existing Ind AS 1, where there is a breach of a material provision of a long¬
term loan arrangement on or before the end of the reporting period with the effect
that the liability becomes payable on demand on the reporting date, the entity
does not classify the liability as current, if the lender agreed, after the reporting
period and before the approval of the financial statements for issue, not to demand
payment as a consequence of the breach.

However, the amended requirements stipulate that entities will no longer be
permitted to consider lender waivers that are granted after the reporting date but
before the financial statements are approved for the purpose of classification of
loans. This amendment is required to be applied retrospectively in accordance with
Ind AS 8.

The Company does not expect this amendment to have an impact on its operations
or financial statements.

I) Property, plant and equipment

Freehold land and building were provided as collateral security against the term loans availed by the Company, it has been released during the year on repayment of
borrowings(Refer Note 18)

Contractual Obligations: Refer Note 38 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

The title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.

II) Capital work in progress

Capital work-in-progress mainly comprises renovations of hotel and investment property in India.

There are no projects under capital work-in-progress whose completion is overdue or has exceeded its cost compared to its original plan.

4 LEASES

This note provides information for leases where the Company is a lessee. The
Company leases hotel premises and plant & machinery. Rental contracts are
typically made for fixed periods of 11 months to 36 years, but may have extension
and termination options as described in (iii). The weighted average discount rate for
lease liabilities is 10.5% p.a.

(iii) Extension and termination options

Extension and termination options are included in a number of residential
accommodation leases across the Group. These are used to maximise operational
flexibility in terms of managing the assets used in the Group’s operations. The
majority of extension and termination options held are exercisable only if agreed by
both the Group and the lessor. The termination option of the hotel premises leased
by the Group held are exercisable only by the lessee.

(iv) Critical judgements in determining the lease term:

The Group assesses at lease commencement whether it is reasonably certain to
exercise the extension and termination options. The Group reassesses whether
it is reasonably certain to exercise the options if there is a significant event or
significant change in circumstances within its control and affects whether The
Group is reasonably certain to exercise an option not previously included in its
determination of the lease term, or not to exercise an option previously included in
its determination of the lease term.

(i) Intangible assets

(i) Other intangible assets pledged as Security: Refer to Note 18 for information on other intangible assets pledged as security by the Company.

Goodwill is initially recognised based on the accounting policy for business combinations and is tested for impairment annually.

Impairment testing

Goodwill represents the cost of acquired business as established at the date of acquisition of the business in excess of the acquirer’s interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities less accumulated impairment losses, if any.

The Company tests goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that it might be impaired. For the purpose of
impairment testing, goodwill, which arose on acquisition of the assets/entities, is allocated to a cash generating unit “CGU” representing the lowest level with the company
at which goodwill is monitored for internal management reporting purposes.The carrying value of the cash generating unit is the carrying value of the net assets of the entity.

The recoverable value in use of the CGU is determined on the basis of estimated future cash flows expected to arise from the continuing use of an asset or cash generating
unit and from its disposal at the end of its useful life discounted to their present value using a discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.

The carrying amount of goodwill is Rs. 757.20 millions (March 31, 2025 - Rs. 757.20 millions). The estimated value-in-use of this CGU is based on the future cash flows using a
5% annual growth rate for periods subsequent to the forecast period of 5 years and a discount rate (pre-tax) of 12.50% p.a. An analysis of the sensitivity of the computation
to a change in key parameters (EBITDA, discount rates and terminal value), based on reasonable assumptions, did not identify any probable scenario in which the recoverable
amount of the CGU would decrease below its carrying amount.

(iv) Contractual obligations

See note 38 for disclosure of contractual obligations to purchase, construct or
develop investment property or for its repairs, maintenance or enhancements.

(v) Leasing arrangements

The investment properties are leased to tenants under operating leases with rentals
payable monthly. Lease income from operating leases where the group is a lessor is
recognised in income on a straight-line basis over the lease term. Lease payments
have no variable lease payments that depend on an index or rate. Where considered
necessary to reduce credit risk, the Group may obtain bank guarantees for the term
of the lease. Although the Group is exposed to changes in the residual value at
the end of the current leases, Group typically enters into new operating leases and
therefore will not immediately realise any reduction in residual value at the end of
these leases.

2. Discounted cash flow projections based on reliable estimates of future cash
flows

3. capitalised income projections based upon property’s estimated net market
income, and a capitalisation rate derived from an analysis of market evidence.

