Notes to Accounts of Taj GVK Hotels & Resorts Ltd.

Mar 31, 2025

m) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a binding present obligation. This may be either legal because it derives
from a contract, legislation or other operation of law, or constructive because the Company created valid expectations
on the part of third parties by accepting certain responsibilities. To record such an obligation it must be probable that an
outflow of resources will be required to settle the obligation and a reliable estimate can be made for the amount of the
obligation. The amount recognised as a provision and the indicated time range of the outflow of economic benefits are the
best estimate (most probable outcome) of the expenditure required to settle the present obligation at the balance sheet
date, taking into account the risks and uncertainties surrounding the obligation. Non-Current provisions are discounted if
the impact is material.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is
probable.

Provisions, contingent assets and contingent liabilities are reviewed at each reporting period.

n) 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.

For the purpose of the Statement of Cash Flows, cash and cash equivalents include cash on hand, balances with banks, and
short-term fixed deposits with a maturity period of 3 months.

o) Investments

A joint venture is a type of joint arrangement where under the parties that have joint control of the arrangement have rights
to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The considerations made in determining whether significant influence or joint control are similar to those necessary to
determine control over the subsidiaries.

The Company has accounted for its investment in joint ventures at cost. The share of profit/(loss) of the JV is consolidated
into the standalone comprehensive income /(loss) of the Company.

Other investments

Any investments other than the above and to be held beyond 12 months, are classified as Non-Current Investments. All
other investments for a period less than 12 months are classified as Current Investments.

Transition to Ind-AS:

On transition to Ind AS, the Company has elected to continue with the carrying value of all its Investment in joint ventures
and other investments recognised as at 1 April 2015 measured as per previous GAAP.

Impairment:

The Company reviews its carrying value of investments carried at cost or amortised cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is
accounted for.

p) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

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.

AH financial assets are recognised initially at fair value plus transaction costs that are attributable to the acquisition of
the financial asset, in the case of financial assets not recorded at fair value through Statement of profit and loss except
investments in Joint Venture and other equity investment, which is a statutory obligation, are recognized at cost. However,
trade receivables that do not contain a significant financing component are measured at transaction price.

All financial assets, excluding trade receivables, are recognised initially at fair value plus, in the case of financial assets not
measured at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Investments in Joint Ventures and other equity investments, which are statutory obligations, are recognised at cost. Trade
receivables that do not contain a significant financing component are measured at the transaction price.

Subsequent measurement:

Financial Assets at Amortised Cost

Other 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.

De-recognition:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognized when:

• The rights to receive cash flows from the asset have expired or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ''pass-th rough'' arrangement and either (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

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. As a practical expedient, the Company uses a provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over
the expected life of the trade receivables and is adjusted for forward-looking estimates

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.

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.

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, or as loans
and borrowings and payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial instruments.

Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss.

Loans and borrowings

Interest-bearing borrowings from banks are initially recognized at fair value, net of transaction costs incurred. After initial
recognition, Interest-bearing borrowings from banks are subsequently measured at amortised cost using the Effective
Interest Rate (EIR) method. Gains and losses are recognized in profit or loss when the borrowings are derecognized, as well
as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

Derecognition :

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

q) 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 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. This amendment does not have any material impact on the Company''s financial
statements and disclosures.

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 12 - Income Taxes

The amendments to Ind AS 12 Income Taxes 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, 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. During the year ended March 31, 2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

i) Term Loans from Banks:

a) Rs.NiL (2024: Rs.18.75 crores) from HDFC Bank Ltd at an interest rate of 1 year MCLR spread of 140 bps.viz. 10.35% p.a is
secured by first charge on all assets of Taj Chandigarh, Chandigarh repayable in 32 equal quarterly instalments starting
from 1st November 2016.

b) Rs.Nil (2024: Rs.8.44 crores) of short term loan from HDFC Bank under the Emergency Credit Line Guarantee Scheme (ECLGS
2.0) notified by the Government of India, to meet the working capital requirement and repayable in 48 equated monthly
instalments after a 12 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a

c) Rs.Nil (2024: Rs.15.82 crores) of short term loan from HDFC Bank under the Emergency Credit Line Guarantee Scheme
(ECLGS 3.0) notified by the Government of India, to meet the working capital requirement and repayable in 48 equated
monthly instalments after a 24 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a

d) Rs.Nil (2024: Rs.8.16 crores) of short term loan from Federal Bank under the Emergency Credit Line Guarantee Scheme
(ECLGS 2.0) notified by the Government of India, to meet the working capital requirements and repayable in 48 equated
monthly instalments after a 12 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a.

e) Rs.Nil (2024: Rs.15.30 crores) of short term loan from Federal Bank under the Emergency Credit Line Guarantee Scheme
(ECLGS 3.0) notified by the Government of India, to meet the working capital requirements and repayable in 48 equated
monthly instalments after a 24 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a.

f) Yelahanka Hotel Project:

Federal Bank Limited has sanctioned a Rs.200 crores term loan limit to the Company towards construction of the Yelahanka
Bengaluru hotel project with a tenure of 114 months including a 3 year moratorium. The loan is secured by exclusive charge
on leasehold rights of 7.22 acres of land at Yelahanka site and all moveable and immoveable assets pertaining to Yelahanka
hotel project.

ii) Loans repayable on demand from Banks

a). The Company has been sanctioned an Bank Overdraft limit of Rs.3000 Lakhs by Federal Bank Limited, and as at 31.03.2025
the overdraft limit is not yet utilized / drawn (2024: Nil). The said overdraft limits are secured by first charge on current
assets of the Company.

25. (a) The Company received notice during FY 2020-21, from TSSPDCL (Telangana State Southern Power Distribution Company

Limited), pertaining to wheeling charges for FY 2002-2003 to FY 2018-2019 at Taj Krishna, Taj Deccan and Taj Banjara
aggregating to Rs.2,129.97 lakhs. The Company filed a Writ petition with the Honourable High Court of Telangana for a stay
on the recovery of the demand and the Honourable High Court of Telangana vide Order dated 17/08/2020 granted stay on
recovery and also directed TSSPDCL to not take any coercive action including that of disconnection of the power supply
pending disposal of the writ petitions of the company.

(b) The Company has received a demand notice from Telangana State Southern Power Distribution Company Limited (TGSPDCL)
during the 2nd and 4th quarter of the financial year under review towards cross-subsidy surcharge amounting to Rs. 1161
lakhs on electricity units procured from a third-party producer i.e. M/s Ind Barath Energies Limited, Hyderabad, during the
financial years 2004-05 to 2015-16, by Taj Krishna, Taj Deccan and Taj Banjara hotels. The Company has made a provision for
the entire amount in the books of account. The Company has filed a writ petition with the Hon''ble High Court of Telangana
and Hon''ble High Court of Telangana disposed of the writ petition directing the TGSPDCL to verify whether the Company''s
purchase of electricity units in those years from third party distribution Licensee is covered under the Electricity (Removal
of Difficulties Second) Order dated 08th June, 2005 issued by the Ministry of Power, Government of India.

26. Land under lease cum sale:

(a) Bangalore hotel project - The Company was allotted 7.22 acres of land at Shivanahalli village, Yelahanka, Bangalore
North for construction of a 5-star hotel. The land is under a lease-cum-sale agreement with KIADB, Bangalore and upon
completion of the project as per the terms of allotment, the sale deed will be registered in favour of the Company by KIADB.
The company has started the construction of the hotel during FY22-23 and expect to complete the project during last
quarter of FY25-26.

(b) The Company was allotted 4255 sq.yds of land at Survey No.1/1, Hardware Park at Kancha Imarat Village, Maheshwaram
mandal, RR Disctrict, Telangana for construction of a hotel. The land is under agreement for sale from TGIIC, Hyderabad.
The Company requested TGIIC to grant time for initiation and execution of the project.

27. In respect of the year ended Mar 31, 2024, the Board of directors recommended a final dividend of Rs.1.50 per share be
paid on fully paid equity shares of Rs.2 each, which was approved by the shareholders at the Annual General Meeting held
on August 17th, 2024. The total amount of final dividend so declared and paid in FY 24-25 amounts to Rs.940.52 Lakhs.

The Board of Directors of the Company have recommended a dividend of 100% .ie. Re.2/- per equity share of Rs.2/- each
for the year ended 31st March 2025 (2024: 75% i.e Rs.1.50/- per equity share of Rs.2/ each). The dividend will be paid to all
the shareholders who hold equity shares as on the cut- off date subject to the approval of the shareholders at the ensuing
Annual General Meeting.

28. Managerial Remuneration:

Mrs. G. Indira Krishan Reddy -Managing Director (Upto 24.04.2025):

For the current financial year, the salary paid to the Managing Director is as approved by the shareholders at the Annual
General Meeting of the Company held on 24th September 2020.. The company also provided in the books of account
for the commission of Rs.94.00 Lakhs equivalent to 1% of the net profits after tax of the company and Annual Bonus of
Rs.128.80 Lakhs to her as per the terms of appointment which were recommended by the Nomination and Remuneration
Committee (NRC) and approved by the Board of Directors at their meetings held on 12th May, 2025 and 13th May, 2025
respectively. The total remuneration i.e.( salary, perks, commissioned annual bonus) falls within the overall ceiling limit
of 5% individually on the net profits calculated as per Sections 197, 198 read with Section I of Part II of Schedule V to the
Companies Act, 2013.

Mrs. Shalini Bhupal - Managing Director (with effect from 25.04.2025)

For the current financial year, the total salary of Rs.465.39 Lakhs was paid to the Mrs. Shalini Bhupal as Joint Managing
Director was as approved by the shareholders at the Annual General Meeting of the Company held on 17th August 2024
In addition, she also drew remuneration of Rs.245.77 Lakhs as the Chief Executive Officer of Greenwoods Palaces and
Resorts Private Limited a joint venture company who owns the Taj Santacruz Hotel.

Accordingly, the cumulative remuneration drawn by her was Rs.711.15 lakhs from both the Companies as per the terms of
her respective appointments,. In terms of the provisions of Sections 197 and 198, read with Schedule V of the Companies
Act, 2013, she is not eligible for any commission or annual bonus. Hence the total remuneration paid to her from both the
companies falls with the overall ceiling of 5% of the net profits calculated under the Act.

Independent Directors:

The Company also took approvals of the Nomination and Remuneration Committee (NRC) at their meeting held on
12th May, 2025 and approval and recommendation of the Board of Directors at their meeting held on 13th May, 2025
for payment of commission to Non-Executive Independent Directors amounting to Rs.70.00 Lakhs for the FY2024-2025,
subject to approval of the shareholders at the ensuing annual general meeting. The payment of commission to Non¬
Executive Independent Directors is within the overall ceiling of 1% on the net profits calculated as per Sections 197 and 198
of the Companies Act, 2013. The company has made necessary provision in the books of accounts.

31. Employee benefits:

Defined contribution plan:

Amount recognized as an expense in statement of profit and loss Rs.123.23 lakhs (2024: Rs. 117.85 lakhs) on account of
provident fund and Rs.67.31 lakhs (2024: Rs. 58.67 lakhs) on account of Superannuation.

Defined benefit plan:

Gratuity:

The Company has a funded defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service as per the provision of the
Payment of Gratuity Act,1972 with a tax exemption ceiling on gratuity of Rs.2,000,000/-. The liability of Gratuity is recognized
on the basis of actuarial valuation.

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

a. Statement of Profit and Loss and Statement of Other Comprehensive Income

Compensated Absences:

The Company''s liability towards un-funded leave encashment is determined by independent actuarial valuation using the
projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement
and measures each unit separately to build up the final obligation.

