Notes to Accounts of Benares Hotels Ltd.

Mar 31, 2025

(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 only when there is a possible obligation arising from past events,
due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the

control of the Company, or where any present obligation cannot be measured in terms of future
outflow of resources, or where a reliable estimate of the obligation cannot be made. Obligations are
assessed on an ongoing basis and only those having a largely probable outflow of resources are
provided for.

Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow
of economic benefits is probable.

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

(n) Borrowing Costs:

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

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

(o) Statement of Cash Flows:

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments.

(p) Exceptional items:

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

(q) Financial Instruments:

(I) Financial assets

Initial recognition and measurement

Financial assets are recognised when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company determines the classification of its
financial assets at initial recognition.

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

Classification

• Cash and Cash Equivalents - Cash comprises cash on hand and demand deposits with banks.
Cash equivalents are short-term balances (with an original maturity of three months or less from
the date of acquisition), highly liquid investments that are readily convertible into known
amounts of cash and which are subject to insignificant risk of changes in value.

• Debt Instruments - The Company classifies its debt instruments as subsequently measured at
amortised cost, fair value through Other Comprehensive Income or fair value through profit or
loss based on its business model for managing the financial assets and the contractual cash flow
characteristics of the financial asset.

(i) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held
for collection of contractual cash flows where those cash flows represent solely payments of
principal and interest. Interest income from these financial assets is included as a part of the
Company''s income in the Statement of Profit and Loss using the effective interest rate
method.

(ii) Financial assets at fair value through Other Comprehensive Income (FVOCI)

Financial assets are subsequently measured at fair value through Other Comprehensive
Income if these financial assets are held for collection of contractual cash flows and for
selling the financial assets, where the assets'' cash flows represent solely payments of principal
and interest. Movements in the carrying value are taken through Other Comprehensive
Income, except for the recognition of impairment gains or losses, interest revenue and
foreign exchange gains or losses which are recognised in the Statement of Profit and Loss.
When the financial asset is derecognised, the cumulative gain or loss previously recognised
in Other Comprehensive Income is reclassified from Other Comprehensive Income to the
Statement of Profit and Loss. Interest income on such financial assets is included as a part of
the Company''s income in the Statement of Profit and Loss using the effective interest rate
method.

(iii) Financial assets at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value
through profit or loss. A gain or loss on such debt instrument that is subsequently measured
at FVTPL and is not part of a hedging relationship as well as interest income is recognised
in the Statement of Profit and Loss.

• Equity Instruments - The Company subsequently measures all equity investments (other than
the investment in subsidiaries, joint ventures and associates which are measured at cost) at fair
value. Where the Company has elected to present fair value gains and losses on equity
investments in Other Comprehensive Income (“FVOCI”), there is no subsequent reclassification
of fair value gains and losses to profit or loss. Dividends from such investments are recognised in
the Statement of Profit and Loss as other income when the Company''s right to receive payment
is established.

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

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

'' Interest

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

Dividend income is recognised when the Company''s right to receive the amount is established.
De-recognition

A financial asset is derecognised only when the Company has transferred the rights to receive cash
flows from the financial asset. Where the Company has transferred an asset, the Company evaluates
whether it has transferred substantially all risks and rewards of ownership of the financial asset. In
such cases, the financial asset is derecognised. Where the Company has not transferred substantially
all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the Company retains control of the financial asset, the asset is continued to be recognised to
the extent of continuing involvement in the financial asset.

(II) Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company determines the classification of its
financial liabilities at initial recognition.

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

Subsequent measurement

After initial recognition, financial liabilities that are not carried at fair value through profit or loss
are subsequently measured at amortised cost using the effective interest method. Gains and losses
are recognised in the Statement of Profit and Loss when the liabilities are derecognised, and
through the amortisation process.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same lender
on substantially different terms, or the terms of an existing liability are substantially modified, such
an exchange or modification is treated as a de-recognition of the original liability and the
recognition of a new liability, and the difference in the respective carrying amounts is recognised in
the Statement of Profit and Loss.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Company are recognised at the
proceeds received, net of direct issue costs.

(III) 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. 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.

Note 3: Recent accounting pronouncements

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

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.

(ii) New Standards/Amendments notified but not yet effective:

During the year ended March 31, 2025, MCA has not notified any new standards or amendments,
which are not yet effective, to the existing standards applicable to the Company.

The expected contribution for the next year is '' 20 lakhs after payment of shortfall of the current year.

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

Information disclosed above is to the extent provided by actuary.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to government security yields prevailing as at the Balance Sheet date. If the return on plan
asset is below this rate, it will create a plan deficit. The current plan has made investments in special deposit schemes of
banks & FDRs. Due to the long-term nature of the plan liabilities, the Trustees of the Fund consider it appropriate to
invest funds in the bank FDRs.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants
will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

(a) Financial Risk Management

The Company''s Board of Directors has overall responsibility for the establishment and oversight of
the Company''s risk management framework. The Company''s risk management policies are
established to identify and analyse the risk faced by the Company, to set appropriate risk limits and
controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company''s activities. The
Company''s Audit Committee oversees how management monitors compliance with the Company''s
risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company. The Audit Committee is assisted in its
oversight role by internal audit team. Internal audit team undertakes both regular and ad hoc reviews
of risk management controls and procedures, the results of which are reported to the audit committee.

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

(b) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Such changes in the values of financial instruments may result from
changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.
The predominant currency of the company revenue and operating cash flows is the Indian Rupees. A few
of the Company''s reported trade payables have exposure to payables held in US dollars. Movements in
foreign exchange rates can affect the Company''s reported profits and net assets, however, the said impact
is not material. The company does not have any investments, hence, price risk is not applicable.

(c) Credit risk

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

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

The Company has established a credit policy under which each new customer is analysed individually for
creditworthiness before entering into contract. Credit limits are established for each customer, reviewed
regularly and any sales exceeding those limits require approval from the appropriate authority. There are
no significant concentrations of credit risk within the Company. The carrying amount of trade receivable
(net of impairment) was '' 403.9 Lakhs and '' 507.17 Lakhs as at March 31, 2025 and 2024 respectively.

The Company’s exposure to credit risk for trade receivables (net of impairment) based on geography is as
follows:

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. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and deposits with banks, financial institutions and others. The company''s policy is to place cash and cash
equivalents and short term deposits with reputable banks and financial institutions. During the year, following
provisions for doubtful debts has been made (reversed):

Trade receivables

Customer credit risk is managed as per the Company''s established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on a credit rating scorecard and individual credit
limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables
which do not contain a significant financing component. The application of simplified appr oach does not require
the company to track changes in credit risk, rather it recognises impairment loss allowance based on life time
expected credit loss at each balance sheet date, since its initial recognition.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The
Company does not hold collateral as security. The company evaluates the concentration of risk with respect to
trade receivables as low.

(d) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance
department in accordance with the Company’s policy. Investments of surplus funds are made only with
approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits
are reviewed by the Company’s management on an annual basis, and may be updated throughout the year.
The limits are set to minimise the concentration of risks and therefore mitigate financial loss through
counterparty’s potential failure to make payments.

(e) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements. Also, the company has an WCDL/ overdraft facility from a bank of which details are mentioned
below. The balance of borrowings at year end is Nil.