The fair values of investment properties have been determined by a registered valuer
as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
The main inputs used are the rental growth rates, expected vacancy rates, terminal
yields and discount rates based on comparable transactions and industry data. All
resulting fair value estimates for investment properties are included in level 3.

(vii) Estimation of fair value

The Company obtains independent valuations for its investment properties at least
annually. The best evidence of fair value is current prices in an active market for
similar properties. Where such information is not available, the group considers
information from a variety of sources including:

1. Current prices in an active market for properties of different nature or recent
prices of similar properties in less active markets, adjusted to reflect those
differences

As on March 31, 2026 there are no Investment properties under Construction
(ix) Presenting cash flows

The Company classifies cash outflows to acquire or construct investment properties
as investing cash flows and rental inflows as operating cash flows.

(i) Trade receivables are non-interest bearing and are generally on payment terms
of 0 to 30 days.

(ii) No trade or other receivable are due from directors or other officers of the
Company either severally or jointly with any other person. Nor any trade or
other receivable are due from firms or private companies respectively in which
any director is a partner, a director or a member except as disclosed in note 42.

(iii) For related party balances refer Note 42.

(iv) The trade receivable is unbilled because the Company has not yet issued an
invoice, however, the balance has been included under trade receivable (as
opposed to contract assets) because it is an unconditional right to consideration.

Terms, rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares
rank equally with regard to dividends and share in the Company’s residual
assets. The equity shares are entitled to receive dividend as declared from time
to time. The voting rights of an equity shareholder on a poll (not show of hands)
are in proportion to its share of the paid-up equity capital of the Company.

On winding up of the Company, the holders of equity shares will be entitled to
receive the residual assets of the Company.

During the previous year, the Company has issued 128,843,758, 373,963,280 and
119,295,990 CCPS to its fellow subsidiaries of par value Rs. 100 amounting to Rs. 12,884.37
millions, Rs. 37,396.33 millions and Rs. 11,929.60 millions respectively These CCPS were
non-redeemable, fully convertible participating preference shares. CCPS carried a
preferential dividend of 12% per annum, payable at the discretion of the Company’s board
of directors.

The CCPS were to be settled using the entity’s own equity instruments, and the Company
was obligated to deliver a variable number of these instruments to the CCPS holders
and dividend was discretionary. This arrangement met the definition of a compound
financial instrument having an equity component and a liability component. Further, the
conversion feature was not a derivative because its value does not vary in response to
changes in the issuer’s share price. Instead, the issuer is using its shares as a ‘currency’
to settle the obligation since, if conversion is elected, the investor would have always
received the number of shares equal to par value of CCPS.

Liability component of Rs. 6,765.65 millions was recorded as present value of cash
outflows and the residual amount of Rs. 55,761.16 millions after deducting the liability
component from the gross value of the instrument of Rs. 62,210.30 millions was recorded
as equity component. The fair value of the instrument was determined by discounting
the par value by considering conversion would happen only at maturity by applying a 12%
discount rate.

These CCPS were converted into 100,501,294 Equity Shares bearing face value of Rs. 10
each and a premium of Rs. 609 per Equity Share. The resultant gain on conversion of such
CCPS is accounted under other equity

Nature and purpose of reserves:

(i) Equity component of compound financial instrument

This represents the equity portion of compulsory convertible debentures
issued to Project Ballet Bangalore Holdings (DIFC) Private Limited, holding
company. (Refer Note 17(a)

(ii) Securities premium

Securities premium is used to record the premium on issue of shares. The
reserve is utilised in accordance with the provisions of the Act.

(iii) Retained earnings

Retained earnings represents surplus/accumulated earnings of the
Company and are available for distribution to shareholders.

(iv) Retained earnings - fair value as deemed cost

Retained earnings - fair value as deemed cost represents the change in
fair value of property, plant and equipment on the date of transition as per
deemed cost exemption adopted by the Company.

(v) Other equity

This represents the loss on early conversion of compulsory convertible
debentures and conversion of compulsory convertible preference shares.

