Notes to Accounts of KHFM Hospitality & Facility Management Services Ltd.

Mar 31, 2025

(n) Provisions, Contingent Assets and Contingent Liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost.

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless
the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities are not
recognized but are disclosed in notes.

Contingent assets are not disclosed in the standalone financial statements unless an inflow of economic benefits is
probable.

(o) Earnings per share

Basic EPS is computed by dividing the profit for the period attributable to the shareholders of the Company by the
weighted average number of shares outstanding during the period.

Diluted EPS is computed by adjusting, the profit for the year attributable to the shareholders and the weighted
average number of shares considered for deriving Basic EPS, for the effects of all the shares that could have been
issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value. Further, the dilutive potential shares are deemed
converted as at beginning of the period, unless issued at a later date during the period.

(p) Employee benefits

The accounting of employee benefit plans in the nature of defined benefit requires the Company to use assumptions.
These assumptions have been explained under employee benefits note.

(q) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgement. The Company uses significant judgement inassessing the lease term
(including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered
by an option to extend the lease if the Company is reasonably certain to exercise that option; andperiods covered by
an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether
the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a
lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise
the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease
term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a
portfolio of leases with similar characteristics.

IV. RECENT PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

V. TRANSACTION AND BALANCES

The Company''s standalone financial statements are presented in Indian Rupees which is the Company''s functional
currency.

Transactions and Balances

Foreign currency transactions if executed; are recorded, on initial recognition in the functional currency, by applying
to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at
the date of the transaction. Monetary assets and liabilities denominated in foreign currencies (except financial
instruments designated as Hedge Instruments) are translated at the functional currency spot rates of exchange at the
reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. The gain or loss arising on translation of non-monetary items
measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item
(i.e. translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also
recognized in OCI or profit or loss, respectively).

VI. FAIR VALUE MEASUREMENT

Fair value is the price at the measurement date, at which an asset can be sold or paid to transfer a liability, in an
orderly transaction between market participants. The Company''s accounting policies require, measurement of certain
financial / non-financial assets and liabilities at fair values (either on a recurring or non-recurring basis). Also, the fair
values of financial instruments measured at amortized cost are required to be disclosed in the said standalone
financial statements.

The Company is required to classify the fair valuation method of the financial / non-financial assets and liabilities,
either measured or disclosed at fair value in the standalone financial statements, using a three level fair-value-
hierarchy (which reflects the significance of inputs used in the measurement). Accordingly, the Company uses
valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure
fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

The three levels of the fair-value-hierarchy are described below:

Level 1: Quoted (unadjusted) prices for identical assets or liabilities in active markets
Level 2: Significant inputs to the fair value measurement are directly or indirectly observable
Level 3: Significant inputs to the fair value measurement are unobservable

VII. FINANCIAL INSTRUMENTS

(a)Financial Assets

Initial recognition:

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument.
On initial recognition, a financial assets is recognized at fair value, except for trade receivables which are initially
measured at transaction price. Transaction costs that are directly attributable to the acquisition of financial assets.

Subsequent recognition

(i) Financial Assets Carried at Amortized Cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to
hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
When the financial asset is derecognized or impaired, the gain or loss is recognized in the statement of profit and
loss.

(ii) Financial Assets at Fair Value Through Other Comprehensive Income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses
which are recognized in profit and loss.

When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from
equity to profit and loss.

Equity instruments are subsequently measured at fair value. On initial recognition of an equity investment that is not
held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in

OCI (designated as FVOCI - equity investment). This election is made on an investment by investment basis. Fair value
gains and losses recognized in OCI are not reclassified to profit and loss.

(iii) Financial Assets at Fair Value through Profit or Loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or
loss. Interest (basis EIR method) income from financial assets at fair value through profit or loss is recognized in the
statement of profit and loss within finance income/ finance costs separately from the other gains/ losses arising from
changes in the fair value.

Derecognition

Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire
or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet but retains either
all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized

(b) Financial Liabilities

Initial recognition

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the
instrument. Financial liabilities are initially measured at the amortised cost unless a initial recognition, they are
classified as fair value through profit and loss. In case of trade payables, they are initially recognized at fair value and
subsequently, these liabilities are held at amortised cost, using the effective interest method.

Subsequent Recognition

Financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized
in the Statement of Profit and Loss.

Derecognition

A Financial liability derecognized when the obligation specified in the contract is discharged, cancelled or expires

(c) lmpairment of Financial Assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortized cost. The impairment methodology applied depends on whether there has been a significant increase in
credit risk since initial recognition. If credit risk has not increased significantly, twelve month ECL is used to provide for
impairment loss, otherwise lifetime ECL is used.

However, only in case of trade receivables, the Company applies the simplified approach which requires expected
lifetime losses to be recognized from initial recognition of the receivables.

(d) Reclassification of Financial assets and Financial Liabilities

The company determines classification of financial assets and liabilities on initial recognition. After initial recognition,
no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets
which are debt instruments, a reclassification is made only if there is a change in the business model for managing
those assets. If the company reclassifies financial assets, it applies the reclassification prospectively from the
reclassification date which is the first day of the immediately next reporting period following the change in business
model. The company does not restate any previously recognized gains, losses (including impairment gains or losses)
or interest.

(e) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only
when, the company has a legally enforceable right to set off the amounts and it intends either to settle them on a net
basis or to realize the asset and settle the liability simultaneously.

(f) Cash & Cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, short-term deposits and other
short-term highly liquid investments with an original maturity of three months or less that are readily convertible to a
known amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of
meeting short-term cash commitments.

For the purposes of the presentation of cash flow statement, cash and cash equivalents include cash on hand, in
banks and demand deposits with banks.