Note 39: Guarantees given and FDRs under Lien

The company has given Bank Guarantees of ? 3.00 lakhs (PY - ? 3.00 lakhs) to various government authorities &
other parties for registrations and business purposes. These guarantees were secured against Fixed Deposits of
? 6.51 lakhs (PY - ? 6.15 lakhs) with the bank, with a lien created on the same. The amount of fixed deposits is
reported without accrued interest as of the reporting period.

The company has given Fixed Deposits of ? 7.69 lakhs, the lien created is INR 6.25 lakhs, (PY - FDR - ? 7.25
lakhs, lien of INR 6.25 lakhs) to various government authorities & other parties for registrations and business
purposes. The amount of fixed deposits is reported without accrued interest as of the reporting period.

Note 44: Other Statutory Information:

i. Details of Benami Property held

No proceedings have been initiated on or are pending against the company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. Wilful Defaulter

The company has not been declared Wilful defaulter by any bank or financial institution or government or
any government authority.

iii. Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

iv. Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current
or previous financial year.

v. Loans to promoters, directors, KMPs and other Related Parties

During the year, the Company has not granted any loans or advances in the nature of loans to promoters,
directors, KMPs, and the related parties (as defined under the Companies Act, 2013), either severally or
jointly with any other person that are either:

(a) repayable on demand or

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

vi. Loans and Advances

A. The company has not advanced or 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.

B. 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. Undisclosed income

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 provision of the Income Tax Act, 1961).

viii. Details of Crypto currency or Virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or
previous year.

ix. Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right of use assets) or intangible
assets or both during the current or previous year.

x. Registration of charges or satisfaction with Registrar of Companies:

The Company is not required to register any charge and also not required to file any satisfaction of charges
during the year with the Registrar of Companies. Hence, this is not applicable.

Note 44: Other Statutory Information (Contd.)

xi. Title deeds

The title deeds of all the immovable properties (other than properties where the company is the lessee and
the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held
in the name of the company.

xii. Fair Valuation of Investment Properties

The Company does not hold any investment property and hence the disclosure on fair valuation of
investment property is not applicable to the Company.

xiii. Returns to Banks

During the year, the Company has availed borrowings from banks on the basis of the security of current
assets. However, the sanction terms do not specify filings of any returns with banks. Further, the company
has not availed any borrowings from financial institutions. Hence, this is not applicable.

xiv. Transactions with Struck off Companies

There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

Note 45:

There are no financial liabilities and assets that are set off as at 31st March 2025 and 31st March 2024.

Note 46: Dividends

The dividends paid during the fiscal year 2025 represent an amount of '' 325 lakhs @ '' 25.00 per equity share
towards dividend for fiscal 2024.

The dividends declared by Benares Hotels Limited are in Indian Rupees and are based on the profits available for
distribution as reported in the statutory financial statements of Benares Hotels Limited. Subsequent to March
31, 2025, the Board of Directors of Benares Hotels Limited have proposed a dividend of '' 25 per share in
respect of fiscal 2025. The proposal is subject to the approval of shareholders at the Annual General Meeting,
and if approved, would result in a cash outflow of approximately '' 325 lakhs.

Note 47: Capital Management

The The Company manages its capital to ensure that it will be able to continue as a going concern through a
judicious mix for short term and long term sources. The structure is managed to maintain an investment grade
credit rating, to provide ongoing returns to shareholders and to service debt obligations, whilst maintaining
maximum operational flexibility. Consistent with others in the industry, the Company monitors capital on the
basis of the gearing ratio. This ratio is calculated as net debt divided by Equity. Net debt is calculated as total
borrowings (including ‘current and non-current term loans’ as shown in the balance sheet) less cash and cash
equivalents and Current Investment.

The Company has borrowings of ? Nil lakhs (previous year: ? Nil lakhs) and Net Debts of ? Nil lakhs (previous
year: ? Nil lakhs) as at the end of the reporting period. Accordingly, the Company has Nil gearing ratio (Net
Debt/ Total Equity) as at 31- Mar - 2025 and 31 - Mar - 2024.

Note 48: Others

The date of implementation of the Code on Social Security, 2020 (''the Code'') relating to employee benefits is yet
to be notified by the Government and when implemented will impact the contributions by the Company
towards benefits such as Provident Fund, Gratuity etc. The Company will assess the impact of the Code and give
effect in the financial statements when the Code and Rules there under are notified.

Note 49: Events Occurring After The Balance Sheet Date

The Company has used accounting software for maintaining its books of account, which have a feature of
recording audit trail (edit log) facility and the same has operated thr oughout the year for all relevant transactions
recorded in the respective software. In respect of revenue software and EPR used for one of the units, access to
direct database level changes is not available to any of the Company’s personnel.

Note 50: Events Occurring After The Balance Sheet Date

There are no adjusting events occurring after the balance sheet date for the financial year 2024-25.

Note 51:

The The disclosure required to be made in terms of Schedule V of SEBI (Listing Obligation And Disclosure
Requirement) 2015 is not applicable to the company.

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

For PKF Sridhar & Santhanam LLP Dr. Anant Narain Singh Rohit Khosla

Chartered Accountants Chairman Director

Firm Registration No. 003990S/S200018 DIN: 00114728 DIN: 07163135

R. Suriyanarayanan Vishal Singh Vanika Mahajan

Partner Chief Executive Officer Company Secretary

Membership No.: 201402 ICSI M.No. ACS34515

Date : 28th April, 2025 Veeramani Venkata Date : 28th April, 2025

Place: Mumbai Chief Financial Officer Place: Mumbai

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Mar 31, 2024

Description of nature and purpose of each reserve:

(a) Capital Reserve: Capital reserve mainly consists of balances on account of profit on sale of forfeited shares in previous years.

(b) General Reserve: General reserve was created from time to time by way of the transfer of profits from retained earnings for appropriation purposes based on the provisions of the Companies Act prior to its amendment. The reserve is un-restricted and available for use at any time as required by the Company.

The company has been sanctioned with a Overdraft/ Working Capital Demand facility in current year of INR 450 lakhs by Axis Bank. The facility carries interest @ 10.05% p.a. at the year end (MCLR 1 Year plus 75 basis points) and secured against exclusive charge on the entire current and movable assets of the company, both present and future. Further, negative lien on the fixed and immovable assets of the company. The balance outstanding at the end of period is INR Nil (PY: Nil).

(1) The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors. Refer Note 34 for disclosures relating to Micro and Small Enterprises.

2) For related party balances refer N ote 3 2.

3) Please refer Note 42 for ageing schedule of trade payables.

Note 29: Lease

The Company has taken land and immovable properties on lease which are generally long term in nature with varying terms, escalation clauses and renewal rights expiring within forty one to sixty years. On renewal, the terms of the leases are renegotiated.

Note 30: Contingencies and Commitments Contingent Liabilities (To the extent not provided for):

a) On account of other disputes in respect of:

i. Sales tax: '' 36.27 Lakhs (previous year: '' 36.27 Lakhs)

ii. Others: '' 0.00 Lakhs (previous year: '' 1.21 Lakhs)

b) Others

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

Contingent Liabilities (To the extent not provided for):

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

(ii) the proceedings are in early stages;

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

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

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

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account net of capital advances and not provided for is '' 1,998.27 Lakhs (Previous year: '' 270.58 Lakhs).