Notes:A.1 Term loan from Bank

As at March 31, 2025, The lender has granted a term loan facility under the Common
Facility Agreement dated September 30, 2019 to the Company and co-borrowers i.e.
Schloss Chennai Private Limited, Schloss Chanakya Private Limited, Schloss Udaipur
Private Limited, Schloss HMA Private Limited (w.e.f. March 29, 2025) and Leela Agra
Resorts Limited (formerly known as Leela Palaces and Resorts Limited) (w.e.f. March
29, 2025) for a total amounting to Rs. 27,500.00 millions for the purpose of acquisition
(Rs. 25,500 millions) and refurbishment of the hotel property acquired (Rs. 2,000
millions) fully fungible amongst each of the co-borrowers and the Company’s hotel
property in Bangalore. The door to door tenure of the loan is 15 years including
moratorium of one year. The loan is repayable in 56 quarterly structured installments
beginning December 31, 2020. The loan carries interest rate linked to lender’s one
year marginal cost of funds based lending rate (“MCLR”), subject to annual reset,
plus spread of 0.10%. The loan was repaid from proceeds of Inital Public Offier (‘IPO’)
during the year and is not outstanding as at March 31, 2026.

With the gradual drawdown of capex in the past three years the individual limits
set for Schloss Chennai Private Limited and Schloss Udaipur Private Limited got
exhausted and an application to the lender was made for revision in the individual
limits. However, due to the system limitation at the end of the lender, the same
cannot be revised and accordingly a cross utilisation of capex limit was done during
the previous year. The Company has cross charged the interest expense on such
utilisation to respective entities.

(a) Primary security:

The total term loan under the said agreement is secured against assets of

the Company and other co-borrowers under the Common Facility Agreement,

interalia, including:

i. Exclusive charge on the total assets (including mortgage of property and/
or mortgage of leasehold rights in case of leasehold property, if any)
(present & future).

ii. Exclusive charge on brand ‘Leela’ pertaining to Hotels, other intangibles,
Goodwill, Intellectual Property (IP), uncalled capital (present and future);

iii. Exclusive charge on all bank accounts including but not limited to Escrow
account (present & future).

iv. First charge on the total current assets (present and future).

v. Hypothecation of cash flows

(b) Other security:

i) Pledge of 30% shares of the Company held by the Project Ballet Bangalore
Holdings (DIFC) Private Limited, in favour of security trustee for the benefit
of lenders for the entire term loan exposure.

ii) A guarantee of BSREP III India Ballet Holdings (DIFC) Limited., situated at
Dubai upto an amount of Rs. 3,000 millions, enforceable at Dubai towards
meeting the shortfall in debt service obligations. The aforesaid corporate
guarantee has been released during the year.

iii) A guarantee of Schloss HMA Private Limited and Leela Agra Resorts
Limited (formerly known as Leela Palaces and Resorts Limited), fellow
subsidiaries, enforceable towards meeting the shortfall in debt service
obligations upto March 28, 2025.

iv) Mortgage on the land situated at Agra owned by Leela Agra Resorts
Limited (formerly know as Leela Palaces and Resorts Limited).

(c) Current maturities of long-term borrowings are classified as short-term
borrowings.

(d) Moratorium on interest:

The Company has availed the moratorium facility for interest on term loan for
the period March, 2020 to August 2020 which has been further capitalised into
term loan w.e.f. 01 October 2020 amounting Rs. 428.62 millions

(e) The quarterly returns or statements of current assets i.e. stock statement, FFRs
etc. filed by the Company with banks or financial institutions are in agreement
with the books of accounts.

(f) Loan covenants: Under the terms of the borrowing facilities, all the co¬
borrowers are required to maintain the following covenants:

FACR 1.52, DSCR 1.34, ICR 1.89, Debt/EBITDA 5.64. The Company has met all the
loan covenants during the year.

Corporate Term Loan:

The lender has granted a corporate term loan facility under the Agreement
dated February 02, 2024 to the Company and co-borrowers i.e. Schloss Chennai
Private Limited, Schloss Udaipur Private Limited, Schloss Chanakya Private
Limited, Schloss HMA Private Limited (w.e.f. March 29, 2025) and Leela Palaces
and Resorts Limited (w.e.f. March 29, 2025) for a total amounting to Rs.
1,500.00 millions for the purpose of ongoing capital expenditure (“capex”) of
the Company and other co-borrowers. Major portion i.e. 2/3rd portion of the

sanctioned loan to be utilized in Schloss Bangalore Limited and remaining
1/3rd will be utilized by Schloss Chanakya Private Limited, Schloss Udaipur
Private Limited and Schloss Chennai Private Limited. The rate of interest is

0. 10% plus 1 year MCLR i.e. 9.00% p.a., present effective rate is 9.10% p.a. with
monthly rests. The loan was repaid from proceeds of Inital Public Offier (‘IPO’)
during the year and is not outstanding as at March 31, 2026.