The Defined Benefit Obligation of compensated absence in respect of the employees of the Company as at 31 March 2025
works out to Rs. 42,475,436/- (2024: Rs. 3,35,56,896/-)

The discount rate and salary escalation rate is the same as adopted for gratuity liability valuation.

The estimates of future salary increases (which has been set in consultation with the company) takes account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The provision is presented as current and non-current based on the actuarial report obtained by the Company.

32. Corporate Social Responsibility Expenditure

Ongoing Project: The Company has signed Memorandum of Understanding (MOU) with Bangalore Development Authority
(BDA), to rejuvenate and restore the Shivanahalli lake, Yelahanka, Bengaluru. The company is taking up the restoration works
as per the approved plans of BDA.

For the FY2023-24, the company was required to spend an amount of Rs. 68.56 lakhs as per the provisions of Section 135 of
the Companies Act, 2013. The company utilized the brought forward excess spend of Rs.24.48 lakhs from the FY 2022-23 to
set off the current FY23-24 expenditure, thus leaving a balance unspent amount of Rs. 44.08 lakhs for FY 2023-24, which was
transferred to a separate suspense account as required under the provisions of Companies Act 2013. This amount of Rs.44.08
lakhs was spent in FY 2024-25.

Further, for the FY 2024-25, the company is required to spend an amount of Rs. 163.34 lakhs as per the provisions of Section
135 of the Companies Act, 2013. This amount was transferred to a separate suspense account as required under the provisions
of Companies Act 2013, after making necessary provision in the books of account.

Other than ongoing Project: Nil

34. The Company has recognised in the earlier years an amount of Rs.25 crores as Key Money receivable from Indian Hotels
Company Limited ("IHCL or Operator").The Operator agreed to pay the key money to secure the hotel operating rights
of Taj Krishna and Taj Deccan for a further period of 20 years, as per the terms agreed between the parties and also as
approved in the Audit Committee and Board

35. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realize in
the ordinary course of business approximately the value at which they are stated in accounts.

36. Segmental Reporting:

The Company''s only business being hoteliering, disclosure of segment-wise information under Accounting Standard (AS)
108 "Segmental Information" notified by the Companies (Accounting Standards) Rules, 2006 (as amended) does not arise.
There is no geographical segment to be reported since all the operations are undertaken in India.

37. 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 audit trail feature with respect to application and database layer changes in
accounting software, has operated effectively throughout the year, except:

i) Access management tool was implemented during the year for revenue softwares on premise with effect from September
6, 2024 and audit trail (edit log) on database was hence enabled effective that date.

ii) In respect of a revenue software migrated to cloud infrastructure during the year and as confirmed directly by the
software product owner, access to database is not available to any of their customers and database audit trails are
active by default and cannot be disabled.

The audit trail has been preserved by the Company as per the statutory requirements for record retention.

38. Risk Management, Objectives and Policies:

Risks and Concerns

Economic Risks: Hotel business in general is sensitive to fluctuations in the economy. The hotel sector may be unfavourably
affected by changes in global and domestic economies, changes in local market conditions, excess room supply, reduced
international or local demand for hotel rooms and associates services, competition in the industry, government policies
and regulations, fluctuations in interest rates and foreign exchange rates and other natural and social factors. Since
demand for hotels is affected by world economic growth, a global recession could lead to a downturn in the hotel industry.

Socio-Political Risks: The Hotel industry faces risk from volatile socio-political environment, internationally as well as
within the country. India, being one of the fastest growing economies of the world in the recent past, continues to attract
investments. However, any adverse events such as political instability, conflict between nations, terrorist attacks or spread
of any epidemic or security threats to any countries may affect the level of travel and business activity.

Security Risks: The Hotel industry demands peace at all times to flourish. The biggest villain in South East Asia has been
terrorism supplemented by political instability. Subsequent to the Mumbai terror attacks in November 2008, the hotel
industry has invested substantially on security and intelligence. The security concerns have been duly addressed instilling
confidence in the customer by providing international standards of safety.

Business interruption risk on account of unprecedented events like a pandemic: A pandemic like the Covid-19 outbreak
confronts the hospitality industry with an unprecedented challenge. It causes a severe downturn in all streams of business.
With lockdowns and resultant travel and mobility restrictions, all corporate and leisure travel comes to a halt. With the fear
of pandemic spread in enclosed spaces, stay-at-home orders, social distancing and community lockdowns, all restaurants
and banquet business get severely affected with restaurants resorting to business from take-outs and banquet functions
being conducted with limited attendance. Hygiene standards and pandemic protocols need to be strictly implemented to
instill confidence into the customer and recover from any such incidence.

Company-specific Risks
Heavy Dependence on India

Risk of wage inflation: The hotel industry needs quality employees and with demand for the same improving across the
industry, the Company feels that wage inflation would be a critical factor in determining costs for the Company. Thus, your
Company will continue to focus on improving manpower efficiencies and creating a lean organization, while maximizing
effectiveness in terms of customer service and satisfaction, which is an area of great importance for your Company.

Foreign Exchange Risk: Your Company may be impacted by the fluctuation of the Indian Rupee against other foreign
currencies. To mitigate this risk the Company is operating on single currency billing in Indian Rupees.

Project Implementation Risk: Your Company may be impacted by delays in implementation of projects which would result
in increasing project cost and loss of potential revenue. To mitigate this risk, the Company has in place an experienced
project team supported by the leading external technical consultants and a dedicated project management company. The
Company will endeavour to complete its projects on time at optimal cost so as to maximize the profitability.

39. Capital Management

The Company''s policy is to maintain strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of business.

The Company manages its Capital structure through a balanced mix of debt and equity. The Company''s capital structure is
influenced by the changes in the regulatory frameworks, government policies, available options of financing and impact of
the same on liquidity position.

The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash
equivalents. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
The table below shows the Gearing ratio for FY 2024-25 and FY 2023-24.

42. Financial risk management objectives and policies

The Company is exposed to financial risk such as Market Risk (Interest Rate Risk, fluctuation in foreign exchange rates and
price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability
of the financial markets and attempts to minimize their potential negative influence on the financial performance of the
Company. The Company continueously reviews its risk exposures and takes measures to limit it to acceptable levels. The
Board of Directors have the overall responsibility for the establishment and oversight of the Company''s risk management
framework.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk i.e. interest rate risk, foreign currency risk and other price risk.
Financial instruments of the Company affected by market risk include borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at 31 March 2025 and 31 March 2024.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other post¬
retirement obligations; provisions; and the non-financial assets and liabilities.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

Interest rate risk

The interest rate risk arise from long term borrowing of the company with variable interest rates (Bank one year MCLR
plus spread). Although the spread is fixed, it is subject to change at fixed time interval or occurrence of specified event(s).
Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by
restructuring its financing arrangement.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held
constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

Price risk

Price risk is the risk of fluctuations in the change in prices of equity Investments. The Company''s investment in JV company is
of strategic in nature rather than for trading purpose.

Credit risk

Credit risk is the risk arising from credit exposure to customers and the counterparty will default on its contractual obligations.
The Company has adopted a policy of only dealing with creditworthy customers/ corporates to minimise collection losses.
Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and
other relevant factors. Advance payments are obtained from customers in banquets, as a means of mitigating the risk of
financial loss from defaults.

The carrying amount of trade and other receivables, advances to suppliers, cash and short-term deposits and interest
receivable on deposits represents company''s maximum exposure to the credit risk. No other financial asset carry a significant
exposure with respect to the credit risk. Deposits and cash balances are placed with Schedule Commercial banks.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number
of minor receivables are assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is
the carrying value of each class of financial assets. The Company also holds advances as security from customers to mitigate
credit risk.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in
accordance with the Company''s policy. Investments held by the Company are in the nature of investment in jointly controlled
entity and also an investment in an alternate energy supply company as required under the respective State energy policy.
Both the categories are unquoted non-trade equity.

Liquidity risk

Liquidity risk is the risk that the Company will have difficulty in raising the financial resources required to fulfil its commitments.
Liquidity risk is held at low levels through effective cash flow management. Cash flow forecasting is performed internally
by rolling forecasts of the Company''s liquidity requirements to ensure that it has sufficient cash to meet operational
requirements, to fund scheduled capex and debt repayments and to comply with the terms of financing documents.

The Company primarily uses short-term bank facilities in the nature of bank overdraft facility to fund its ongoing working
capital requirements.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted
payments.

Explanations to variance in Ratios:

1) Current ratio decreased due to repayment of all current borrowings

2) The debt-equity ratio and debt service coverage ratio is currently nil as there are no outstanding debts.

3) Interest service coverage has increased due to improvement in business as also repayment of borrowings.

4) Trade Receivable turnover has increased because of reduction in average debtors outstanding achieved by robust collections.

5) Net profit ratio improved due to an increase in net profit after tax from improvement in business volumes.

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

7) Return on investments increased with increase in yields of the fixed deposits.

8) The Company has not presented Inventory turnover ratio since it holds inventory for consumption in the service of food and

beverages and the proportion of such inventory is insignificant to total assets.

44. The company has a policy of conducting physical verification of fixed assets once every three years in a phased manner. In
line with this policy, physical verification was carried out during the financial year 2022-23. No physical verification was
conducted during the current financial year. Discrepancies identified during the previous verification were duly adjusted
in the books of account.

45. The Company does not have any transactions with companies struck off under section 248 of Companies Act 2013 or
Section 560 of Companies Act 1956.

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

47. The Company has not revalued its PPE including Right-of-Use assets and Intangible Assets during the year.

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

49. The Company has not advanced, 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

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

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

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

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

52. The Company has not been declared as a willfull defaulter by any bank or financial institution or other lender.

53. The Company had been sanctioned working capital limits in excess of Rs. Five crores in aggregate from banks on the basis
of security of current assets of the Company. These limits include an overdraft facility, for which the Company is not
required to submit periodic returns or statements to the bank, as per the terms of the Sanction. The Company is regular
in complying with all the covenants and requisites to such sanctioned limits.

54. No proceedings have been initiated or are pending against the Company as at 31st March, 2025 for holding any Benami
property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) and rules made thereunder.

55. Balances in the accounts of various parties are subject to confirmation and reconciliation.

56. Previous year figures have been regrouped / reclassified, wherever necessary, to correspond with the current year
classification. Figures in brackets relate to the previous year.

57. The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval
of financial statements to determine the necessity for recognition and/or reporting of any ofthese events and transactions
in the financial statements. As of May 13, 2025, there are no subsequent events to be recognized or reported that are not
already disclosed.

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

For M.BHASKARA RAO & CO., Shalini Bhupal Dr. G V K Reddy

Chartered Accountants Managing Director & CEO Non-Executive Chairman

Firm Regn No.000459S DIN: 00005431 DIN: 00005212

^D. ^{Bapu Raghavendra} j Srinivasa Murthy

^Partner CFO & Company Secretary

Membership No.213274 M. N_o. _: FCS4460

Place : Hyderabad
Date : May 13, 2025

---

Mar 31, 2024

ii) Rights, preferences and restrictions attachedto Equityshares including declaration ofdividend:

The company has one class of equity shares having par value of Rs.2 per share. Equityshares are attached with one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding, after discharging all preferential creditors. The equity shareholders are eligible to receive any dividend that is declared bytheCompanyas per provisions oftheCompanies Act, 2013

Footnotes:

Description ofnature and purpose ofeach reserve

a) Capital Reserve: Capital reserve mainlyconsists ofreserves transferred on amalgamation ofsubsidiaries in earlieryears.

b) Securities Premium: Securities premium represents the premium charged to the shareholders at the time of issuance of equity shares. Thesecurities premium can be utilised basedon the relevant requirements oftheCompanies Act, 2013.

c) General Reserve: General reserve was created from time to time by way of transfer of profits from retained earnings for appropriation purposes basedon the provisions ofthe Companies Act priorto its amendment.

