Notes to Accounts of Oriental Hotels Ltd.

Mar 31, 2025

(m) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized, when there is a present legal or constructive obligation as a result of a past event, it is probable
that an outflow of resources will be required to settle the obligation, and when a reliable estimate of the amount of the
obligation can be made. If the effect of the time value of money is material, the provision is discounted using a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the obligation and the unwinding
of the discount is recognised as interest expense.

Contingent liabilities are disclosed only when there is a possible obligation arising from past events, due to occurrence or
non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present
obligation cannot be measured in terms of future outflow of resources, or where a reliable estimate of the obligation cannot
be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are
provided for.

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

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

(n) Borrowing Costs:

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

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

(o) Cash Flow Statement:

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

(p) Exceptional items

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

(q) Financial Instruments:

(I) Financial assets

Initial recognition and measurement

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

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at

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

Classification

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

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

(i) Financial assets at amortised cost

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

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

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

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

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

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

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

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

Interest

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

Dividend

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

De-recognition

A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the
financial asset. Where the Company has transferred an asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised.
Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the
financial asset is not derecognised. Where the Company retains control of the financial asset, the asset is continued to
be recognised to the extent of continuing involvement in the financial asset.

(II) Financial liabilities

Initial recognition and measurement

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

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

Subsequent measurement

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

De-recognition

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

Equity instruments

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

(III) Impairment of financial assets

The Company assesses, at each reporting date, whether a financial asset or a group of financial assets is impaired.
Ind AS 109 on Financial Instruments, requires expected credit losses to be measured through a loss allowance. For
trade receivables only, the Company recognises expected lifetime losses using the simplified approach permitted by
Ind AS 109, from initial recognition of the receivables. For other financial assets (not being equity instruments or debt
instruments measured subsequently at FVTPL) the expected credit losses are measured at the 12 month expected credit
losses or an amount equal to the lifetime expected credit losses if there has been a significant increase in credit risk since
initial recognition.

(r) Recent accounting 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.:

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

Footnote :

(i) Buildings include WDV on improvements to building constructed on leasehold land '' 2,857.44 Lakhs: (Previous year '' 743.10
Lakhs).

(ii) Assets Pledged as security (Refer Note 16: Borrowings).

(iii) Provision for impairment of land

(iv) The Adjustments includes the amounts transferred to Right of use asset from the Property Plant & Equipment pursuant to
execution of lease agreement during the previous year

(v) The adjustments have been made between various head of Property, Plant and Equipment and Intangible Assets, primarily
to align the difference between actual capitalisation and provisional capitalisation.

During the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS
116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company
has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant
impact in its financial statements

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

Ministry of corporate affairs ["MCA"] notifies new standards or amendments to the existing standards under companies
[Indian Accounting standards} Rules as issued from time to time. During the year ended March 31, 2025, MCA from
time to time. During the year March 31, 2025, MCA has not notified any new standards or amendments to the existing
standards applicable to the company.

Table 2: 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:

(a) Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This includes

listed equity instrument, traded debentures and mutual funds that have quoted price/declared NAV. The fair value
of all equity instruments (including debentures) which are traded in the stock exchanges is valued using the closing
price as at the reporting period.

(b) Level 2 - Level 2 hierarchy includes financial instruments that are not traded in an active market (for example, traded bonds/

debentures, over the counter derivatives). The fair value in this hierarchy is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(c) Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level

3. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on
available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.

Foot note : Description of nature and purpose of each reserve

Securities Premium : Securities premium represents the premium charged to the shareholders at the time of issuance of equity
shares. The securities premium can be utilised based on the relevant requirements of the Companies Act, 2013.

General Reserve : General reserve was created from time to time by way of transfer of profits from retained earnings for
appropriation purposes based on the provisions of the Companies Act prior to its amendment.

Equity Instruments through Other Comprehensive Income : This represents the cumulative gains and losses arising on the
revaluation of investments in equity instruments measured at fair value through other comprehensive income(net of taxes), under
an irrevocable option, net of amounts reclassified to retained earnings when such investments are disposed off.

Note 33 :

The company has presented Consolidated Financial Statements separately, including that of its subsidiary, associates
and joint venture in this annual report.

Note 34 : Financial risk management

Risk management framework

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

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

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

i. Market risk

ii. Credit risk

iii. Liquidity risk

iv. Currency risk

v. Interest rate risk

i. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange
rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on
account of foreign currency exchange rate risk and interest rate risk.

ii Credit Risk

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

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

The carrying amount of current financial assets represents the maximum credit exposure. The maximum exposure to credit
risk was '' 3,987.30 lakhs and '' 3,789.32 lakhs as of March 31, 2025 and March 31, 2024, respectively, being the total of
the carrying amount of balances with banks, bank deposits, trade receivables, unbilled revenue, other financial assets and
investments excluding equity and preference investments.

Oriental Hotels Limited exposure to customers is diversified and no outstanding from a single customer is more than 10% of
outstanding accounts receivable and unbilled revenue as of March 31, 2025

Trade and other receivables:-

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk of
the industry and country in which customers operate.

The Company does not require collateral in respect of trade and other receivables.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and
other receivables.

Cash and bank balance:

The Company held cash and bank balance of '' 734.16 lakhs at March 31, 2025 (March 31, 2024: '' 1957.58 lakhs).

iii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligation associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of
expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its
undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants
on any of its borrowing facilities. Such forecasting takes into consideration the Company''s debt financing plans, covenant
compliance and compliance with internal statement of financial position ratio targets.

iv. Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are
denominated in a currency other than the functional currency of the respective entities.

Considering the countries and economic environment in which the Group operates, its operations are subject to risks arising
from fluctuations in exchange rates in those countries.

The risks primarily relate to fluctuations in US Dollar / Hong Kong Dollar against the functional currency of the company. The
company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

v. Interest Rate Risk

The Company adopts a policy to hedge the interest rate movement in order to mitigate the risk with regards to floating rate
linked loans based on the market outlook on interest rates. This is achieved partly by entering into fixed rate instruments and
partly by borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows attributable to
interest rate risk.

Exposure to Interest Rate Risk

Company''s interest rate risk arises from borrowings and finance lease obligations. Borrowings issued at fixed rates and
finance lease obligations are exposed to fair value interest rate risk. The interest rate profile of the Company''s interest¬
bearing financial instruments is as follows:

Foot Note

(i) Figures in (brackets) are of the previous period
Key Management Personnel:

(ii) Key managerial personnel comprise Managing Director who has the authority and the responsibility for planning, directing
and controlling the activities of the Company. The remuneration paid to such director ''274.85 lakhs including provision for
performance incentive(Previous year ''204.47 Lakhs)

(iii) This above figures do not include provisions for encashable leave, gratuity and premium paid for group health insurance, as
separate actuarial valuation/premium paid are not available Dividend paid to KMP and close relatives are Rs. 73.33 Lakhs.

Note 42 : Social Security Code

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

Note 43 : Working Capital

As at the year end, The Company''s current liabilities have exceeded its current assets by '' 9664.74 Lakhs primarily on account of
current maturities of long term borrowings aggregating '' 7358.37 Lakhs falling due within 12 months following the balance sheet
date. Management is confident of its ability to generate adequate cash inflows from operations and also utilize unavailed bank
sanction to meet its obligations on due date.

As on the reporting date, The Company has undrawn sanctioned Term loans and working capital limits aggregating '' 5,982 Lakhs
which will be sufficient to meet the estimated operational cash requirements during the next twelve months and The Company is
current on all its Debt obligations.

Based on aforesaid assessment, management believes that as per estimates made conservatively, The Company will be able to
discharge its liabilities and realise the carrying amount of its assets as on March 31, 2025.

Explanations to variance in Ratios:

1. Current ratio has decreased due to decrease in Bank balances which was utilised for prepaying the ICD

2. Debt-equity ratio has reduced due to principal repayments of long term borrowings and repayment of ICD

3. Debt service coverage ratio has decreased due to current maturities of long term borrowings paid during the financial year in
comparison to the previous year

4. Return on capital employed and return on equity decreaseed with decrease in operating margins during the year.

5. Net capital turnover ratio increased with improved with increasing net sales.

6. Net profit ratio decreased over the previous year with an increase in operating expenses during the year.

Note 47 : Transaction with Struck off Companies

The Company has reviewed transactions, to the extent of information available, for the purpose of identifying transactions with
struck off companies.

Basis above review, following are the transactions identified with struck off companies in the current financial year.

Note 48 : Audit Trail

The Company has used accounting softwares for maintaining its books of account, which have a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective softwares.
In respect of revenue software, access to direct database level changes was not available to any of the Company''s personnel.
However, access management tool was implemented during the year and was effective from September 6, 2024 and audit trail
(edit log) was enabled.

Note 49 : Other Statutory Information

1) The borrowings from banks and financial institutions have been used for the purposes for which it was taken.

2) Title deeds, comprising all the immovable properties being Land and Building are held in the name of the Company or
Amalgamating company (where amalgamations have happened) as at Balance sheet date.

3) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company
to holding and Benami property.

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

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

6) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies) including foreign entities
(Intermediaries) with the understanding that the intermediary shall

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

7) The Company has not received any fund from any person(s) or entity(ies),including foreign entities (Funding party) with the
understanding(whether recorded in writing or otherwise) that the company shall

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funded Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

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

10) The Company has not revalued its property,plant and equipment (Including Right to use assets) and intangible assets.
Hence the disclosure on revaluation of Property, Plant & Equipment (including Right to use assets) and intangible assets are not
applicable to the company.

11) The Company has not been declared as a wilful defaulter by any bank or financial institution or any other lender

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

13) The Company has not entered into any scheme(s) of arrangement and hence the disclosure on compliance with approved
scheme (b) of arrangements is not applicable to the company.

Note 50: Dividend

On Apr 25, 2025, the Board of Directors of the Company have recommended a final dividend of Rs 0.50 per equity share in respect
of the year ended March 31, 2025, subject to approval of Shareholders at the Annual General Meeting. If approved, the dividend
would result in cash outflow of Rs.893 lakhs during the financial year 2025-26.