VIII. BUSINESS COMBINATIONS

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of
the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the
equity interests issued by the Group in exchange of control of the acquiree. Acquisition-related costs are generally
Recognised in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are Recognised at their fair value,
except that:

• deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are Recognised
and measured in accordance with Ind AS 12 Income Taxes and Ind AS 19 Employee Benefits respectively;

• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
are measured in accordance with Ind AS 102 Share-based Payment at the acquisition date and

• Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Non-current Assets
Held for Sale and Discontinued Operations are measured in accordance with that Standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer''s previously held equity interest in the acquiree (if any) over
the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. In case of a

bargain purchase, before recognizing a gain in respect thereof, the Group determines whether there exists clear
evidence of the underlying reasons for classifying the business combination as a bargain purchase. Thereafter, the
Group reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and
recognizes any additional assets or liabilities that are identified in that reassessment. The Group then reviews the
procedures used to measure the amounts that Ind AS requires for the purposes of calculating the bargain purchase. If
the gain remains after this reassessment and review, the Group recognizes it in other comprehensive income and
accumulates the same in equity as capital reserve. This gain is attributed to the acquirer. If there does not exist clear
evidence of the underlying reasons for classifying the business combination as a bargain purchase, the Group
recognizes the gain, after reassessing and reviewing (as described above), directly in equity as capital reserve.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the
entity''s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling
interests'' proportionate share of the Recognised amounts of the acquiree''s identifiable net assets. The choice of
measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are
measured at fair value or, when applicable, on the basis specified in another Ind AS.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting
from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair
value and included as part of the consideration transferred in a business combination. Changes in the fair value of the
contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with
corresponding adjustments against goodwill or capital reserve, as the case maybe. Measurement period adjustments
are adjustments that arise from additional information obtained during the ''measurement period'' (which cannot
exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is
remeasured at fair value at subsequent reporting dates with the corresponding gain or loss being Recognised in profit
or loss.

When a business combination is achieved in stages, the Group''s previously held equity interest in the acquiree is
remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is Recognised in profit or loss.
Amounts arising from interests in the acquiree prior to the acquisition date that have previously been Recognised in
other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that
interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the
reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the
accounting is incomplete. Those provisional amounts are adjusted during the measurement period(see above), or
additional assets or liabilities are Recognised, to reflect new information obtained about facts and circumstances that
existed at the acquisition date that, if known, would have affected the amounts recognized at that date.

(c) Terms and conditions of transactions with related parties

The sales and purchases / services rendered to and from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

The Board of Directors have furnished guarantee of properties held in their own name against loans/working capital limits sanctioned by the Banks to the company.
Particulars of the same is referred in Note: 28 of Standalone Financial Statements

(d) Transactions with subsidiaries

There were no transactions with subsidiaries during the year ended 31st March 2025, except for the closing balance of investment in equity instruments, as disclosed
in Note 4 of audited standalone fianancial statements.The consolidated financial statements include the financial results, position and other relevant disclosures
pertaining to the subsidiaries. The consolidated profit and loss account, balance sheet and other related figures are presented in the consolidated financial
statements and the accompanying notes.

33. INVESTMENTS IN EQUITY INSTRUMENTS AT FVTOCI

On initial recognition, the company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent
changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if
the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs.
Subsequently, they are measured at fair value with gains and losses arising from changes in fair value Recognised in other
comprehensive income and accumulated in the ''Reserve for equity instruments through other comprehensive income''. The cumulative
gain or loss is not reclassified to profit or loss on disposal of the investments.

A financial asset is held for trading if, it has been acquired principally for the purpose of selling it in the near term; or on initial
recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual
pattern of short-term profit-taking; or it is a derivative that is not designated and effective as a hedging instrument or a financial
guarantee.

Fair value of equity shares of co-operative banks which are unlisted is not available, hence the same is recorded as Cost.

34. INVESTMENTS IN EQUITY SHARES AT FAIR VALUE THROUGH PROFIT & LOSS (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition
to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which
are not held for trading.

Debt instruments that do not meet the amortized cost criteria or FVTOCI criteria (see above) are measured at FVTPL. In
addition, debt instruments that meet the amortized cost criteria or the FVTOCI criteria but are designated as at FVTPL are
measured at FVTPL.

A financial asset that meets the amortized cost criteria or debt instruments that meet the FVTOCI criteria may be
designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or
recognition inconsistency that would arise from measuring assets or liabilities or recognizing the gains and losses on
them on different bases. The Company has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising
on Remeasurement Recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any
dividend or interest earned on the financial asset and is included in the ''Other income'' line item. Dividend on financial
assets at FVTPL is Recognised when the Company''s right to receive the dividends is established, it is probable that the
economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part
of cost of the investment and the amount of dividend can be measured reliably.

35. FINANCIAL INSTRUMENTS

The significant accounting policies, including the criteria of recognition, the basis of measurement and the basis on which income and
expenses are Recognised, in respect of each class, financial liability and equity instruments to the standalone financial statements
Financial Assets and Liabilities

Carrying amount of Investment, Trade Receivables, Cash and Cash Equivalent, Bank balances, Other financial Assets, Trade payables and
Other financial liabilities as at 31^st March, 2025 and 31^st March, 2024 approximate the Fair Value because of their short term nature.
Difference between carrying amount and fair values of bank deposits, other financial assets, other financial liabilities and borrowings
subsequently measured at amortized cost is not significant each of year presented.

(b) Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or
unobservable and consists of the following three levels :

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

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

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a
valuation model based on assumption that are neither supported by prices from observable current market transactions in the same
instrument nor are they based on available market data. The Company has fair valued the transaction of financial guarantee (under
Other Financial Liabilities) on the basis of internal comparable of a similar transaction with an unrelated party. The fair value so
determined will therefore be classified under Level 2. The investments included in Level 3 of fair value hierarchy have been valued using
the cost approach to arrive at their fair value.

The cost of unquoted investments approximate the fair value because there is a wide range of possible fair valued measurements and
the cost represents estimate of fair valued within that range.

I Financial risk management

0 Risk management framework

a) The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management
framework. The Board of Directors has established the risk management committee, which is responsible for developing and monitoring
the risk management policies. The Company reports regularly to the Board of Directors on its activities.

b) The Company''s risk management policies are established to identify and analyse the risks 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 Company''s activities. The Company, through its training and management standards and
procedures, aims to maintain a disciplined and constructive control environment in which the employees understand their roles and
obligations.

c) The Audit Committee overseas 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. Internal audit undertakes both regular and adhoc reviews of risk
management controls and procedures, the results of which are reported to the Audit Committee.

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

(a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company''s receivables from customers, investments in debt securities, loans given to related
parties and project deposits. The carrying amount of financial assets represents the maximum credit exposure.

• Trade Receivables

Customer credit risk is managed by requiring customers to pay advances through progress billings before transfer of ownership,
therefore substantially eliminating the Company''s Credit risk in this respect. The Company''s credit risk with regard to trade receivables
has a high degree of risk diversification, due to the large number of projects that vary in sizes and types with numerous different
customer categories in a large number of geographical markets. Based on prior experience and an assessment of the current economic
environment, management has recognized appropriate provision for expected credit loss.