(a) Security details: Refer point A.1.a and point A.1.b above.

The loan was repaid during the year ended March 31, 2026.

B The lender has granted a Working capital term Loan (WCTL) Facility under Guaranteed
Emergency Credit Line 3.0 (GECL 3.0) facility of Rs. 2,000 millions on December 24, 2021
to the Company to augement net working capital, requirements to meet operational
liabilities. The door to door tenure of the loan is 6 years including moratorium of
principal of two years. The loan is repayable in 48 quarterly structured installments
beginning January 2024. The loan carries interest rate linked to lender’s six months
marginal cost of funds based lending rate (“MCLR”), plus 0.2%, subject to annual
reset.

(a) Secondary charge on the below:

As a part of the overall security package, following securities are offered:

1. All present and future current assets of Schloss Udaipur Private Limited
(Udaipur Hotel), Schloss Chennai Private Limited (Chennai Hotel), Tulsi
Palace Resort Private Limited (Jaipur) and Schloss Chanakya Private
Limited (Chanakya/Delhi Hotel).

ii. All present and future immovable assets of Schloss Udaipur Private
Limited (Udaipur Hotel), Schloss Chennai Private Limited (Chennai Hotel)
and Tulsi Palace Resort Private Limited (Jaipur). Negative lien on moveable
and immovable assets of Schloss Chanakya Private Limited (Chanakya/
Delhi Hotel).

iii. AU movable assets of Schloss Udaipur Private Limited (Udaipur Hotel),
Schloss Chennai Private Limited (Chennai Hotel) and Tulsi Palace Resort
Private Limited (Jaipur) including movable plant and machinery, machinery
spares, tools and accessories, furniture, fixtures, vehicles, etc. and all
current assets, both present and future relating to the Company (Udaipur
Hotel), Schloss Chennai Private Limited (Chennai Hotel) and Tulsi Palace
Resort Private Limited (Jaipur).

iv. Exclusive charge over, all bank accounts including DSRA, TRA/escrow/
designated account of Schloss Udaipur Private Limited (Udaipur Hotel),
Schloss Chennai Private Limited (Chennai Hotel), Tulsi Palace Resort
Private Limited (Jaipur Hotel) and Schloss Chanakya Private Limited
(Chanakya/Delhi Hotel).

For the previous year ended March 31, 2025, second charge on securities
mentioned in A.1.(a) above.

(b) Other security:

i) Pledge of 30% shares of the Company held by the Project Ballet Bangalore
Holdings (DIFC) Private Limited, Holding company, in favour of security
trustee for the benefit of lenders for the entire term loan exposure as at
March 31, 2025.

ii) Extension of mortgage on the land situated at Agra owned by Leela Agra
Resort Limited (formerly known as “Leela Palaces and Resorts Limited”) as
at March 31, 2025.

(c) Current maturities of long-term borrowings are classified as short term
borrowings.

C Term loan II

The lender had sanctioned a term loan facility under Lease Rental Discounting

(LRD) facility under the Master Facility Agreement to the Company, amounting to

Rs. 1,100.00 millions for the purpose of acquisition of the Galleria office in Bangalore.

The door to door tenure of the loan is 15 years from the date of first disbursement.
The loan’s repayable tenure is 180 monthly structured installments beginning
December 2021. The loan carries interest rate linked to lender’s one year marginal
cost of funds based lending rate (“MCLR”), subject to monthly and annual reset,
plus spread of 0.75%. The loan was repaid from proceeds of Inital Public Offier (‘IPO’)
during the year and is not outstanding as at March 31, 2026. The rate of interest as
on March 31, 2025 was 9.75% p.a. with monthly rests.

(a) Primary Security:

Exclusive first charge on hypothecation of existing and future rent receivables
including lease rentals, parking rental, maintenance receivables and any other
receivables from existing tenants of the commercial building named “Galleria”
from 1st floor to 7th floor, located at Sy. no. 94, 95, 96, HAL Stage - II, Old airport
road, Kodihalli village, Varthur Hobli, now part of municipal no. 23/4, PID no.
74-49-23/4, situated at Kodihalli main road, 6th cross, Bangalore admeasuring
15,203.98 sq. ft.

