Notes to Accounts of Sinclairs Hotels Ltd.

Mar 31, 2025

(n) Provisions

A provision is recognised if, as a result of a past event, the
Company has a present, legal or constructive, obligation that
can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future
cash flows (representing the best estimate of the expenditure

required to settle the present obligation at the balance sheet
date) at a pre-tax rate that reflects current market assessments
ofthe time value of money and the risks specific to the liability.
The unwinding ofthe discount is recognised asfinancecost.

(o) Contingent liabilities

A contingent liability is a possible obligation that arises from
past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future
events beyond the control of the Company or a present
obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does
not record a contingent liability in books of account but
discloses its existence in the financial statements.

(p) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash
at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an
insignificant risk of changes in value.

q) 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. For the year ended 31 March 2025, MCA has not notified
any new standards or amendments to the existing standards
applicable to the Company.

Revaluation Surplus

Revaluation Reserve represents increase in net book value arising on revaluation of Property, Plant and Equipment under previous
GAAP appearing as on the transition to Ind AS i.e. on 1 April 2017 and is not available for distribution and thus presented separately
from retained earnings.

Capital Investment Subsidy

Capital Investment subsidy represents balances of government grant recognised as income before the date of transition to Ind
AS on a systematic basis over the earlier periods in which the Company had recognised expenses for which the related costs for
which the grants was intended to compensate.

The balances under the reserve are in the nature of free reserves which are available for distribution.

General Reserve

General reserve represents balances in the nature of free reserves which are available for distribution.

31) Employee Benefits

The Company has a defined benefit gratuity plan in India with Life Insurance Corporation of India (LICI), governed by the Payment
of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the
rate of fifteen days salary/ wages for every completed year of service or part thereof in excess of six months, based on the rate of
salary/ wages last drawn bythe employee concerned.

The defined benefit plan for gratuity is administered by a single gratuity fund that is legally separate from the Company. The board
of the gratuity fund is required by law to act in the best interests of the plan participants and is responsible for setting certain
policies (e.g. investment and contribution policies) of the fund.

These defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market
(investment) risk.

A. Funding

The Plan is fully funded by the Company. The funding requirements are based on the gratuity fund''s actuarial measurement
framework set out in the funding policies of the plan. The funding of the Plan is based on a separate actuarial valuation for
funding purposes for which the assumptions may differ from the assumptions set out in (E). Employees do not contribute to
the plan.

The Company expects to pay INR17.98 Lakh (31 March 2024 : INR15.05 Lakh) in contributions to its defined benefit plans in

2025-26.

B. Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the dosing balances for the net defined benefit (asset)
liability and its components

B. Measurement of fair values

For Investments in mutual funds, the fair value is determined using Level 2 inputs. The mutual funds are valued against closing
Net asset value.

C. Financial risk management

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

- credit risk (see (C) (ii));

- liquidity risk (see (C) (Hi)); and

- market risk (see (C) (iv)).

i. Risk management framework

The Company is exposed to normal business risks from changes in market interest rates and from non-performance of contractual
obligations by counterparties. The Company does not hold or issue derivative financial instruments for speculative or trading
purposes.

Risk management is integral to the whole business of the Company.The Company has a system of controls in place to create
an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually
monitors the Company''s risk management process to ensure that an appropriate balance between risk and control is achieved."

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company''s receivables from customers. The maximum exposure to the
credit risk at the reporting date is primarily from trade receivables, investment in mutual funds, investments in Corporate bonds
and bank deposits which are represented by the carrying amount of receivables in the Balance Sheet.

Trade receivables

A significant part of the Companies''sales are against advances or payable at the time of checkout which entails no credit risk.
For others, an impairment analysis is performed at each reporting date on an individual basis for all the customers.
The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally
uniform across locations; consequently, trade receivables are considered to be a single class of financial assets. All overdue
customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the
counterparty, etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.
Details of concentration of revenue are included in Note 23.

Investments and Bank Deposits

Credit riskfrom balances with banks and financial institutions is managed by the management in accordance with the Company''s
policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each
counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s
potential failure to make payments. Credit risk on investments and cash and cash equivalents including other bank balances
is limited as the Company generally invests in deposits with banks, financial institutions and investees with high credit ratings
assigned by international and domestic credit rating agencies.

Credit risk exposure

The allowance for expected credit loss on customer balances at 31 March 2025 is INR 6.06 lakh (31 March 2024: INR3.36 lakh).

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.

As of 31 March 2025, the Company had cash and bank balances of INR 76.75 lakh. As of 31 March 2024, the Company had
cash and bank balances of INR 105.11 lakh.

The contractual maturities of financial liabilities at the reporting date are due within one year from the reporting date.
Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted.

iv. Market risk

Market risk is the risk when the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Financial instruments affected by market risk includes FVTPL Investments only. Market risk comprises only the fluctuations
in the net asset value ofthe respective funds. Reports on the investment portfolio are submitted to the Company''s senior management
on a regular basis. The Board of Directors reviews and approves all investment decisions.