(d) Market risk

Market risk is the risk that changes in market prices such as foreign exchange rate and interest rates will affect the Company''s income or
the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing the return.

(e) Currency risk

Currency risk is not material, as the Comp''ny''s primary business activities are within India and does not have significant exposure in
foreign currency.

(f) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market
interest rates. The management is responsible for the monitoring of the Comp''ny''s interest rate position. Various Variables are
considered by the management in structuring the Comp''ny''s borrowings to achieve a reasonable, competitive, cost of funding.

Exposure to interest rate risk.

36. EMPLOYEE BENEFITS

(i) Short term employee benefits

The undiscounted amount of short term employee benefit expected to be paid in exchange for the services rendered by employees are
recognized as an expense during when the employees render the services.

(ii)Post-Employment Benefits

Defined Contribution Plans

The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related
service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already
paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution
already paid exceeds the contribution due for services received before the balance sheet date, the excess is recognized as an asset to
the extent that the pre-payment will lead to, for example, a reduction n future payment or a cash refund.

Defined Benefit Plans

The Gratuity Benefits are classified as Post-Retirement Benefits as per Ind AS 19 and the accounting policy is outlined as follows. As per
Ind AS 19, the service cost and the net interest cost would be charged to the Profit & Loss account. Actuarial gains and losses arise due
to difference in the actual experience and the assumed parameters and alsodue to changes in the assumptions used for valuation. The
Company recognizes these remeasurements in the Other Comprehensive Income(OCI). When the benefits of the plan are changed, or
when a plan is curtailed or settlement occurs, the portion of the changed benefit related to past service by employees, or the gain or
loss on curtailment or settlement, is recognized immediately in the profit or loss account when the plan amendment or when a
curtailment or settlement occurs.

In accordance with Indian law, the Company operates a scheme of gratuity which is a defined benefit plan. The gratuity plan provides
for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount
equivalent to 15 to 30 days'' salary payable for each completed year of service. Vesting occurs upon completion of five continuous years
of service. The Gratuity benefit liabilities of the company are funded to an insurance company. The insurance company in turn manages
these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits
prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be
possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

37. SEGMENT REPORTING

In accordance with Ind AS 108 on Operating Segments , the Company has identified its business segment as " Hospitality 8t Facility
Management Services". There are no other primary reporatable segments. The major and material activities of the company are
restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable.

38. PAYMENTS MADE TO VENDORS COVERED UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT
MSMED) ACT, 2006

Trade payables are due as and when invoices are booked in accounting records. There is no liability towards interest on delayed
payments under The Micro, Small and Medium Enterprises Development Act 2006'' during the year. There is also no amount of
outstanding interest in this regard, brought forward from previous years. Information in this regard is on basis of intimation received, on
requests made by the Company, with regards to registration of vendors under the said Act.

39. Balances of trade receivables, trade and other payables (including micro and small enterprises and including capital
creditors) and loans and advances are subject to confirmation and reconciliation, if any.

40. CAPITAL MANAGEMENT

Equity share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders.
The capital structure of the Company is based on management''s judgment of its strategic and day-to-day needs with a focus on total

41. The code on Social security, 2020 relating to employee benefits has been approved by the Parliament and has also been published
in Official Gazette of India. However, the date on which it comes into effect has not been notified and the rules are yet to be framed.
The Company will complete its evaluation and will give appropriate impact in its standalone financial statements in the period in which,
the Code becomes effective and the related rules are published.

42. POST REPORTING EVENTS

There are no adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorization.

43. BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS

As per sanctioned letter issued by Banks, the Company is required to submit Stock and Book Debts statement to Banks on monthly
basis. The Books Debts including contract assets are in agreement with books of accounts except for some reconciliation items.

44. REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

The Company has not done revaluation of PPE / Intangible assets.

45 :UTILISATION OF BORROWED FUNDS

As on March 31^st, 2025 there is no unutilised amounts in respect of long term borrowings from banks and financial institutions. The
borrowed funds have been utilised for the specific purpose for which the funds were raised.

46 UNDISCLOSED INCOME

The Company does not have any such trasaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 ( Such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

47 :DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in crypto currency or virtual currency during the financial year.

48 :REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

49. No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from any other sources / kind
of funds) by the Company to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding
(whether recorded in writing or otherwise) that the Intermediary shall (i) 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 (ii) provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with
the understanding (whether recorded in writing or otherwise) that the Company shall (i) 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
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

51: - COMPARATIVES

Previous year figures are re-grouped, re-classified and re-arranged, wherever considered necessary to confirm to current year''s
presentation.

52. The Standalone Financial Statements are presented and rounded off in INR Lakhs except for per share information or as stated
otherwise.

53. The company has used accounting software''s for maintaining its books of account for the financial year ended March 31st, 2025,
which has the feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the respective software. Further, audit trail feature during the year was not tempered with and the audit trail
has been preserved by the Company as per the statutory requirements for record retention.

54. The Board of Directors has not recommended any dividend for the financial year ended March 31, 2025.

55. APPROVAL OF FINANCIAL STATEMENTS

The Standalone Financial Statements were approved for issue by the Board of Directors on June 18^th, 2025.

The management and authorities have the power to amend the Standalone Financial Statements in accordance with Section 130 and
131 of The Companies Act, 2013.

As per our report of even date attached

For and on behalf of the Board of

For YRKDAJ and Associates LLP KHFM HOSPITALITY AND FACILITY MANAGEMENT SERVICES LIMITED

Chartered Accountants
Firm Regn No. W100288

Ravindra Hegde Sujata Hegde

Managing Director Director & Chief Financial Officer

Rohit Teli DIN - 01821002 DIN - 01829352

Partner Place: California, USA Place: California, USA

MNo. 1SS581

UDIN: 25155581BMIHXP2979

Place: Mumbai Saurav Hegde Ritesh Mishra

Date: 18^thJune 2025 Director Company Secretary and Compliance officer

DIN: 08116567 ICSI Membership No: A76039

Place: Mumbai Place: Mumbai

Date: 18^th June 2025

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Mar 31, 2024

(n) Provisions, Contingent Assets and Contingent Liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognized but are disclosed in notes.

Contingent assets are not disclosed in the standalone financial statements unless an inflow of economic benefits is probable.