As per our Report attached For and on behalf of the Board of Directors of Oriental Hotels Limited

For PKF Sridhar & Santhanam LLP Pramod Ranjan Gita Nayyar

Chartered Accountants Managing Director & CEO Director

Firm Registration No 003990S/S200018 DIN: 00887569 DIN: 07128438

V Kothandaraman Paras Puri S Akila

Partner Chief Financial Officer Company Secretary

Membership No.025973 A15861

Place : Chennai
Date : April 25, 2025

---

Mar 31, 2024

(m) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized, when there is a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and when a reliable estimate of the amount of the obligation can be made. If the effect of the time value of money is material, the provision is discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation and the unwinding of the discount is recognised as interest expense.

Contingent liabilities are disclosed only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future outflow of resources, or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

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

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

(n) Borrowing Costs:

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

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

(o) Cash Flow Statement:

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

(p) Exceptional items

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

(q) Financial Instruments:

(I) Financial assets

Initial recognition and measurement

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

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

Classification

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

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

(i) Financial assets at amortised cost

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

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

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

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

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

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

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

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

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

Dividend : Dividend income is recognised when the Company''s right to receive the amount is established.

De-recognition : A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset. Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

(II) Financial liabilities

Initial recognition and measurement

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

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

Subsequent measurement

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

De-recognition

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

Equity instruments

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

(III) Impairment of financial assets

The Company assesses, at each reporting date, whether a financial asset or a group of financial assets is impaired. Ind AS 109 on Financial Instruments, requires expected credit losses to be measured through a loss allowance. For trade receivables only, the Company recognises expected lifetime losses using the simplified approach permitted by Ind AS 109, from initial recognition of the receivables. For other financial assets (not being equity instruments or debt instruments measured subsequently at FVTPL) the expected credit losses are measured at the 12 month expected credit losses or an amount equal to the lifetime expected credit losses if there has been a significant increase in credit risk since initial recognition.

(r) Recent accounting pronouncements

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

The Company has applied the following amendments for the first time for their annual reporting period commencing April 1, 2023:

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments to Ind AS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.

Ind AS 1 - Presentation of Financial Statements

The amendments to Ind AS 1 provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

Ind AS 107 - Financial Instruments: Disclosures - Information about the measurement basis for financial instruments shall be disclosed as part of material accounting policy information.

Ind AS 12- Income Taxes

The amendments to Ind AS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities.

The above amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

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

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

Table 2: 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:

(a) Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This includes

listed equity instrument, traded debentures and mutual funds that have quoted price/declared NAV. The fair value of all equity instruments (including debentures) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

(b) Level 2 - Level 2 hierarchy includes financial instruments that are not traded in an active market (for example, traded bonds/

debentures, over the counter derivatives). The fair value in this hierarchy is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(c) Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level

3. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.

Note 35 : Financial risk management

Risk management framework

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

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

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

• Market risk

• Credit risk

• Liquidity risk

• Currency risk

• Interest rate risk

i. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

ii Credit Risk

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

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

The carrying amount of current financial assets represents the maximum credit exposure. The maximum exposure to credit risk was ^ 3789.32 lakhs and ^ 6438.75 lakhs as of March 31, 2024 and March 31, 2023, respectively, being the total of the carrying amount of balances with banks, bank deposits, trade receivables, unbilled revenue, other financial assets and investments excluding equity and preference investments.

Oriental Hotels Limited exposure to customers is diversified and no outstanding from a single customer is more than 10% of outstanding accounts receivable and unbilled revenue as of March 31, 2024

Trade and other receivables:

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company does not require collateral in respect of trade and other receivables.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables.

Cash and bank balance:

The Company held cash and bank balance of ^ 1957.58 lakhs at March 31, 2024 (March 31, 2023: ^ 3546.97 lakhs).

iii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligation associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company''s debt financing plans, covenant compliance and compliance with internal statement of financial position ratio targets.

iv. Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities.

Considering the countries and economic environment in which the Group operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries.

The risks primarily relate to fluctuations in US Dollar / Hong Kong Dollar against the functional currency of the company. The company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

v. Interest Rate Risk

The Company adopts a policy to hedge the interest rate movement in order to mitigate the risk with regards to floating rate linked loans based on the market outlook on interest rates. This is achieved partly by entering into fixed rate instruments and partly by borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows attributable to interest rate risk.

Exposure to Interest Rate Risk

Company''s interest rate risk arises from borrowings and finance lease obligations. Borrowings issued at fixed rates and finance lease obligations are exposed to fair value interest rate risk. The interest rate profile of the Company’s interestbearing financial instruments is as follows:

Note 37 : Capital Management

The Company monitors capital using a ratio of ''adjusted net debt to ''adjusted equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents.

Adjusted equity comprises all components of equity other than amounts accumulated in the hedging reserve.

The Company''s adjusted gearing ratio is as follows.

Note 43 : Social Security Code

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

Note 44 : Working Capital

As at the year end, the Company''s current liabilities have exceeded its current assets by ^ 6,736 Lakhs primarily on account of current maturities of long term borrowings aggregating ^ 6,816 Lakhs falling due within 12 months following the balance sheet date. Management is confident of its ability to generate adequate cash inflows from operations and also utilize unavailed bank sanction to meet its obligations on due date.

As on the reporting date, the Company has undrawn sanctioned Term loans and working capital limits aggregating ^ 6,087 Lakhs which will be sufficient to meet the estimated operational cash requirements during the next twelve months and the Company is current on all its Debt obligations.

Based on aforesaid assessment, management believes that as per estimates made conservatively, the Company will be able to discharge its liabilities and realise the carrying amount of its assets as on March 31, 2024.

Note 45 : Malabar unit lease renewal

During the previous year, the company won the bid in the tender cum auction proceedings of "Taj Malabar Resort& Spa" held by the Cochin Port Trust and got the allotment of long term lease for a period of 30 years with effect from 22nd September 2022. During the year, company entered into a formal lease deed with Cochin Port Trust for Taj Malabar Resort & Spa.

The unit is temporarily closed from 1st September 2023 on account of ongoing renovations.

Note 46 : Audit Trail

"In the ERP, audit trail at transaction level on application layer has an embedded audit trail in sub-ledger accounting tables which creates unique events for every transaction along with dates of creating and updating transactions with the identity of users. General ledger journals are not allowed to be modified after posting and the date and creator of journals are tracked. This feature cannot be disabled. Additionally, audit trail was enabled for masters and transactions majorly during June, 2023 and July, 2023. Audit trail feature with respect to application layer changes in accounting Software has worked effectively during the year.

PMS and POS (Property Management and Point of Sales software) has inbuilt audit trail feature from 1st April 2023.

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

Explanations to variance in Ratios:

1. Current ratio has decreased due to increase in current maturity of long term borrowings and decrease in Bank balances due to renovation of Malabar unit.

2. Debt-equity ratio has reduced due to principal repayments made during the year which has reduced the outstanding debt as compared to previous year.

3. Debt service coverage ratio has increased due to higher debt repayments in the previous year as compared to current year.

4. Return on capital employed has reduced mainly due to increase in other equity

5. Net capital turnover ratio increased due to net decrease in current assets on account of renovation project

6. As the company is primarily engaged in hospitality sector (Service Industry), Inventory turnover ratio and Return on investment ratio are not applicable to the Company.

Note 49: Transaction with Struck off Companies

The Company has reviewed transactions, to the extent of information available, for the purpose of identifying transactions with

struck off companies.

Basis above review, following are the transactions identified with struck off companies in the current financial year."

Note 51 : Other Statutory Information

1) The borrowings from banks and financial institutions have been used for the purposes for which it was taken.

2) Title deeds, comprising all the immovable properties being Land and Building are held in the name of the Company or Amalgamating company (where amalgamations have happened) as at Balance sheet date.

3) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company to holding and Benami property.

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

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

6) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies) including foreign entities (Intermediaries) with the understanding that the intermediary shall

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

7) The Company has not received any fund from any person(s) or entity(ies),including foreign entities (Funding party) with the understanding(whether recorded in writing or otherwise) that the company shall

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funded Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

Note 52: Dividend

On April 18, 2024, the Board of Directors of the Company have proposed a final dividend of Rs 0.50 per equity share in respect of the year ended 31 March 2024, subject to approval of Shareholders at the Annual General Meeting. If approved, the dividend would result in cash outflow of Rs 893 lakhs during the financial year 2024-25.

As per our Report attached For and on behalf of the Board of Directors of Oriental Hotels Limited

For PKF Sridhar & Santhanam LLP

Chartered Accountants Pramod Ranjan Gita Nayyar

Firm Registration No 003990S/S200018 Managing Director Director

DIN:00887569 DIN:07128438

Rajeshwari S Nitin Bengani S Akila

Partner Chief Financial Officer Company Secretary

Membership No.024105

Place : Chennai Date : April 18, 2024

---

Mar 31, 2023

(i) The company had a property in Coimbatore whose title was found to be defective by a Court order. The Company sued the original seller of the property and obtained partial settlement. The balance unrecovered amount amounting to ''374.93 lakhs (Previous Year ''374.93 lakhs) has been provided in the books of account as on 31st March 2016. The company is however pursuing the legal process for recovery.

(ii) As per the benefits granted to investors in specified categories in the Tourism sector, the Kerala Department of Tourism will pay the difference between the commercial tariff and the industrial tariff on electricity as subsidy for the first 5 years of commencement of business. The claim by the Company, in this regard, has been lodged for ''141.73 lakhs, out of which ''35.49 lakhs was received during 2015-16. An amount of ''106.24 lakhs has been provided in the books of accounts during financial year 2020-21. The Company however is pursuing with the tourism department for the recovery of the balance subsidy of ''106.24 lakhs.

Footnote: Losses u/s 35AD of the Income Tax Act, 1961 have an indefinite carry forward period. The Company is reasonably certain that it will have sufficient future taxable income considering the size of the Company, growth trajectory and past performance that this deferred tax asset is fully recoverable. The management will continue to monitor and review this asset based on the profit forecasts in future.

(i) A portion of land Measuring 1.071 acres costing ''393.29 lakhs was compulsorily acquired by State Highway Department, for which ''87.08 lakhs was received towards compensation based on old guideline value during the year 2016-17. However, Company has filed an appeal for enhanced compensation based on new guideline value. During the previous year company received a further sum of ''4.26 lakhs as principal amount of compensation and balance amount of cost of land less compensation received has been shown under others as recoverable.