Note 31: Segment Reporting

The Company’s only business being hoteliering, disclosure of segment-wise information is not applicable under Ind AS108 - ''Operating Segments'' (Ind AS-108). There is no geographical segment to be reported since all the operations are undertaken in India. Refer Note No. 40 for Company’s Disaggregated Revenue by the type of revenue stream.

The expected contribution for the next year is '' 20 lakhs.

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

Information disclosed above is to the extent provided by actuary.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to government security yields prevailing as at the Balance Sheet date. If the return on plan asset is below this rate, it will create a plan deficit. The current plan has made investments in special deposit schemes of banks & FDRs. Due to the long-term nature of the plan liabilities, the Trustees of the Fund consider it appropriate to invest funds in the bank FDRs.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability. Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed.

(a) Financial Risk Management

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company''s Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit team. Internal audit team undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

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

(b) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The predominant currency of the company revenue and operating cash flows is the Indian Rupees. A few of the Company''s reported trade payables have exposure to payables held in US dollars. Movements in foreign exchange rates can affect the Company''s reported profits and net assets, however, the said impact is not material. The company does not have any investments, hence, price risk is not applicable.

(c) Credit risk

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

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

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into contract. Credit limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Company. The carrying amount of trade receivable (net of impairment) was '' 507.17 Lakhs and '' 429.58 Lakhs as at March 31, 2024 and 2023 respectively.

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. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and deposits with banks, financial institutions and others. The company''s policy is to place cash and cash equivalents and short term deposits with reputable banks and financial institutions. During the year, following provisions for doubtful debts has been made (reversed):

Trade receivables

Customer credit risk is managed as per the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables which do not contain a significant financing component. The application of simplified approach does not requires the company to track changes in credit risk, rather it recognises impairment loss allowance based on life time expected credit loss at each balance sheet date, since its initial recognition.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The Company does not hold collateral as security. The company evaluates the concentration of risk with respect to trade receivables as low.

(d) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company''s management on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

(e) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. Also, the company has an WCDL/ overdraft facility from a bank of which details are mentioned below. The balance of borrowings at year end is Nil

The original limits were ? 1,000 lakhs which were renewed in December 2022 and reduced to ? 450 lakhs on account of non-utilization of the said facilities by the company. In CY, the said limit is renewed at the same amount i.e. ? 450 lakhs. WCDL / Bank overdraft facilities may be drawn at any time by the Company.

Note 39: Guarantees given and FDRs under Lien

The company has given Bank Guarantees of ? 3.00 lakhs (PY: ? 3.00 lakhs) to various government authorities & other parties for registrations and business purposes. These guarantees were secured against Fixed Deposits of ? 6.15 lakhs (PY: ? 5.83 lakhs) with the bank, with a lien created on the same. The amount of fixed deposits is reported without accrued interest as of the reporting period.

The company has given Fixed Deposits of ? 7.25 lakhs, the lien created is INR 6.25 lakhs, (PY - FDR: ? 6.83 lakhs, lien of INR 6.25 lakhs) to various government authorities & other parties for registrations and business purposes. The amount of fixed deposits is reported without accrued interest as of the reporting period.

Note 44: Other Statutory Information:

i. Details of Benami Property held

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. Wilful Defaulter

The company has not been declared Wilful defaulter by any bank or financial institution or government or any government authority.

iii. Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

iv. Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

v. Loans to promoters, directors, KMPs and other Related Parties

During the year, the Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs, and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are either:

(a) repayable on demand or

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

vi. Loans and Advances

A. The company has not advanced or 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.

B. 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. Undisclosed income

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 provision of the Income Tax Act, 1961).

viii. Details of Crypto currency or Virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

ix. Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right of use assets) or intangible assets or both during the current or previous year.

x. Registration of charges or satisfaction with Registrar of Companies

The Company is not required to register any charge and also not required to file any satisfaction of charges during the year with the Registrar of Companies. Hence, this is not applicable.

xi. Title deeds

The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the company.

xii. Fair Valuation of Investment Properties

The Company does not hold any investment property and hence the disclosure on fair valuation of investment property is not applicable to the Company.

xiii. Returns to Banks

During the year, the Company has availed borrowings from banks on the basis of the security of current assets. However, the sanction terms do not specify filings of any returns with banks. Further, the company has not availed any borrowings from financial institutions. Hence, this is not applicable.

xiv. Transactions with Struck off Companies

The following are the transactions entered by the Company with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

Note 45:

There are no financial liabilities and assets that are set off as at 31st March 2024 and 31st March 2023.

Note 46: Dividends

The dividends paid during the fiscal year 2024 represent an amount of '' 260 lakhs @ '' 20.00 per equity share towards dividend for fiscal 2023.

The dividends declared by Benares Hotels Limited are in Indian Rupees and are based on the profits available for distribution as reported in the statutory financial statements of Benares Hotels Limited. Subsequent to March 31, 2024, the Board of Directors of Benares Hotels Limited have proposed a dividend of ? 25.00 per share in respect of fiscal 2024. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately ? 325.00 lakhs.

Note 47: Capital Management

The Company manages its capital to ensure that it will be able to continue as a going concern through a judicious mix for short term and long term sources. The structure is managed to maintain an investment grade credit rating, to provide ongoing returns to shareholders and to service debt obligations, whilst maintaining maximum operational flexibility. Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by Equity. Net debt is calculated as total borrowings (including ''current and non-current term loans'' as shown in the balance sheet) less cash and cash equivalents and Current Investment.

The Company has borrowings of ? Nil lakhs (previous year: ? Nil lakhs) and Net Debts of ? Nil lakhs (previous year: ? Nil lakhs) as at the end of the reporting period. Accordingly, the Company has Nil gearing ratio (Net Debt/ Total Equity) as at 31- Mar -2024 and 31- Mar -2023.

Note 48: Others

The date of implementation of the Code on Social Security, 2020 (''the Code'') relating to employee benefits is yet to be notified by the Government and when implemented will impact the contributions by the Company towards benefits such as Provident Fund, Gratuity etc. The Company will assess the impact of the Code and give effect in the financial statements when the Code and Rules there under are notified.

Note 49: Events Occurring After The Balance Sheet Date

In ERP used for maintaining books of accounts of its units except one, the audit trail at the transaction level on the application layer has an embedded audit trail in sub-ledger accounting tables which creates unique events for every transaction along with dates of creating and updating transactions with the identity of users. General ledger journals are not allowed to be modified after posting and the date and creator of journals are tracked. This feature cannot be disabled. Additionally, an audit trail was enabled for masters and transactions majorly during June, 2023 and July, 2023. The audit trail feature with respect to application layer changes in ERP has worked effectively during the year. PMS and POS (Property Management and Point of Sales software) have an inbuilt audit trail feature from April 1, 2023.

Post publication of ICAI implementation guide, direct database level changes was also included in audit trial scope. In respect of ERP, access to direct database level changes is available only to privileged users and for PMS and POS, it is not available to any of the Company personnel. However, the software product owners have confirmed that there is no audit trail enabled for data base level changes.

In ERP used for maintaining books of accounts of one of its units, it has an audit trail feature enabled from 1st April 2023 with respect to application layer changes in accounting software which has worked effectively throughout the year. Post publication of the ICAI implementation guide, dir ect database level changes were also included in audit trail scope. Audit trail in ERP for data changes done through application layer was enabled from December 21, 2023 and the Company has enabled direct database level changes post balance sheet date. However, the Company had no access to the database as it is being maintained by a third party service provider. The Company has obtained confirmation from the third party service provider that no changes have been made to database directly during the year.