(o) Earnings per share

Basic EPS is computed by dividing the profit for the period attributable to the shareholders of the Company by the weighted average number of shares outstanding during the period.

Diluted EPS is computed by adjusting, the profit for the year attributable to the shareholders and the weighted average number of shares considered for deriving Basic EPS, for the effects of all the shares that could have been issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period.

(p) Employee benefits

The accounting of employee benefit plans in the nature of defined benefit requires the Company to use assumptions. These assumptions have been explained under employee benefits note.

(q) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement inassessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; andperiods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

IV. RECENT PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

V. TRANSACTION AND BALANCES

The Company''s standalone financial statements are presented in Indian Rupees which is the Company''s functional currency.

Transactions and Balances

Foreign currency transactions if executed; are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies (except financial instruments designated as Hedge Instruments) are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively).

VI. FAIR VALUE MEASUREMENT

Fair value is the price at the measurement date, at which an asset can be sold or paid to transfer a liability, in an orderly transaction between market participants. The Company''s accounting policies require, measurement of certain financial / non-financial assets and liabilities at fair values (either on a recurring or non-recurring basis). Also, the fair values of financial instruments measured at amortized cost are required to be disclosed in the said standalone financial statements.

The Company is required to classify the fair valuation method of the financial / non-financial assets and liabilities, either measured or disclosed at fair value in the standalone financial statements, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the measurement). Accordingly, the Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

The three levels of the fair-value-hierarchy are described below:

Level 1: Quoted (unadjusted) prices for identical assets or liabilities in active markets Level 2: Significant inputs to the fair value measurement are directly or indirectly observable Level 3: Significant inputs to the fair value measurement are unobservable

VII. FINANCIAL INSTRUMENTS

(a)Financial Assets

Initial recognition:

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. On initial recognition, a financial assets is recognized at fair value, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition of financial assets.

Subsequent recognition

(i) Financial Assets Carried at Amortized Cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. When the financial asset is derecognized or impaired, the gain or loss is recognized in the statement of profit and loss.

(ii) Financial Assets at Fair Value Through Other Comprehensive Income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in profit and loss.

When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit and loss.

Equity instruments are subsequently measured at fair value. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in

OCI (designated as FVOCI - equity investment). This election is made on an investment by investment basis. Fair value gains and losses recognized in OCI are not reclassified to profit and loss.

(iii) Financial Assets at Fair Value through Profit or Loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss. Interest (basis EIR method) income from financial assets at fair value through profit or loss is recognized in the statement of profit and loss within finance income/ finance costs separately from the other gains/ losses arising from changes in the fair value.

Derecognition

Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized

(b) Financial Liabilities

Initial recognition

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost unless a initial recognition, they are classified as fair value through profit and loss. In case of trade payables, they are initially recognized at fair value and subsequently, these liabilities are held at amortised cost, using the effective interest method.

Subsequent Recognition

Financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in the Statement of Profit and Loss.

Derecognition

A Financial liability derecognized when the obligation specified in the contract is discharged, cancelled or expires

(c) Impairment of Financial Assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk since initial recognition. If credit risk has not increased significantly, twelve month ECL is used to provide for impairment loss, otherwise lifetime ECL is used.

However, only in case of trade receivables, the Company applies the simplified approach which requires expected lifetime losses to be recognized from initial recognition of the receivables.

(d) Reclassification of Financial assets and Financial Liabilities

The company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. If the company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

(e) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the company has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(f) Cash & Cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, short-term deposits and other short-term highly liquid investments with an original maturity of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.

For the purposes of the presentation of cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks.

VIII. BUSINESS COMBINATIONS

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange of control of the acquiree. Acquisition-related costs are generally Recognised in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are Recognised at their fair value, except that:

• deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are Recognised and measured in accordance with Ind AS 12 Income Taxes and Ind AS 19 Employee Benefits respectively;

• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with Ind AS 102 Share-based Payment at the acquisition date and

• Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer''s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. In case of a

bargain purchase, before recognizing a gain in respect thereof, the Group determines whether there exists clear evidence of the underlying reasons for classifying the business combination as a bargain purchase. Thereafter, the Group reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and recognizes any additional assets or liabilities that are identified in that reassessment. The Group then reviews the procedures used to measure the amounts that Ind AS requires for the purposes of calculating the bargain purchase. If the gain remains after this reassessment and review, the Group recognizes it in other comprehensive income and accumulates the same in equity as capital reserve. This gain is attributed to the acquirer. If there does not exist clear evidence of the underlying reasons for classifying the business combination as a bargain purchase, the Group recognizes the gain, after reassessing and reviewing (as described above), directly in equity as capital reserve.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity''s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests'' proportionate share of the Recognised amounts of the acquiree'' s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another Ind AS.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill or capital reserve, as the case maybe. Measurement period adjustments are adjustments that arise from additional information obtained during the ''measurement period'' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at fair value at subsequent reporting dates with the corresponding gain or loss being Recognised in profit or loss.

When a business combination is achieved in stages, the Group''s previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is Recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been Recognised in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period(see above), or additional assets or liabilities are Recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date.

Notes

Apna Sahakari Bank Ltd. - Cash Credit Rs. 1895.00 Lacs

1. Collateral Security : Shop No 1 & 3, Nirma Plaza, Makhwana Road, Marol, Andheri East, Mumbai-400059 held in the name of Mr Ravindra Hegde. Shop No 2, Nirma Plaza, Makhwana Road, Marol, Andheri East, Mumbai-400059 & Flat No 103, Datta Gurukripa CHS, NC Kelkar Road. Dadar(W), Mumbai-400028 held in the name of HR Consultancy Pvt Limited wherein Mr Ravindra Hegde and Mrs Sujata Hegde are the directors of the company. Flat No. 18, 1st Flr, D3, Green Field Complex, Rocks End CHS, Jogeshwari, Mumbai-400060 held in the name of Mrs Sujata Hegde

Apna Sahakari Bank Ltd. — Loan against Property Rs. 100.00 Lacs & 50.00 Lacs

2. Security : Shop No 1 & 3, Nirma Plaza, Makhwana Road, Marol, Andheri East, Mumbai-400059 held in the name of Mr Ravindra Hegde. Shop No 2, Nirma Plaza, Makhwana Road, Marol, Andheri East, Mumbai-400059 & Flat No 103, Datta Gurukripa CHS, NC Kelkar Road. Dadar(W), Mumbai-400028 held in the name of HR Consultancy Pvt Limited wherein Mr Ravindra Hegde and Mrs Sujata Hegde are the directors of the company. Flat No. 18, 1st Flr, D3, Green Field Complex, Rocks End CHS, Jogeshwari, Mumbai-400060 held in the name of Mrs Sujata Hegde & FDR of Rs 210 lakhs.