(All amountsare Rs. in Lakhs.otherwisestated)

i) Term Loans from Banks:

a) Rs.18.75 crores (2023: Rs.41.53 crores) from HDFC Bank Ltd at an interest rate ofl year MCLR spread of 140 bps.viz. 10.35% p a is secured byfirst charge on all assets ofTaj Chandigarh, Chandigarh repayable in 32 equal quarterlyinstalments startingfrom 1st November 2016. The loan was sanctioned with a moratorium of 2yearsfrom the date of first disbursement, i.e. August 2014.

b) Rs.8.44 crores (2023: Rs.12.65 crores) of short term loan from HDFC Bank Ltd under the Emergency Credit Line Guarantee Scheme (ECLGS 2.0) notified by the Government of India, to meet the working capital requirement and repayable in 48 equated monthlyinstalments afteral2month moratorium from the date ofdisbursement, at an interest rate of9.25% p.a

c) Rs.15.82 crores (2023: Rs.16.87 crores) of short term loan from HDFC Bank Ltd under the Emergency Credit Line Guarantee Scheme (ECLGS 3.0) notified by the Government of India, to meet the working capital requirement and repayable in 48 equated monthlyinstalments aftera24 month moratorium from the date ofdisbursement, at an interest rate of9.25% p.a

d) Rs.8.16 crores (2023: Rs.12.29 crores) of short term loan from Federal Bank Ltd under the Emergency Credit Line Guarantee Scheme (ECLGS 2.0) notified by the Government of India, to meet the working capital requirements and repayable in 48 equated monthlyinstalments afteral2month moratorium from the date ofdisbursement, at an interest rate of9.25% p.a.

e) Rs.15.30 crores (2023: Rs.16.38 crores) of short term loan from Federal Bank Ltd under the Emergency Credit Line Guarantee Scheme (ECLGS 3.0) notified by the Government of India, to meet the working capital requirements and repayable in 48 equated monthlyinstalments after a 24 month moratorium from the date ofdisbursement, at an interest rate of9.25% p.a.

f) Federal Bank Limited has sanctioned a Rs.200 crores term loan limit to the Company towards construction of the Yelahanka Bengaluru hotel project with a tenure of 114 months including a 3year moratorium. The loan is secured by exclusive charge on leasehold rights of 2.35 acres of land at Yelahanka site and all assets of the Yelahanka hotel after construction as also additional charge on assets ofTaj Club House, Chennai andsecondcharge on current assets oftheCompany.

ii) Loans repayable on demandfrom Banks

a) Bank Overdraft limit was sanctioned by Federal Bank Ltd, drawn balance Rs .Nil as at 31.03.2024 (2023: Nil) secured by first charge on current assets ofthe Company.

22. Commitments and Contingent liabilities not provided for in respect of:

Commitments

Estimatedamountofcontracts remainingto be executedon capital account, net ofadvances Rs.4853.66 lakhs (2023: Rs. 5503.87lakhs). Contingent liabilities not providedforin respect of

Particulars	As at March 31, 2024 Rs. in lakhs	As at March 31, 2023 Rs. in lakhs
Value added tax matters (Rs.97.20 lakhs [2023: Rs.97.20 lakhs] paid under protest againstthe demands)	307.40	307.40
Income tax matters (Rs.102.30 lakhs [2023: Rs.102.30 lakhs] paid under protest againstthe demands)	56.33	107.91
Servicetax matters	2527.63	2527.63
Goods and Service tax matters		24.06
Probable customs duty payable on the Equipment Imported under Export Promotion Capital Goods Scheme	123.83	123.83
Demandfrom TSSPDCLtowards wheeling charges (Refer Note 23)	2129.97	2T29-97
BankGuarantees	41.00	-

23. The Company received notice during FY 2020-21, from TSSPDCL (Telangana State Southern Power Distribution Company Limited), pertaining to wheeling charges for FY 2002-2003 to FY 2018-2019 at Taj Krishna, Taj Deccan and Taj Banjara aggregating to Rs.21,29,97,589/-. The Company filed a Writ petition with the Honourable High Court of Telangana for a stay on the recovery of the demand and the Honourable High Court of Telangana vide Order dated 17/08/2020 granted stay on recovery and also directed TSSPDCL to not take any coercive action including that of disconnection of the power supply pending disposal of the writ petitions ofthe company.

24. Land under lease cum sale:

(a) Bangalore hotel project - The Company was allotted 7.22 acres of land at Shivanahalli village, Yelanhanka, Bangalore North for construction of a 5-star hotel. The land is under a sale-cum-lease agreement with KIADB, Bangalore and upon completion of the project as per the terms of allotment, the sale deed will be registered in favour ofthe Company by KIADB. The company has startedthe construction ofthe hotel during FY2022-2023 and expectto completethe project during lastquarterofFY25-26.

(b) Ginger hotel project - The Company was allotted 4255 sq.yds of land at Survey No.1/1, Hardware Park at Kancha Imarat Village, Maheshwaram mandal, RR Disctrict, Telangana for construction of a Ginger brand hotel. The land is under agreement for sale from TSIIC, Hyderabad and upon completion of the project as per the terms of allotment, the sale deed will be registered by TSIIC. TheCompany requestedTSIICto granttime forcompletion ofthe project. We expect a favorable decision atthe earliest.

25. The licence agreement for Taj Banjara hotel, Hyderabad has expired and the Taj Banjara hotel was closed for renovation during February 2023. The commercial terms for renewal ofthe Taj Banjara License Agreement with Hotel Banjara Limited (Owners of Hotel Taj Banjara) could not be finalized. Hence, the company has completed the formalities as per the License agreement and handedoverthe hotel backto M/s Hotel Banjara Limited, New Delhi in the thirdquarterof the financial year, includingtransfer/ saleof assets for a consideration of Rs._98 lakhs againstthe carryingvalue of transferred assets of Rs.1.75 Crores. Theturnover of theCompanyinthe previousyearfrom Taj Banjara Hotel uptoto the closure ofhotel for renovation was Rs.21 crores.

26. In respect of the year ended Mar 31, 2023, the Board of directors recommended a final dividend of Rs.l per share be paid on fully paid equity shares of Rs.2 each, which was approved by the shareholders at the Annual General Meeting held on September 15, 2023. Thetotal amount offinal dividendso declared and paid in FY 23-24 amounts to Rs.627.01 Lakhs.

The Board of Directors oftheCompany have recommended a dividendof 75% .ie. Re.1.50/- perequityshare ofRs.2/- each forthe yearended3ist March 2024 (2023:50% i.e Rs.l/- perequityshare ofRs.2/each).The dividendwill bepaidtoall theshareholders who hold equity shares as on the cut- off date subject to the approval ofthe shareholders at the ensuing Annual General Meeting.

27. As per the amended Schedule V of the Companies Act, 2013, the remuneration paid to the Managing Director and the Joint Managing Director for the financial year 2023-24 were as approved by the shareholders at the Annual General Meeting ofthe Company held on 24th September 2020 and 25th July 2019 respectively. During the year the Company made a provision in the books ofaccount for payment ofCommission andAnnual Bonus as pertheterms oftheirappointment.

The Company has taken the approval ofthe Nomination and Remuneration Committee and the Board of Directors at their meetings held on 22nd May, 2024 and 23rd May, 2024 respectively for payment ofcommission equivalent to 1% of the net profits aftertax ofthe company i.e. Rs.74,40,613/- each, to the Managing Director and the Joint Managing Director. The Company also took approvals for payment of annual bonus as per the terms of their appointment i.e. Rs.53,39,382/- to the Managing Director and Rs.1,38,21,888/- to the Joint managing Director for the FY 2023-24. The cumulative remuneration (salary, perks, commission and annual bonus) falls within the overall ceiling of 10% and overall ceiling of 5% individually on the net profits calculated as per Sections 197 and 198 ofthe Companies Act, 2013. The company has made necessary provisions in the books of accounts for the payment ofcommission and bonus.

Payment of remuneration to Independent Directors:

The Company also took approvals of the Nomination and Remuneration Committee (NRC) at their meeting held on 22.05.2024 and approval and recommendation of the Board of Directors at their meeting held on 23.05.2024 for payment of commission to Non-Executive Independent Directors amounting to Rs.70,00,000/-for the FY2023-2024, subject to approval of the shareholders at the ensuing annual general meeting. The payment of commission to Non-Executive Independent Directors is within the overall ceiling of 1% on the net profits calculated as per Sections 197 and 198 of the Companies Act, 2013. The company has made necessary provision in the books ofaccounts.

During the FY2023-24, the company has recognised and paid commission of Rs. 66,50,000/- pertaining to FY2022-23 to all the Non -Executive Independent Directors after obtaining the approval from the shareholders of the company at the AGM held on 15.09.2023.

30. Employee benefits:

Defined contribution plan:

Amount recognized as an expense in statement of profit and loss Rs.117.85 lakhs (2023: Rs. 114.63 lakhs) on account of provident fund and Rs.58.67 lakhs (2023: Rs. 54.46 lakhs) on account ofSuperannuation.

Defined benefit plan:

Gratuity:

The Company has a funded defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service as per the provision of the Payment of GratuityAct,l972 with atax exemption ceilingon gratuityofRs.2,000,000/-

The following tables summarize the components of net expense recognized in the Statement of Profit and Loss and amounts recognized in the Balance Sheetforthe respective employee gratuity plans.

Theweighted average duration to the payment ofthese cash flows is 4.66years.

Compensated Absences:

The Company’s liability towards un-funded leave encashment is determined by independent actuarial valuation using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unitseparatelyto buildup the final obligation.

The Defined Benefit Obligation of compensated absence in respect of the employees of the Company as at 31 March 2024 works out to Rs.3,35,56,896/- (2023: Rs. 2,88,23,926/-)

The discount rate andsalaryescalation rate is the same as adoptedforgratuity liability valuation.

The estimates of future salary increases (which has been set in consultation with the company) takes account of inflation, seniority, promotion and other relevantfactors, such as supply anddemand in the employment market.

31. Corporate Social Responsibility Expenditure

Ongoing Project: The Company has signed Memorandum of Understanding (MOU) with Bangalore Development Authority (BDA), to rejuvenate and restore the Shivanahalli lake, Yelahanka, Bengaluru. The company is taking up the restoration works as per the approved plans ofBDA.

For the FY2023-24, the company is required to spend an amount of Rs. 68.56 lakhs as per the provisions of Section 135 of the Companies Act, 2013. The company utilized the brought forward excess spend of Rs.24.48 lakhs from the previous year to set off the current FY23-24 expenditure, thus leaving a balance unspent amount of Rs. 44.08 lakhs for FY 2023-24. The unspent amount of Rs. 44.08 lakhs was transferredto a separate suspense account as required underthe provisions ofCompanies Act 2013.

The Company reviews its income tax treatments in order to determine its impact on the financial statements. As a practice, where the interpretation of income tax law is not clear, management relies on the some or all of the following factors to determine the probability of its acceptance bythe tax authority:

Strength oftechnical andjudicial argument and clarityofthe legislation;

Past experience relatedto similartaxtreatments in its own case;

Legal and professional advice orcase law relatedto otherentities.

After analysing above factors for each of such uncertain tax treatments, where the Company expects that the probability to sustain its position on ultimate resolution of such uncertain tax treatment is remote, the Company ensures that such uncertain tax positions are adequately providedforin the Company’s financial Statements.

iv) Analysis of Deferredtax assets/ (liabilities) presented in the Balance Sheet andsignificant components of net deferredtax assets and liabilities are disclosed in Noteis.