Table 2: 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:

(a) Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This includes listed equity instrument, traded debentures and mutual funds that have quoted price / declared NAV. The fair value of all equity instruments (including debentures) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

(b) Level 2 - Level 2 hierarchy includes financial instruments that are not traded in an active market (for example, traded bonds / debentures, over the counter derivatives). The fair value in this hierarchy is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(c) Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023.

(a) The company has one class of equity shares having a par value of ''1 /- share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

Securities Premium : Securities premium represents the premium charged to the shareholders at the time of issuance of equity shares. The securities premium can be utilised based on the relevant requirements of the Companies Act, 2013.

General Reserve : General reserve was created from time to time by way of transfer of profits from retained earnings for appropriation purposes based on the provisions of the Companies Act prior to its amendment

Equity Instruments through Other Comprehensive Income : This represents the cumulative gains and losses arising on the revaluation of investments in equity instruments measured at fair value through other comprehensive income(net of taxes), under an irrevocable option, net of amounts reclassified to retained earnings when such investments are disposed off.

Note 29 : Contingent Liabilities and Commitments

Contingent Liabilities to the extent not provided for :

a) On account of income tax matters in dispute

The appeals mainly relate to part/full disallowance of certain deductions claimed by the company. The said amounts have been paid/pending adjustment and will be recovered as refund if the matters are decided in favour of the company. Based on the facts presently known, the Management believes that outcome of these appeals will not result in any material impact on the financial statements.

The company is a defendant/party to claims (plus interest thereon) in various legal actions as listed above which arose during the ordinary course of business. Based on the facts presently known, the Management believes that the results of these actions will not have material impact on the company''s financial statements.

c) Bank Guarantee/Bond executed by the Company 407.83 152.73

d) Estimated amount of contracts remaining to be executed on capital account 1,011.51 261.99

and not provided for (net of advances)

e) Indemnity given to purchaser of land 50.00 50.00

f) Other Commitments 260.00 -

Note 30 : The Company''s only business being hoteliering, disclosure of segment-wise information is not applicable under Ind AS108 - ''Operating Segments'' . There is no geographical segment to be reported since all the operations are undertaken in India.

Annual Report 2022-23

Note 34 : The company has presented Consolidated Financial Statements separately, including that of its subsidiary, associates and joint Venture in this annual report.

Note 35 : Financial risk management

Risk management framework

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

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

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

Market risk Credit risk Liquidity risk Currency risk Interest rate risk

i. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

ii. Credit Risk

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

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

The carrying amount of current financial assets represents the maximum credit exposure. The maximum exposure to credit risk was ''6,438.75 lakhs and ''8,390.84 lakhs as of March 31, 2023 and March 31, 2022, respectively, being the total of the carrying amount of balances with banks, bank deposits, trade receivables, unbilled revenue, other financial assets and investments excluding equity and preference investments.

Oriental Hotels Limited exposure to customers is diversified and no outstanding from a single customer is more than 10% of outstanding accounts receivable and unbilled revenue as of March 31, 2023 and one customer as on 31st March, 2022.

Trade and other receivables:-

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company does not require collateral in respect of trade and other receivables.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. Cash and bank balance:

The Company held cash and bank balance of ''3,546.97 lakhs at March 31, 2023 (March 31, 2022: ''6,246.04 lakhs).

iii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligation associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company''s debt financing plans, covenant compliance and compliance with internal statement of financial position ratio targets.

The Company’s Cash and bank balance and Trade receivable as at March 31, 2022 aggregating ''7,624.05 lakhs. The balance exposure will be met by internal accruals, overdraft facilities available with the banks and new borrowing under negotiation. Accordingly, Company does not perceive any non manageable liquidity risk.

iv. Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities.

Considering the countries and economic environment in which the Group operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries.

The risks primarily relate to fluctuations in US Dollar / Hong Kong Dollar against the functional currency of the company. The company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

v. Interest Rate Risk

The Company adopts a policy to hedge the interest rate movement in order to mitigate the risk with regards to floating rate linked loans based on the market outlook on interest rates. This is achieved partly by entering into fixed rate instruments and partly by borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows attributable to interest rate risk. .

Exposure to Interest Rate Risk

Company’s interest rate risk arises from borrowings and finance lease obligations. Borrowings issued at fixed rates and finance lease obligations are exposed to fair value interest rate risk. The interest rate profile of the Company’s interest-bearing financial instruments is as follows:

Note 37 : Capital Management

The Company monitors capital using a ratio of ’adjusted net debt’ to ’adjusted equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity other than amounts accumulated in the hedging reserve.

The Company''s adjusted gearing ratio is as follows.

Note : Figures in brackets are in respect of Previous Year.

Note 1 : Pass through recovery / Reimbursement transactions are shown as related party transactions from the current year.

Note 2 : Item shown under the head Sale of Goods / Services (Including Cost Recovery) until the previous year, have been regrouped under Intra Group Services and Leave & License from the Current Year onwards. Hence Previous year Figures have been suitably reclassified.

Key Management Personnel:

Key managerial personnel comprise Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid/provision to such director ''209.89 lakhs (Previous year ''244.58 Lakhs)

Mrs. S Akila salary ''20.83 lakhs, Mr. Nitin Bengani salary ''12.57 lakhs, Mr. Tom Antony salary ''15.91 lakhs (Previous year ''69.37 Lakhs) & Mr. Sreyas Arumbakkam salary ''63.06 lakhs (Previous year ''61.59 Lakhs).

Note 43 : Social Security Code

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

Note 44 : Going Concern

Impact of COVID-19

The business for the first quarter of previous year was impacted due to the outbreak of third wave of COVID-19. However, high pace of vaccinations, easing of COVID-19 restrictions and pent-up demand resulted in recovery, mainly in domestic leisure travel, in the second and subsequent quarters of financial year 2021-22.

During the current year, the Company saw strong rebound in the business aided by leisure travel and gradual pickup in business travel. The Company will continue to closely monitor any material changes to future economic conditions on account of COVID-19 to assess any possible impact on the Company.

As at the year end, the Company''s current liabilities have exceeded its current assets by ''704 Lakhs primarily on account of current maturities of long term borrowings aggregating ''2,917 Lakhs falling due within 12 months following the balance sheet date. Management is confident of its ability to generate adequate cash inflows from operations and also utilize unavailed bank sanction to meet our obligations on due date.

As on the reporting date, the Company has undrawn sanctioned working capital limits aggregating ''2,847 Lakhs which will be sufficient to meet the estimated operational cash requirements during the next twelve months and the Company is current on all its Debt obligations.

Based on aforesaid assessment, management believes that as per estimates made conservatively, the Company will continue as a going concern and will be able to discharge its liabilities and realise the carrying amount of its assets as on March 31, 2023.

Note 45 : Malabar unit lease renewal :

The Company participated in the tender cum auction proceedings of "Taj Malabar Resort & Spa" held by the Cochin Port Trust and won the bid. Cochin port trust had sent the allotment letter dated 18th November 2022 approving the allotment of long term lease for Taj Malabar Resort & Spa with effect from 22nd September 2022 for a period 30 years. The company is in the process of entering into a formal lease deed. Appropriate accounting entries giving effect to the lease terms and conditions as stated in the bid document, to the extent applicable, have been passed in the books from the effective date mentioned above, for creation of Right of use assets ''1,965.36 lakhs asset and Lease liability of ''1,921.18 lakhs.

Explanations to variance in Ratios:

1. Current ratio has decreased due to decrease in Bank balances which was utilised to prepaying the long term loans.

2. Debt-equity ratio has reduced due to principal repayments/prepayments made during the year which has reduced the outstanding debt as compared to previous year.

3. Debt service coverage ratio has increased due to increase in cash operating earnings in comparison to the previous year and considers principal payments during the year which was higher than the outstanding debt at the balance sheet date.

4. Return on capital employed and return on equity improved with improvement in operating margins during the year

5. Trade receivable turnover ratio increased with increase in volume of business activity during the year.

6. Trade payables turnover ratio increased with increase in volume of business activity during the year.

7. Net capital turnover ratio increased with improved with increasing net sales.

8. Net profit ratio improved over the previous year with an improvement in business volumes and cost containment measures during the year.

9. As the company is primarily engaged in hospitality sector (Service Industry), Inventory turnover ratio and Return on Investment ratio are not applicable to the Company.

Note 49 : Schedule III Disclosure

Previous year figures have been reclassified to align with current year classification.

Note 50 : Other Statutory Information

1) The borrowings from banks and financial institutions have been used for the purposes for which it was taken.

2) Title deeds, comprising all the immovable properties being Land and Building are held in the name of the Company or Amalgamating company (where amalgamations have happened) as at Balance sheet date except Taj Malabar Resorts and SPA (Building) for which registration is pending and required to be done before 18th May 2023.

3) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company to holding and Benami property.

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

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

6) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies) including foreign entities (Intermediaries) with the understanding that the intermediary shall

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

7) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the company shall

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funded Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

Note 51 : Dividend

On April 20, 2023, the Board of Directors of the Company have proposed a final dividend of ''0.50 per equity share in respect of the year ended 31 March 2023, subject to approval of Shareholders at the Annual General Meeting. If approved, the dividend would result in cash outflow of ''893 lakhs during the financial year 2023-24.

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Mar 31, 2022

Note 29 : Contingent Liabilities and Commitments

Contingent Liabilities to the extent not provided for : a) On account of income tax matters in dispute

The appeals mainly relate to part/full disallowance of certain deductions claimed by the company. The said amounts have been paid/pending adjustment and will be recovered as refund if the matters are decided in favour of the company. Based on the facts presently known, the Management believes that outcome of these appeals will not result in any material impact on the financial statements.