Apna Sahakari Bank Ltd. — Loan against Property Rs. 300.00 Lacs & 550 Lacs

3. Security: Shop No 1 & 3, Nirma Plaza, Makhwana Road, Marol, Andheri East, Mumbai-400059 held in the name of Mr Ravindra Hegde. Shop No 2, Nirma Plaza, Makhwana Road, Marol, Andheri East, Mumbai-400059 & Flat No 103, Datta Gurukripa CHS, NC Kelkar Road. Dadar(W), Mumbai-400028 held in the name of HR Consultancy Pvt Limited wherein Mr Ravindra Hegde and Mrs Sujata Hegde are the directors of the company. Flat No. 18, 1st Flr, D3, Green Field Complex, Rocks End CHS, Jogeshwari, Mumbai-400060 held in the name of Mrs Sujata Hegde & FDR of Rs 210 lakhs.

Bank Of India

4 Security: First Pari Passu Charge on Book debts with Apna Sahakari Bank- Apna Sahkari Bank has limits of Rs. 15.00 crores and BG Limit of Rs. 14.00 crores and accordingly BOI share is 18.67 % of Bookdebts. Second Pari-Passu charge for GECL Collateral facility on Book Debts with Apna Sahakari Bank. Eqm of Flat No. 2504, 25th Floor, F Wing, Building No. 1, Oberoi Spleandur, JVLR, Jogeshwari (E), Mumbai -60, EQM of Flat No. 17, 1st Flr, D3, Green Field Complex, Rocks End CHS, Jogeshwari, Mumbai-60

State Bank of India

5.Security: First paripassu charge basis to secure our funded and non-funded Working Capital credit facilities with Apna Sahakari Bank Ltd and Bank of India on Current Assets viz. Stocks of raw material, stock in process, finished goods, consumable stores & spares and book debts, bills whether documentary or clean, outstanding monies, receivables of the company, both present and future. Equitable mortgage of commercial building: 3rd Floor, Antariksh, Village Marol, Andheri, Mumbai, Maharashtra-400059

33. INVESTMENTS IN EQUITY INSTRUMENTS AT FVTOCI

On initial recognition, the company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value Recognised in other comprehensive income and accumulated in the ''Reserve for equity instruments through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

A financial asset is held for trading if, it has been acquired principally for the purpose of selling it in the near term; or on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.

Fair value of equity shares of co-operative banks which are unlisted is not available, hence the same is recorded as Cost.

34. INVESTMENTS IN EQUITY SHARES AT FAIR VALUE THROUGH PROFIT & LOSS (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Debt instruments that do not meet the amortized cost criteria or FVTOCI criteria (see above) are measured at FVTPL. In addition, debt instruments that meet the amortized cost criteria or the FVTOCI criteria but are designated as at FVTPL are measured at FVTPL.

A financial asset that meets the amortized cost criteria or debt instruments that meet the FVTOCI criteria may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. The Company has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on Remeasurement Recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ''Other income'' line item. Dividend on financial assets at FVTPL is Recognised when the Company''s right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

35. FINANCIAL INSTRUMENTS

The significant accounting policies, including the criteria of recognition, the basis of measurement and the basis on which income and expenses are Recognised, in respect of each class, financial liability and equity instruments to the standalone financial statements Financial Assets and Liabilities

Carrying amount of Investment, Trade Receivables, Cash and Cash Equivalent, Bank balances, Other financial Assets, Trade payables and Other financial liabilities as at 31^st March, 2024 and 31^st March, 2023 approximate the Fair Value because of their short term nature. Difference between carrying amount and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortized cost is not significant each of year presented.

(b) Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels :

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

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

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The Company has fair valued the transaction of financial guarantee (under Other Financial Liabilities) on the basis of internal comparable of a similar transaction with an unrelated party. The fair value so determined will therefore be classified under Level 2. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value.

The cost of unquoted investments approximate the fair value because there is a wide range of possible fair valued measurements and the cost represents estimate of fair valued within that range.

I Financial risk management

i) Risk management framework

a) The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the risk management committee, which is responsible for developing and monitoring the risk management policies. The Company reports regularly to the Board of Directors on its activities.

b) The Company''s risk management policies are established to identify and analyse the risks 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 Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which the employees understand their roles and obligations.

c) The Audit Committee overseas 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. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

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

(a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, investments in debt securities, loans given to related parties and project deposits. The carrying amount of financial assets represents the maximum credit exposure.

• Trade Receivables

Customer credit risk is managed by requiring customers to pay advances through progress billings before transfer of ownership, therefore substantially eliminating the Company''s Credit risk in this respect. The Company''s credit risk with regard to trade receivables has a high degree of risk diversification, due to the large number of projects that vary in sizes and types with numerous different customer categories in a large number of geographical markets. Based on prior experience and an assessment of the current economic environment, management has recognized appropriate provision for expected credit loss.

(d) Market risk

Market risk is the risk that changes in market prices such as foreign exchange rate and interest rates will affect the Comp''ny''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(e) Currency risk

Currency risk is not material, as the Comp''ny''s primary business activities are within India and does not have significant exposure in foreign currency.

(f) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market interest rates. The management is responsible for the monitoring of the Comp''ny''s interest rate position. Various Variables are considered by the management in structuring the Comp''ny''s borrowings to achieve a reasonable, competitive, cost of funding.

Exposure to interest rate risk.

36. EMPLOYEE BENEFITS

(i) Short term employee benefits

The undiscounted amount of short term employee benefit expected to be paid in exchange for the services rendered by employees are recognized as an expense during when the employees render the services.

(ii)Post-Employment Benefits

Defined Contribution Plans

The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related

service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already

paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, the excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction n future payment or a cash refund.

Defined Benefit Plans

The Gratuity Benefits are classified as Post-Retirement Benefits as per Ind AS 19 and the accounting policy is outlined as follows. As per Ind AS 19 , the service cost and the net interest cost would be charged to the Profit & Loss account . Actuarial gains and losses arise due to difference in the actual experience and the assumed parameters and alsodue to changes in the assumptions used for valuation. The Company recognizes these remeasurements in the Other Comprehensive Income(OCI). When the benefits of the plan are changed, or when a plan is curtailed or settlement occurs, the portion of the changed benefit related to past service by employees, or the gain or

loss on curtailment or settlement, is recognized immediately in the profit or loss account when the plan amendment or when a

curtailment or settlement occurs.