(b) Collateral Security:

(a) Exclusive first charge on the commercial building named “Galleria” from
1st floor to 7th floor, located at Sy. no. 94, 95, 96, HAL Stage - II, Old airport
road, Kodihalli village, Varthur Hobli, now part of municipal no. 23/4,
PID no. 74-49-23/4, situated at Kodihalli main road, 6th cross, Bangalore
admeasuring 15203.98 sq. ft. along with underlying land admeasuring
24,404 sq. mtrs.

(b) Assignment (by way of security interest) the right to use 305 car parking
space.

(c) Exclusive charge as Lien on 3 months DSRA

(d) Exclusive charge on Escrow account

(c) Current maturities of long-term borrowings are classified as short term
borrowings.

D Working capital loan

The lender has granted a working capital facility as per Agreement dated August 11, 2020 to the Company and co-borrowers i.e. Schloss Chennai Private Limited, Schloss Chanakya
Private Limited, Schloss Udaipur Private Limited, Schloss HMA Private Limited (w.e.f. March 29, 2025) and Leela Palaces and Resorts Limited (w.e.f. March 29, 2025) for a total
amounting to Rs. 1,000 millions to meet the working capital requirement and it is repayable on demand. The loan carries interest rate linked to lender’s six monthly marginal cost
of funds based lending rate (“”MCLR””) plus 0.20%, subject to monthly rest. The loan was repaid during the year and is not outstanding as at March 31, 2026. The rate of interest
as on March 31, 2025 was 9.10% p.a.

E Overdraft

The lender has granted the Company an overdraft facility as per agreement dated January 30, 2026 against pledged securities as mentioned below:

(a) Interest rate: The rate of interest as at March 31, 2026 is 7.75% p.a.

(b) Pleadged securities: Fixed Deposits amounting to Rs. 1,034.00 millions has been pledged against overdraft facilities availed during the year March 31, 2026

(c) The Company has used the borrowings for the purpose of which it was obtained.

Contract Balances

The contract liabilities primarily relates to the advance consideration received from
customers for which revenue is recognized when the performance obligation is over/
services delivered.

Advance collection is recognised when payment is received before the related
performance obligation is satisfied. This includes advances received from the
customer towards rooms/restaurant/banquets. Revenue is recognized once the
performance obligation is met i.e. on room stay/sale of food and beverage/provision
of banquet services/other allied services.

The Company has no customer which accounts for 10% or more of total revenue or
total trade receivables as at March 31, 2026 and March 31, 2025.

It also includes membership fee received for food and beverage based memberships
programme and disclosed as Income received in advance.

The Company has recorded revenue of Rs. 117.79 millions (For the year ended March
31, 2025: Rs. 60.25 millions) against opening balance of contract liabilities.

33 EMPLOYEE BENEFIT OBLIGATION

a) Compensated absences

Compensated absences covers the Company’s liability for earned leaves.
Accumulated compensated absences, which are expected to be availed or
encashed are treated as employee benefits. The employees are entitled to
accumulate leave subject to certain limits for future encashment/availment.
The obligation towards the same is measured at the expected cost of
accumulating compensated absences as the additional amount expected to
be paid as a result of the unused entitlement as at the period end.

The Company’s liability is actuarially determined (using the Projected Unit
Credit method) by an Independent actuary at the end of the year.

The expense of compensated absences (non-funded) for the year ended March
31, 2026 amounting to Rs. 10.06 millions (March 31, 2025: Rs. 1.16 millions) has
been recognized in statement of profit and loss, based on actuarial valuation
carried out using projected unit credit method.

b) Post employment obligations

Provident fund and Employees State Insurance Commission - Defined
contribution plan

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

The contributions are charged to statement of profit and loss as they accrue.
The amount of expense towards contribution to provident fund and employees
state insurance for the year ended March 31, 2026 aggregated to Rs. 27.92
millions (March 31, 2026: Rs. 24.96 millions)

Gratuity - Defined benefit plan

The Company operates post-employment funded defined benefit plan that
provides gratuity. The scheme provides for lumpsum payment to eligible
employees on retirement, death while in employment or on termination
of employment, of an amount equivalent to 15 days salary payable for each
completed year of service or part thereof in excess of six months subject to a
limit of Rs. 20 lakhs. The amounts in excess of the limit are to be borne by the
Company as per policy. Eligibility occurs upon completion of five years of service.
The present value of the defined benefit obligation and current service cost
are measured using the projected unit credit method with actuarial valuations
being carried out at each balance sheet date.