33. The previous year figures include an amount of Rs.25 crores towards Key Money receivable from IHCL in line with the signed commercial terms between the company and IHCL. As per the terms agreed between the parties and also as approved in the Audit Committee and Board, IHCL agreed to pay the key money to TAJ GVK to secure the hotel operating rights of Taj Krishna and Taj Deccan forafurther period of20years.

34. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realize in the ordinarycourse ofbusiness approximatelythevalue atwhich theyarestated in accounts.

35. Segmental Reporting:

The Company’s only business being hoteliering, disclosure of segment-wise information under Accounting Standard (AS) 108 “Segmental Information” notified by the Companies (Accounting Standards) Rules, 2006 (as amended) does not arise. There is no geographical segmentto be reportedsince all the operations are undertaken inlndia.

36. Audit Trail: The Ministry of Corporate Affairs (MCA) has issued a Notification (Companies Accounts Amendment Rules, 2021), which is effective from 01st April, 2023 andstates that every company which uses accounting software for maintaining its books of account shall use only the accounting software where there is a feature of recording audit trail of each and every transaction and further creating an edit log of each change made to books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

in the ERP currently used by the Company, 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 creatorofjournals are tracked. This feature cannot be disabled. Additionally, audit trail (edit log) facilitywas enabledfor master field changes and direct data changes to transactions in general ledgers in a phased manner during June 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 ofSales software) has inbuilt audit trail feature from oast April, 2023.

Post publication of ICAI implementation guide, direct database level changes were also included in audit trail scope. In respect of ERP, PMS and POS, access to direct database level changes is available onlyto outsourcedvendorand is not availableto anyof theCompany personnel.

37. Risk Management, Objectives and Policies:

Risks and Concerns

Economic Risks: Hotel business in general is sensitive to fluctuations in the economy. The hotel sector may be unfavourably affected by changes in global and domestic economies, changes in local market conditions, excess room supply, reduced international or local demand for hotel rooms and associates services, competition in the industry, government policies and regulations, fluctuations in interest rates and foreign exchange rates and other natural and social factors. Since demand for hotels is affected byworldeconomicgrowth, a global recession could leadto a downturn in the hotel industry.

Socio-Political Risks: The Hotel industry faces risk from volatile socio-political environment, internationally as well as within the country. India, being one of the fastest growing economies of the world in the recent past, continues to attract investments. However, any adverse events such as political instability, conflict between nations, terrorist attacks or spread of any epidemic or securitythreats to anycountries mayaffectthe level oftravel and business activity.

Security Risks: The Hotel industry demands peace at all times to flourish. The biggest villain in South East Asia has been terrorism supplemented by political instability. Subsequent to the Mumbai terror attacks in November 2008, the hotel industry has invested substantially on security and intelligence. The security concerns have been duly addressed instilling confidence in the customer by providing international standards ofsafety.

Business interruption risk on account of unprecedented events like a pandemic: A pandemic like the Covid-19 outbreak confronts the hospitality industry with an unprecedented challenge. It causes a severe downturn in all streams ofbusiness. With lockdowns and resultant travel and mobility restrictions, all corporate and leisure travel comes to a halt. With the fear of pandemic spread in enclosed spaces, stay-at-home orders, social distancing and community lockdowns, all restaurants and banquet business get severely affected with restaurants resorting to business from take-outs and banquet functions being conducted with limited attendance. Hygiene standards and pandemic protocols need to be strictly implemented to instill confidence into the customer and recoverfrom anysuch incidence.

Company-specific Risks Heavy Dependence on India

Risk of wage inflation: The hotel industry needs quality employees and with demand for the same improving across the industry, the Company feels that wage inflation would be a critical factor in determining costs for the Company. Thus, your Company will continue to focus on improving manpower efficiencies and creating a lean organization, while maximizing effectiveness in terms ofcustomerservice andsatisfaction, which is an area ofgreat importance foryourCompany.

Foreign Exchange Risk: Your Company may be impacted by thefluctuation of the Indian Rupee against otherforeign currencies. To mitigate this risk the Company is operatingon single currency billing in Indian Rupees.

Project Implementation Risk: Your Company may be impacted by delays in implementation of projects which would result in increasing project cost and loss of potential revenue. To mitigate this risk, the Company has in place an experienced project team supported by the leading external technical consultants and a dedicated project management company. The Company will endeavourto complete its projects ontime at optimal costso as to maximizethe profitability.

38. Capital management

The Company’s policy is to maintain strong capital base so as to maintain investor, creditor and market confidence and to sustain future development ofbusiness.

The Company manages its Capital structure through a balanced mix of debt and equity. The Company’s capital structure is influenced by the changes in the regulatory frameworks, government policies, available options of financing and impact of the same on liquidity position.

The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The table belowshows theGearing ratio for FY 2023-24 and FY 2022-23.

There have been no transfers between Level i and Level 2 during the period.

41. Financial risk management objectives and policies

The Company is exposed to financial risk such as Market Risk (interest Rate Risk, fluctuation in foreign exchange rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the financial markets and attempts to minimize theirpotential negative influence on thefinancial performance ofthe Company.

The Company continuously reviews its risk exposures and takes measures to limit it to acceptable levels. The Board of Directors havethe overall responsibilityforthe establishment and oversight ofthe Company’s risk management framework.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, foreign currency risk and other price risk. Financial instruments oftheCompanyaffected by market riskinclude borrowings and deposits.

Thesensitivityanalysis inthefollowingsections relate to the position as at3l March 2024 and3l March 2023.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other post- retirement obligations; provisions; andthe non-financial assets andliabilities.

Thefollowing assumptions have been made in calculatingthesensitivityanalysis:

The sensitivity ofthe relevant profit or loss item is the effect ofthe assumed changes in respective market risks. This is based on thefinancial assets andfinancial liabilities heldat3l March 2024and3l March 2023.

Interest rate risk

The interest rate risk arises from long term borrowing of the company with variable interest rates (Bank one year MCLR plus spread). Although the spread is fixed, it is subject to change at fixed time interval or occurrence of specified event(s). Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financingarrangement.

Price risk

Price risk is the risk of fluctuations in the change in prices of equity investments. The Company’s investment in JV company is of strategic in nature ratherthan fortrading purpose.

Credit risk

Credit risk is the riskarisingfrom credit exposure to customers andthe counter-partywill default on its contractual obligations.

The Company has adopted a policy of only dealing with creditworthy customers/ corporates to minimise collection losses. Credit Control team assesses the credit quality ofthe customers, their financial position, past experience in payments and other relevant factors. Advance payments are obtained from customers in banquets, as a means of mitigating the risk of financial loss from defaults.

The carryingamount of trade andother receivables, advances tosuppliers, cash andshort-term deposits and interest receivable on deposits represents company’s maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Deposits andcash balances are placedwith ScheduleCommercial banks.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value ofeach class offinancial assets. TheCompanyalso holds advances as securityfrom customersto mitigate credit risk.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments held by the Company are in the nature of investment in jointly controlled entity and also an investment in an alternate energy supply company as required under the respective State energy policy. Both the categories are unquoted non-trade equity.

Liquidity risk

Liquidity risk is the risk that the Company will have difficulty in raising the financial resources required to fulfill its commitments. Liquidity risk is heldat lowlevels through effective cashflow management.

Cash flow forecasting is performed internally by rolling forecasts of the Company’s liquidity requirements to ensure that it has sufficient cash to meet operational requirements, to fund scheduled capex and debt repayments and to comply with the terms offinancingdocuments.

The Company primarily uses short-term bank facilities in the nature of bank overdraft facility to fund its ongoing working capital requirements. The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

43. The company has conducted physical verification of fixed assets duringtheyear, in linewith its policyof conductingthe exercise once everythreeyears and material discrepancies noticedwere dulyadjusted inthe books ofaccount inthefinancial year.

44. The Company does not have any transactions with companies struck off under section 248 of Companies Act 2013 or Section 560 ofCompanies Actl956.

45. TheCompanydoes not have anycharge orsatisfaction which isyetto be registeredwith ROC beyond thestatutory period.

46. TheCompany has not revalued its PPE including Right-of-Use assets and Intangible Assets duringtheyear.

47. TheCompany has nottraded orinvested in Crypto currency orVirtual Currencyduringthefinancialyear.

48. The Company has not advanced, loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understandingthatthe Intermediaryshall:

(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 anyguarantee, securityorthe like to or on behalfofthe Ultimate Beneficiaries

49. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded inwriting orotherwise) thatthe Companyshall:

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

(b) provide anyguarantee, securityorthelike on behalfofthe Ultimate Beneficiaries

50. TheCompanydoes not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income duringtheyear in the tax assessments under the Income Tax Act, 1961, such as, search or survey or any other relevant provisions ofthe lncomeTaxAct,l96l.

51. TheCompany has not been declaredasawillful defaulter by any bankorfinancial institution or other lender.

52. TheCompany had been sanctioned working capital limits in excess of Rs. 5 crores in aggregate from banks on the basis of security of current assets ofthe Company. The Company is regular in complying with all the covenants and requisites to such sanctioned limits.

53. No proceedings have been initiated or are pending againstthe Company as at3ist March, 2024 for holdingany Benami property underthe Benami Transactions (Prohibition) Act/1988 (as amended in 2016) and rules madethereunder.

54. Balances in the accounts ofvarious parties are subjectto confirmation and reconciliation.

55. Previous year figures have been re-casted / restated wherever necessary including those as required in keeping with revised Schedule III amendments. Figures in brackets indicate those for previousyear.

---

Mar 31, 2023

i) Term Loans from Banks:

a) Rs.41.53 crores (2022: Rs.60.28 crores) from HDFC Bank Ltd at an interest rate of 1 year MCLR spread of 40 bps. viz. 9.35% p.a is secured by first charge on all assets of Taj Chandigarh, Chandigarh repayable in 32 equal quarterly instalments starting from 1st November 2016. The loan was sanctioned with a moratorium of 2 years from the date of first disbursement. ie. August 2014.

b) Rs.Nil (2022: Rs.43.75 crores) from AXIS Bank Ltd at an interest rate of 1 year MCLR spread of 110 bps.viz. 8.45% p.a is secured by first charge on all assets of Taj Club House, Chennai repayable in 26 structured quarterly instalments starting from 31st March 2017. The loan was sanctioned with a moratorium of 2.5 years from the date of first disbursement. ie. July 2014. This loan was repaid fully in Q3 of this financial year.

c) Rs.12.65 crores (2022: Rs.16.87 crores) of short term loan from HDFC Bank under the Emergency Credit Line Guarantee Scheme (ECLGS 2.0) notified by the Government of India, to meet the working capital requirement and repayable in 48 equated monthly instalments after a 12 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a

d) Rs.16.87 crores (2022: Rs.16.87 crores) of short term loan from HDFC Bank under the Emergency Credit Line Guarantee Scheme (ECLGS 3.0) notified by the Government of India, to meet the working capital requirement and repayable in 48 equated monthly instalments after a 24 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a

e) Rs.12.29 crores (2022: Rs.16.04 crores) of short term loan from AXIS Bank under the Emergency Credit Line Guarantee Scheme (ECLGS 2.0) notified by the Government of India, to meet the working capital requirements and repayable in 48 equated monthly instalments after a 12 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a. This loan was taken over by Federal Bank Limited in March 2023.

f) Rs.16.38 crores (2022: Rs.16.38 crores) of short term loan from AXIS Bank under the Emergency Credit Line Guarantee Scheme (ECLGS 3.0) notified by the Government of India, to meet the working capital requirements and repayable

in 48 equated monthly instalments after a 24 month moratorium from the date of disbursement, at an interest rate of 9.25% p.a. This loan was taken over by Federal Bank Limited in March 2023.

ii) Loans repayable on demand from Banks

a) Bank Overdraft from AXIS Bank Ltd Rs.Nil (2022 : Rs.Nil) at an interest rate of 1 month MCLR spread of 165 bps is secured by first charge on current assets of the Company, ranking pari passu with IDBI Bank Ltd, further secured by second charge on fixed assets of Taj Club House.

b) Bank Overdraft from IDBI Bank Ltd Rs.Nil (2022 : Rs.Nil) is secured by first charge on current assets of the Company, ranking pari passu with AXIS Bank Ltd.

c) During the year under reviesw, Bank Overdraft limit of Rs.30 crores was sanctioned by Federal Bank Ltd (drawn balance Rs.Nil as at 31.03.2023) secured by first charge on current assets of the Company. This limit will replace the limits earlier sanctioned by AXIS Bank Ltd and IDBI Bank Limited.