Note 50: Events Occurring After The Balance Sheet Date

There are no adjusting events occurring after the balance sheet date for the financial year 2023-24.

Note 51:

The disclosure required to be made in terms of Schedule V of SEBI (Listing Obligation And Disclosure Requirement) 2015 is not applicable to the company.

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Mar 31, 2023

(p) Accounting for 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. If the effect of the time value of money is material, the non - current provisions are discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation and the unwinding of the discount is recognised as interest expense.

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 by way of notes to accounts when an inflow of economic benefits is probable.

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

(q) Borrowing Costs:

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

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

(r) Cash and Cash Equivalents (for the purpose of cash flow statements):

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(s) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the effects of transactions of no cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flows for the year are classified by operating, investing and financing activities.

Effective April 1, 2017, the Company adopted the amendment to Ind AS 7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement.

(t) Earnings Per Share:

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year including potential equity shares on compulsory

convertible debentures. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

(u) Segment Reporting:

The Company identifies operating segments based on the internal reporting provided to the chief operating decision-maker.

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Since the Company''s business consists of its hotel operations only, no separate information for segment-wise disclosures is given.

(v) Financial Instruments:

Financial Assets:

Classification

The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

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.

All financial assets (not measured subsequently at fair value through profit or loss) are recognised initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss. This category generally applies to loans and advances, deposits, trade and other receivables.

Debt instruments included within the fair value through profit and loss (FVTPL) category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) 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 ''passthrough'' 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.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, and bank balance.

b) Trade receivables.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables which do not contain a significant financing component.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each Balance Sheet date, right from its initial recognition.

Financial Liabilities

Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, 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.

Financial liabilities at fair value through profit or Loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind-AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/loss are not subsequently transferred to the Statement of Profit and Loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the Statement of Profit and Loss. The Company has not designated any financial liability as at fair value through profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the Statement of Profit and Loss when the liabilities are derecognised.

Amortised 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 amortisation is included as finance costs in the Statement of Profit and Loss.

This category generally applies to interest-bearing loans and borrowings.

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 and Loss.

Offsetting of financial instruments

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

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognized and deducted directly in equity No gain or loss is recognized in Statement of Profit and Loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.

Note 30: Contingencies and Commitments Contingent Liabilities (To the Extent Not Provided For): (contd.)

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

(ii) the proceedings are in early stages;

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

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

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

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account net of capital advances and not provided for is '' 270.58 Lakhs (Previous year '' 9.70 Lakhs).

Note 31: Segment Reporting

The Company’s only business being hoteliering, disclosure of segment-wise information is not applicable under Ind AS108 - ''Operating Segments'' (Ind AS-108). There is no geographical segment to be reported since all the operations are undertaken in India. Refer Note No. 40 for Company''s Disaggregated Revenue by the type of revenue stream.

Note 32: Related Party Disclosures 32(a) Related party transactions Details of related parties:

(i) Holding Company

The Indian Hotels Company Limited (IHCL)

(Tata Sons Private Limited has substantial interest in The Indian Hotels Company Limited)

(ii) Fellow subsidiaries

KTC Hotels Limited United Hotels Limited Roots Corporation Limited Piem Hotels Limited

Taj Trade and Transport Company Limited Inditravel Limited Northern India Hotels Limited Taj Enterprises Limited

Skydeck Properties and Developers Private Limited Sheena Investments Private Limited

ELEL Hotels & Investments Limited Ideal Ice Limited Taj SATS Air Catering Limited Genness Hospitality Private Limited Qurio Hospitality Private Limited Suisland Hospitality Private Limited Kadisland Hospitality Private Limited Zarrenstar Hospitality Private Limited Taj International Hotels (H.K) Limited IHOCO BV

St. James Court Hotels Limited Taj International Hotels Limited United Overseas Holdings Inc. including 3 LLCs PIEM International Hotels (H.K) Limited IHMS Hotels (SA) (Proprietary) Limited Goodhope Palace Hotels (Proprietary) Limited

(iii) Directors who held the office during the year and previous year:

Dr. Anant Narain Singh, Chairman

Mr. Rohit Khosla, Non Executive Director

Mr. Moiz Miyajiwala, Non Executive Director & Independent Director#

Mrs. Rukmani Devi, Non Executive & Independent Director#

Mr. Puneet Chhatwal, Non Executive Director $

Mr. Beejal Desai, Non Executive Director *

Mr. Puneet Raman, Non Executive Director & Independent Director#

# Independent directors are included as related parties for the purpose of Indian Accounting Standards (Ind AS 24- Related Party Transactions) only. They are not related under the Companies Act , 2013.

$ Resigned with effect from 02 Feb 2023

* Appointed as additional director effective 08 Feb 2023

(iv) Key Management Personnel (KMP) for current and previous year:

Mr. Vivek Sharma (Chief Executive Officer)

Mr. Harish Kumar (Chief Financial Officer)

Ms. Vanika Mahajan (Company Secretary)

(v) Firms/ Corporation in which Directors are interested with whom transactions were carried out during the current and previous year

Maharaja Prabhu Narain Physical Cultural Trust Aditya Dairies Private Limited Anant Electric Lamp Works Private Limited Imlak Varanasi Developments Private Limited All India Kashiraj Trust

(vi) Relatives of the Directors with whom transactions were carried out during the current and previous year:

Mrs. Anamika Kunwar MK Krishna Priya MK Vishnupriya MK Hari Priya Mr. Raghubir Singh Gohii Mrs. Archana Raman

(vii) JV & Associates of the Holding Company and Entity and Subsidiary, JV & Associates of the Entity having Significant influence with whom transactions were carried out during the current and previous year:

JV & Associates of Holding Company:

Kaveri Retreats & Resorts Limited Taj GVK Hotels & Resorts Limited Taj Karnataka Hotels & Resorts Limited Oriental Hotels Limited

Entity and Subsidiary, JV of the Entity having Significant influence over holding co:

Tata Sons Private Limited

Supermarket Grocery Supplies Private Limited

Tata Consultancy Services Limited

Tata Aia Life Insurance Company Limited

Tata Asset Management Private Limited

Tata Medical & Diagnostic Limited

Tata Teleservices Limited

Infiniti Retail Limited

Tata SIA Airlines Limited

Tata Communication Limited

Tata Play Limited (Formerly known as Tata Sky Limited)

(viii) Others

Hotel Taj Ganges Employee Gratuity Trust

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to government security yields prevailing as at the Balance Sheet date. If the return on plan asset is below this rate, it will create a plan deficit. The current plan has made investments in special deposit schemes of banks & FDRs. Due to the long-term nature of the plan liabilities, the Trustees of the Fund consider it appropriate to invest funds in the bank FDRs.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality ofplan participants during their employment. An increase in the life expectancy ofthe plan participants will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Note 37: Financial Risk Management (a) Financial Risk Management

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company''s Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit team. Internal audit team undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

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

(b) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The predominant currency of the company revenue and operating cash flows is the Indian Rupees. A few of the Company''s reported trade payables have exposure to payables held in US dollars. Movements in foreign exchange rates can affect the Company''s reported profits and net assets, however, the said impact is not material. The company does not have any investments, hence, price risk is not applicable.