		? in lakhs
	March 31, 2022	March 31, 2021
a) In respect of income tax matters for which appeals are pending b) On account of other disputes:	230.33	239.05
- Luxury Tax	34.10	46.61
- Sales Tax	116.56	135.39
- Entry Tax	3.48	3.48
- Provident Fund	41.35	41.35
- Electricity Tax and Adjustment Charges	531.65	531.65
- Service Tax	88.74	88.74
- State Highway Department Compensation	396.47	396.47
- Others	16.88	-
The company is a defendant/party to claims (plus interest thereon) in various	legal actions as listed above which arose during the ordinary
course of business. Based on the facts presently known, the Management believes that the results of these actions will not have material impact
on the company''s financial statements.
c) Bank Guarantee/Bond executed by the Company	152.73	171.32
d) Estimated amount of contracts remaining to be executed on capital account	261.99	215.81
and not provided for (net of advances) e) Indemnity given to purchaser of land	50.00	50.00

Note 35 : Financial risk management

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

Market risk Credit risk Liquidity risk Currency risk Interest rate risk

Risk management framework

Oriental Hotels Limited is exposed primarily to fluctuations in foreign currency exchange rates, credit, liquidity and interest rate risks, which may adversely impact the fair value of its financial instruments. The Group has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the Group.

i. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Group''s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

ii. Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Group result in material concentration of credit risk.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was ?8,390.84 lakhs and ?5,164.69 lakhs as of March 31, 2022 and March 31, 2021, respectively, being the total of the carrying amount of balances with banks, bank deposits, trade receivables, unbilled revenue, other financial assets and investments excluding equity and preference investments.

Oriental Hotels Limited exposure to customers is diversified and no outstanding from a single customer is more than 10% of outstanding accounts receivable and unbilled revenue as of March 31, 2022 and March 31, 2021 except for outstanding from one listed entity as on 31st March 2022 and this amount was not due for payment as on 31st March 2022.

Trade and other receivables:-

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company does not require collateral in respect of trade and other receivables.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. Cash and bank balance:

The Company held cash and bank balance of ?6,246.04 lakhs at March 31, 2022 (March 31, 2021: ?3,171.32 lakhs).

iii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligation associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company''s debt financing plans, covenant compliance and compliance with internal statement of financial position ratio targets.

The Company’s Cash and bank balance and Trade receivable as at March 31, 2021 aggregating ?4,050.19 lakhs. The balance exposure will be met by internal accruals, overdraft facilities available with the banks and new borrowing under negotiation. Accordingly, Company does not perceive any non manageable liquidity risk.

iv. Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities.

Considering the countries and economic environment in which the Group operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries.

The risks primarily relate to fluctuations in US Dollar / Hong Kong Dollar against the functional currency of the company. The company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

v. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Note 43 : Social Security Code

The date of implementation of the Code on Social Security, 2020 (''the Code'') relating to employee benefits is yet to be notified by the Government and when implemented will impact the contributions by the Company towards benefits such as Provident Fund, Gratuity etc. The Company will

assess the impact of the Code and give effect in the financial statement when the Code and Rules thereunder are notified.

Note 44 : Going Concern

Impact of COVID-19

The business has been impacted during the year on account of COVID-19. During the first three months of the year, the Company witnessed softer revenues due to the second wave of COVID-19 and consequent lockdowns in several states across the country. Also there was a third wave in the month of January 2022, resulting in restrictions in some states, which also adversely impacted the revenues. The Company has considered internal and external sources of information and has performed sensitivity analysis on the assumptions used and based on current estimates, expects to recover the carrying amount of its assets. The impact of COVID-19 may be different from that estimated as at the date of approval of these standalone financial statement and the Company will continue to closely monitor any material changes to future economic conditions.

The management has secured additional financing for the next 12 months to prevent disruption of the operating cash flows if any, and to enable the Company meet its debts and obligations as they fall due. Accordingly, the financial results of the Company have been prepared on a going concern basis.

Based on aforesaid assessment, management believes that as per estimates made conservatively, the Company will continue as a going concern and will be able to discharge its liabilities and realise the carrying amount of its assets as on March 31, 2022.

Note 45 : Note on leased hotel unit

The Company had entered into a long-term lease with Cochin Port Trust for "Taj Malabar Resort & Spa" hotel lease for 30 years, which expired on 31st March 2022. Cochin Port Trust is in the process of inviting fresh tenders for the premise and the Company intends to participate in the tender. In the interim, Cochin Port Trust has permitted the Company to continue operations in the premise until the completion of the tender process on same terms and conditions. Cochin Port Trust has also notified that the Company has the "First Right of Refusal” by right to match the highest bid value.

Note 48 : Transaction with Struck off Companies

The Company has reviewed transactions, to the extent of information available, for the purpose of identifying transactions with struck off companies. Basis above review, there are no transactions with struck off companies in the current financial year.

Note 49 : Schedule III Disclosure

Previous year figures have been reclassified to align with current year classification and to conform with requirements of amended Schedule III to the Companies Act, 2013

Note 50 : Other Statutory Information

1) The borrowings from banks and financial institutions have been used for the purposes for which it was taken at the balance sheet date.

2) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company to holding and Benami property.

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

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

5) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies) including foreign entities (Intermediaries) with the understanding that the intermediary shall.

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

6) The Company has not received any fund from any person(s) or entity(ies),including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the company shall

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funded party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

7) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered, disclosed as income

during the year in the tax assessments under the income tax act,1961 (such as, search or survey or any of the relevant provisions of the Income Tax Act,1961.

Note 51 : Dividend

The Board of Directors of the Company have not recommended any dividend for the year ended 31st March 2022.

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Mar 31, 2019

Note 1. Corporate Information

Oriental Hotels Limited (the “Company”), is a listed public limited company incorporated and domiciled in India and has its registered office at No. 37 Taj Coromandel Mahatma Gandhi Road, Nungambakkam Chennai - 600 034. The Company is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts.

The company’s business operation is mainly in India.

The Company has primary listing in Bombay Stock Exchange and National Stock Exchange. The GDR’s are listed in Luxembourg Stock Exchange.

Table 2: 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:

(a) Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This includes listed equity instrument, traded debentures and mutual funds that have quoted price/declared NAV The fair value of all equity instruments (including debentures) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

(b) Level 2 - Level 2 hierarchy includes financial instruments that are not traded in an active market (for example, traded bonds/ debentures,over the counter derivatives). The fair value in this hierarchy is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all signifcant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(c) Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.

b. (i) The Board, on 29th November, 2018, considering future prospects and opportunities, terminated the Memorandum of Understanding of its leased property at Trivandrum by mutual consent with effect from 01st April, 2019.

(ii) Security deposit of Rs.4750 lakhs was refunded, consequent to the execution of termination agreement. Notional adjustment on account of the deposit carried at amortized cost under Ind AS is reversed and Rs.979.80 lakhs is credited to the Statement of Profit and Loss.

(iii) Consequent to this, the company’s Hotel Operating Agreement (HOA) with Indian Hotels Company Limited (IHCL) that had been entered into for 20 years, stands terminated effective 01st April, 2019. A compensation of Rs.654.90 lakhs is payable to IHCL for a three year period ending 2021. This amount is discounted to its present value of Rs.500.99 lakhs and accounted as per Indian Accounting Standards. This transaction is subject to Members’ approval.

c. Freehold land in Mysore that had been shown under ‘Assets held for sale’ as at 31st March 2018 was sold in the current year. A loss of Rs.891.16 lakhs has been incurred and accounted.

d. Provision for impairment made for land Rs.117.42 lakhs.

3. Contingent Liabilities and Commitments

Contingent Liabilities to the extent not provided for:

a) On account of income tax matters in dispute

The appeals mainly relate to part/full disallowance of certain deductions claimed by the company. The said amounts have been paid/pending adjustment and will be recovered as refund if the matters are decided in favour of the company Based on the facts presently known, the Management believes that outcome of these appeals will not result in any material impact on the financial statements.

The company is a defendant/party to claims (plus interest thereon) in various legal actions as listed above which arose during the ordinary course of business. Based on the facts presently known, the Management believes that the results of these actions will not have material impact on the company’s financial statements.

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

5. DISCLOSURE REQUIREMENT UNDER INDAS 17 LEASE/LICENCE TRANSACTION

The Company has taken certain immovable properties on operating lease. The total lease rent paid on the same is included under Rent and Licence Fees forming part of Other Expenses (Refer Note No. 26 (ii)). The minimum future lease rentals payable in respect of non-cancellable leases entered into by the Company to the extent of minimum guarantee amount are as follows:

6. The company has presented Consolidated Financial Statements separately, including that of its subsidiary, associates and jointly controlled entity in this annual report.

7. Financial Risk Management

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

Market risk Credit risk Liquidity risk Currency risk Interest rate risk

Risk Management Framework

Oriental Hotels Limited is exposed primarily to fluctuations in foreign currency exchange rates, credit, liquidity and interest rate risks, which may adversely impact the fair value of its financial instruments. The Group has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the Group.

i. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Group’s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

ii. Credit Risk

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

Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Group result in material concentration of credit risk.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs.10,807.30 lakhs and Rs.3,222.23 lakhs as of March 31, 2019 and March 31, 2018, respectively, being the total of the carrying amount of balances with banks, bank deposits, trade receivables, unbilled revenue, other financial assets and investments excluding equity and preference investments.

Oriental Hotels Limited exposure to customers is diversified and no single customer contributes to more than 10% of outstanding accounts receivable and unbilled revenue as of March 31, 2019 and March 31, 2018.

Trade and other receivables:-

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company does not require collateral in respect of trade and other receivables.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables.

Cash and bank balance:

The Company held cash and bank balance of Rs.5,199.64 lakhs at March 31, 2019 (March 31, 2018: Rs.642.27 lakhs).

iii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligation associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance and compliance with internal statement of financial position ratio targets.

* Includes current maturity of Debentures which is disclosed inclusive of redemption premium payable Rs.5066 lakhs at the time of maturity of 2% Coupon Debentures.

The Company’s Cash and bank balance and Trade receivable as at March 31, 2019 aggregating Rs.6,546.62 lakhs. The balance exposure will be met by asset held for sale, internal accruals, overdraft facilities available with the banks and new borrowings under negotiation. Accordingly, Company does not perceive any non managable liquidity risk.

* The maturity amount for borrowings is inclusive of redemption premium payable Rs.5066 lakhs at the time of maturity of 2% Coupon Debentures.

The Company’s Cash and bank balance and Trade receivable as at March 31, 2018 aggregating Rs.2,105.46 lakhs. The balance exposure will be met by asset held for sale, internal accruals and overdraft facilities available with the banks. Accordingly, Company does not perceive any non managable liquidity risk.

iv. Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the respective entities.

Considering the countries and economic environment in which the Group operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries.