23. The Company received notice during FY 2020-21, from TSSPDCL (Telangana State Southern Power Distribution Company Limited), pertaining to wheeling charges for FY 2002-2003 to FY 2018-2019 at Taj Krishna, Taj Deccan and Taj Banjara aggregating to Rs.21,29,97,589/-. The Company filed a Writ petition with the Honourable High Court of Telangana for a stay on the recovery of the demand and the Honourable High Court of Telangana vide Order dated 17/08/2020 granted stay on recovery and also directed TSSPDCL to not take any coercive action including that of disconnection of the power supply pending disposal of the writ petitions of the company.

24. Impact of Covid on business: The business improved during the financial year under review with removal of all restrictions on inter-state and foreign travel, relaxations by various State Governments and the increased vaccination drive across the country. The company achieved higher revenues across the business segments viz, rooms, Banquets and restaurants compared to previous financial year.

25. Land under lease cum sale:

(a) Bangalore hotel project - The Company was allotted 7.22 acres of land at Shivanahalli village, Yelanhanka, Bangalore North for construction of a 5-star hotel. The land is under a sale-cum-lease agreement with KIADB, Bangalore and upon completion of the project as per the terms of allotment, the sale deed will be registered in favour of the Company by KIADB. The company has started the construction of the hotel during financial year 2022-23 and expects to complete the same within 36 moths.

(b) Ginger hotel project - The Company was allotted 4255 sq.yds of land at Survey No.1/1, Hardware Park at Kancha Imarat Village, Maheshwaram mandal, RR Disctrict, Telangana for construction of a Ginger brand hotel. The land is under agreement for sale from TSIIC, Hyderabad and upon completion of the project as per the terms of allotment, the sale deed will be registered by TSIIC. The Company requested TSIIC to grant time for completion of the project. We expect a favourable decision at the earliest.

26. During the year, the Company has recognized as Income in its accounts, an amount of Rs.25 crores towards Key Money receivable from IHCL in line with the signed commercial terms between the company and IHCL. The management fee invoices are also being raised by IHCL as per the terms agreed between the parties and as approved by Audit Committee and Board. As per the terms agreed between the parties and also as approved in the Audit Committee and Board, IHCL agreed to pay the key money to TAJ GVK to secure the hotel operating rights of Taj Krishna and Taj Deccan for a further period of 20 years.

27. The Board of Directors of the Company have recommended a dividend of 50% .ie. Re.l/- per equity share of Rs.2/-each for the year ended 31st March 2023. The dividend will be paid to all the shareholders who hold equity shares as on the cut- off date subject to the approval of the shareholders at the ensuing Annual General Meeting.

28. As per the amended Schedule V of the Companies Act, 2013, the remuneration paid to the Managing Director and the Joint Managing Director for the financial year 2022-23 were as approved by the shareholders at the Annual General Meeting of the Company held on 24th September 2020 and 25th July 2019 respectively. During the year the Company made a provision in the books of account for payment of Commission and Annual Bonus as per the terms of their appointment. The Company has taken the approval of the Nomination and Remuneration Committee and the Board of Directors at their meetings held on 17th May,2023 and 19th May, 2023 respectively for payment of commission of Rs.1,10,21,145/- each to the Managing Director and Joint Managing Director which is 1% of the Net profit calculated as per Sections 197 and 198 of the Companies Act, 2013. The Company also took approvals for payment of annual bonus of Rs.10,00,000/- to the Managing Director and Rs.68,00,000/- to the Joint Managing Director for the FY 2022-23. The cumulative remuneration (salary, perks, commission and annual bonus) falls within the overall ceiling of 10% for all the Whole Time Directors and ceiling of 5% individually on the net profits calculated as per Sections 197 and 198 of the Companies Act, 2013.

31. Employee benefits

Defined contribution plan:

Amount recognized as an expense in statement of profit and loss Rs.114.63 lakhs (2022: Rs. 86.92 lakhs) on account of provident fund and Rs.29.62 lakhs (2022: Rs. 21.71 lakhs) on account of Employee State Insurance.

Defined benefit plan:

Gratuity:

The Company has a funded defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service as per the provision of the Payment of Gratuity Act,1972 with a tax exemption ceiling of Rs.20,00,000/-

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

Sensitivity Analysis:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Compensated Absences:

The Company’s liability towards un-funded leave encashment is determined by independent actuarial valuation using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

The Defined Benefit Obligation of compensated absence in respect of the employees of the Company as at 31 March 2023 works out to Rs.2,88,23,926/- (2022: Rs. 2,54,69,643/-)

The discount rate and salary escalation rate is the same as adopted for gratuity liability valuation.

The estimates of future salary increases (which has been set in consultation with the company) takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

32. Corporate Social Responsibility Expenditure

Ongoing Project: The Company has signed Memorandum of Understanding (MOU) with Bangalore Development Authority (BDA), to rejuvenate and restore the Shivanahalli lake, Yelahanka, Bengaluru. The company is taking up the restoration works as per the approved plans of BDA.

Other than ongoing Project: The company has not spent any amount during the FY2020-21 and the unspent amount of Rs. 69.87 lakhs was transferred to a separate suspense account as required under the provisions of Companies Act 2013.

During the FY 2021-22, the company is required to spend an amount of Rs. 24.47 lakhs as per the provisions of Section 135 of the Companies Act, 2013.

During the 2nd wave of Covid 19 pandemic during May/ June 22, as per the request of the government of Karnataka, the company has spent an amount of Rs. 131.25 lakhs towards Supply of vaccines, oxygen cylinders and ambulance services. The same was spent through GVK EMRI. This amount of Rs.131.25 lakhs include the unspent balance of FY20-21 (Rs. 69.87 lakhs) and pertaining to the relevant FY21-22 (Rs.24.47 lakhs), thus leaving an advance spent of Rs. 36.91 lakhs, which can be utilized to offset against the future CSR expenditure.

For the FY2022-23, the company is required to spend an amount of Rs. 12.43 lakhs as per the provisions of Section 135 of the Companies Act, 2013, the company utilized the brought forward excess spend to set off the current FY2022-23 expenditure of Rs. 12.43 lakhs, thus leaving a balance of Rs. 24.48 lakhs to be utilized for set off in the future years.

34. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realize in the ordinary course of business approximately the value at which they are stated in accounts.

35. Segmental Reporting

The Company’s only business being hoteliering, disclosure of segment-wise information under Accounting Standard (AS) 108 "Segmental Information" notified by the Companies (Accounting Standards) Rules, 2006 (as amended) does not arise. There is no geographical segment to be reported since all the operations are undertaken in India.

36. Risk Management, Objectives and Policies Risks and Concerns

Economic Risks: Hotel business in general is sensitive to fluctuations in the economy. The hotel sector may be unfavourably affected by changes in global and domestic economies, changes in local market conditions, excess room supply, reduced international or local demand for hotel rooms and associates services, competition in the industry, government policies and regulations, fluctuations in interest rates and foreign exchange rates and other natural and social factors. Since demand for hotels is affected by world economic growth, a global recession could lead to a downturn in the hotel industry.

Socio-Political Risks: The Hotel industry faces risk from volatile socio-political environment, internationally as well as within the country. India, being one of the fastest growing economies of the world in the recent past, continues to attract investments. However, any adverse events such as political instability, conflict between nations, terrorist attacks or spread of any epidemic or security threats to any countries may affect the level of travel and business activity.

Security Risks: The Hotel industry demands peace at all times to flourish. The biggest villain in South East Asia has been terrorism supplemented by political instability. Subsequent to the Mumbai terror attacks in November 2008, the hotel industry has invested substantially on security and intelligence. The security concerns have been duly addressed instilling confidence in the customer by providing international standards of safety.

Business interruption risk on account of unprecedented events like a pandemic: A pandemic like the Covid-19 outbreak confronts the hospitality industry with an unprecedented challenge. It causes a severe downturn in all streams of business. With lockdowns and resultant travel and mobility restrictions, all corporate and leisure travel comes to a halt. With the fear of pandemic spread in enclosed spaces, stay-at-home orders, social distancing and community lockdowns, all restaurants and banquet business gets severely affected with restaurants resorting to business from take-outs and banquet functions being conducted with limited attendance. Hygiene standards and pandemic protocols need to be strictly implemented to instil confidence into the customer and recover from any such incidence.

Company-specific Risks Heavy Dependence on India

Risk of wage inflation: The hotel industry needs quality employees and with demand for the same improving across the industry, the Company feels that wage inflation would be a critical factor in determining costs for the Company.

Thus, your Company will continue to focus on improving manpower efficiencies and creating a lean organization, while maximizing effectiveness in terms of customer service and satisfaction, which is an area of great importance for your Company.

Foreign Exchange Risk: Your Company may be impacted by the fluctuation of the Indian Rupee against other foreign currencies. To mitigate this risk the Company has migrated to single currency billing in Indian Rupees.

Project Implementation Risk: Your Company may be impacted by delays in implementation of projects which would result in increasing project cost and loss of potential revenue. To mitigate this risk, the Company has in place an experienced project team supported by the leading external technical consultants and a dedicated project management company. The Company will endeavour to complete its projects on time at optimal cost so as to maximize the profitability.

37. Capital management

The Company’s policy is to maintain strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of business.

The Company manages its Capital structure through a balanced mix of debt and equity. The Company’s capital structure is influenced by the changes in the regulatory frameworks, government policies, available options of financing and impact of the same on liquidity position.

The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The table below shows the Gearing ratio for FY 2022-23 and FY 2021-22

40. Financial risk management objectives and policies

The Company is exposed to financial risk such as Market Risk (Interest Rate Risk, fluctuation in foreign exchange rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the financial markets and attempts to minimize their potential negative influence on the financial performance of the Company. The Company continueously reviews its risk exposures and takes measures to limit it to acceptable levels. The Board of Directors have the overall responsibility for the establishment and oversight of the Company''s risk management framework.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, foreign currency risk and other price risk. Financial instruments of the Company affected by market risk include borrowings and deposits. The sensitivity analysis in the following sections relate to the position as at 31 March 2023 and 31 March 2022.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other postretirement obligations; provisions; and the non-financial assets and liabilities.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2023 and 31 March 2022.

Interest rate risk

The interest rate risk arise from long term borrowing of the company with variable interest rates (Bank one year MCLR plus spread). Although the spread is fixed, it is subject to change at fixed time interval or occurence of specified event(s). Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

Price risk

Price risk is the risk of fluctuations in the change in prices of of equity Investments. The Company’s investment in JV company is of strategic in nature rather than for trading purpose.

Credit risk

Credit risk is the risk arising from credit exposure to customers and the counter party will default on its contractual obligations.

The Company has adopted a policy of only dealing with creditworthy customers/ corporates to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Advance payments are obtained from customers in banquets, as a means of mitigating the risk of financial loss from defaults.