© 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. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and deposits with banks, financial institutions and others. The company''s policy is to place cash and cash equivalents and short term deposits with reputable banks and financial institutions. During the year, following provisions for doubtful debts has been made (reversed):

The company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables which do not contain a significant financing component. The application of simplified approach does not requires the company to track changes in credit risk, rather it recognises impairment loss allowance based on life time expected credit loss at each balance sheet date, since its initial recognition.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The Company does not hold collateral as security. The company evaluates the concentration of risk with respect to trade receivables as low.

(d) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company''s management on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

i. Details of Benami Property held

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. Wilful Defaulter

The company has not been declared Wilful defaulter by any bank or financial institution or government or any government authority.

iii. Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

iv. Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

v. Loans to promoters, directors, KMPs and other Related Parties

During the year, the Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs, and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are either:

(a) repayable on demand or

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

vi. Loans and Advances

A. The company has not advanced or 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.

B. 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. Undisclosed income

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 provision of the Income Tax Act, 1961).

viii. Details of Crypto currency or Virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

ix. Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

x. Registration of charges or satisfaction with Registrar of Companies:

The Company is not required to register any charge and also not required to file any satisfaction of charges during the year with the Registrar of Companies. Hence, this is not applicable.

xi. Title deeds

The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the company.

xii. Fair Valuation of Investment Properties

The Company does not hold any investment property and hence the disclosure on fair valuation of investment property is not applicable to the Company.

xiii. Returns to Banks

During the year, the Company has availed borrowings from banks on the basis of the security of current assets. However, the sanction terms do not specify filings of any returns with banks. Further, the company has not availed any borrowings from financial institutions. Hence, this is not applicable.

xiv. Transactions with Struck off Companies

There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

There are no financial liabilities and assets that are set off as at 31st March 2023 and 31st March 2022.

Note 46: Dividends

The dividends paid during the fiscal year 2023 represent an amount of ? 130 lakhs @ ? 10.00 per equity share towards dividend for fiscal 2022.

The dividends declared by Benares Hotels Limited are in Indian Rupees and are based on the profits available for distribution as reported in the statutory financial statements of Benares Hotels Limited. Subsequent to March 31, 2023, the Board of Directors of Benares Hotels Limited have proposed a dividend of ? 260.00 Lakhs (? 20.00 per share) in respect of fiscal 2023. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately ? 260.00 lakhs.

Note 47: Capital Management

The Company manages its capital to ensure that it will be able to continue as a going concern through a judicious mix for short term and long term sources. The structure is managed to maintain an investment grade credit rating, to provide ongoing returns to shareholders and to service debt obligations, whilst maintaining maximum operational flexibility. Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by Equity. Net debt is calculated as total borrowings (including ''current and non-current term loans'' as shown in the balance sheet) less cash and cash equivalents and Current Investment.

The Company has borrowings of ? Nil lakhs (previous year: ? Nil lakhs) and Net Debts of ? Nil lakhs (previous year: ? Nil lakhs) as at the end of the reporting period. Accordingly, the Company has Nil gearing ratio (Net Debt/ Total Equity) as at 31- Mar -2023 and 31- Mar -2022

Note 48: Others:

The date of implementation of the Code on Social Security, 2020 (''the Code'') relating to employee benefits is yet to be notified by the Government and when implemented will impact the contributions by the Company towards benefits such as Provident Fund, Gratuity etc. The Company will assess the impact of the Code and give effect in the financial statements when the Code and Rules there under are notified.

Note 49: Events Occurring After The Balance Date:

Effective April 01, 2023, The Gateway Hotel, Gondia has been rebranded as Ginger Gondia.. This transition will benefit the hotel in terms of market positioning and profitability. Further, there are no adjusting events occurring after the balance sheet date for the financial year 2022-23.

Note 50:

The disclosure required to be made in terms of Schedule V of SEBI (Listing Obligation And Disclosure Requirement) 2015 is not applicable to the company.

^As p^er °ur ^Rep^ort °f ^{even date attached} For and on behalf of the Board

For PKF Sridhar & Santhanam LLP Dr. Anant Narain Singh Rohit Khosla

Chartered Accountants Chairman Director

FRN: 003990S/S200018 DIN: 00114728 DIN: 07163135

R. Suriyanarayanan Harish Kumar Vanika Mahajan

Partner Chief Financial Officer Company Secretary

Membership No.: 201402 ICAI M.No. 534449 ICSI M.No. ACS34515

Date : 19th April, 2023 Date : 19th April, 2023 Date : 19th April, 2023

Place: Mumbai Place: Mumbai Place: New Delhi

---

Mar 31, 2018

NOTE 1: CORPORATE INFORMATION

Benares Hotels Limited (“BHL” or the “Company”), is a listed public limited company incorporated in 1971. The Company operates its hotels, viz. The Gateway Hotel Ganges and Nadesar Palace in Varanasi and The Gateway Hotel, Gondia in Maharashtra. In May, 2011, the Company became a subsidiary of The Indian Hotels Company Limited, a company promoted by Tata Sons Ltd.

The financial statements were approved by the Board of Directors and authorised for issue on 10th May''2018.

NOTE 2A: APPLICATION OF NEW INDIAN ACCOUNTING STANDARDS

All the Indian Accounting Standards issued under section 133 of the Companies Act, 2013 and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are authorized have been considered in preparation of these Financial Statements.

Footnotes:

(1) The company has one class of equity shares having a par value of INR 10 per share. Each shareholder is eligible for one vote share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of the liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the shareholding.

(5) Note on Amalgamation of TIFCO Holdings Limited with The Indian Hotels Company Limited TIFCO Holdings Limited has been amalgamated with The Indian Hotels Company Limited vide NCLT Order dated 08th March 2018 with appointed date 01st April 2017.

(6) Aggregate number and class of shares allotted as fully paid-up in previous year pursuant to contracts without payment being received in cash, bonus shares and shares bought back for a period of 5 years immediately preceding the balance sheet date NIL (previous year NIL).

Footnotes:

(i) The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

(ii) For related party balances refer Note 30.

Foot Note:

* The change of tax rate from 30% to 25% was enacted on 29th Mar''18 and will be effective from 1st Apr''18. As a result, the relevant deferred tax balances have been remeasured. Deferred tax expected to be reversed in the year ended 31st Mar''19 and later, has been measured using the effective rate which is 27.82%.

Further changes in tax rates are expected in future years but these changes will be enacted separately in respective years and hence are not recognised in the financial statements.

The Company has taken certain vehicle, land and immovable properties on operating lease. These leases have varying terms, escalation clauses and renewal rights. The total lease rent paid on the same is included under Rent and Licence Fees forming part of Other Expenses (Refer note no 24(ii). The minimum future lease rentals payable in respect of non-cancellable leases entered into by the Company to the extent of minimum guarantee amount are as follows:-

NOTE 3: CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR):

a) On account of Income Tax matters in dispute:

i. In respect of matters which have been decided in the Company''s was earlier favour by both CIT-A and ITAT, but the Hon’ble Allahabad High Court has referred the case back to CIT-A for reconsideration of the facts involved Rs.Nil Lakhs (previous year – Rs. 167.97 Lakhs).

ii. In respect of other matters for which Company’s appeals are pending with appellate authorities against the order of the assessing officer - Rs. 241.78 Lakhs (previous year - Rs.12.79 Lakhs)

b) On account of other disputes in respect of:

i. Service Tax - Rs.9.70 Lakhs (previous year - Rs.28.78 Lakhs)

ii. Sales tax - Rs.36.27 Lakhs (previous year - Rs.39.19 Lakhs)

iii. Others - Rs.1.21 Lakhs (previous year - Rs.1.21 Lakhs)

c) Others

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

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

(ii) the proceedings are in early stages;

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

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

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

NOTE 4: CAPITAL COMMITMENTS:

Estimated amount of contracts remaining to be executed on capital account net of capital advances and not provided for is Rs.64.82 Lakhs (Previous year - Rs.547.25 Lakhs).