- Price Risk

Exposure

The Company''s exposure to price risk arises from investments held by the Company and classified as fair value through profit or loss.
To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification ofthe portfolio
is done in accordance with the limits set by the Company.

Sensitivity

The table below summarizes the impact of increases/decreases ofthe NAVonthe Company''s equity.

35) Operating Segment

The Company has identified nine operating segments viz, based on the nine hotel units. As per Ind AS -108, due to similar nature
of products, production process, customer types, etc., the nine operating segments have been aggregated as single operating
segment of “Floteliering" during the year. The analysis of geographical segments is based on the areas from which the Company
render services. The Company primarily operates in India and therefore the analysis of geographical segment is not applicable.

The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of
its revenues from transactions with any single external customer.

39) Leases
A. Leases as lessee

i. Short-term / Low-value leases

The Company leases office premises which are considered to be short-term leases. The Company has elected not to recognise
right-of-use assets and lease liabilities for these leases.

Lease payments for short-term leases and leases of low-value assets not included in the measurement of the lease liability are
classified as cash flows from operating activities.

ii. Right-of-use and lease liabilities recognised in the financial statements represents the Company''s lease of lands and building.
The leases are ranging between a period of 9- 99 years (previous year 9 -99 years).

The Company has recorded the lands acguired on lease under property, plant and equipment (separately from other owned
assets) at an amount equal to the upfront lease payment plus initial direct costs. Such amount is amortized over the period of
the lease on a straight line method.

During the current year the Company has cancelled lease arrangement at Yangang.Thus, the Company has derecognised Lease
Liabilities and corresponding Right of Use Assets with respect to such arrangement. The resultant gain has been recorded under
other income.

During the current year the Company had acquired Hotel at Udaipur Location on a non cancellable lease of 9 years. On
commencement, the Company has recognised Lease Liabilities and corresponding Right of Use Assets on such lease under
property, plant and equipment (separately from other owned assets) .The lease payments are to be made on a periodic basis.
The Company has recognised such lease as Right of use assets for the purpose of Ind AS 116.

40) In the previous year the Company has completed the buyback of 1,520,000 equity shares having face value of INR 2 each at a price
of I NR 200/- per share. All the equity shares bought back were extinguished on October 26,2023. Capital redemption reserve was
created to the extent of share capital extinguished. The premium on buyback was utlised from securities premium and general
reserve. The number of equity shares post buyback stands reduced to 25,630,000.

The Board of Directors, at its meeting held on December, 22 2023 had approved and recommended the issuance of fully paid bonus
shares in the ratio of 1:1 out of its free reserves created out of profits. Pursuant to the approval given by the shareholders in Extra
Ordinary General Meeting held on January 18,2024, the Board at its meeting held on January 30,2024, issued and allotted
25,630,000 fully paid up Bonus Equity shares of INR 2 each in the ratio of 1:1. The number of equity shares post Bonus issue increased
to 51,260,000.

41) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind
of funds) by the Company to or in any other person(s) or entity(is), including foreign entities ("Intermediaries") with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
(“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

42) Subsequent Events

There are no material non-adjusting events after the reporting period till the date of issue of these financial statements.

As per our report of even date For and on behalf of the Board of Directors

For B S R & Co. LLP SINCLAIRS HOTELS LIMITED

Chartered Accountants CIN: L55101WB1971PLC028152

Firm''s Registration Number: 101248W/W-100022

Jayanta Mukhopadhyay Navin Suchanti Dr Niren Suchanti Sanjeev Khandelwal

Partner Chairman Director Director

Membership No.: 055757 (DIN: 00273663) (DIN:00909388) (DIN:00419799)

Place: Kolkata BLSoni SwajibChatterjee AnannaSarkar

Date: May 20,2025 Chief Financial Officer Chief Operating Officer Company Secretary

---

Mar 31, 2024

(b) Rights, preferences and restrictions attached to the equity shares

The Company has only one class of equity shares having par value of INR 2 per share. Each holder of an equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

In the event of liquidation of the Company, after distribution of all preferential amounts, the remaining assets of the company will be distributed to equity shareholders in proportion to their shareholding.

Securities Premium

Securities Premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013 Capital Redemption Reserve

Under Section 69 of the Act, if the buy-back of shares is out of free reserves, the nominal value of the shares so purchased is required to be transferred to capital redemption reserve from distributable profit. It may be applied by the Company in paying up unissued shares of the Company to be issued to members of the Company as fully paid bonus shares.

Revaluation Surplus

Revaluation Reserve represents increase in net book value arising on revaluation of Property, Plant and Equipment under previous

GAAP appearing as on the transition to Ind AS i.e. on 1 April 2017 and is not available for distribution and thus presented separately from retained earnings.

Capital Investment Subsidy

Capital Investment subsidy represents balances of government grant recognised as income before the date of transition to Ind AS on a systematic basis over the earlier periods in which the Company had recognised expenses for which the related costs for which the grants was intended to compensate.

The balances under the reserve are in the nature of free reserves which are available for distribution.