The carrying amount of trade and other receivables, advances to suppliers, cash and short-term deposits and interest receivable on deposits represents company’s maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Deposits and cash balances are placed with Scheduled Commercial banks.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds advances as security from customers to mitigate credit risk.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance with the Company’s policy. Investments held by the Company are in the nature of investment in jointly controlled entity and also an investment in an alternate energy supply company as required under the respective State energy policy. Both the categories are unquoted non-trade equity.

Liquidity risk

Liquidity risk is the risk that the Company will have difficulty in raising the financial resources required to fulfil its commitments. Liquidity risk is held at low levels through effective cash flow management. Cash flow forecasting is performed internally by rolling forecasts of the Company’s liquidity requirements to ensure that it has sufficient cash to meet operational requirements, to fund scheduled capex and debt repayments and to comply with the terms of financing documents.

The Company primarily uses short-term bank facilities in the nature of bank overdraft facility to fund its ongoing working capital requirements.

41. In line with the company’s policy, the company has conducted physical verification of fixed assets during the year and no material discrepancies have been noticed that affect the financials.

42. The Company does not have any transactions with companies struck off under section 248 of Companies Act 2013 or Section 560 of Companies Act 1956.

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

44. The Company has not revalued its PPE including Right-To-Use assets and Intangible Assets during the year.

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

46. The Company has not advanced, 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

47. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

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

49. The Company has not been declared as a willful defaulter by any bank or financial institution or other lender.

50. The Company had been sanctioned working capital limits in excess of Rs. 5 crores in aggregate from banks on the basis of security of current assets of the Company. The Company is regular in complying with all the covenants and requisites to such sanctioned limits.

51. No proceedings have been initiated or are pending against the Company as at 31st March, 2023 for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

52. Balances in the accounts of various parties are subject to confirmation and reconciliation.

53. Previous year figures have been re-casted / restated wherever necessary including those as required in keeping with revised Schedule III amendments. Figures in brackets indicate those for previous year.

---

Mar 31, 2019

1. (a) Due to inadequacy of, profits computed in accordance with the provisions of section 198 of the Companies Act read with Schedule V thereto, the remuneration paid to the Managing Director for the financial year 2018-19 is in excess of the limits specified under section 198 of the Companies Act, 2013, aggregating to Rs.148.87 lakhs. The Nomination and Remuneration Committee of the Board and Board of Directors at their meeting held on 15th May, 2019 approved and waived the recovery of excess remuneration paid to Managing Director. The Company shall place the said resolution for approval of the shareholders at the ensuing Annual General Meeting as required under the amended provisions of the Companies Act, 2013.

The Company made applications to the Central Government / Ministry of Corporate Affairs (MCA) seeking waiver/ exemption for payment of excess remuneration for the above said financial years to Managing Director and Executive Director.

Following the amendment to the Companies Act in 2018, the Ministry has notified the rules vide notification dated 12.09.2018 amending sections 196, 197 and 198 and Schedule V of the Companies Act, 2013. As per the notification, the approval of the Central Government / MCA is not required for payment of excess remuneration to managerial personnel and all the pending applications with the MCA seeking approval for payment of managerial remuneration in excess of the limits laid down would automatically abate and companies are given one year time to approach the shareholders for passing necessary resolution seeking waiver of the excess remuneration paid to managerial personnel.

The Nomination and Remuneration Committee of the Board and Board of Directors at their meeting held on 15th March, 2019 approved the excess remuneration paid to Managing Director and Executive Director for the respective years and waived the recovery of the excess remuneration from Managing Director and Executive Director of the company. The Company is placing the said resolution for approval of the shareholders at the ensuing Annual General Meeting as required under the amended provisions of the Companies Act, 2013.

2. i) Disclosure of Trade Payables under Current Liabilities is based on the information furnished by the vendors and available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development (MSMED) Act, 2006”.

Sensitivity Analysis:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Compensated Absences:

The Company’s liability towards un-funded leave encashment is determined by independent actuarial valuation using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

The Defined Benefit Obligation of compensated absence in respect of the employees of the Company as at 31 March, 2019 works out to Rs.2,53,65,566/- (2018: Rs.2,31,73,091)

The discount rate and salary escalation rate is the same as adopted for gratuity liability valuation.

The estimates of future salary increases (which has been set in consultation with the company) takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

28. Corporate Social Responsibility Expenditure

Gross amount required to be spent and actually spent by the company during the year: Rs. 44.91 lakhs (2018: Rs.22.42 lakhs)

3 In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realize in the ordinary course of business approximately the value at which they are stated in accounts.

4. Segmental Reporting:

The Company’s only business being hoteliering, disclosure of segment-wise information under Accounting Standard (AS) 108 "Segmental Information” notified by the Companies (Accounting Standards) Rules, 2006 (as amended) does not arise. There is no geographical segment to be reported since all the operations are undertaken in India.

5. Risk Management, Objectives and Policies:

Risks and Concerns

Economic Risks: Hotel business in general is sensitive to fluctuations in the economy. The hotel sector may be unfavourably affected by changes in global and domestic economies, changes in local market conditions, excess room supply, reduced international or local demand for hotel rooms and associates services, competition in the industry, government policies and regulations, fluctuations in interest rates and foreign exchange rates and other natural and social factors. Since demand for hotels is affected by world economic growth, a global recession could lead to a downturn in the hotel industry.

Socio-Political Risks: The Hotel industry faces risk from volatile socio-political environment, internationally as well as within the country. India, being one of the fastest growing economies of the world in the recent past, continues to attract investments. However, any adverse events such as political instability, conflict between nations, terrorist attacks or spread of any epidemic or security threats to any countries may affect the level of travel and business activity.

Security Risks: The Hotel industry demands peace at all times to flourish. The biggest villain in South East Asia has been terrorism supplemented by political instability. Subsequent to the Mumbai terror attacks in November 2008, the hotel industry has invested substantially on security and intelligence. The security concerns have been duly addressed instilling confidence in the customer by providing international standards of safety.

Company-specific Risks Heavy Dependence on India

Risk of wage inflation: The hotel industry needs quality employees and with demand for the same improving across the industry, the Company feels that wage inflation would be a critical factor in determining costs for the Company. Thus, your Company will continue to focus on improving manpower efficiencies and creating a lean organization, while maximizing effectiveness in terms of customer service and satisfaction, which is an area of great importance for your Company.

Foreign Exchange Risk: Your Company may be impacted by the fluctuation of the Indian Rupee against other foreign currencies. To mitigate this risk the Company has migrated to single currency billing in Indian Rupees.

Project Implementation Risk: Your Company may be impacted by delays in implementation of projects which would result in increasing project cost and loss of potential revenue. To mitigate this risk, the Company has in place an experienced project team supported by the leading external technical consultants and a dedicated project management company. The Company will endeavor to complete its projects on time at optimal cost so as to maximize the profitability.

6. Capital management

The Company’s policy is to maintain strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of business.

The Company manages its Capital structure through a balanced mix of debt and equity. The Company’s capital structure is influenced by the changes in the regulatory frameworks, government policies, available options of financing and impact of the same on liquidity position.

The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The table below shows the Gearing ratio for FY 2018-19 and FY 2017-18.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March, 2019 and 31 March, 2018.

7. Financial risk management objectives and policies

The Company is exposed to financial risk such as Market Risk (Interest Rate Risk, fluctuation in foreign exchange rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the financial markets and attempts to minimize their potential negative influence on the financial performance of the Company. The Company continuously reviews its risk exposures and takes measures to limit it to acceptable levels. The Board of Directors have the overall responsibility for the establishment and oversight of the Company’s risk management framework.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, foreign currency risk and other price risk. Financial instruments of the Company affected by market risk include borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at 31 March, 2019 and 31 March, 2018.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other post- retirement obligations; provisions; and the non-financial assets and liabilities.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March, 2019 and 31 March, 2018.

Interest rate risk

The interest rate risk arise from long term borrowing of the company with variable interest rates (Bank one year MCLR plus spread). Although the spread is fixed, it is subject to change at fixed time interval or occurrence of specified event(s). Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

Price risk

Price risk is the risk of fluctuations in the change in prices of equity Investments. The Company’s investment in JV company is of strategic in nature rather than for trading purpose.

Credit risk

Credit risk is the risk arising from credit exposure to customers and the counter party will default on its contractual obligations.

The Company has adopted a policy of only dealing with creditworthy customers/ corporates to minimize collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Advance payments are obtained from customers in banquets, as a means of mitigating the risk of financial loss from defaults.

The carrying amount of trade and other receivables, advances to suppliers, cash and short-term deposits and interest receivable on deposits represents company’s maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Deposits and cash balances are placed with Schedule Commercial banks.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds advances as security from customers to mitigate credit risk.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments held by the Company are in the nature of investment in jointly controlled entity and also an investment in an alternate energy supply company as required under the respective State energy policy. Both the categories are unquoted non-trade equity.

Liquidity risk

Liquidity risk is the risk that the Company will have difficulty in raising the financial resources required to fulfill its commitments. Liquidity risk is held at low levels through effective cash flow management. Cash flow forecasting is performed internally by rolling forecasts of the Company’s liquidity requirements to ensure that it has sufficient cash to meet operational requirements, to fund scheduled capex and debt repayments and to comply with the terms of financing documents.

The Company primarily uses short-term bank facilities in the nature of bank overdraft facility to fund its ongoing working capital requirements.

8. New Accounting Standards, Amendments to Existing Standards, Annual Improvements and Interpretations Effective Subsequent to 31 March, 2019

On 30 March 2019, Ministry of Corporate Affairs issued Companies (Indian Accounting Standards) Amendment Rules, 2019 notifying Ind AS 116 - "Leases". Ind AS 116 will replace Ind AS 16. Ind AS 116 introduces major changes in the principles for measuring, recognizing and presenting leases in the financial statements of lessees. As of 1 April, 2019, Ind AS 116 requires lessees to recognize most leases using a single accounting model, i.e., the same model as that used to recognize finance leases under Ind AS 17. The lessee will recognize:

- a non-current asset representing its right to use the leased asset, in the statement of financial position;

- a financial liability representing its obligation to pay for the right to use the asset, in the statement of financial position;

- amortization of the right-of-use asset and interest expenses on the lease liability, in the statement of income.

The main measures included in Ind AS 116 to simplify application and adopted by the Company are:

- exclusion of short-term leases;

- exclusion of leases of low-value assets.

The Company will apply Ind AS 116 using the modified retrospective approach. This simplified approach does not require restatement of financial statements published before the date Ind AS 116 is first applied.

Within the scope of its transition to Ind AS 116, the Company has elected the following main options to simplify application:

- exclusion of leases with a residual term of 12 months or less at the transition date, along with leases of low-value assets;

- application of Ind AS 116 only to contracts previously identified as leases;

- use of the initial lease term to determine the discount rate at the transition date;

- exclusion of initial direct costs from the measurement of the right-of-use asset at the date of initial application.

The Company is currently finalizing its assessment of the impact of applying Ind AS 116 on its financial statements, based on the leases identified and an analysis of their main terms and conditions. The Company mainly has lease contracts for land and buildings which are currently accounted for as operating leases and for which it will be required to recognize a right-of-use asset under Ind AS 116.

9. Balances in the accounts of various parties are subject to confirmation and reconciliation.

10. Previous Year’s figures have been regrouped / rearranged, wherever necessary. Figures in brackets indicate those for previous year.

---

Mar 31, 2017

1. General information

TAJGVK Hotels & Resorts Limited (“TAJGVK” / “the Company”) was incorporated on 02nd February, 1995 in state of Andhra Pradesh, India. The Company is a joint venture between the GVK Group and Indian Hotels Company Limited. The Company is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts with the brand name of “TAJ”.