NOTE 5: SEGMENT REPORTING

The Company’s only business being hoteliering, disclosure of segment-wise information is not applicable under Ind AS108 - ‘Operating Segments’ (Ind AS-108). There is no geographical segment to be reported since all the operations are undertaken in India.

The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations. Further, Mortality has been assumed as per the published notes under the Indian Assured Lives Mortality (2006-08) Ult table Change in Benefit Obligation.

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

Information disclosed above is to the extent provided by actuary.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to government security yields prevailing as at the Balance Sheet date. If the return on plan asset is below this rate, it will create a plan deficit. The current plan has made investments in special deposit schemes of banks & FDRs. Due to the long-term nature of the plan liabilities, the Trustees of the Fund consider it appropriate to invest funds in the bank FDRs.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability

NOTE 6: EARNINGS PER SHARE (EPS)

Earnings Per Share is calculated in accordance with Ind AS 33 ‘Earnings Per Share’ prescribed under Section 133 of the Companies Act, 2013.

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed.

a. Financial assets and liabilities

The carrying value of financial instruments by categories under the most relevant method i.e. amortised cost is as follows:

Fair value of Financial Instruments measured at amortised cost :

The management considers that the carrying amount of assets and liabilities recognised at amortised cost in financial statements is approximate to their fair value.

NOTE 7: FINANCIAL RISK MANAGEMENT

(A) Financial Risk Management

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company''s Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit team. Internal audit team undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

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

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

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. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments. During the year, following provisions for doubtful debts has been made:

Trade receivables

Customer credit risk is managed as per the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables which do not contain a significant financing component. The application of simplified approach does not requires the company to track changes in credit risk, rather it recognises impairment loss allowance based on life time expected credit loss at each balance sheet date, since its initial recognition.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The Company does not hold collateral as security. The company evaluates the concentration ofrisk with respect to trade receivables as low.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company''s management on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. Also, The company is having short term borrowings in form of inter corporate deposits renewing at a period of 90 days.

NOTE 8: GUARANTEES GIVEN

Bank Guarantees of Rs.29.22 lakhs (PY - Rs.28.14 lakhs) have been given by the company to various government authorities & other parties. These guarantees were issued against the Fixed Deposits of Rs.31.46 lakhs made with the bank.

NOTE 9:

There are no financial liabilities and assets that are set off as at 31st March 2018 and 31st March 2017.

Dividends paid during fiscal 2018 represent an amount of Rs.195 Lakhs @ Rs.15/- per equity share towards dividend for fiscal 2017.

Dividends paid during fiscal 2017 represent an amount of Rs.260 Lakhs @ Rs.20/- per equity share towards dividend for fiscal 2016.

The dividends declared by Benares Hotels Limited are in Indian Rupees and are based on the profits available for distribution as reported in the statutory financial statements of Benares Hotels Limited. Subsequent to March 31, 2018, the Board of Directors of Benares Hotels Limited have proposed a dividend of Rs. 195 Lakhs (Rs. 15 per share) in respect of fiscal 2018. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately Rs.234.70 Lakhs, inclusive of corporate dividend tax of Rs. 39.70 Lakhs. Remittance of dividend within India is exempt from tax in the hands of shareholders.

NOTE 10: CAPITAL MANAGEMENT

The Company’s objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the company. The company determines the capital requirement based on annual operating plan and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated.

The Company has borrowings of Rs. 500.00 lakhs (previous year: Rs. Nil lakhs) as at the end of the reporting period. Accordingly, the Company has 0.07 gearing ratio as at 31- Mar -2018 and Nil as at 31- Mar -2017.

NOTE 11:

The disclosure required to be made in terms of Schedule V of SEBI (Listing Obligation And Disclosure Requirement) 2015 is not applicable to the company.

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Mar 31, 2017

In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). The exemptions and exceptions applied by the Company in accordance with Ind AS 101 ''First-time Adoption of Indian Accounting Standards'' along with the reconciliations of equity, total comprehensive income and cash flows in accordance with Previous GAAP to Ind AS are explained below.

Exemptions from retrospective application:

The Company has applied the following exemptions:

1. Business combinations exemption

The Company has elected not to apply Ind AS 103, Business Combinations, to business combinations occurred before the transition date.

2. Property, plant and equipment, investment properties and intangible assets Deemed Cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities included in the cost of property, plant and equipment (para D7AA of Appendix D). This exemption can also be used for intangible assets covered by Ind AS 38 ''Intangible Assets'' and investment property covered by Ind AS 40 ''Investment Properties''.

Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

3. Cumulative translation differences exemption

The Company has elected to set all the cumulative translation gains and losses to zero by transferring it to opening retained earnings at its transition date.

Footnotes:

4. Under Ind AS, certain items of income and expense that are not recognized in profit or loss but shown in the statement of profit or loss as ''other comprehensive income'' includes re-measurement of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP

5. Under Ind AS, the company has recognized the value of license to be received under the Services Exports from India Scheme (SEIS) on accrued basis which were earlier being accounted on utilization basis in previous GAAP in erstwhile Served from India Scheme (SFIS).

6. Current and Deferred tax have been recognized on the adjustments made on transition to Ind AS.

7. Other Comprehensive Incomes represent the impact of re-measurements of post employment benefit obligation, net of tax of'' 2.35 lakhs (item of other comprehensive income recognized directly in retained earnings (Not reclassified to P&L)

The Company has taken certain vehicle, land and immovable properties on operating lease. These leases have varying terms, escalation clauses and renewal rights. The total lease rent paid on the same is included under Rent and License Fees forming part of Other Expenses (Refer note no 23 (ii)). The minimum future lease rentals payable in respect of non-cancellable leases entered into by the Company to the extent of minimum guarantee amount are as follows:

8: CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR):

9. On account of Income Tax matters in dispute:

10. In respect of matters which had been decided in the Company’s favour earlier by both CIT-A and ITAT, but now the Hon’ble Allahabad High Court has referred the case back to CIT-A for reconsideration of the facts involved - Rs.167.97 Lakhs (previous year - Rs. 127.97 Lakhs).

11. In respect of other matters for which Company’s appeals are pending with appellate authorities against the order of the assessing officer - Rs. 12.79 Lakhs (previous year - Rs. 28.90 Lakhs)

12. On account of other disputes in respect of:

13. Service Tax - Rs. 28.78Lakhs (previous year - Rs. 19.08 Lakhs)

14.. Sales tax - Rs. 39.19Lakhs (previous year - Rs. 36.27 Lakhs)

15.. Others - Rs. 1.21 (previous year - Rs. 3.45 Lakhs)

16. As per Ind AS 24, “Related Parties Disclosure” notified by the Companies (Accounting Standards) Rules 2006 the following are the key categories of Related Parties:

17.. Holding Company- The Indian Hotels Company Limited

18. Associate & Joint Ventures of the Holding Company- 15 Entities

19. Fellow Subsidiary Companies- 31 Entities

20. Associate and joint venture of above fellow Subsidiaries- 12 Entities

21. Entity having Significant Influence- Tata Sons Limited

22. Subsidiaries/ Joint venture of Tata Sons Limited- 247 Entities

23. Post-employment benefit plan entity for the benefit of employees of company- Hotel Taj Ganges Employee Gratuity Trust.