Risk exposure:

Gratuity is a defined benefit plan and the Company is exposed to the following
risks:

Interest rate risk: A fall in the discount rate which is linked to the Government
Security Rate will increase the present value of the liability requiring higher
provision. A fall in the discount rate generally increases the mark to market
value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated
by reference to the future expected salaries of employees. As such, an increase
in the salary expected by more than assumed level will increase the plan’s
liability.

Withdrawal risk: The risk that the usual timeframe for withdrawal requests
is not met, or the withdrawals from the fund due to severe adverse market
conditions are suspended.

Mortality risk: Since the benefits under the plan is not payable for life time
and payable till retirement age only, plan does not have any longevity risk.

The above excludes investments in subsidiaries, joint ventures and associates
amounting to Rs. 48,316.03 millions (March 31, 2025 Rs.45,988.82 millions)

Ind AS 113, ‘Fair Value Measurement’ requires classification of the valuation method
of financial instruments measured at fair value in the Statement of Balance
sheet, using a three level fair-value-hierarchy (which reflects the significance
of inputs used in the measurements). The hierarchy gives the highest priority
to un-adjusted quoted prices in active markets for identical assets or liabilities
(Level 1 measurements) and lowest priority to un-observable inputs (Level 3
measurements).

The carrying amounts of trade receivables, cash and cash equivalents, fixed deposits
with banks, trade payables are considered to be the same as their fair values, due
to their short-term nature.

Where such items are non-current in nature, the same has been classified as Level
3 and fair value determined using discounted cash flow basis.

The carrying amount of non current borrowings, security deposit liability, lease
liability are fair valued using the current borrowing rate for similar instruments on
similar terms. They are classified as level 3 fair values in the fair value hierarchy due
to the inclusion of unobservable inputs including counterparty credit risk.

Further, the Company has valued compound financial instrument (both financial
liability and equity component) at fair value on initial recognition. Financial liability
subsequently measured at amortised cost by adding unwinded interest. The inter¬
corporate deposit is having fair value equivalent to carrying amount as it is repayable
on demand and classified as current financial liability.

The current lending rate and the rate used in determination of fair value at
inception for non-current borrowings, security deposits, compound financial
instruments are not significantly different. Accordingly, the fair value and carrying
value for non-current borrowings, security deposits and compound financial
instrument are same.

The fair-value-hierarchy under Ind AS 113 are described below:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted
prices.

Level 2: The fair value of financial instruments that are not traded in an active
market is determined using valuation techniques which maximise the use of
observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market
data, the instrument is included in level 3.

There has been no transfer between different fair values hierarchy level for the year
ended March 31, 2026 and March 31, 2025.

35 FINANCIAL RISK MANAGEMENT

The Company’s business activities expose it to market risk, liquidity risk and credit
risk. The management develops and monitors the Company’s risk management
policies. The key risks and mitigating actions are also placed before the Board of
directors of the Company. The Company’s risk management policies are established
to identify and analyse the risks faced by the Company, to set appropriate risk limits
and to control and monitor risks and adherence to limits.

Finance team and experts of respective business divisions provides assurance
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. The activities are
designed to:

- protect the Company’s financial results and position from financial risks

- maintain market risks within acceptable parameters, while optimising returns;
and

- protect the Company’s financial investments, while maximising returns.

This note explains the sources of risk which the entity is exposed to and how the
entity manages the risk.

A. Credit Risk

Credit risk is the risk that a counterparty will not meet its obligations under a
financial instrument or customer contract, leading to a financial loss. Credit risk
arises from trade receivables, cash and cash equivalents, bank balance, fixed
deposits with banks, security deposits and other financial assets.

The Company is exposed to credit risk on its financial assets, which comprise
cash and cash equivalents, bank deposits, trade receivables, security deposits and
other receivables. The exposure to credit risks arises from the potential failure of
counterparties to meet their obligations. The maximum exposure to credit risk at
the reporting date is the carrying amount of the financial instruments.

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual
characteristics of each customer and the geography in which it operates. Credit
risk is managed through credit approvals and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the
normal course of business. The Company operates only in one geographical location
i.e. in India. Considering the industry in which the Company is operating, there is no
major long outstanding receivables.