2. The statements were authorized for issue in accordance with a resolution of the Board of Directors passed on May 17,2017.

NOTE 3 : BORROWINGS

i) Term Loans from Banks:

Rs.150.00 crores from HDFC Bank Ltd at an interest rate of 10.25% p.a secured by first charge on all assets of Taj Chandigarh, Chandigarh repayable in 32 equal instalments with a moratorium of 2 years from August 2014 .ie. from the date of first disbursement.

Rs.119.35 crores from AXIS Bank Ltd at an interest rate of 10.15% p.a secured by first charge on all assets of Taj Club House, Chennai repayable in 26 unequal instalments with a moratorium of 2.5 years from July 2014 .ie. from the date of first disbursement.

ii) Loans repayable on demand from Banks:

Bank Overdraft Rs.Nil (2016 : Rs.251.21 lakhs) from AXIS Bank Ltd and IDBI Bank Ltdare secured as under:

AXIS Bank Ltd : First charge on current assets of the Company, ranking pari passu with IDBI Bank Ltd and second charge on fixed assets of Taj Club House.

IDBI Bank Ltd : First charge on current assets of the company ranking pari passu with AXIS Bank Ltd Interest rate on loans repayable on demand from the banks at 10.25% p.a

Foot note :

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

4. Commitments and Contingent liabilities not provided for in respect of Commitments

Estimated amount of contracts remaining to be executed on capital account Rs.30.14 Lakhs (2016: Rs.3.68 Lakhs).

5. As required under the MCA notification G.S.R. 308(E) dated March 31, 2017 on the ‘Details of Specified Bank Notes (SBN), the following are the details of specified bank notes (SBNs) or other denomination note (ODNs) held and transacted during the period from November 8, 2016 to December 30, 2016:

6. Due to inadequacy of the profits the remuneration paid to the Managing Director and the Executive Director for the financial year 2016-17 is in excess of the limits specified under Sections 197 and 198 of the Companies Act, 2013, aggregating to Rs.153.50 lacs and Rs.40.75 lacs respectively. The Company is in the process of submitting an application to the Central Government for approval of the excess remuneration paid to the Managing Director and Executive Director as per the terms of their appointment. The Nomination and Remuneration Committee of the Board and Board of Directors at their meeting held on 17^th May 2017 approved the waiver of excess remuneration paid whole time Directors and also the Company is placing the requisite resolution for approval of shareholders at the ensuing Annual General Meeting.

7. The company prepared its financial statements in accordance with the Accounting Standards (AS) notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the companies(Accounts) Rules, 2014 (Indian GAAP) for and including the year ended March 31, 2016. The company has prepared its first Ind AS (Indian Accounting Standards) compliant Financial Statements for the year ended March 31,2017 with restated comparative figures for the year ended March 31, 2016 in compliance with Ind AS. Accordingly, the Opening Balance Sheet, in line with Ind AS transitional provisions, has been prepared as at April 1, 2015, the date of company’s transition to Ind AS. The principal adjustments made by the company in restating its Indian GAAP financial statements for the financial year ending March 31, 2016 and the balance sheet as at April 1, 2015 are as mentioned below:

Exemptions applied

Ind AS 101 on First Time adoption of Ind AS allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The company has adopted the following exemptions

I. Deemed cost of Property, Plant and Equipment(“PPE”)/Capital Work-in-Progress(“CWIP”) and Intangible Assets

There is no change in the functional Currency of the Company and accordingly, it has elected to continue with the carrying values for all of its property, plant and equipment and intangible assets as recognized in its Indian GAAP financial statements as the deemed cost at the transition date. Accumulated depreciation was calculated on that amount as at the date of transition to Ind AS on the basis of the current estimate of the useful life of the asset using the depreciation policy adopted by the company in accordance with Ind AS.

II. Investment in Joint Venture

In accordance with the exemption given in Ind AS 101, the company has elected to record its investment in Joint venture at their previous GAAP carrying amount as deemed cost as on the date of transition to Ind AS.

III. Impairment of financial assets

The Company has applied the exception related to impairment of financial assets given in Ind AS 101. It has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial assets were initially recognised and compared that to the credit risk as at April 1, 2015.

IV. Derecognition of financial assets and financial liabilities

The Company has applied the derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the transition to Ind AS.

V. Classification and measurement of financial assets

The Company has classified the financial assets in accordance to Ind AS 109 on the basis of the facts and circumstances that exist on the date of transition to Ind AS.

8. Deposits recoverable under Loans and Advances include the following amounts paid under protest:

i) Rs.101.99 lakhs (Rs.101.99 lakhs) paid under the VAT Act pertaining to financial years 2005-06 to 2012-13.

ii) Rs.260.72 lakhs (Rs.254.79 lakhs) paid under the Income Tax Act pertaining to financial years 2002-03 and 2005-06.

9. i) Disclosure of Trade Payables under Current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the “Micro, Small and Medium Enterprises Development (MSMED) Act, 2006”.

ii) Details of total outstanding dues to Micro and Small Enterprises as per MSMED Act, 2006:

10. Related Parties Disclosure

Disclosures as required under Ind AS 24 “Related Party Disclosures” issued by the Institute of Chartered Accountants of India are given below:

11. EMPLOYEE BENEFITS :

Defined contribution plan:

Amount recognized as an expense in statement of profit and loss Rs.93.87 lakhs (2016: Rs.93.20 lakhs) on account of provident fund and Rs.45.78 lakhs (2016: Rs. 42.62 lakhs) on account of Employee State Insurance.

Defined benefit plan:

Gratuity:

The Company has a funded defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) (except in case of Taj Banjara where every employee gets a gratuity at 30 days salary) for each completed year of service as per the provision of the Payment of Gratuity Act,1972 with total ceiling on gratuity of Rs.1,000,000/-

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

Sensitivity Analysis:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Compensated Absences:

The Company’s liability towards un-funded leave encashment is determined by independent actuarial valuation using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

The Defined Benefit Obligation of compensated absence in respect of the employees of the Company as at 31 March 2017 works out to Rs.1,75,98,079/-.

The discount rate and salary escalation rate is the same as adopted for gratuity liability valuation.

The estimates of future salary increases (which has been set in consultation with the company) takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

12. CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

Gross amount required to be spent by the company during the year: Rs.57.29 lakhs

13. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realise in the ordinary course of business approximately the value at which they are stated in accounts.

14. Segmental Reporting:

The Company’s only business being hoteliering, disclosure of segment-wise information is not applicable under Accounting Standard (AS) 17 “Segmental Information” notified by the Companies (Accounting Standards) Rules, 2006 (as amended). There is no geographical segment to be reported since all the operations are undertaken in India.

15. In the absence of Operating Agreement for Taj Chandigarh, no provision was made in the Accounts towards Management Fee for the FY 2016-17. The fee already provided for July, 2015 to March, 2016 was also reversed in FY 2016-17 and disclosed in exceptional items.

16. Risk Management, Objectives and Policies:

Risks and Concerns

Economic Risks: Hotel business in general is sensitive to fluctuations in the economy. The hotel sector may be unfavourably affected by changes in global and domestic economies, changes in local market conditions, excess room supply, reduced international or local demand for hotel rooms and associates services, competition in the industry, government policies and regulations, fluctuations in interest rates and foreign exchange rates and other natural and social factors. Since demand for hotels is affected by world economic growth, a global recession could lead to a downturn in the hotel industry.

Socio-Political Risks: The Hotel industry faces risk from volatile socio-political environment, internationally as well as within the country. India, being one of the fastest growing economies of the world in the recent past, continues to attract investments. However, any adverse events such as political instability, conflict between nations, terrorist attacks or spread of any epidemic or security threats to any countries may affect the level of travel and business activity.

Security Risks: The Hotel industry demands peace at all times to flourish. The biggest villain in South East Asia has been terrorism supplemented by political instability. Subsequent to the Mumbai terror attacks in November 2008, the hotel industry has invested substantially on security and intelligence. The security concerns have been duly addressed instilling confidence in the customer by providing international standards of safety.

Company-specific Risks

Heavy Dependence on India

Risk of wage inflation: The hotel industry needs quality employees and with demand for the same improving across the industry, the Company feels that wage inflation would be a critical factor in determining costs for the Company. Thus, your Company will continue to focus on improving manpower efficiencies and creating a lean organisation, while maximising effectiveness in terms of customer service and satisfaction, which is an area of great importance for your Company.

Foreign Exchange Risk: Your Company may be impacted by the fluctuation of the Indian Rupee against other foreign currencies. To mitigate this risk the Company has migrated to single currency billing in Indian Rupees.

Project Implementation Risk: Your Company may be impacted by delays in implementation of projects which would result in increasing project cost and loss of potential revenue. To mitigate this risk, the Company has in place an experienced project team supported by the leading external technical consultants and a dedicated project management company. The Company will endeavour to complete its projects on time at optimal cost so as to maximise the profitability.

17. Capital management

The Company’s policy is to maintain strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of business.

The Company manages Capital structure by balanced mix of debt and equity. The Company’s capital structure is influenced by the changes in the regulatory frameworks, government policies, available options of financing and impact of the same on liquidity position.

The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The table below shows the Gearing ratio for FY 17 and FY 16 and as at 1st April, 15.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2017 and 31 March 2016.

18. Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Fair values hierarchy

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities:

Quantitative disclosures fair value measurement hierarchy for assets as at 31 March 2017:

There have been no transfers between Level 1 and Level 2 during the period.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities: Quantitative disclosures fair value measurement hierarchy for assets as at 01 April 2015:

19 Financial risk management objectives and policies

The Company is exposed to financial risk such as Market Risk (Interest Rate Risk, fluctuation in foreign exchange rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the financial markets and attempts to minimize their potential negative influence on the financial performance of the Company. The Company continueously reviews its risk exposures and takes measures to limit it to accepatble levels. The Board of Directors have the overall responsibility for the establishment and oversight of the Company’s risk management framework.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, foreign currency risk and other price risk. Financial instruments of the Company affected by market risk include borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at 31 March 2017 and 31 March 2016.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other postretirement obligations; provisions; and the non-financial assets and liabilities.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2017 and 31 March 2016.

Interest rate risk

The interest rate risk arise from long term borrowing of the company with variable interest rates (Bank one year MCLR plus spread). Although the spread is fixed, it is subject to change at fixed time interval or occurence of specified event(s). Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

Price risk

Price risk is the risk of fluctuations in the change in prices of of equity Investments. The Company’s investment in JV company is of strategic in nature rather than for trading purpose.

Credit risk

Credit risk is the risk arising from credit exposure to customers and the couter party will default on its contractual obligations.

The Company has adopted a policy of only dealing with creditworthy customers/ corporatres to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevent factors. Advance payments are obtained from customers in banquets, as a means of mitigating the risk of financial loss from defaults.

The carrying amount of trade and other receivables, advances to suppliers, cash and short-term deposits and interest receivable on deposits represents company’s maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Deposits and cash balances are placed with Schedule Commerical banks.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds advances as security from customers to mitigate credit risk.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments held by the Company are in the nature of investment in jointly controlled entity and also an investment in an alternate energy supply company as required under the respective State energy policy. Both the categories are unquoted non-trade equity.

Liquidity risk

Liquidity risk is the risk that the Company will have difficulty in raising the financial resources required to fulfill its commitments. Liquidity risk is held at low levels through effective cash flow management. Cash flow forecasting is performed internally by rolling forecasts of the Company’s liquidity requirements to ensure that it has sufficient cash to meet operational requiremnts, to fund scheduled capex and debt repaymnts and to comply with the terms of financing documents.

The Company primarily uses short-term bank facilities in the nature of bank overdraft facility to fund its ongoing working capital requirements.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

20. Previous Year’s figures have been regrouped / rearranged, wherever necessary. Figures in brackets indicate those for previous year.