The risks primarily relate to fluctuations in Hong Kong Dollar against the functional currency of the company. The company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

v. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Exposure to Interest Rate Risk

Company’s interest rate risk arises from borrowings and finance lease obligations. Borrowings issued at fixed rates and finance lease obligations are exposed to fair value interest rate risk. The interest rate profile of the Company’s interest-bearing financial instruments is as follows:

8. Capital Management

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents.

Adjusted equity comprises all components of equity other than amounts accumulated in the hedging reserve.

The Company’s adjusted gearing ratio is as follows.

9. Asset held for sale represents money recoverable, towards proposed disposal of assets of a hotel in the ensuing year, at net realizable value. In the previous year, this represented free hold lands which the company disposed off in the current year (refer note 27d).

10. IND AS 115 ‘Revenue from Contracts with Customers’

With effect from 1 April 2018, the Company has adopted Ind AS 115 ‘Revenue from Contracts with Customers’ which introduces a new five-step approach to measuring and recognising revenue from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for services to a customer.

The Company has opted for the modified retrospective application permitted by Ind AS 115 upon adoption of new standard. Accordingly, the standard has been applied for the year ended 31st March, 2019 only (i.e. the initial application period). Modified retrospective application also requires the recognition of cumulative impact of adoption of Ind AS 115 on all contracts as at 1st April 2018 (‘transition date’) in equity and the impact on such transition date is not material.

Also, the Company has elected to use the practical expedient that there is no financing component involved when the credit period offered to customers is less than 12 months (also refer Credit Risk).

Prior to adoption of IND AS 115, the Company’s revenue was primarily comprised of Revenue from Hotel operations. The recognition of these revenue streams is largely unchanged by Ind AS 115.

There are certain new disclosure requirements which have been disclosed below:

1. The Company derives its revenue from the transfer of services over time in its major service lines.

2. Contract balances

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

Key Management Personnel:

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such director is Rs.112.08 lakhs (Previous Year Rs.88.94 lakhs). Mr. Tom Antony salary Rs.64.91 lakhs (Previous Year Rs.60.68 lakhs) and Mr. Rajneesh Jain Salary Rs.56.55 lakhs up to 04th February 2019 (Previous year Rs.63.50 lakhs) and from 05th February 2019 Rs.7.48 lakhs to Mr. Sreyas Arumbakkam .

NOTE: Figures in brackets are on respect of Previous Year.

11. Dividends

On April 25, 2019, the Board of Directors of the Company have proposed a final dividend of Rs.0.50 per equity share in respect of the year ended 31 March, 2019, subject to the approval of Shareholders at the Annual General Meeting. If approved, the dividend would result in a cash outflow of Rs.892.99 lakhs and cash flow of dividend distribution tax of Rs.183.56 lakhs.

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Mar 31, 2018

1.Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

2. Exposure to Interest Rate Risk

Company''s interest rate risk arises from borrowings and finance lease obligations. Borrowings issued at fixed rates and finance lease obligations are exposed to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

3. Capital Management

The Company monitors capital using a ratio of ‘adjusted net debt'' to ‘adjusted equity''. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and bank balance.

Adjusted equity comprises all components of equity other than amounts accumulated in the hedging reserve.

4. Fair value Sensitivity Analysis for fixed-rate instruments

A change of 100 basis points in interest rates would have increased or decreased equity by ''54.19 Lakhs after tax (March 31, 2017 ''68.52 Lakhs).

5. Asset held for sale represents free hold lands which the Company has decided to dispose off and has entered into a Memorandum Of Understanding with a prospective buyer. The transaction could not be completed in the current year due to unforseen circumstances. The Company is confident of completing the sale in the near future.

6. As per IND-AS 24 “Related Parties Disclosure” notified by the Companies (Accounting Standards) Rules, 2006 the required information is given below:

List of related parties as tabled below:

A Subsidiary Companies OHL International (HK) Limited

B Trust Oriental Hotels Employees Gratuity Trust

C Associate Companies Taj Madurai Limited

Lanka Island Resorts Ltd.

D Joint Venture TAL Hotels & Resorts Ltd.

E Significant Influence The Indian Hotels Company Ltd. (IHCL)

Subsidiary of The Indian Hotels Company Ltd. Country of Incorporation Domestic

Roots Corporation Ltd. India

TIFCO Holdings Ltd. India

PIEM Hotels Limited India

Taj Trade and Transport Company Limited India

United Hotels Limited India

Indi Travels Limited India

KTC Hotels India

Taj SATS Air Catering Ltd. India

Taj Enterprises Ltd. India

Northern India Hotels Ltd. India

Lands End Properties Private Limited India

Skydeck Properties and Developers Private Limited India

Sheena Investments Private Limited India

ELEL Hotels & Investments Limited India

Luthria & Lalchandani Hotel & Properties Pvt. Ltd. India

Benares Hotels Limited India

Subsidiary of The Indian Hotels Company Ltd.

International

Taj International (HK) Ltd. Hong Kong

Apex Hotel Management Services (Pte) Ltd. Singapore

Chieftain Corporation NV Netherlands Antilles

Samsara Properties Ltd. British Virgin Islands

IHOCO BV Netherlands

St. James Court Hotel Ltd. United Kingdom

Taj International Hotels Ltd. United Kingdom

PiEm International (H.K.) Ltd. Hong Kong

United Overseas Holding Inc. United States of America

Apex Hotel Management Services (Australia) Pty. Australia

Ltd.

BAHC 5 Pte Ltd. Singapore Jointly Controlled Entities of The Indian Hotels Company Limited Domestic

Taj Madras Flight Kitchen Pvt. Ltd. India

Taj Karnataka Hotels & Resorts Ltd. India

Taj Kerala Hotels & Resorts Ltd. India

Taj GVK Hotels & Resorts Ltd. India

Taj Safaris Ltd. India

Kaveri Retreats and Resorts Ltd. India

International

TAL Hotels & Resorts Ltd. Hong Kong

TAL Maldives Resorts Private Ltd. Maldives

IHMS Hotels (SA) (Proprietary) Ltd. South Africa

* Includes adjustment for depreciation written back ''0.15 lakhs § After issue of Bonus Shares in the ratio 2:5

X Includes adjustment for depreciation written back ''14.36 lakhs and ~ Issue of Rights Shares in the ratio 3:5 after Bonus Issue.

^{arrears of de}p^{reciation for earlier} y^ear ''²⁶.^{62 lakhs}. ^Dep^{reciation for} „ Issue of Bonus shares in the ratio 1:2 and 23,52,941 underlying Equity Shares

^{1975-76 and 1976-77} p^{rovided in 19}78-7⁹ Proportionate to Global Depository Receipts.

$ ^{preference and e}q^uity ^dividends @ Issue of Bonus Shares in the ratio 1:2

- ^{includes adjustments for de}p^{reciation written back to the extent of} c 162 Equity Shares withheld for allotment on rights basis pursuant to a Court order were

''²⁷.^{48 lakhs}. allotted during the year 1998-99

# ^Aft^{er issue of Bonus Shares in the ratio 2:5} d 13,90,536 Equity Shares of ''10/- each issued on amalgamation of Covelong Beach & After issue of Rights Shares in the ratio 1:5 Hotel (I) Ltd. with the Company, in the ratio 2:5.

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Mar 31, 2017

(i) Buildings includes WDV on improvements to buildings constructed on leasehold land - Rs.1,097.25 lakhs (Previous Year Rs.1,099.13 lakhs).

(ii) Assets pledged as security (Refer Note 16: Borrowings)

(iii) Rs.3191.50 lakhs towards transfer to assets held for sale.

(i) Buildings includes WDV on improvements to buildings constructed on leasehold land - Rs.1,078.21 lakhs (Previous Year Rs.1,097.25 lakhs).

(ii) Assets pledged as security (Refer Note 16: Borrowings)

(iii) Stated at the exchange rate prevailing on the date of initial deposit of loan which was converted into Shares.

(iv) In terms of an undertaking, transfer of this shareholding is restricted to Taj / TATA group Companies.

(v) Sold during the year 2015-16.

(vi) 24,000 shares @ Rs.10 per share acquired during the year 2015-16. 66000 shares transferred during the year.

(vii) 1,15,163 Compulsory convertible debentures of Rs.55 each converted in to equity shares of Rs.1 each during the year 2015-16.

(viii) Equity Shares of Rs.10/- each have been reduced to Rs.1/- each as confirmed by the order of the court and provision for dimunition in value has been made in the earlier years.

(i) The company had a property in Coimbatore whose title was found to be defective by a Court order. The Company sued the original seller of the property and obtained partial settlement. The balance unrecovered amount amounting to Rs.374.93 lakhs ( Previous Year Rs.374.93 lakhs) has been provided in the books of account as on 31st March 2016. The company is however pursuing the legal process for recovery.

(ii) The company entered into a long term agreement for development of hotel at Bannerghatta in Bengaluru in the year 2007. During the year 2013-14, the Company decided to terminate the lease agreement and recover the amount spent on the project along with the deposits made. As per the agreement the termination will take effect when the lessor fulfills the conditions laid in the termination agreement. In view of the above agreement an amount of Rs.777.65 lakhs lying in long term deposits placed for hotel properties and capital work in progress have been transferred to amounts recoverable. The company has taken adequate steps for recovery of amounts.

(i) A portion of land Measuring 1.071acres costing Rs.393.29 lakhs was compulsorily acquired by State Highway Department, for which Rs.87.08 lakhs received towards compensation based on old guideline value. However, Company has filed an appeal for enhanced compensation based on new guideline value. Accordingly, the cost of land less compensation received has been shown under others as recoverable.

Table 2: Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - Inputs 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 for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 :

(a) The company has one class of equity shares having a par value of Rs.1/- share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

(b) Reconciliation of Equiy Shares

Footnote : Amounts due to Micro, Small and Medium Enterprises:

The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent of such parties have been identified on the basis of information available with the Company. No amount is outstanding over a period of 45 days.

Foot Note:

(i) Includes excise duty of Rs.11.43 lakhs (Previous Year Rs.8.84 lakhs)

(ii) Others include Car hire income of Rs.601.99 lakhs (Previous Year Rs.517.76 lakhs) and Servcie Exports from India Scheme(SEIS) income of Rs.398.99 lakhs includes previous year claims amounting to Rs.189.93 lakhs (Previous year Nil).