With respect to other financial assets namely secuity deposits and other receivables,
the maximum exposure to credit risk is the carrying amount of these classes of
financial assets presented in the Balance Sheet. These are actively monitored and
confirmed by the Company. Currently, the credit risk arising from such security
deposits and other receivables is evaluated to be immaterial for the Company.

Credit Risk on cash and cash equivalents, deposits with the banks/financial
institutions is generally low as the said deposits have been made with the banks/
financial institutions, who have been assigned high credit rating by international
and domestic rating agencies.

The Company has used a practical expedient by computing the expected credit loss
allowance for trade receivables based on a provision matrix. The provision matrix
takes into account historical credit loss experience and adjusted for forwardlooking
information. The carrying amounts of trade receivables as disclosed in note number
12 represent the maximum credit risk exposure.

The Company believes that the working capital is sufficient to meet its current
requirements. The Company manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of
financial assets and liabilities.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the
end of the reporting period:

B. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and
future cash and collateral obligations without incurring unacceptable losses. The
Company’s objective is to, at all times maintain optimum levels of liquidity to meet
its cash and collateral requirements. In addition, processes and policies related to
such risks are overseen by senior management.

(ii) Maturities of financial liabilities

The table below summarises the maturity profile of the company’s financial liabilities based on their contractual payments. The amount disclosed in the table are the
contractual undiscounted cash flows. Balance due within 12 months equal their carrying balances as the impact of discouting is not significant.

Market risk

(a) Foreign currency risk

Foreign currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency rates. The Company
makes payments internationally and is exposed to foreign exchange risk arising from foreign currency purchases, primarily with respect to USD and GBP. Foreign exchange
risk arises from recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (Rs.) at the periodend. The Company’s exposure to
foreign currency risk, expressed in Rs., is given in the table below. The amounts represent only the financial assets and liabilities that are denominated in currencies other
than the functional currency of the Company.

ii. Foreign exchange sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises
mainly from foreign currency denominated financial instruments. The
table below shows the sensitivity of profit or loss to a 1% change in foreign
exchange rates.

36 CAPITAL MANAGEMENT

The Company considers its total equity as shown in the balance sheet including
share capital and retained earnings as the components of its balance sheet of
managed capital. The Company’s objectives when managing capital are:

- Safeguard their ability to continue as a going concern, so that they can continue
to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

The Company’s policy is to maintain a stable and strong capital structure with a
focus on total equity so as to maintain investor, creditors and market confidence
and to sustain future development and growth of its business. The Company will

(i) Service tax

Service Tax demands relating to CENVAT credit, classification of services,
abatement under rent-a-cab, and taxability of complimentary services were
raised against the Company for FY 2007-12 and 2014-16. While all matters,
except those relating to taxability of complimentary services, were decided in
favour of the Company, all the matters are currently pending before the Hon’ble
CESTAT.

(ii) VAT

VAT demand relating to levy on service tax for multiple years was confirmed by
the assessing authority and subsequently upheld by the appellate authority.
The Karnataka Appellate Tribunal had earlier set aside the order; however, the
Hon’ble High Court remanded the matter for fresh adjudication. The Company’s
Special Leave Petition before the Hon’ble Supreme Court was dismissed with
directions to approach the High Court. The matter is currently pending for fresh
scrutiny, and no further communication has been received from the authorities
to date.

VAT authorities have issued an order demanding reversal of excess input tax
credit (‘ITC’) on account of ITC mismatch. The Company is in the process of filing
a rectification application.

(iv) GST

The Company has challenged the assessment order and the show cause notice
before the Hon’ble High Court, given that the issues involved are identical in
nature. The Hon’ble High Court has granted an interim stay on the operation
of the order and show cause notice, which continues as on date. The matter is
currently pending adjudication.

GST authorities have raised a demand in multiple matters pursuant to audit
proceedings for various financial years. The Company has filed appeals before
the appropriate appellate authorities and/or writ petitions before the Hon’ble
High Courts. In select matters, interim stay has been granted, while other
matters are pending before appellate authorities. Out of total demand Rs.2.3
millions has been paid under protest.

39 LEASE - AS A LESSOR

The company has given on operating leases portion of its building for shops and
offices on lease. Income of Rs. 268.16 millions has been recognised in Statement of
Profit and Loss.