In accordance with Indian law, the Company operates a scheme of gratuity which is a defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days'' salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of service. The Gratuity benefit liabilities of the company are funded to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

37. SEGMENT REPORTING

In accordance with Ind AS 108 on Operating Segments , the Company has identified its business segment as " Hospitality & Facility Management Services". There are no other primary reporatable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable.

38. PAYMENTS MADE TO VENDORS COVERED UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT MSMED) ACT, 2006

Trade payables are due as and when invoices are booked in accounting records. There is no liability towards interest on delayed payments under ''The Micro, Small and Medium Enterprises Development Act 2006'' during the year. There is also no amount of outstanding interest in this regard, brought forward from previous years. Information in this regard is on basis of intimation received, on requests made by the Company, with regards to registration of vendors under the said Act.

39. Balances of trade receivables, trade and other payables (including micro and small enterprises and including capital creditors) and loans and advances are subject to confirmation and reconciliation, if any.

40. CAPITAL MANAGEMENT

Equity share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the Company is based on management''s judgment of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

41. The code on Social security, 2020 relating to employee benefits has been approved by the Parliament and has also been published in Official Gazette of India. However, the date on which it comes into effect has not been notified and the rules are yet to be framed. The Company will complete its evaluation and will give appropriate impact in its standalone financial statements in the period in which, the Code becomes effective and the related rules are published.

42. POST REPORTING EVENTS

Apart from issuing shares/warrants on preferential basis; no adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorization.

43. BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS

As per sanctioned letter issued by Banks, the Company is required to submit Stock and Book Debts statement to Banks on monthly basis. The Books Debts including contract assets are in agreement with books of accounts except for some reconciliation items.

44. REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

The Company has not done revaluation of PPE / Intangible assets.

45 UTILISATION OF BORROWED FUNDS

As on March 31^st, 2024 there is no unutilised amounts in respect of long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

46 UNDISCLOSED INCOME

The Company does not have any such trasaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( Such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

47 :DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in crypto currency or virtual currency during the financial year.

48 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

49. No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from any other sources / kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with the understanding (whether recorded in writing or otherwise) that the Company shall (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

51: - COMPARATIVES

Previous year figures are re-grouped, re-classified and re-arranged, wherever considered necessary to confirm to current year''s presentation.

52. The Standalone Financial Statements are presented and rounded off in INR Lakhs except for per share information or as stated otherwise.

53. In respect of financial year commencing on 1st April 2023, company has used an accounting software for maintaining its books of accounts which has feature of recording audit trail(edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, audit trail feature during the year was not tempered with.

54. Dividends declared by the Company are based on the profit available for distribution. The Board of Directors of the Company have recommended a final dividend of Rs 0.50 per equity share in respect of financial year ended 2023-24 subject to the approval of shareholders at the Annual General Meeting.

55. APPROVAL OF FINANCIAL STATEMENTS

The Standalone Financial Statements were approved for issue by the Board of Directors on May 30^th, 2024.

The management and authorities have the power to amend the Standalone Financial Statements in accordance with Section 130 and 131 of The Companies Act, 2013.

As per our report of even date attached

For and on behalf of the Board of

For GTA & CO LLP KHFM HOSPITALITY AND FACILITY MANAGEMENT SERVICES LIMITED

Chartered Accountants

Firm Regn No. 105482W/W100817

Ravindra Hegde Sujata Hegde

Managing Director Director & Chief Financial Officer

Gaurav Saboo DIN - 01821002 DIN - 01829352

Partner M No. 149116

UDIN: 24149116BKJOFZ1604

Place: Nagpur Akash Bate

Date: 30^th May 2024 Company Secretary

Place: Mumbai

Date: 30^th May 2024

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Mar 31, 2023

(n) Provisions, Contingent Assets and Contingent Liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligan. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a apre''ate that reflects current market assessments of the time value of money and the risks specific to the l iWihEtiye discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibyliof an outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognized but are disclosed in notes.

Contingent assets are not disclosed in the standalone financial statements unless an inflow of economic benefits is pobable.

(o) Earnings per share

Basic EPS is computed by dividing the profit for the period attributable to the shareholders of the Company by the weighted average number of shares outstanding during the period.

Diluted EPS is computed by adjusting, theofit for the year attributable to the shareholders and the weighted average number of shares considered for deriving Basic EPS, for the effects of all the shares th could have been issued upon conversion of all dilutive potential shares. The dilutientipikshares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period.

(p) Employee benefits

The accounting of employee benefit plans in the nature of defined benefit requires the Company to use assumptions. These assumptions have been explained under employee benefits note.

(q) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS lb. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated realewand the applicable discount rate.

The Company determines the lease term as the-caimellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; andperiods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease,

or not to exercise an option to terminateaaeleit considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there gje anchha noncancellable period of a lease .

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar character istics.

IV. Recent Pronouncements

Ministry of CorporatAffairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 3 \ 2Q23, MCA amended the Companies (Indian Accounting Standards) Amendment Rule3, 2Q2 below:

Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April J 2Q23. The Companyevaluated the amendment and the impact of the amendment is insignificant in the Company’s standalone financial statements .

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April J 2Q23e ''Company has evaluated the amendment and there is no impact on its standalone financial statements.

Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that gise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April J 2023. The Company has evaluated the amendment and there is no impact on its standalone financiaentatem

V. TRANSACTION AND BALANCES

The Company’s financial statements are presented in Indian Rupees which is the Company’s functional currency .

Transactions and Balances

Foreign currency transactions if executed; are recorded, on initial recognitionfim ctienal currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies (except finaial instruments designated as Hedge Instruments) are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. The gain or loss arising on translation of non monetary items measured at fair valuhrisated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or losctivdy).

VI. FAIR VALUE MEASUREMENT

Fair value is the price at the measurement date, at which an asset can be sold or paid to transfer a liability, in an orderly transaction between market participants. The Company’s accounting policies require, measurement of certain financial / -financial assets and liabilities at fair values (either on a recurring or non-recurring basis). Also, the fair values of financial instruments measured at amortized cost are required to be disclosed in the said finaial statements.