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

B Exemptions from retrospective application:

The Company has applied the following exemptions:

i. Business combinations exemption

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

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

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities included in the cost of property, plant and equipment (para D7AA of Appendix D).

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

iii. Recognition of Financial Instruments

INDAS allows entity to designate investment in equity instruments at fair value through FVTPL or FVTOCI on the basis of facts and circumstances at the date of transition to INDAS. The Company has elected to apply this exemption for the investment in equity.

* The above item includes effect of fair valuation, amortized cost adjustments, derivative adjustment and reclassification effect of financial instrument under INDAS109.

Reconciliation of Cash Flows between IGAAP and INDAS

There are no major changes in cash flow statement except for an adjustment of an amount of Rs.716.16 lakhs resulting in net cash flow from investing activity increase by Rs.716.16 lakhs and consequent reduction in net operating cash flow by Rs.716.16 lakhs. This is due to adoption of IND AS 109.

1. Contingent Liabilities and Commitments

Contingent Liabilities to the extent not provided for :

The appeals mainly relate to part/full disallowance of certain deductions claimed by the company. The said amounts have been paid/pending adjustment and will be recovered as refund if the matters are decided in favour of the company. Based on the facts presently known, the Management believes that outcome of these appeals will not result in any material impact on the financial statements.

2. DISCLOSURE REQUIREMENT UNDER INDAS 17-LEASE/LICENSE TRANSACTION

The Company has taken certain vehicles and immovable properties on operating lease. The total lease rent paid on the same is included under Rent and Licence Fees forming part of Other Expenses (Refer note no 26 (ii)). The minimum future lease rentals payable in respect of non-cancellable leases entered into by the Company to the extent of minimum guarantee amount are as follows:-

3. The company has presented Consolidated Financial Statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

4. Financial risk management

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

Credit risk Liquidity risk Market risk Currency risk Interest rate risk

i. Risk management framework

The Oriental Hotels Limited is exposed primarily to fluctuations in foreign currency exchange rates, credit, liquidity and interest rate risks, which may adversely impact the fair value of its financial instruments. The Group has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the Group.

ii. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Group’s exposure to market risk is primarily on account of foreign currency exchange rate risk.

iii. Credit Risk

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

Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the group result in material concentration of credit risk.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs.3,336.25 lakhs and Rs.2,731.27 lakhs as of March 31, 2017 and March 31, 2016, respectively, being the total of the carrying amount of balances with banks, bank deposits, trade receivables, unbilled revenue, other financial assets and investments excluding equity and preference investments.

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

Trade and other receivables:-

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company does not require collateral in respect of trade and other receivables.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables.

Cash and bank balance:

The Company held cash and bank balance of Rs.1,295.80 at March 31, 2017 (March 31, 2016, Rs.324.03 lakhs). The cash and bank balances are held with bank and financial institution counterparties.

Derivatives

The derivatives are entered into with bank and financial institution counter parties.

iii. Liquidity Risk

"Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation."

iv. Market Risk :

"Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus Company''s exposure to market risk is a fund, on of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs."

v. Currency Risk :

"The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The foreign exchange loan is covered by a derivative and the amount of other payables is not material and hence Company does not perceive any major foreign currency risk."

5. Interest Rate Risk

"Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio."

6. Exposure to Interest Rate Risk

Company''s interest rate risk arises from borrowings and finance lease obligations. Borrowings issued at fixed rates and finance lease obligations exposes to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

7. Capital Management

The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and bank balance.

Adjusted equity comprises all components of equity other than amounts accumulated in the hedging reserve. The Company''s policy is to keep the ratio below 1.50 times. The Company''s adjusted gearing ratio at March 31, 2017 was as follows.

8. Fair value Sensitivity Analysis for fixed-rate instruments

A change of 100 basis points in interest rates would have increased or decreased equity by Rs.68.52 lakhs after tax (March 31, 2016 : Rs.70.32 lakhs).

9. Asset held for sale represents free hold lands which Company has decided to dispose off.

Key Management Personnel:

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such directors is Rs.67.99 lakh (Previous Year Rs.93.04 lakhs). Mr. Varada Reddy up to 10th November 2015 and from 11th November 2015. Mr. Pramod Ranjan as Managing Director.

Mr. Tom Antony salary Rs.52.05 lakhs (Previous Year Rs.17.31 lakhs from November 2015) and Mr. Rajneesh Jain from September 2016 Rs.33.51 lakhs & Mr. Mohan Jayraman up to August 2016 Rs.19.87 lakhs (Previous Year Rs.50.01 lakhs

NOTE : Figures in brackets are in respect of Previous Year.

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Mar 31, 2016

Assets taken on lease/license under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating leases are recognized as expenses in accordance with the respective lease/license agreements.

(a) The company has one class of equity shares having a par value of Rs. 1/- share. Each shareholder is eligible for one vote per share held. The Board of Directors in their meeting on May 12, 2016 proposed a dividend of Rs.0.20 per equity share, which is subject to approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

(i) Secured loans from banks represents short term loan secured by way of mortgage by deposit of title deeds in respect of immovable properties of Fisherman''s Cove and Coonoor Hotel & additionally secured by way of exclusive first charge of credit card receivables of the Company.

(ii) Short term loan from related parties consisted of inter corporate deposits for a period of 90days with an option of prepayment carrying interest @ 11%.

Footnote : Amounts due to Micro, Small and Medium Enterprises:

The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent of such parties have been identified on the basis of information available with the Company. No amount is outstanding over a period of 45 days.

(i) The related party under Long Term Deposits placed for hotel properties represent enterprises influenced by relatives of key management personnel.

(ii) Advance Tax and Tax deducted at Source is net of Provision for Income tax amounting to Rs.16,833.79 lakhss (previous year Rs.16,833.79 lakhs).

(iii) Provision for income tax considered above is net of MAT credit utilized of Rs.105.45 lakhs (Previous year Rs. 114.79 lakhs).

(iv) Advance income tax is net of provision for With Holding Tax of Rs.44.94 lakhs.

(i) The company had a property in Coimbatore whose title was found to be defective by a Court order. The Company sued the original seller of the property and obtained partial settlement. The balance unrecovered amount has been provided in the books of account as on March 31, 2016.The company is however pursuing the legal process for recovery.

(ii) The company entered into a long term agreement for development of hotel at Bannerghatta in Bengaluru in the year 2007. During the year 2013-14, the Company decided to terminate the lease agreement and recover the amount spent on the project along with the deposit made. As per the agreement the termination will take effect when the lessor fulfills the conditions laid in the termination agreement. In view of the above agreement an amount of Rs.777.65 lakhs lying in long term deposits placed for hotel properties and capital work in progress have been transferred to amounts recoverable. The company has taken adequate steps for recovery of amounts.

Note 1: Contingent Liabilities and Commitments

(i) Contingent Liabilities (to the extent not provided for) :

a) On account of income tax matters in dispute

The appeals mainly relate to part/full disallowance of certain deductions claimed by the company. The said amounts have been paid/pending adjustment and will be recovered as refund if the matters are decided in favour of the company. Based on the facts presently known, the Management believes that outcome of these appeals will not result in any material impact on the financial statements.

2. Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel, Power, Light & Water (iii) Repairs to Machinery and (iv) Other expenses are after adjusting (i) Rs.71.13 Lakhs (Previous Year Rs.167.44 Lakhs ), (ii) Rs.93.15 Lakhs (Previous Year Rs.92.51 Lakhs), (iii) Rs.6.61 Lakhs (Previous Year Rs.5.64 Lakhs) and (iv) Rs.46.99 Lakhs (Previous Year Rs.37.26 Lakhs) respectively recovered from outside parties.

3. Passage & travelling includes travelling expenses of Auditors Rs.5.66 Lakhs (Previous Year Rs.2.00Lakhs).

4. The Company has not made any remittance in foreign currencies on account of dividends during the year and does not have any information as to the extent of which remittances in foreign currencies on account of dividends have been made by or on behalf of Non-Resident Shareholders. The particulars of dividends declared during the year and paid to Non-Resident Shareholders are as follows:

5. The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

Key Management Personnel :

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such directors is Rs.93.04 Lakhs (Previous Year Rs.137.70 Lakhs) which includes the remuneration paid to Mr. Varada Reddy as the Managing Director up to November 10, 2015 and to Mr. Pramod Ranjan as the Managing Director from November 11, 2015.

6. Disclosure Requirement under AS-19 - Lease/License Transaction

a) The company has entered into a licensing arrangement in the year 2009 to operate a hotel for a period of 40 years and thereafter renewable for a further period of 30 years for a hotel property situated at Trivandrum..

The license fee payable is Rs.175.00 Lakhs per annum or specified percentage of Gross Annual Turnover whichever is higher.

b) The company has entered into a licensing arrangement in the year 2005 to operate a hotel for a period of 29 years and 11 months thereafter renewable for a further period of 29 years and 11 months for a hotel property situated at Coimbatore.

The license fee payable is Rs.60.00 Lakhs per annum with an escalation of 10% once in three years plus a specific percentage of total revenues from the date of hotel operation.

7. The Company has an investment of Rs.30 Lakhs and advances outstanding of Rs.560 Lakhs in Taj Karnataka Hotels and Resorts Limited (TKHRL) TKHRL has accumulated losses in excess of its net worth. Considering the inherent value of the investee company''s assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

8. As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements and AS 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 133 of the Companies Act, 2013, the company has presented Consolidated Financial Statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

9. Previous year''s figures have been re-grouped, reclassified wherever necessary so as to make them comparable with current year''s figures.

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Mar 31, 2015

I) Previous year's figures have been regrouped wherever necessary to confirm to current year's classification. The accompanying notes 1 to 45 form an integral part of the financial statements.

Note 2: Contingent Liabilities and Commitments

(i) Contingent Liabilities (to the extent not provided for) : a) On account of income tax matters in dispute

The appeals mainly relate to part/full disallowance of certain deductions claimed by the company. The said amounts have been paid/pending adjustment and will be recovered as refund if the matters are decided in favour of the company. Based on the facts presently known, the Management believes that outcome of these appeals will not result in any material impact on the financial statements.