The future minimum lease payments receivable for under the said non-cancellable
operating lease are as follows:

40 SEGMENT INFORMATION

The primary reporting of the Company has been performed on the basis of business
segment. Based on the “management approach” as defined in Ind AS 108 - Operating
Segments, the Chief Operating Decision Maker (‘CODM’) i.e. Board of Directors of
the Company, being the CODM has evaluated of The Company’s performance at
an overall level as one segment which is ‘Revenue based in India Location’ that
includes: (i) Revenue from room services, (ii) Revenue from food and beverages and

(iii) Other allied services in a single business segment based on the nature of the
services, the risks and returns, the organization structure and the internal financial
reporting systems. Accordingly, the figures appearing in these financial statements
relate to the Company’s single business segment.

No single customer contributes 10% or more of the Company’s total revenue for the
period ended March 31, 2026 and March 31, 2025.

All non-current assets are held by the Company in India, the domicile country. Hence,
statement for geographical information is not applicable.

Corporate guarantee

During the FY 2024-25, Company’s intermediate holding company i.e. BSREP III India
Ballet Holdings (DIFC) Limited, fellow subsidiaries i.e. Schloss HMA Private Limited
(upto March 28, 2025) and Leela Agra resorts Limited (formerly known as Leela
Palaces and Resorts Limited) (upto March 28, 2025) have given corporate guarantee
and fellow subsidiaries also created charge over their total assets for the term loan
facility availed by the company.

During the year 2025-26, the company’s guarantee has been released due to
repayment of Borrowings.

E Names of Related parties where control exists

Project Ballet Bangalore Holdings (DIFC) Private Limited (Holding Company), BSREP III
India Ballet Holdings (DIFC) Limited (Intermediate Holding Company) and Brookfield
Corporation (Formerly known as Brookfield Asset Management Inc.) (Ultimate
controlling party).

¹ Terms and conditions

All outstanding balances are unsecured and repayable in cash. All transactions were
made on normal commercial terms and conditions and at market rates.

44 EXCEPTIONAL ITEMS

On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020,
and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules
and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed and disclosed the incremental impact of these changes on the
best information available and consistent with the guidance provided by the Institute of Chartered Accountants of India.

Considering the regulatory-driven and non-recurring nature of this impact, the Company has presented such incremental impact under Exceptional Items amounting to Rs. 16.40
millions in the financial statements for the year ended March 31, 2026. The Company continues to monitor the finalisation of Central/State Rules and clarifications from the
Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.

45 During the year ended March 31, 2026, the Company has completed its Initial Public Offer (“IPO”) of 80,459,769 equity shares of face value of Rs. 10/- each comprising of (i)fresh
issue of 57,471,264 equity shares at an issue price of Rs. 435 per equity share; (ii) an offer for sale of 22,988,505 equity shares at an issue price of Rs. 435 per equity share. The equity
shares of the Company were listed on BSE Limited and National Stock Exchange of India Limited on June 02, 2025.

Details of utilisation of proceeds from fresh issue are as follows as on March 31, 2026:

46 OTHER STATUTORY INFORMATION

(i) The Company neither have any Benami property, nor any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off u/s 243 of the Companies Act, 2013 or u/s 560 of Companies Act, 2013.

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

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

(v) The Company has not advanced or loaned or invested funds in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Group (Ultimate Beneficiaries)
or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries except as stated below:

(vi) 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.

(vii) The Company does not have 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.)

(viii) The Company has investment property as disclosed in fair value and accordingly its fair valuation is at year end is disclosed in note 6.

(ix) No revaluation of Property, Plant & Equipment (Including ROU) & Intangible assets has been carried out during the year.

(x) The Company has not granted loans or advances in the nature of loans to promoters, directors, KMPs and the related parties, either severally or jointly with any other person,
that are:

(a) repayable on demand; or

(b) without specifying any terms or period of repayment.

(xi) The Company has not defaulted on loan from any bank or financial Institution or other lender.

(xii) Compliance with approved Scheme(s) on the basis of security of current assets - Not Applicable.

(xiii) The Company is not declared wilful defaulter by any bank or financial institution as defined under companies act, 2013 or consortium thereof or other lender in accordance
with the guidelines on the wilful defaulters issued by the RBI.

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

(xv) The Company has used the borrowings from bank for specific purpose for which it was taken at the balance sheet date.

(xvi) Compliance with approved scheme of arrangements.

47 SUBSEQUENT EVENTS

The Company has further subscribed to non-convertible debentures amounting to Rs. 1,200.00 millions in Leela BKC Holdings Private Limited, a joint venture of the company on
April 07, 2026.