The Company is required to classify the fair valuation method of the financi-fn/anond assets and liabilities, either measured or disclosed at fair value in the financial statements, using a three-vakel- fair hierarchy (whih reflects the significance of inputs used in the measurement). Accordingly, the Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevhnervable inputs and minimizing the use of unobservable inputs .

The three levels of the fvMue-hierarchy are described below:

Level 1 Quoted (unadjusted) prices for identical assets or liabilities in active markets Level 2: Significant inputs to thairf value measurement are directly or indirectly obser vable Level 3: Significant inputs to the fair value measurement are unobservable

VII. FINANCIAL INSTRUMENTS

(a)Financial Assets

Initial recognition:

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. On initial recognition, a financial assets is recognized at fair value, except for trade receivables which are initially measured at transactprice. Transaction costs that are directly attributable to the acquisition of financial asset s.

Subsequent recognition

(i) Financial Assets Carried at Amortized Cost

A financial asset is subsequently measured at amortized cost if it is held wlitilsineas model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principalamount outstanding. When the financial asset is derecognized or impaired, the gain or loss is recognized in the statement of profit and loss.

(ii) Financial Assets at Fair Value Through Other Comprehensive Income

A financial asset is subsequently measuntdfair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise ond sptdfito cash flows that are solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in profit and loss.

When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit and loss.

Equity instruments are subsequently meednat fair value. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI (designated as FVOCI - equity investment). This election made on an investment by investment basis. Fair value gains and losses recognized in OCI are not reclassified to profit

and loss.

(iii) Financial Assets at Fair Value through Profit or Loss

A financial asset which is not classified in any of the abovgocats is subsequently fair valued through profit or loss. Interest (basis EIR method) income from financial assets at fair value through profit or loss is recognized in the statement of profit and loss within finance income/ finance costs separately father gains/ losses arising from changes in the fair value.

Derecognition

Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractifiowasin a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does cott rot aifi the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet but retains either all or substantially all of the risks and rewards of the transferred assets, the transferradtassets are derecognized.

(b) Financial Liabilities

Initial recognition

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised eostauiditial recognition, they are classified as fair value through profit and loss. In case of trade payables, they are initially recognized at fair value and subsequently, these liabilities are held at amortised cost, using the effective interes t method

Subsequent Recognition

Financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value nognized in the Statement of Profit and Loss.

Derecognition

A Financial liability derecognized when the obligation specified in the contract is discharged, cancelled or expires

(c) Impairment of Financial Assets

The company assesses on a forward looking; is the expected credit losses associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk since initial recognition. If credit risk has not inc!!neifie:dna^[y, twelve month ECL is used to provide for impairment loss, otherwise lifetime ECL is used.

However, only in case of trade receivables, the Company applies the simplified approach which requires expected lifetime losses to be recognized fromt iali recognition of the receivables.

(d) Reclassification of Financial assets and Financial Liabilities

The company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is madaar financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. If the company reclas^^nfiiacial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next

reporting period following the change in business model. The company does not restate any previously recognized grins, losses (including impairment gains or losses) or interest.

(e) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the company has a legally enforceable right tooftthe amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simult aneously.

(f) Cash & Cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on handt eahnrteposits and other shor-term highly liquid investments with an original maturity of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of mang shor-term cash commitment s.

For the purposes of the presentation of cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand, book overdraft as they being considered as integral part of the Company’s cash management system.

VIII. BUSINESS COMBINATIONS

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acqdatet iffnir values of the assets transferred ley (Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange of control of the acquiree. Acquisition related costs are generally Recognised in profit or loss as incurred.

At the cquisition date, the identifiable assets acquired and the liabilities assumed are Recognised at their fair value, except that:

• deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are Recognised and measure in accordance with Ind AS 2 Income Taxes and Ind AS 9 Employee Benefits respectively;

• liabilities or equity instruments related to s-bhasred payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to reptase-based payment arrangements of the acquiree are measured in accordance with Ind AS IE -Steed; Payment at the acquisition date an d

• Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS-15 Non current Assets eH for Sale and Discontinued Operations are measured in accordance with that Standard .

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of- any non controlling interests in the acquiree, and the fair value ofiqUirer’s previously held equity interest in the acquiree (if any) over the net of the acquis-tlktie amounts of the identifiable assets acquired and the liabilities assumed .

In case of a bargain purchase, before recognizing a gain in respect thereof, the Group determines whether there exists clear evidence of the underlying reasons for classifying the business combination as a bargain purchase. Thereafter, the Group reassewHeether it has correctly identified all of the assets acquired and all of the liabilities assumed and recognizes any additional assets or liabilities that are identified in that reassessment. The Group then reviews the procedures used to measure the sahteunInd AS requires for the purposes of calculating the bargain purchase. If the gain remains after this reassessment and review, the Group recognizes it in other comprehensive income and accumulates the same in equity as capital reserve.

This gain isattributed to the acquirer. If there does not exist clear evidence of the underlying reasons for classifying the business combination as a bargain purchase, the Group recognizes the gain, after reassessing and reviewing (as described above), directly in uiqy as capital reserve.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the Recognised amounts of the acquiree’ s identifiable net assets. The choice of measurement basis is made on a transbyttcansaction basis. Other types of non-controlling interests are measured at fafcievar, when applicable, on the basis specified in another Ind AS.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideiratirnaasured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospetively, with corresponding adjustments against goodwill or capital reserve, as the case maybe. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how thentitigent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as on aslsability is remeasured at fair value at subsequent reporting dates with the corresponding gain or loss being Recognised in profit or los s.

When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree is remeasured to its acquisit-date fair value and the resulting gain or loss, if any, is Recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been Recognised in other compredasive income are reclassified to profit or loss where such treatment would be appropriate if that interest were dispos ed of.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination ocurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period(see above), or additional assets or liabilities are Recognised, to reflect new informattifcained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at t hat date.

• Registered Equitable Mortgage and First and exclusive charge and security by way of hypothecation of machineries for Apna Sahakari Bank Ltd Loan Includes office Equipment’s.

• The Company neither has any Benamioperty nor any proceeding has been initiated or pending against the Company during the year ended March 3\ 2C23 and March 3} 2022 for holding any benami property.

• All the property, plant and equipment, including title deeds of immovable propertyfladsas investment property) are held in the name of the company.