March 31, 2015 March 31, 2014 Particulars Rs in lakhs Rs in lakhs

(In respect of tax matters for whichappeals are 1,076.14 1,076.14 pending amounting to

The company is a defendant/party to claims (plus interest thereon) in various legal actions as listed above which arose during the ordinary course of business. Based on the facts presently known, the Management believes that the results of these actions will not have material impact on the company's financial statements.

f) The company has also filed claims for recovery of amounts spent on certain projects that did not materialize from third parties involved in those contracts. The amount of such claims amounts to Rs. 1152.58 lakhs.The company is in negotiations/legal proceedings. The management is confident that the results of the proceedings/negotiations will result in the company recovering the full amount.

Note 3: Derivative Instruments

The company uses forward exchange contracts, interest rate swaps, currency swaps and options to hedge its exposure in foreign currency and interest rates. The information on derivative instruments is as follows:

4 Bad debts and Advances written off is after adjusting the provision made in the earlier years amounting to Rs. Nil (Previous Year Rs.5.38 lakhs)

5 Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel, Power, Light & Water (iii) Repairs to Machinery and (iv) Other expenses are after adjusting (i) Rs.167.44 Lakhs (Previous Year Rs.162.57 Lakhs ), (ii) Rs.92.51 Lakhs (Previous Year Rs.85.94 Lakhs ), (iii) Rs.5.64 Lakhs (Previous Year Rs.5.15 Lakhs) and (iv) Rs.37.26 Lakhs (Previous Year Rs.65.16 Lakhs) respectively recovered from outside parties.

6 Passage & travelling includes travelling expenses of Auditors Rs.2.00 Lakhs (Previous Year Rs.2.12 Lakhs).

7 The Company has not made any remittance in foreign currencies on account of dividends during the year and does not have any information as to the extent of which remittances in foreign currencies on account of dividends have been made by or on behalf of Non-Resident Shareholders. The particulars of dividends declared during the year and paid to Non-Resident Shareholders are as follows:

8 The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

* Disclosure relating to only "post employment defined benefits plan".

9 Central Governmnet approval is awaited for excess remuneration paid/payable to Managing Director for period 01st April 2012 to 31st March 2014 amounting to Rs. 124.38 lakhs.

10 As per Accounting Standard - AS 18 "Related Parties Disclosure" notified by the Companies (Accounting Stand- ards) Rules, 2006 the required information is given below:

I) List of Related Parties with whom transactions have taken place during the year:

A. Subsidiary Companies OHL International (HK) Limited

B. Associate Companies Taj Madurai Limited

Lanka Island Resorts Limited

C. Joint Ventures TAL Hotels & Resorts Limited

D. Significant Influence The Indian Hotels Company Limited

E. Others 100% Subsidiaries of The Indian Hotels Company Limited

- Roots Corporation Limited

- TIFCO Holdings Limited

- Taj International (HK) Limited Subsidiaries of The Indian Hotels Company Limited

- PIEM Hotels Limited

- Taj Trade and Transport Company Limited

- United Hotels Limited

- Indi Travels Limited

- Benares Hotels Limited F. Key Management Personnel Mr.D.Varada Reddy, Managing Director

G. Enterprises influenced by Relatives Dodla International Limited of Key Management Personnel

Includes Reimbursement of deputed staff salaries and other expenses.

Key Management Personnel :

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such directors is Rs. 137.70 Lakhs (Previous Year Rs.125.50 Lakhs). An amount of Rs.90 Lakhs is payable as on 31st March 2015 (previous year Rs.60 Lakhs).

NOTE: Figures in brackets are in respect of Previous Year.

11 DISCLOSURE REQUIREMENT UNDER AS-19 - LEASE/LICENSE TRANSACTION

a) The company has entered into a licensing arrangement in the year 2009 to operate a hotel for a period of 40 years and thereafter renewable for a further period of 30 years for a hotel property situated at Trivandrum.

The license fee payable is Rs.175.00 Lakhs per annum or specified percentage of Gross Annual Turnover whichever is higher.

b) The company has entered into a licensing arrangement in the year 2005 to operate a hotel for a period of 29 years and 11 months thereafter renewable for a further period of 29 years and 11 months for a hotel property situated at Coimbatore.

The license fee payable is Rs.60.00 Lakhs per annum with an escalation of 10% once in three years plus a specific percentage of total revenues from the date of hotel operation.

c) The company has taken certain vehicles on operating lease. The total lease rent paid on the same amounting to Rs.23.13 Lakhs (Previous Year Rs.22.81 Lakhs) have been recognised in profit and loss account.

12 The Company has an investment of Rs.30 Lakhs and advances outstanding of Rs.560 Lakhs in Taj Karnataka Hotels and Resorts Limited (TKHRL) TKHRL has accumulated losses in excess of its networth.Considering the inherent value of the investee company's assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

13 Disclosure of Company's Interest in Joint Ventures:

14 As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Ac- counting for investments in Associates in Consolidated Financial Statements and AS 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 133 of the Companies Act, 2013, the company has presented Consolidated Financial Statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

15 Previous year's figures have been re-grouped, reclassified wherever necessary so as to make them comparable with current year's figures.

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Mar 31, 2013

Note 1

Significant Accounting Policies

The financial statements are prepared under historical cost convention on accrual basis and comply with Accounting Standards (AS) referred to in Section 211(3C) of the Companies Act, 1956. The preparation of financial statements requires the management to make estimates and assumtions considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from the estimates. Significant accounting policies adopted in the presentation of the accounts are as under:

Note 2: Contigent Liabilities and Commitments

March 31, 2013 March 31, 2012 Particulars Rs. in lakhs Rs. in lakhs

(i) Contingent Liability not provided for :

a) Bank Guarantee/Bond executed by the Company 270.56 270.56

b) Letter of credits opened by bankers 69.23 67.78

c) Appeals filed in respect of disputed demands

- Income Tax ** 1,029.89 981.07

- Luxury Tax 32.16 29.47

- Sales Tax 94.67 98.50

- Urban Land Tax 7.30 7.30

- Electricity Tax and Adjustment Charges 139.34 139.34

- Service Tax 879.41 801.71

** Demand raised by the Income Tax department against the Company by disallowing certain deductions/ benefits/ claims made by the Company. In the opinion of the Company most of these demands are not maintainable and accordingly appeals have been preferred

3 Bad debts and Advances written off is after adjusting the provision made in the earlier years amounting to Rs.25.33 lakhs (Previous Year Rs.15.31 lakhs)

4 Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel,Powe,Light & Water (iii) Repairs to Machinery and (iv) Other expenses are after adjusting (i) Rs.44.64 lakhs (Previous Year Rs.30.10 lakhs), (ii) Rs.55.83 lakhs (Previous Year Rs.48.00 lakhs), (iii) Rs.3.23 lakhs (Previous Year Rs.2.44 lakhs) and (iv) Rs.74.62 lakhs (Previous Year Rs.56.43 lakhs) respectively recovered from outside parties.

5 Passage & traveling includes travelling expenses of Auditors Rs.2.67 lakhs (Previous Year Rs.2.43 lakhs).

6 The Company has not made any remittance in foreign currencies on account of dividends during the year and does not have any information as to the extent of which remittances in foreign currencies on account of dividends have been made by or on behalf of Non-Resident Shareholders. The particulars of dividends declared during the year and paid to Non-Resident Shareholders are as follows:

7 The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

8 The Company has exercised option under Notification No. GSR 914 (E) dated December 29, 2011 issued by the Ministry of Corporate Affairs during the financial year 2011-12. Pursuant to clarification on Para 46A of notification number G.S.R. 914(E) dated 29/12/2011 on Accounting Standard 11 relating to “The effects of changes in foreign exchange rates” issued by Ministry of Corporate Affairs, the Company has capitalized foreign exchange loss amounting to Rs. 68.44 lakhs during the year, which was in the earlier year treated as borrowing cost as per Accounting Standard 16 – ‘Borrowing Costs’.

9 The Company during the year has provided to Managing Director an amount of Rs.115.63 lakhs as managerial remuneration. In view of in adequacy of profits, the remuneration paid to Managing Director is in excess of the limits prescribed under the Companies Act, 1956 by Rs.58 lakhs. The amount paid in excess of limits is subject to approval of the Shareholders by a special resolution and also subject to approval of the Central Government.

10 As per Accounting Standard - AS 18 "Related Parties Disclosure" notified by the Companies (Accounting Standards) Rules, 2006 the required information are given below:

I) List of Related Parties are as follows:

A. Subsidiary Companies OHL International (HK) Limited

B. Associate Companies Taj Madurai Limited Lanka Island Resorts Limited

C. Joint Ventures TAL Hotels & Resorts Limited

Prestige Garden Resorts Private Limited (Ceased to be a Joint Venture from the Financial year 2012-13)

D. Significant Influence The Indian Hotels Company Limited

E. Others 100% Subsidiaries of The Indian Hotels Company Limited

- Roots Corporation Limited

- TIFCO Holdings Limited Subsidiaries of The Indian Hotels Company Limited

- PIEM Hotels Limited

- Taj Trade and Transport Company Limited

- United Hotels Limited

- Indi Travels Limited

- Benares Hotels Limited

F. Key Management Personnel Mr.D.Varada Reddy, Managing Director

11 DISCLOSURE REQUIREMENT UNDER AS-19 - LEASE/LICENCE TRANSACTION

a) The Company has entered into a licensing arrangement to operate a hotel for a period of 40 years and there after renewable for a further period of 30 years for a hotel property situated at Trivandrum.

The license fee payable is Rs.175.00 lacs per annum or specified percentage of Gross Annual Turnover which ever is higher.

b) The Company has entered into a licensing arrangement to operate a hotel for a period of 29 years and 11 months thereafter renewable for a further period of 29 years and 11 months for a hotel property situated at Coimbatore.

The license fee payable is Rs. 60.00 lacs per annum with an escalation of 10% once in three years plus a specific percentage of total revenues from the date of hotel operation.

12 The Company has an investment of Rs. 30 lakhs and advances outstanding of Rs. 560 lakhs in Ta j Karnataka Hotels and Resorts Limited (TKHRL) TKHRL has accumulated losses in excess of its networth.Considering the inherent value of the investee Company''s assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

13 Exceptional Items represents (i) Profit on sale of investment in a Joint Venture Company of Rs. 1217.96 lakhs and (ii) Profit on transfer of immovable property of Rs. 218.28 lakhs.