Note:- Movement in deferred taxes balances are through statement of profit and loss

* The Company applied Deferred Tax related to Assets and Liabilities arising from single transaction (Amendments to Ind AS 12) from 1 April 2023. Following the amendments, the Company has recognised a separate Deferred tax asset in relation to its lease liabilities and Deferred tax liability in relation to its right-of-use assets.

* The Company was awarded a government grant amounting to INR 192.88 lakh in earlier years. The grant was conditional upon capital investment in the nature of construction of new hotel in specified region. The grant has been recognised as deferred income and is amortised over useful life of building in proportion to the related depreciation expenses.

31) Employee Benefits

The Company has a defined benefit gratuity plan in India with Life Insurance Corporation of India (LICI), governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days salary/ wages for every completed year of service or part thereof in excess of six months, based on the rate of salary/ wages last drawn by the employee concerned.

The defined benefit plan for gratuity is administered by a single gratuity fund that is legally separate from the Company. The board of the gratuity fund is required by law to act in the best interests of the plan participants and is responsible for setting certain policies (e.g. investment and contribution policies) of the fund.

These defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market (investment) risk.

A. Funding

The Plan is fully funded by the Company. The funding requirements are based on the gratuity fund''s actuarial measurement framework set out in the funding policies of the plan. The funding of the Plan is based on a separate actuarial valuation for funding purposes for which the assumptions may differ from the assumptions set out in (E). Employees do not contribute to the plan.

B. Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset) liability and its components

B. Measurement of fair values

For Investments in mutual funds, the fair value is determined using Level 2 inputs. The mutual funds are valued against closing Net asset value.

C. Financial risk management

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

- credit risk (see (C) (ii));

- liquidity risk (see (C) (iii)); and

- market risk (see (C) (iv)).

i. Risk management framework

The Company is exposed to normal business risks from changes in market interest rates and from non-performance of contractual obligations by counterparties. The Company does not hold or issue derivative financial instruments for speculative or trading purposes.

Risk management is integral to the whole business of the Company. The Company has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually monitors the Company''s risk management process to ensure that an appropriate balance between risk and control is achieved.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables, investment in mutual funds, investments in Corporate bonds and bank deposits which are represented by the carrying amount of receivables in the Balance Sheet.

Trade receivables

A significant part of the Companies'' sales are against advances or payable at the time of checkout which entails no credit risk. For others, an impairment analysis is performed at each reporting date on an individual basis for all the customers.

The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across locations; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty, etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.

Details of concentration of revenue are included in Note 23.

Investments and Bank Deposits

Credit risk from balances with banks and financial institutions is managed by the management in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments. Credit risk on investments and cash and cash equivalents including other bank balances is limited as the Company generally invests in deposits with banks, financial institutions and investees with high credit ratings assigned by international and domestic credit rating agencies.

Credit risk exposure

The allowance for expected credit loss on customer balances at at 31 March 2024 is INR 3.36 lakh.

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.

As of 31 March 2024, the Company had cash and bank balances of INR 105.11 lakh. As of 31 March 2023, the Company had cash and bank balances of INR 34.89 lakh.

The contractual maturities of financial liabilities at the reporting date are due within one year from the reporting date. Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

iv. Market risk

Market risk is the risk when the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Financial instruments affected by market risk includes FVTPL Investments only. Market risk comprises only the fluctuations in the net asset value of the respective funds. Reports on the investment portfolio are submitted to the Company''s senior management on a regular basis. The Board of Directors reviews and approves all investment decisions.

- Price Risk

Exposure

The Company''s exposure to price risk arises from investments held by the Company and classified as fair value through profit or loss. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

34) Contingent Liability and commitments
	31 March 2024	31 March 2023
Contingent liabilities Claims against the company not acknowledged as debts	33.92	33.92
Commitments Estimated amount of contracts remaining to be executed on capital account and not provided		1.94
for (net of capital advances)

35) Operating Segment

The Company has identified nine operating segments viz, based on the nine hotel units. As per Ind AS - 108, due to similar nature of products, production process, customer types, etc., the nine operating segments have been aggregated as single operating segment of "Hoteliering” during the year. The analysis of geographical segments is based on the areas from which the Company render services. The Company primarily operates in India and therefore the analysis of geographical segment is not applicable.

The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer.

39) Leases A. Leases as lessee

i. Short-term / Low-value leases

The Company leases office premises which are considered to be short-term leases. The Company has elected not to recognise right-of-use assets and lease liabilities for these leases.

Lease payments for short-term leases and leases of low-value assets not included in the measurement of the lease liability are classified as cash flows from operating activities.

ii. Right-of-use and lease liabilities recognised in the financial statements represents the Company''s lease of lands and building. The leases are ranging between a period of 9 - 99 years (previous year 9 - 99 years).

The Company has recorded the lands acquired on lease under property, plant and equipment (separately from other owned assets) at an amount equal to the upfront lease payment plus initial direct costs. Such amount is amortized over the period of the lease on a straight line method.

During the earlier year the Company had acquired Hotel at Yangang South Sikkim Location on a non cancellable lease of 9 years. The Company has recognised Lease Liabilities and corresponding Right of Use Assets on such lease under property, plant and equipment (separately from other owned assets) . The lease payments are to be made on a periodic basis. The Company has recognised such lease as Right of use assets for the purpose of Ind AS 116.