24. Entities in which directors of the company are interested- 34 Entities

25. Company Directors and Relatives- 61 persons

26. Company KMP and Relatives- 17 persons

27. Holding Company Directors, KMP and their Relatives- 120 persons

28. Entities controlled / jointly controlled by the KMP of Holding company-Business Jets India Pvt Ltd

29. Financial risk management:

The Company has a risk management policy which covers risks associated with the financial assets and liabilities. The management assesses the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the Company

30. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

31. Credit risk

Credit risk is the risk of financial loss arising from counter party failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.

BHLs exposure to customers is diversified and no single customer contributes to more than 10% of outstanding accounts receivable and unbilled revenue as of March 31,2017 and April 1,2016.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, financial assets carried at fair value and interest-bearing deposits with corporate are neither past due nor impaired. Cash and cash equivalents with banks and interest-bearing deposits placed with corporate, which have high credit-rating assigned by international and domestic credit-rating agencies. Trade receivables and other financial assets that are past due but not impaired, there were no indications as of March 31,2017, that defaults in payment obligations will occur except as described in note 9 on allowances for impairment of trade receivables. The Company does not hold any collateral for trade receivables and other financial assets. Trade receivables and other financial assets that are neither past due nor impaired relate to new and existing customers and counter parties with no significant defaults in past.

32. Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company consistently generated sufficient cash flows from operations to meet its financial obligations as and when they fall due.

Dividends paid during fiscal 2017 include an amount of INR 260 Lakhs @ Rs.20/- per equity share towards dividend for fiscal 2016. Dividends paid during fiscal 2016 include an amount of INR 260 Lakhs @ Rs.20/- per equity share towards dividend for fiscal 2015.

The dividends declared by Benares Hotels Limited are in Indian Rupees and are based on the profits available for distribution as reported in the statutory financial statements of Benares Hotels Limited. Subsequent to March 31, 2017, the Board of Directors of Benares Hotels Limited have proposed a dividend of Rs.195 Lakhs (Rs.15 per share) in respect of fiscal 2017. The proposal is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately INR 234.70 Lakhs, inclusive of corporate dividend tax of INR 39.70 Lakhs. Remittance of dividend within India is exempt from tax in the hands of shareholders.

Additional disclosure for Share Capital

The Company''s objective for capital management is to maximize shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated.

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Mar 31, 2016

NOTE 1: CONTINGENT LIABILITIES (to the extent not provided for)

(a) On account of Income Tax Matters in Dispute:

i. In respect of matters which have been decided in the Company''s favour by both CIT-A and ITAT, but the Income Tax Department has preferred an appeal in Hon''ble Allahabad High Court Rs.127.97 Lacs (previous year - Rs.127.97 Lacs).

ii. In respect of other matters for which Company''s appeals are pending with appellate authorities against the order of the assessing officer Rs.28.90 Lacs (previous year Rs.23.21 Lacs)

(b) On account of other disputes in respect of:

i. Service Tax - Rs.19.08 Lacs (previous year - Rs.19.08 Lacs)

ii. Sales tax - Rs.36.27 Lacs (previous year - Rs.36.27 Lacs)

iii. Others - NIL (previous year - Rs.3.45 Lacs)

NOTE 2: CAPITAL COMMITMENTS:

Estimated amount of contracts remaining to be executed on capital account net of capital advances and not provided for is Rs.39.65 Lacs (Previous year - Rs.41.67 Lacs).

NOTE 3: SEGMENT REPORTING

The Company’s business consists of its hotel operations only and hence no separate information for segment-wise disclosures under Accounting Standard on ‘Segment Reporting (AS-17)’, issued by the Institute of Chartered Accountants of India, is given.

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Mar 31, 2015

NOTE 1: CORPORATE INFORMATION

Benares Hotels Limited ("BHL' or the "Company"), is a listed public limited company incorporated in 1971. The Company operates its hotels, viz.The Gateway Hotel Ganges and Nadesar Palace in Varanasi and The Gateway Hotel, Gondia in Maharashtra. The Company became a subsidiary of The Indian Hotels Company Limited in May, 2011.

NOTE 2: CONTINGENT LIABILITIES (to the extent not provided for)

(a) On account of Income Tax Matters in Dispute:

i. In respect of matters which have been decided in the Company's favour by the CIT-Appeals, where the Income Tax Department has preferred an appeal in ITAT ' 127.97 Lacs (previous year - ' 118.35 Lacs).

ii. In respect of other matters for which Company's appeals are pending with appellate authorities against the order of the assessing officer ' 23.21 Lacs (previous year ' 60.05 Lacs)

(b) On account of other disputes in respect of:

i. Service Tax - Rs 19.08 Lacs (previous year Rs 19.08 Lacs)

ii. Sales tax Rs 36.27 Lacs (previous year Rs 36.27 Lacs)

iii. Others Rs 3.45 lacs (previous year Rs 3.45 Lacs)

NOTE 3: CAPITAL COMMITMENTS:

Estimated amount of contracts remaining to be executed on capital account net of capital advances and not provided for is Rs. 41.67 Lacs (Previous year Rs 672.64 Lacs).

NOTE 4: PROVISION FOR DOUBTFUL DEBTS AND BAD DEBTS WRITTEN OFF

(a) During the year, an amount of Rs. 0.70 lacs was written back from provision for doubtful debts due to provision no more required on some debts.

(b) There is no provision for doubtful debts or amounts written off or written back during the year for debts due from or to related parties.

NOTE 5: CSR (Corporate Social Responsibility) EXPENDITURE

During the year, the company incurred an expenditure of Rs. 38.66 Lacs towards Corporate Social Responsibility in terms of the provision of Section 135 of the Companies Act, 2013. A brief summary along with the breakup of expenditure along with type, i.e. revenue/ capital, is as follows:

Capital Expenditure (Capitalized as Fixed Assets)

The Company's business consists of its hotel operations only and hence no separate information for segment-wise disclosures under Accounting Standard on 'Segment Reporting (AS-17)', issued by the Institute of Chartered Accountants of India, is given.

Earnings Per Share is calculated in accordance with Accounting Standard 20 'Earnings Per Share', notified by the Company's (Accounting Standards) Rules, 2006 as amended.

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Mar 31, 2013

NOTE 1: CORPORATE INFORMATION

Benares Hotels Limited ("BHL'' or the "Company"), is a listed public limited company incorporated in 1971. The Company operates its hotels, viz., The Gateway Hotel Ganges and Nadesar Palace in Varanasi. The company became a subsidiary of The Indian Hotels Company Limited in May, 2011.