14 Disclosure of Company''s Interest in Joint Ventures:

15 As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements" and AS 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 211(3C) of the Companies Act, 1956, the Company has presented consolidated financial statements seperately, including that of its subsidiary, associates and joint venture entities in this annual report.

16 The previous year''s figures have been re-grouped, reclassified whereever necessary so as to make them comparable with the current year''s figures.

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Mar 31, 2012

1 Contingent Liabilities and Commitments Previous Year Rs.

Rs.in Lakhs Rs.in Lakhs

(i) Contingent Liability not provided for :

a) Bank Guarantee/Bond executed by the Company 270.56 272.10

b) Letter of credits opened by bankers 67.78 133.20

c) Appeals filed in respect of disputed demands

- Income Tax ** 981.07 924.42

- Luxury Tax 29.47 29.47

- Sales Tax 98.50 43.61

- Urban Land Tax 7.30 7.30

- Electricity Tax and Adjustment Charges 139.34 139.34

- Service Tax 801.71 428.43

** Demand raised by the Income Tax department against the company by disallowing certain deductions/benefits/ claims made by the company. In the opinion of the Company most of these demands are not maintainable and accordingly appeals have been preferred

2. Income from investments represent income from long term trade investments amounts to Rs25.40 Lakhs (Previous Year Rs21.41 lakhs).

3. Bad debts and Advances written off is after adjusting the provision made in the earlier years amounting to Rs15.31Lakhs (Previous Year Rs106.37 Lakhs)

4. Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel, Power and Light, (iii) Repairs to Machinery, and (iv) Water charges (v) Other expenses are after adjusting (i) Rs 30.10lakhs (Previous YearRs75.67 lakhs ), (ii) Rs 39.05lakhs (Previous Year Rs 24.32 lakhs ),(iii)Rs 2.44 lakhs (Previous Year Rs2.08 lakhs ) iv) Rs 8.95 lakhs (Previous Year Rs 7.63 lakhs )and (v) Rs56.43 lakhs (Previous Year Rs 44.25 lakhs ) respectively recovered from outside parties.

5. Passage & traveling includes traveling expenses of Auditors Rs2.43 Lakhs (Previous Year Rs2.10 Lakhs).

6. The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

7. Accounting for Foreign Currency Fluctuations on Long Term Foreign Currency Monetary Items During the year, the company has exercised the Option under Companies (Accounting Standards) (Second Amendment) Rules, 2011 relating to Accounting Standard (AS) 11 " The Effects of Changes in Foreign Exchange Rates". In accordance with the Revised Accounting Standard, the company has exercised tthe option of capitalizing the exchange difference arising on reporting of long term foreign currency monetary item to the cost of the related depreciable capital assets excluding the value of fluctuations to the extent considered as part of Interest cost in accordance with the Accounting Standard (AS) -16 - "Borrowing Costs" and depreciating the amount over the balance life of the asset. On account of adoption of this notification, the gross value of fixed assets, depreciation and profit before tax are higher by Rs 1086 Lakhs, Rs 41 Lakhs and Rs 1045 Lakhs respectively.

* Includes Reimbursement of deputed staff salaries and other expenses.

# Represents transactions with Indian Hotels Company Limited unless otherwise specified.

Key management personnel :

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such director is Rs 101.62 lakhs (Previous yearRs88.31 lakhs) which includes an amount of Rs 26.82 lakhs outstanding as at 31st March 2012(Previous year Rs 35 lakhs)

NOTE: Figures in brackets are in respect of Previous Year

8. DISCLOSURE REQUIREMENT UNDER AS-19 - LEASE/LICENCE TRANSACTION

a) The company has entered into a licensing arrangement to operate a hotel for a period of 40 years and thereafter renewable for a further period of 30 years for a hotel property situated at Trivandrum.

The license fee payable is Rs 175.00 lakhs per annum or specified percentage of Gross Annual Turnover whichever is higher.

9. The Company has an investment of Rs 30 lakhs and advances outstanding of Rs 560 lakhs in Taj Karnataka Hotels and Resorts Limited (TKHRL) TKHRL has accumulated losses in excess of its net worth. Considering the inherent value of the investee company's assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

10. As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements and AS 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 211(3C) of the Companies Act, 1956, the company has presented consolidated financial statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

11. The presentation of the financial statements is based on the Revised Schedule VI of the Companies Act, 1956, applicable from the current financial year. Accordingly, previous year figures are realigned to make it comparable with the current year.

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Mar 31, 2011

1 Assets taken on lease:

In respect of lease transactions, which are in nature of finance leases, Assets taken on lease after 1st April, 2001 are accounted as fixed assets at fair value in accordance with Accounding Standard 19 (AS-19) - "Leases". Lease payments are apportioned between finance charges and reduction of the lease liability based on the implicit rate of return. Assets taken on lease / licence under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating leases are recognised as expenses in accordance with the respective lease / licence agreements.

2. Based on the orders of the Division Bench of the Honble High Court of Madras in an earlier year, the value of Freehold Land amounting to Rs.749.86 Lakhs has been classified as an unsecured loan under Loans and Advances. The Company has initiated appropriate legal action to recover the amount together with interest and obtained interim stay order to protect and secure the amount. The Company has received part amount under a compromise settlement. The management is confident of recovery of the balance amount due.

Previous Year Rs. in Lakhs Rs. in Lakhs

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance) 3,691.95 3,631.29

4. Contingent Liability not provided for : a) Bank Guarantee/Bond executed by the Company 272.10 190.10

b)Letter of credits opened by bankers 133.20 117.79

c)Appeals filed in respect of disputed demands

- Income Tax** 924.42 1,007.73

- Luxury Tax 29.47 29.88

- Sales Tax 43.61 44.70 - Urban Land Tax 7.30 7.30

- Electricity Tax and Adjustment Charges 139.34 139.34

- Service Tax 428.43 383.85

** Demand raised by the Income Tax department against the Company by disallowing certain deductions/benefits/ claims made by the Company. In the opinion of the Company most of these demands are not maintainable and accordingly appeals have been preferred before the appropriate authorities.

5. a) As the turnover of the Company includes sale of food and beverages, it is not possible to give quantity-wise details of the sale and consumption of food and beverages. The Company is exempted from giving these particulars for the year 2010- 11 vide Order No.46/41/2011-CL-III dated 20th January, 2011 issued by the Ministry of Corporate Affairs.

c) i) Income from investments includes dividend from a subsidiary company of Rs.NIL (Previous Year Rs.553.57 Lakhs)

ii) Income from investments represent income from long term trade investments amounts to Rs.21.41 lakhs (Previous year Rs.29.19 lakhs)

6. Bad debts and Advances written off is after adjusting the provision made in the earlier years amounting to Rs. 106.37 lakhs (previous year Rs.54.14 Lakhs)

7. Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) Fuel, Power and Light, (iii) Repairs to Machinery, (iv) Water charges & (v) Other expenses are after adjusting (i) Rs.75.67 lakhs (Previous Year Rs.39.81 lakhs), (ii) Rs.24.32 lakhs (Previous Year Rs.34.84 lakhs), (iii) Rs.2.08 lakhs (Previous Year Rs.3.11 lakhs), (iv) Rs.7.63 lakhs (Previous Year Rs. 11.41 lakhs) and (v) Rs.44.25 lakhs (Previous Year Rs.19.62 lakhs) respectively recovered from outside parties.

8. The shareholders deposit represents advance for invesments in TAL Hotels & Resorts Limited.

9. Passage & traveling includes traveling expenses of Auditors Rs.2.10 Lakhs (Previous Year Rs.6.85Lakhs).

10. The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006 is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

11. DISCLOSURE REQUIRMENT UNDER AS-19 - LEASE / LICENCE TRANSACTION

a) The company has entered into a licensing arrangement to operate a hotel for a period of 40 years and thereafter renewable for a further period of 30 years.

12. As per Accounting Standard - AS 18 "Related Parties Disclosure" notified by the Companies (Accounting Standards) Rules,2006 the required information are given below:

Key management personnel :

Key managerial personnel comprise of Managing Director who has the authority and the responsibility for planning, directing and controlling the activities of the Company. The remuneration paid to such director is 788.31 lakhs (Previous year 783.32 lakhs) which includes an amount of 735.00 Lakhs outstanding as at 31st March, 2011 (Previous year 730.00 Lakhs)

13. The Company has an investment of 730 lakhs and advances outstanding of 7560 lakhs in Taj Karnataka Hotels and Resorts Limited (TKHRL). TKHRL has accumulated losses in excess of its networth. Considering the inherent value of the investee companys assets and proposed financial restructuring, the management is of the view that there is no permanent or long term diminution in the value of the investment and that outstanding will be fully recovered after the financial restructuring.

14. As per Accounting Standard 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements and Accounting Standard 27 on "Financial Reporting of Interests in Joint Ventures" referred to in Section 211 (3C) of the Companies Act, 1956, the Company has presented consolidated financial statements separately, including that of its subsidiary, associates and joint venture entities in this annual report.

15. Previous year figures have been regrouped wherever necessary.

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Mar 31, 2010

1. Based on the orders of the Division Bench of the Honble High Court of Madras in an earlier year, the value of Freehold Land amounting to Rs.749.86 Lakhs has been classified as an unsecured loan under Loans and Advances. The Company has initiated appropriate legal action to recover the amount together with interest and obtained interim stay order to protect and secure the amount. The Company has received part amount under a compromise settlement. The management is confident of recovery of the balance amount due.

2. Expenditure on account of (i) Salaries, Wages, Bonus etc., (ii) fuel, Power and Light, (iii) Repairs to Machinery, (iv) Water charges (v) Other expenses are after adjusting (i) Rs.39.81 lakhs (Previous Year Rs.26.88 lakhs), (ii) Rs.34.84 lakhs (Previous Year Rs.26.88 lakhs), (iii) Rs.3.11 lakhs (Previous Year Rs.2.52 lakhs), (iv) Rs. 11.41 lakhs (Previous Year Rs.9.24 lakhs) and (v) Rs. 19.62 lakhs (Previous Year Rs. 18.48 lakhs) respectively recovered from outside parties.

3. The shareholders deposit represents advance for invesments in TAL Hotels & Resorts Limited (formerly Taj Asia Limited)

4. Passage & traveling includes traveling expenses of Auditors Rs.6.85 Lakhs (Previous Year Rs.4.74 Lakhs).