40) The Company has completed the buyback of 15,20,000 (previous year 7,00,000) equity shares having face value of INR 2 each at a price of INR 200/- (INR 143/-) per share. All the equity shares bought back were extinguished on October 26, 2023 (previous year July 01, 2022). Capital redemption reserve was created to the extent of share capital extinguished. The premium on buyback was utlised from securities premium reserves and general reserve. The number of equity shares post buyback stands reduced to

2.56.30.000 (previous year 2,71,50,000).

The Board of Directors, at its meeting held on December, 22 2023 have approved and recommended the issuance of fully paid bonus shares in the ratio of 1:1 out of its free reserves created out of profits. Pursuant to the approval given by the shareholders in Extra Ordinary General Meeting held on January 18, 2024, the Board at its meeting held on January 30, 2024, issued and allotted

2.56.30.000 fully paid up Bonus Equity shares of INR 2 each in the ratio of 1:1. The number of equity shares post Bonus issue increased to 5,12,60,000.

41) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(is), including foreign entities ("Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

42) Exceptional item in the previous financial year represents profit on sale of freehold land at Kolkata.

43) Subsequent Events

There are no material non-adjusting events after the reporting period till the date of issue of these financial statements.

---

Mar 31, 2023

(n) Provisions

A provision is recognised if, as a result of a past event, the Company has a present, legal or constructive, obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present

obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

(o) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not record a contingent liability in books of account but discloses its existence in the financial statements.

(p) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant riskofchanges in value.

(q) Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31,2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, which includesfollowing amendments:

Ind AS1- Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in itsfinancial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15and 24 ofIndAS12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

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

The amendments will help entities to distinguish between accounting policies and accounting estimates. Thedefinition ofa change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty" Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in itsfinancial statements.

33) Financial instruments - Fair values and risk management (Continued)

B. Measurementoffairvalues

For Investments in mutual fundsand alternate investmentfunds, thefairvalue is determined using Level 2 inputs.The mutual funds and alternate investment funds are valued against closing Net asset value.

C. Financialriskmanagement

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

- credit risk(see (C) (ii));

- liquidity risk (see (C) (iii)); and

- market risk (see (C) (iv)).

i. Risk management framework

TheCompany is exposed to normal business risksfrom changes in market interest rates andfrom non-performanceofcontractual obligations by counterparties. The Company does not hold or issue derivative financial instruments for speculative or trading purposes.

Risk management is integral to the whole business of the Company. The Company has a system of controls in place to create an acceptable balance between thecost ofrisks occurring and the cost ofmanaging the risks. The management continually monitors the Company''s risk management process to ensure thatan appropriate balance between risk and control is achieved."

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principallyfrom theCompany''s receivablesfrom customers.The maximum exposureto thecredit riskat the reporting date is primarily from trade receivables, investment in mutual funds, investments in Corporate bonds and bank deposits which are represented bythe carrying amount ofreceivables in the Balance Sheet.

Trade receivables

A significant part of the Companies''sales are against advances or payable at the time of checkout which entails no credit risk. For others, an impairment analysis is performed at each reporting date on an individual basis for all the customers.

The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across locations; consequently, trade receivables are considered to be a single class offinancial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty, etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.

Details ofconcentration ofrevenue are included in Note 23.

Investmentsand BankDeposits

Credit riskfrom balances with banks and financial institutions is managed bythe management in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits areset to minimise theconcentration ofrisks and therefore mitigate financial lossthrough counterparty''s potential failure to make payments. Credit risk on investmentsand cash and cash equivalents including other bank balances is limited as the Company generally invests in deposits with banks, financial institutions and investees with high credit ratings assigned by international and domestic credit rating agencies.

Credit risk exposure

Theallowancefor lifetime expected credit loss on customer balancesfortheyear ended 31 March 2023 was ? 3.36lakh.

iii. Liquidityrisk

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.

As of 31 March 2023, the Company had cash and bank balances of ? 34.89 lakh. As of 31 March 2022, the Company had cash and bankbalancesof ^18.61 lakh.

The contractual maturities offinancial liabilities at the reporting date are due within one year from the reporting date.

Exposure to liquidity risk

The following are the remaining contractual maturities offinancial liabilities at the reporting date. The amounts are gross and undiscounted.

39) Leases A. Leases as lessee

i. Short-term / Low-value leases

The Company leases office premises which are considered to be short-term leases. The Company has elected not to recognise right-of-use assets and lease liabilities for these leases.

Lease payments for short-term leases and leases of low-value assets not included in the measurement of the lease liability are classified as cash flows from operating activities.

ii. Right-of-use and lease liabilities recognised in the financial statements represents the Company''s lease of lands and building. The leases are ranging between a period of9-99 years (previousyear 10.25 - 99 years).

The Company has recorded the lands acquired on lease under property, plant and equipment (separately from other owned assets) at an amount equal to the upfront lease payment plus initial direct costs. Such amount is amortized over the period of the lease on a straight line method.