As per our Attached report of even date

Fo r and on behalf of Board of

For BHUSHAN KHOT & CO KHFM HOSPITALITY & FACILITY MANAGEMENT SERVICES LIMITED

Chartered Accountants

(FRN: 116888 W) Sd/- Sd/-

Sd/- Ravindra Malinga Hegde Sujata Ravindra Hegde

Bhushan Khot Managing Director Director

Partner DIN No. - 01821002 DIN No. - 01829352

M. No. 101858

UDIN: 23101858BGXFGV3823 Sd/-

Place: Mumbai Rahul Krishna Pathak

Date: 30^th May, 2023 Company Secretary & Chief Financial Officer

33. INVESTMENTS IN EQUITY INSTRUMENTS AT FVTOCI

On initial recognition^ company can make an irrevocable election (on an instru*hyni1nstrument basis) to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the ieqaatyment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value Recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or loss on disposal of the inve stments.

A financial asset is held for trading if, it has beeriraaid[principally for the purpose of selling it in the near term; or on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of-tshrmt prof-taking; or it i si derivative that is not designated and effective as a hedging instrument or a financial guarantee.

Fair value of equity shares of-operative banks which are unlisted is not available, hence the same is recorded as Cost .

34. INVESTMENTS IN EQUITY SHARES AT FAIR VALUE THROUGH PROFIT & LOSS (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Debt instruments that do not meet the amortized cost criteria or FVTOCI criteria (see above) are measured at FVTPL. In addition, debt instruments that meet the amortized cost criteria c3rOCdE FrVteria but are designated as at FVTPL are measured at FVTPL.

A financial asset that meets the amortized cost criteria or debt instruments that meet the FVTOCI criteri may be designated as at FVTPL upon initial recognition if such designation atbisnior significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. The Company has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on Remeasurement Recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or int sir earned on the financial asset and is included in the ‘Other income’ line item. Dividend on financial assets at FVTPL is Recognised when the Company’s right to receive the dividends is established, it is probable that the economic benefits associated twit dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

35. FINANCIAL INSTRUMENTS

The significant accounting policies, including theiteria of recognition, the basis of measurement and the basis on which income and expenses are Recognised, in respect of each class, financial liability and equity instruments to the financial statemeniiiancial Assets and Liabilit ies

(a)The Carrying values of Financial Assets and Liabilities have been given under:

Carrying amount of Investment, Trade Receivables, Cash and Cash Equivalent, Bank balances, Other financial Assets, Trade payables and Other financial liabilities as at 3tt March, 2023 and 3kt March, 2022 approximate the Fair Value because of their stenm nature. Difference between carrying amount and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortized cost is not significant each of year presented.

(b) Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 - Inputs are quoted prices (unadjusted)akit ive markets for identical assets or liabil ities.

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

Level 3- Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the saitEuinent nor are they based on available market data.

The Company has fair valued the transaction of financial guarantee (under Other Financial Liabilities) on the basis of internal comparable of a similar transaction with an unrelated party. The fair determined will therefore be classified under Level 2. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value.

The cost of unquoted investments approximate the fair value tecthEre is a wide range of possible fair valued measurements and the cost represents estimate of fair valued within th at range.

(c) Financial risk management

i) Risk management framework

a) The Company''s Board of Directors has overall responsibilittMoestablishment and oversight of the Company''s risk management framework. The Board of Directors has established the risk management committee, which is responsible for developing and monitoring the risk management policies. The Company reports regularly the Board of Directors on its activities.

b) The Company''s risk management policies are established to identify and analyse the risks 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 Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control ennment in which the employees understand their roles

and obligations.

c) The Audit Committee overseas how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework i relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reportetthtao Audit Committee.

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

39. Secured & unsecured loans, certain balances with banks including certain fixed deposits, trade receivables, tradend other payables (including micro and small enterprises and including capital creditors) and loans and advances are subject to confirmation and reconciliation, if any.

40. CAPITAL MANAGEMENT

Equity share capital and other equity considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders.

The capital structure of the Company is based on manengehi judgment of its strategic and -dayday needs with a focus on total equity so as to maintain investor, creditors and market confidence.

41. The code on Social security, 2020 relating to employee benefits has been approved by the Parliament and has also been published in Official Gazette of India. However, the date on which it comes into effect has not been notified and the rules are yet to be framed. The Company will complete its evaluation and will give appropriate impact in its standalone finaiic^fiatements in the period in which, the Code becomes effective and the related rules are publish ed.

42. POST REPORTING EVENTS

No adjusting or significant nondjusting events have occurred between the reporting date and the date of authorization .

43. BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS

The Company is required to provide Inventory statement to Banks on quarterly basis. As per sanctioned letter issued by Banks, the Company is required to submit Book Debts statement to Banks hdnr basis.

The Books Debts including contract assets are in agreement with books of accounts except for some reconciliation items .

44. REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

The Company has not done revaluation of PPE h ginta assets .

45. UTILISATION OF BORROWED FUNDS

As on March 3, 2023 there is no unutilised amounts in respect of long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for whinldsthe f were raised .

46. UNDISCLOSED INCOME

The Company does not have any such nsaction 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, P6i ( Such as, search or survey or any other relevant provisions of the Income T dX6A ct

47. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in crypto currency or virtual currency during the financial year.

48. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The companydoes not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

50. COMPARATIVES

Previous year figures are-grouped, re-classified and r-eirranged, wherever considered necessary to confirm to current year’s presentation.

51. The Financial Statements are rounded off to the nearest Lakhs except for per share information or as state* otherwise .

52. APPROVAL OF FINANCIAL STATEMENTS

The Standalone F inancial Statements were approved for issue by the Board of Directors on2023ay 3Q

The management and authorities have the power to amend the Standalone Financial Statements in accordance with Section B0 and B1 of The Companies Act, 20B.

As per our Attached report of even date

Fo r and on behalf of Board of

For BHUSHAN KHOT & CO KHFM HOSPITALITY & FACILITY MANAGEMENT SERVICES LIMITED

Chartered Accountants

(FRN: 116888 W) Sd/- Sd/-

Sd/- Ravindra Malinga Hegde Sujata Ravindra Hegde

Bhushan Khot Managing Director Director

Partner DIN No. - 01821002 DIN No. - 01829352

M. No. 101858

UDIN: 23101858BGXFGV3823 Sd/-

Place: Mumbai Rahul Krishna Pathak

Date: 30^th May, 2023 Company Secretary & Chief Financial Officer