NOTE 2: CONTINGENT LIABILITIES (to the extent not provided for):

Previous

Year

Rs. Lacs Rs. Lacs

(a) Claims against the company in respect of arrears of electricity charges,matterpendinginHon''ble HighCourt,Allahabad 3.45 3.45

(b) On account on demand in respect ofUP Trade Tax AY 2006-07, Case remanded back by Appellate Tribunal for rehearing and orderstothefirstAppellate Authority 15.88

(c) On account of demand in respect ofUP Trade Tax AY 2007-08, Case remanded back by Appellate Tribunal for rehearing and orderstothefirstAppellateAuthority .20.39 9.66

(d) On account of Income Tax for AY 2007-08, demand raised by IncomeTaxAuthorityappealpending 4.15

(e) Demand raised by Income Tax Authority for AY 2009-10, by inflating income and assuming higher profitability ratio. CIT (Appeals) passed the order in favour of the company, however Income Tax Department has filed appeal in ITAT challenging the orderoftheCIT(Appeals) 118.35

(f) Demand raised by Income Tax Authority for AY 2010-11, by inflating income and making adhoc additions, appeal pending in CIT (Appeals) 40.86

Total 203.08 13.11



NOTE 3:

The Company''s business consists of its hotel operations only and hence no separate information for segment-wise disclosures under Accounting Standard on "Segment Reporting" (AS-17), issued by the Institute of Chartered Accountants of India, is given.

NOTE 4: RELATED PARTY DISCLOSURES

(c) The license fee payable by the company is in respect of licence agreement entered by the company on a revenue sharing basis with the owners of the Nadesar Palace in Varanasi and the land on which the Palace is situated. The property licensed to the Company is owned by Dr. Anant Narain Singh along with two private limited companies and a Trust in which Dr. Anant Narain Singh is a Director and a Trustee respectively. As per the agreement terms, this year, an amount of Rs. 21.13 lacs (amount equivalent to 3% of net sales of Nadesar Palace) was paid during the year towards License fee.

NOTE 5: PROVISION FOR DOUBTFUL DEBTS AND BAD DEBTS WRITTEN OFF

During the year, an amount ofRs. 24.31 lacs (previous year Rs. 42.67 lacs) has been written off as bad debts. Since the amount has been written off against the already existing amounts provided for doubtful debts in past years, it has not impacted the profitability of the year.

There is no provision for doubtful debts or amounts written off or written back during the year for debts due from or to related parties.

NOTE 6: EARNINGS PER SHARE (EPS)

Earnings Per Share is calculated in accordance with Accounting Standard 20 - ‘Earnings Per Share'' - (AS-20), notified by the company''s Accounting Standards Rules, 2006 as amended.

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Mar 31, 2012

(In view of the Notification No. S.O. 301(E) dated 8th February, 2011 issued by the Ministry of Corporate Affairs, the Hotel companies have been exempted from disclosing in their Profit and Loss Account, the information under paragraph 3(i)(a) and 3(ii)(d) of part II of Schedule VI regarding quantity wise details of turnover.)

Previous Year Rupees Rupees

1. Contingent Liability not Provided For:

a. Claims against the Company in respect of arrears of electricity charges not acknowledged as debts 3,45,323 3,45,323

b. On account of dispute in respect of UP Trade Tax, Appeal filed by the Company. UP Trade Tax AY 2007-08 9,66,000 10,69,834

c. Estimated amount of contracts remaining to be executed on capital account (Capital Commitment) (net of capital advances) 2,87,83,797 1,24,26,428

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Mar 31, 2011

Previous Year Rupees Rupees

1. Contingent Liability not provided for :

a) Claims against the Company in respect of arrears of electricity charges not acknowledged as debts 3,45,323 3,45,323

b) On account of dispute in respect of : UP Trade Tax 10,69,834 10,69,834

c) The Company had conducted physical verification of assets during the year through another firm and as the result of such verification, many of the items purchased since 1980 till 2000 which have been depreciated to 5% of its original cost as per the policy of the company have been found either missing or un useable or untraceable and the same have been written off/ retired from the records of the company amounting to Rs. 68.39 lacs and depreciation loss on such account was Rs. 4.57 lacs which has been shown in P & L under Loss on sale of assets. The majority in number of the items written off are kitchen equipment and data processing equipment which are thrown out or discontinued to be used after use for sometime but not reported from time to time. This loss has been set off against the profit of Rs. 3.61 lacs on sale of DG set and the net amount Rs. 0.96 lacs is shown in Schedule 7 against Loss on discarded assets.

d) Commitments on Capital Account not provided for 1,24,26,428 1,77,10,185

2. (a) There is no interest paid/payable during the year by the Company to the Suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006.

(b) The above information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose.

3. The Company's business consists of its hotel operations only and hence no separate information for segment-wise disclosures under Accounting Standard on 'Segment Reporting'(AS-17), issued by the Institute of Chartered Accountants of India, is given.

4. a) Details of transactions with related parties during the year :

ii) The Company entered into a licence agreement on a revenue sharing basis with the Owners of the Nadesar Palace in Varanasi and the land on which the Palace is situate. The property licensed to the Company is owned by Dr. Anant Narain Singh and by two private limited companies and a Trust in which Dr. Anant Narain Singh is a director and a trustee respectively An amount of Rs. 17.00 lacs per annum increasing periodically or 3% of the Net Sales from that property whichever is higher is payable in quarterly instalments as per the terms of the agreement. Thus this year Rs. 17.85 Lacs is provided towards the license fee.

c) There is no provision for doubtful debts or amounts written off or written back during the year for debts due from or to related parties.

5. Previous Year's figures have been regrouped wherever necessary to conform to the current year's presentation.

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Mar 31, 2010

Previous Year Rupees Rupees

1. Contingent Liability not provided for :

a) Claims against the Company in respect of arrears of electricity charges not acknowledged as debts.... 3,45,323 3,45,323

b) Income Tax matters in dispute :

The Department had partially disallowed the claim of the Company u/s 80HHD, in respect of the Assessment Year 1990- 91, on the ground that the Income from Rooms does not constitute Services, but is covered under the ambit of Rent and therefore not eligible for deduction under the said section. The Company had been advised legally that no provision for such demand is necessary in the books of accounts. On an appeal filed by the Company against the assessment made for the AY 1990-91, the CIT(A) and ITAT had upheld the views of the Company. However, the Department had moved the High Court against the Order of the ITAT. To the knowledge of the Company the Department has referred the matter to the High Court for the various assessment years up to 2004-05, except for the years for which no scrutiny was undertaken. The total tax demand under dispute up to the assessment years 2007-08 was Rs. 3,49,64,324/- which had been contested by the Company in Appeal. Now the case has been decided in Companys favour and there is no contingent liability. Assessments for the AY 2008-09 and AY 2009-10 are pending.

c) On account of dispute in respect of :

UP Trade Tax....................................10,69,834 10,69,834

d) Commitments on Capital Account not provided for............... 1,77,10,185 1,70,02,245

2. (a) There is no interest paid/payable during the year by the Company to the Suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006. (b) The above information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose.

3. As the turnover of the Company is in respect of Food and Beverages, it is not possible to give quantity-wise details of the turnover. Vide order No. 46/25/2008-CL-III dated 14th May, 2008 issued by the Department of Company Affairs, the Company has been exempted from giving these particulars for the year 2009-10 subject to certain disclosures.

4. The Companys business consists of its hotel operations only and hence no separate information for segment-wise disclosures under Accounting Standard on Segment Reporting(AS-17), issued by the Institute of Chartered Accountants of India, is given.

5. Previous Years figures have been regrouped wherever necessary to conform to the current years presentation.