During the earlier year the Company had acquired Hotel atYangang South Sikkim Location on a non cancellable lease of 9 years. The Company has recognised Lease Liabilities and corresponding Right of Use Assets on such lease under property, plant and equipment (separately from other owned assets). The lease payments are to be made on a periodic basis. The Company has recognised such lease as Right ofuse assets for the purpose of Ind AS116.

40) The Company has completed the buyback of 700,000 equity shares having face value of ? 2 each at a price of? 143/- per share. All the equity shares bought back were extinguished on July 01, 2022. Capital redemption reserve was created to the extent of share capital extinguished. The premium on buybackwas utlised from securities premium reserves. The number ofequity shares post buyback stands reduced to 2,71,50,000 and accordingly, the paid-up share capital stands reduced to ? 543 lakh.

41) No funds have been advanced or loaned or invested (eitherfrom borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

42) Exceptional item represents profit on sale offreehold land at Kolkata.

43) Subsequent Events

There are no material non-adjusting events after the reporting period till the date ofissue ofthesefinancial statements.

As per our report of even date Forand on behalf of the Board of Directors

For BSR& Co. LLP SINCLAIRS HOTELS LIMITED

Chartered Accountants CIN: L55101WB1971PLC028152

Firm''s Registration Number: 101248W/W-100022

Navin Suchanti Dr Niren Suchanti Sanjeev Khandelwal

Chairman Director Director

(DIN:00273663) (DIN:00909388) (DIN:00419799)

Seema Mohnot

Partner

Membership No.: 060715 BL Soni Swajib Chatterjee Kriti Kochar

Kolkata,May23,2023 ChiefFinancialOfficer ChiefOperatingOfficer CompanySecretary

---

Mar 31, 2018

1. CORPORATE INFORMATION

The Company is in the hospitality industry and has hotels/ resorts at Siliguri, Darjeeling, Chalsa, Kalimpong and Burdwan in West Bengal, Ooty in Tamilnadu and Port Blair in Andaman and Nicobar Islands. The Company is a public Company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on two recognised stock exchanges in India. The registered office of the Company is located at Pressman House, 10A, Lee Road, Kolkata, West Bengal 700020.

2 BASIS OF PREPARATION

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). For all periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements for the year ended 31st March 2018 are for the first time prepared in accordance with Ind AS (Refer to note 38 for information on how the Company adopted Ind AS). The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value or revalued amount:

- Land and buildings classified as property, plant and equipment.

- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

The financial statements are presented in INR and all values are in absolute terms.

(b) Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of an equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

In the event of liquidation of the Company, after distribution of all preferential amounts, the remaining assets of the Company will be distributed to equity shareholders in proportion to their shareholding.

3) GRATUITY PLAN

The Company has a defined benefit gratuity plan for its employees. Every employee who has completed five years or more of service is entitled to gratuity at the rate of 15 days last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised In the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.

4) As per information and records available with the Company, there are no reportable amount of dues on account of principal and interest or any such payments during the year as required by Micro, Small and Medium Enterprises Development Act, 2006, in respect of Micro Enterprises and Small Enterprises as defined in the Act. As a result no disclosure in this respect is made in the Financial Statements.

5) SEGMENT INFORMATION

The Company’s business activity falls within a single business segment i.e. hoteliering and hence no additional disclosure other than those already made in the financial statements are required under Ind AS 108 “Operating Segments”. The Company at present, operates in India only and therefore the analysis of geographical segment is not applicable.

6) FAIR VALUE

The carrying value and fair value of financial instruments by categories as at 31 st March, 2018, 31st March, 2017 and 1st April 2016 is as follows:

b) Fair value hierarchy:

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

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

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

- Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair value is 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.

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis:

7) FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The Company''s principal financial liabilities comprise of trade and other payables only. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include investments at fair value, trade and other receivables, and cash and cash equivalents.

The Company is exposed to market risk and credit risk. The Company’s senior management monitors these risks and is supported by professional managers who advise on financial risks and assist in preparing the appropriate financial risk governance framework. It provides assurance to the senior management that the financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and approves policies for managing each of these risks which are summarized below:

(a) Market risk

Market risk is the risk when the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Financial instruments affected by market risk includes FVTPL Investments only. Market risk comprises only the fluctuations in the net asset value of the respective funds. Reports on the investment portfolio are submitted to the Company’s senior management on a regular basis. The Board of Directors reviews and approves all investment decisions.

(b) Commodity risk

The Company is affected by the price volatility of certain commodities. The operating activities require ongoing purchase of groceries, housekeeping items, diesel, gas etc. The price fluctuations are passed on to the customers as and when there is a significant rise in the commodity prices.

(c) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions. The Company only deals with parties which has sound worthiness based on internal assessment.

8) CAPITAL MANAGEMENT

The Company’s objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The Company is not subject to any externally imposed capital requirements.

9) FIRST TIME ADOPTION OF Ind AS

These financial statements, for the year ended 31st March 2018, are for the first time prepared in accordance with Ind AS. For periods up to and including the year ended 31st March 2017, the financial statements were prepared in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 st March 2018, together with the comparative period data as at and for the year ended 31 st March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1st April 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 st April 2016 and the financial statements as at and for the year ended 31 st March 2017.

A. Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemption:

The Company has elected to continue with the net carrying value i.e. cost less accumulated depreciation of Property, plant and equipment as recognised in its Indian GAAP financial statement as deemed cost at the transition date, viz., 1st April, 2016.

B. Estimates

The estimates at 1 st April 2016 and at 31 st March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies).

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1st April 2016, the date of transition to Ind AS and as of 31 st March 2017.

C. Reconciliations

The following reconciliations provides the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101:

(1) Equity as at 1 st April 2016, and 31 st March 2017

(2) Net profit for the year ended 31 st March 2017

D. Footnotes to the reconciliation of equity as at 1 st April 2016 and 31 st March 2017 and profit or loss for the year ended 31st March 2017.

a) Investments at Fair value

Under Indian GAAP, the Company accounted for investments in mutual funds as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has designated such investments as FVTPL Investments. Ind AS requires FVTPL investments to be measured at fair value. At the date of transition to Ind AS and as on 31st March, 2017, difference between the Instrument''s fair value and Indian GAAP carrying amount has been recognised in retained earnings and statement of profit and loss respectively. The corresponding impact of deferred tax has been accounted through retained earnings.

b) Membership fees

In earlier year, the Company had received membership fees for providing club facilities over the period of membership. As these fees were non-refundable, the same was transferred to Capital Reserve in previous year. Under Ind AS such membership fees are to be treated as deferred revenue and hence it has been reclassed into liabilities. Revenue there from is being recognised over the membership period.

c) Property, plant and equipment

Pursuant to application of Companies (Accounting Standards) Amendment Rule, 2016 in the financial year 2016-17, the revaluation reserve on freehold land and buildings (property) was reversed and adjusted against fixed assets. The Company has elected to consider the carrying values of property, plant and equipment under Indian GAAP as on the date of transition as deemed cost. Hence the revaluation reserve has been added to the carrying cost of land and buildings as on 1st April, 2016.

d) Government subsidies

Under Indian GAAP the capital investment subsidy was treated as a reserve being in the nature of promoters'' contribution. Under Ind AS, subsidy received shall be recognised in profit or loss on a systematic basis over the remaining life of the property.

e) Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP

(f) Defined benefit liabilities

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses] are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

10) STANDARDS ISSUED BUT NOT YET EFFECTIVE

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

a) Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was issued on 29th March 2018 and establishes a five-step model to account for revenue arising 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 transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 st April 2018. The Company plans to adopt the new standard on the required effective date using the full retrospective method. These amendments are not expected to have any material impact on the Company.

b) Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning on or after 1st April 2018. These amendments are not expected to have any impact on the Company as the Company has no deductible temporary differences or assets that are in the scope of the amendments.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction in the retained earnings.

11) PREVIOUS YEAR FIGURES

Previous year figures have been regrouped / reclassified, where necessary to conform to this year’s classification.

---

Mar 31, 2016

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of 710 per share. Every holder of an equity share Is entitled to one vote per share. The Company declares and pays dividends In Indian rupees.

During the year ended 31 March 2016, the Interim dividend amount per share of 710 distributed to equity shareholders was 74 (previous year 74). The Board confirmed the interim dividend as final.

In the event of liquidation of the Company, after distribution of all preferential amounts, the remaining assets of the company will be distributed to equity shareholders in proportion to their shareholding.

(c) Details of shareholders holding more than 5% Equity Shares in the Company

As per records of the Company, and information provided by its registrar the above shareholding represents both legal and beneficial ownership of shares.

1. GRATUITY PLAN

The Company has a defined benefit gratuity plan for its employees. Every employee who has completed five years or more of service is entitled to gratuity at the rate of 15 days last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the Balance Sheet for the respective plans.

2. As per information and records available with the Company, there are no reportable amount of dues on account of principal and interest or any such payments during the year as required by Micro, Small and Medium Enterprises Development Act, 2006, in respect of Micro Enterprises and Small Enterprises as defined in the Act. As a result no disclosure in this respect is made in the Financial Statements.

3. SEGMENT INFORMATION

The Company''s business activity falls within a single business segment i.e. hoteliering and hence no additional disclosure other than those already made in the financial statements are required under Accounting Standard 17. The Company at present, operates in India only and therefore the analysis of geographical segment is not applicable.

4. PREVIOUS YEAR FIGURES

Previous year figures have been regrouped / reclassified, where necessary to conform to this year''s classification.

---

Mar 31, 2014

1. Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of X10 per share. Every holder of an equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2014, the dividend amount per share recognized as distribution to equity shareholders is X4 (previous year X18).

In the event of liquidation of the Company, after distribution of all preferential amounts, the remaining assets of the company will be distributed to equity shareholders in proportion to their shareholding.

2. GRATUITY PLAN

The Company has a defined benefit gratuity plan for its employees. Every employee who has completed five years or more of service is entitled to gratuity at the rate of 15 days last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.

3. As per information and records available with the Company, there are no reportable amount of dues on account of principal and interest or any such payments during the year as required by Micro, Small and Medium Enterprises Development Act,2006, in respect of Micro Enterprises and Small Enterprises as defined in the Act. As a result no disclosure in this respect is made in the Financial Statements.

4 SEGMENT INFORMATION

The Company''s business activity primarily falls within a single business segment i.e. hoteliering and hence no additional disclosure other than those already made in the financial statements are required under Accounting Standard 17. The Company at present, operates in India only and therefore the analysis of geographical segment is not applicable to the Company

5. CONTINGENT LIABILITIES NOT PROVIDED FOR (Amount in Rupees) Particulars As at As at 31stMarch,2014 31stMarch,2013 Sales Tax matters under dispute / appeal 410,428 534,369 EPCG (Duty amount on outstanding export obligations) 1,621,532 2,268,339

---

Mar 31, 2013

1. CORPORATE INFORMATION

The Company is in the hospitality industry and has hotels / resort at Siliguri, Darjeeling and Chalsa in West Bengal, Ooty in Tamilnadu and Port Blair in Andaman and Nicobar Islands.

2 GRATUITY PLAN

The Company has a defined benefit gratuity plan for its employees. Every employee who has completed five years or more of service is entitled to gratuity at the rate of 15 days last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit /expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.

3 As per information and records available with the Company, there are no reportable amount of dues on account of principal and interest or any such payments during the year as required by Micro, Small and Medium Enterprises Development Act,2006, in respect of Micro Enterprises and Small Enterprises as defined in the Act. As a result no disclosure in this respect is made in the Financial Statements.

4 SEGMENT INFORMATION

The Company''s business activity primarily falls within a single business segment i.e. hoteliering and hence no additional disclosure other than those already made in the financial statements are required under Accounting Standard 17.

5. CONTINGENT LIABILITIES NOT PROVIDED FOR

(Amount in Ru pees)

Particulars As at 31st March, 2013 As at 31st March,2012

Sales Tax matters under dispute / appeal 534,369 409,875

EPCG (Duty amount on outstanding export obligations) 2,268,339 2,967,451

The Company has filed a writ petition before the Circuit Bench of the Hon''ble High Court at Calcutta against the Secretary, Port Blair Municipal Council against property tax on hotels in Port Blair which was levied without giving them an opportunity of being heard as was directed by the Hon''ble High Court vide its earlier order dated 21.2.2011 in this regard. The management believes that the Company has a good case for success in this matter and therefore no provision is necessary for the same. The amount of liability, if any, is not presently ascertainable.

6 PREVIOUS YEAR FIGURES

Previous year figures have been regrouped / reclassified, where necessary to conform to this year''s classification.

---

Mar 31, 2012

1. CORPORATE INFORMATION

The Company is in the hospitality industry and has hotels / resort at Siliguri, Darjeeling and Chalsa in West Bengal, at Ooty in Tamilnadu and at Port Blair in Andaman and Nicobar Islands.

(a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Every holder of an equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2012, the dividend amount per share recognized as distribution to equity shareholders was Rs. 4.00 (31 March 2011: Rs. 3.50).

In the event of liquidation of the Company, after distribution of all preferential amounts, the remaining assets of the Company will be distributed to equity shareholders in proportion to their shareholding.

(a) The Company subscribed to these equity shares and debentures of Savannah Hotels Private Limited on October 31,2011. The subscription to equity shares represents 51.02% shareholding of Savannah Hotels Private Limited.

(b) The above shares are pledged with Tourism Finance Corporation of India Limited against the outstanding loan of Rs.115,358,000 of the subsidiary company. Savannah Hotels Private Limited.

2. GRATUITY PLAN

The Company has a defined benefit gratuity plan for its employees. Every employee who has completed five years or more of service is entitled to gratuity at the rate of 15 days last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans.

As confirmed by the actuary, there are no experience adjustments on plan assets and liabilities that need to be reported for the current year and previous years.

3. As per information and records available with the Company, there are no reportable amount of dues on account of principal and interest or any such payments during the year as required by Micro, Small and Medium Enterprises Development Act,2006, in respect of Micro Enterprises and Small Enterprises as defined in the Act. As a result no disclosure in this respect is made in the Financial Statements.

4 SEGMENT INFORMATION

The Company's business activity primarily falls within a single business segment i.e. hoteliering and hence no additional disclosure other than those already made in the financial statements are required under Accounting Standard 17.

5. CONTINGENT LIABILITIES NOT PROVIDED FOR

(Amount in Rupees)

Particulars As at As at 31st March, 2012 31st March, 2011

Sales Tax matters under dispute / appeal 409,875 1,129,836

EPCG (Duty saved amount on outstanding export obligations) 2,967,451 -

6. PREVIOUS YEAR FIGURES

During the year ended 31st March 2012, revised Schedule VI notified under the Companies Act, 1956 for preparation and presentation of the financial statements became applicable to the Company. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

---

Mar 31, 2011

1. NATURE OF OPERATIONS

The Company is in the hospitality industry and has five hotels / resort at Siliguri, Darjeeling and Chalsa in West Bengal, at Ooty in Tamilnadu and at Port Blair in Andaman and Nicobar Islands.

2. SEGMENT INFORMATION

The Company's business activity primarily falls within a single business segment i.e. hoteliering and hence no additional disclosure other than those already made in the financial statements are required under Accounting Standard 17.

(Amount in Rupees) 3. CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars As at As at 31st March, 2011 31st March, 2010

Sales Tax matters under dispute / appeal 1,129,836 2,163,294

4. RELATED PARTY DISCLOSURES:

(a) Names of related parties :

Key Management Personnel

Mr Navin Suchanti (CEO & Managing Director) Mr Vikash Kuthari (Whole time Director)

Relatives of Key Management Personnel

Dr. Niren Suchanti (Chairman)

Mr Rohan Suchanti (Director, upto November 16, 2009)

Enterprises owned or significantly influenced by Key Management Personnel or their relatives

Pressman Advertising Limited Pressman Properties Limited Pressman Realty Limited Son-et-Lumiere Art Gallery Private Limited

5. GRATUITY PLAN

The Company has a defined benefit gratuity plan for its employees. Every employee who has completed five years or more of service is entitled to gratuity at the rate of 15 days last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the Profit and Loss Account and the funded status and amounts recognised in the Balance Sheet for the respective plans.

6. As per information and records available with the Company, there are no reportable amount of dues on account of principal and interest or any such payments during the year as required by Micro, Small and Medium Enterprises Development Act, 2006, in respect of Micro Enterprises and Small Enterprises as defined in the Act. As a result no disclosure in this respect is made in the Financial Statements.

7. The Ministry of Corporate Affairs, by its Order No. S.O. 301 (E) dated 8th February, 2011, has exempted hotel companies (including restaurants) from disclosing in their Profit and Loss Account the information mentioned under paragraphs 3 (i) (a) and 3 (ii) (d) of Part II of Schedule VI. Hence the quantitative details for its consumption, turnover, stock etc. for the year ended 31st March 2011 have not been furnished.

8. PREVIOUS YEAR COMPARATIVES:

Previous year's figures have been regrouped where necessary to conform to this year's classification.

---

Mar 31, 2010

1. NATURE OF OPERATIONS

The Company is in the hospitality industry and has five hotels / resort at Siliguri, Darjeeling and Chalsa in West Bengal, at Ooty in Tamilnadu and at Port Blair in Andaman & Nicobar Islands.

2. SEGMENT INFORMATION

The Companys business activity primarily falls within a single business segment i.e. hoteliering and hence no additional disclosure other than those already made in the financial statements are required under Accounting Standard 17.

3. CONTINGENT LIABILITIES NOT PROVIDED FOR

(Amount in Rupees)

Particulars As at As at

31st March, 2010 31st March, 2009

Sales Tax matters under dispute/appeal 2,163,294 711,344

4. RELATED PARTY DISCLOSURES

(a) Names of related parts: Subsidiary Company (Upto September 30,2009 Sinclairs Management Education Co Pvt Ltd Key Management Personal Mr Navin Suchanti (CEO & Managing Director Mr Vikas Kuthari (Whole time Director

Relatives of Key Management Personal Dr.Niren Suchanti (Chairman)

Mr.Rohan Suchanti (Director,upto November 16 2009

Enterprises owned or significantly Pressman Properties Limited influenced by Key Management Personal Pressman Advertising Limited or their ralatives Pressman Realty Limited Son-et-Luminer Art Gallery Private Limited

5. GRATUITY PLAN

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on the basis of 15 days salary (last drawn salary) for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.

Profit and Loss Account

Particulars of net employee benefit expenses, recognised in Personnel Expenses

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The management has relied on the overall actuarial valuation conducted by the actuary. However, experience adjustments on plan liabilities and assets are not readily available and hence not disclosed.

The Company expects to contribute the amount ascertained as per actuarial valuation to gratuity fund in the year 2010-2011.

6. The Company has not been informed by any supplier of being covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result no disclosure in this respect are made in the Financial Statements.

7. The Department of Company Affairs in exercise of its powers conferred by sub-section (4) of Section 211 of the Companies Act,1956 by its Order No 46/150/2009-CL-III dated 26th June,2009 has exempted the Company from giving the quantitative details for its consumption, turnover, stock etc. for the year ended 31st March 2010.

8. During the year, 1,406,629 outstanding warrants issued to strategic investor, other investors and promoters group in earlier years were converted into an equal number of equity shares of Rs 10 each at a premium of Rs 162.50 per equity share. This has resulted in increase in the paid up equity share capital by Rs 14,066,290 and securities premium by Rs 228,577,212.

9. During the financial year 2007-08, 2008-09 and 2009-10 the Company has raised funds through a Preferential issue of Equity Shares aggregating to Rs.498,292,125 for the purpose of expanding its activities. Pending utilization, the funds to the extent of Rs.138,297,125 have been invested in short term Mutual funds and balance Rs.359,995,000 has been invested in term deposits with Banks.

10. Previous years figures have been regrouped where necessary to conform to this years classification.