---

Mar 31, 2016

1. Deposits recoverable under Loans and Advances include the following amounts paid under protest:

i) Rs. 101.99 lacs (Rs. 209.48 lacs) paid under the VAT Act pertaining to financial years 2005-06 to 2012-13.

ii) Rs. 254.79 lacs (Rs.147.09 lacs) paid under the Income Tax Act pertaining to financial years 2002-03 and 2005-06.

2. Due to inadequacy of the profits the remuneration paid to the Managing Director and the Executive Director is in excess of the limits specified under Sections 197 and 198 of the Companies Act, 2013, aggregating to Rs.189.48 lacs and Rs. 81.11 lacs respectively. Company is in the process of submitting an application to the Central Government for approval of the excess remuneration paid to the Managing Director and Executive Director as per the terms of their appointment. The Company is placing the requisite resolution for approval of shareholders at the ensuing Annual General Meeting.

3. i) Disclosure of Trade Payables under Current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development (MSMED) Act, 2006".

ii) Details of total outstanding dues to Micro and Small Enterprises as per MSMED Act, 2006:

iii) Transactions in Foreign Currency

a) Earnings in Foreign Exchange Rs. 3832.04 Lacs (2015: Rs. 4163.46 Lacs)

As reported by The Company to the Ministry of Tourism / Government of India and as certified by the Management but not verified by the auditors

b) Expenditure in foreign currency:

The Company''s liability towards un-funded leave encashment is determined by independent actuarial valuation using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

The Defined Benefit Obligation of compensated absence in respect of the employees of the Company as at 31 March 2016 works out to Rs. 97,67,887/-. The discount rate and salary escalation rate is the same as adopted for gratuity liability valuation.

The estimates of future salary increases (which has been set in consultation with the company) takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

4. Corporate Social Responsibility Expenditure

Gross amount required to be spent by the company during the year: Rs.57.29 lacs

5. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realize in the ordinary course of business approximately the value at which they are stated in accounts.

6. Segmental Reporting:

The Company''s only business being hoteliering, disclosure of segment-wise information is not applicable under Accounting Standard (AS) 1 7 "Segmental Information" notified by the Companies (Accounting Standards) Rules, 2006 (as amended). There is no geographical segment to be reported since all the operations are undertaken in India.

7. Previous Year''s figures have been regrouped / rearranged, wherever necessary. Figures in brackets indicates those for previous year.

---

Mar 31, 2015

1. General information

TAJGVK Hotels & Resorts Limited ("TAJGVK" / "the Company") is joint venture between the GVK Group and Indian Hotels Company Limited and was incorporated on 2nd February, 1995 in state of Andhra Pradesh, India.

The Company is primarily engaged in the business of owning, operati ng & managi ng hotels, palaces and resorts with the brand name of "TAJ".

ii) Rights, preferences and restrictions attached to shares:

The company has one class oi equity shares having a par value oi - P per share. Equity shares are attached with one vote per share. In the event oi liquidation, the equity shareholders are eligible to receive the remaining assets oi the Company after distribution oi all preferential creditors, in proportion to their shareholding.

i) Term Loans from Banks:

-15,000.00 lacs from HDFC Bank Ltd secured by first charge on all assets ofTa] Chandigarh, Chandigarh and repayable in QP equal instalments with a moratorium of P years from date of first disbursement.

-11,934.98 lacs from AXIS Bank Ltd secured by first charge on all assets of Ta] Club House, Chennai and repayable in Pb unequal instalments with a moratorium of P.5 years from date of first disbursement.

i) The Company acquired 3,67,50,000 (48.99%) equity shares of -TO/- each fully paid up of M/s.Greenwoods Palaces & Resorts Pvt Ltd at a premium of - 20/- each (previous year 2,21,62,500 (29.55%) equity share of -10/- each at a premium of - 20/- per share). M/s.Greenwoods Palaces & Resorts Pvt Ltd (SPV) is setting up a 5 Star Luxury hotel (Taj Santacruz) comprising of 279 rooms near Terminal 1C, Santacruz, Mumbai at Mumbai International Airport. The SPV is treated as a jointly controlled entity as per the Accounting Standards in vogue.

ii) Non-Trade Unquoted Investment was made in a company with which the Company entered into a power purchase agreement for supply of 3 million units of power or 5.65%of its actual generation whichever is less in order to comply with regulatory requirement for supply of such power.

2. Commitments and Contingent liabilities not provided for in respect of:

Commitments

Estimated amount ofcontracts remaining to be executed on capital account -16.30 Lacs (2014: -147.36 Lacs). Contingent liabilities not provided for in respect of (Rs in Lacs' PARTICULARS As at As at March 31,2015 March 31,2014

Sales tax matters 769.77 939.00

Income tax matters 304.16 153.08

Service tax matters 2490.88 2490.88

Wealth tax matters 31.69 31.69

Luxury tax matters 76.47 76.47

Probable customs duty payable on the Equipment Imported under Export

Promotion Capital Goods Scheme 487.18 487.18

Letters of Credit - 79.56

Bank Guarantees - Others 134.81 159.38

3. Deposits recoverable under Loans and Advances include the following amounts paid under protest:

i) - 295.89 lacs (- 124.14 lacs) paid under the VAT Act pertaining to financial years 2005-06 to 2012-13.

ii) - 147.09 lacs (- 86.40 lacs) paid under the Income Tax Act pertaining to financial years 2002-03 and 2005-06.

4. Due to inadequacy of the profits no commission to Managing Director was provided for the year and the Company is in the process of submitting an application to the Central Government for approval of minimum remuneration paid to the Managing Director and the Executive Director as per the terms of appointment, and to waive the excess remuneration paid to them. During the previous year Executive Chairman refunded the remuneration of - 410.69 lacs for the years 2008-09, 2010-11, 2011-12 and 2012-13 and the Company has withdrawn the application made to the Ministry of Company Affairs for waiver of remuneration paid in excess of the limits prescribed under Schedule XIII of the Companies Act, 1956, due to inadequacy of profits and the same has been considered as exceptional item.

5. i) Disclosure of Trade Payables under Current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development (MSMED) Act, 2006".

ii) Details of total outstanding dues to Micro and Small Enterprises as per MSMED Act, 2006: (- in Lacs)

iii) Transactions in Foreign Currency

a) Earnings in Foreign Exchange -4163.46 Lacs (2014: -4698.84 Lacs)

As reported by the Company to the Ministry of Tourism / Government of India and as certified by the Management but not verified by the auditors

b) Expenditure in foreign currency:

PP. Related Parties Disclosure

Disclosures as required under Accounting Standard (AS) 18 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are given below:

a. Key Management personnel:

Name of the Related Party Relationship

Dr. G.V.Krishna Reddy Chairman

Mrs. G.Indira Krishna Reddy Managing Director

Mrs. Shalini Bhupal Executive Director

Green Woods Palaces and Resorts Pvt Ltd Jointly controlled entity

The Indian Hotels Company Limited Joint Venturer

b. Companies/Firms/Trust in which the key management and their relatives are interested:

Accura Constructions (P) Ltd

Accura Estates (P) Ltd

Alaknanda Hydro Power Co Ltd(*)

Amtran Constructions (P) Ltd

Bengaluru Airport & Infrastructure Developers Pvt.Ltd

Bengaluru International Airport Ltd(*)

Bonanza Real Estates (P) Ltd

Cygnus Real Estates (P) Ltd

Eagle Land Holdings (P) Ltd

GVK Gautami Power Ltd(*)

Goldgreen Land Holdings (P) Ltd

Green Woods Palaces & Resorts (P) Ltd

Greenridge Hotels & Resorts LLP GVK Airport Developers (P) Ltd

GVK Airport Holdings (P) Ltd

GVK Biosciences (P) Ltd(*)

GVK City (P) Ltd

GVK Coal (Tokisud) Co.(P) Ltd(*)

GVK Davix Research (P) Ltd

GVK Davix Technologies (P) Ltd

GVK Foundation GVK EMRI (UP) Pvt Ltd

GVK Informatics (P) Ltd.

GVK Janani Shishu Suraksha (UP) Pvt Ltd

GVK Energy Ltd(*)

GVK Energy Ventures (P) Ltd

GVK Estates Private Limited

GVK Industries Ltd(*)

GVK Jaipur Expressway Private Ltd(*)

GVK Natural Resources (P) Ltd(*)

GVK Oil & Gas Limited

GVK Power & Infrastructure Ltd(*)

GVK Power (Goindwal Sahib) Ltd(*)

(*) - companies with which there are transactions during the year

GVK Properties & Management Co.(P) Ltd(*)

GVK Projects & Technical Services Ltd.

GVK Technical Consultancy Services (P) Ltd(*)

GVK Ratle Hydro Electric Project Pvt Ltd(*)

GVK Virudhnagar SEZ (P) Ltd

Innovative Land Holdings (P) Ltd

Inogent Laboratories (P) Ltd(*)

GVK EMRI(b) Mallikarjuna Estates (P) Ltd

Mallikarjuna Finance (P) Ltd

Marriot Land Holdings (P) Ltd

Midas Estates (P) Ltd

Mumbai Airotropolis Pvt Ltd

Mumbai Airport Habitation Pvt Ltd

Navi Mumbai Airport Developers (P) Ltd

Mumbai Aviation Fuel Form Facility (P) Ltd

Mumbai International Airport (P) Ltd(*)

Novopan Industries Ltd

Nova Technical & Consultancy Services P Ltd.

Orbit Travel & Tours (P) Ltd(*)

Pace Constructions (P) Ltd

Paigah House Hotel (P )Ltd

Pinakini Share & Stock Brokers Ltd

Pinnacle Land Holdings (P) Ltd

Raghavendra Finance (P) Ltd

Rocktown Estates Pvt Ltd(*)

SR Finance (P) Ltd

Starlet Land Holdings (P) Ltd

Suphala Real Estates (P) Ltd

Vertex Projects Ltd

Volantis Land Holdings (P) Ltd

Vulcon Constructions (P) Ltd

6. Deferred Tax :

In accordance with the Accounting Standard 22 (AS-22) 'Accounting ior Taxes on Income' issued by the Institute oi Chartered Accountants oi India, the Company has provided ior deferred tax liability up to 31.03.2015 comprising oithe following components' (All amounts are - in lacs, unless otherwise stated)

7. Employee benefits:

Defined contribution plan:

Amount recognised as an expense in statement of profit and loss - 95.11 lacs (2014: - 93.37 lacs) on account of provident fund and - 46.95 lacs (2014: -49.75 lacs ) on account of Employee State Insurance.

Defined benefit plan:

The Company has a funded defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service as per the provision of the Payment of Gratuity Act,1972 with total ceiling on gratuity of -1,000,000/-

The Company's liability towards un-funded leave encashment is calculated by considering, each employee's, salary (last drawn salary) and accumulated un-utilised leave as at the reporting date.

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

The estimates of future salary increases (which has been set in consultation with the company) takes on account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

8. Disclosure of interest in jointly controlled entities:

i) The Company holds 48.99% (Previous year 29.55%) of the total share capital of M/s Green Woods Palaces & Resorts Pvt Ltd (Greenwoods), which is incorporated in India.

ii) The proportionate share of estimated contracts to be executed on capital account by Green Woods is - 2988.99 lacs (- 2487.55 lacs).

iii) The interest of the Company in Green Woods' assets and liabilities as required to be disclosed as per Accounting Standard 27, Financial Reporting of interests in Joint Ventures, is given below:

9. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realise in the ordinary course of business approximately the value at which they are stated in accounts.

10. Segmental Reporting:

The Company's only business being hoteliering, disclosure of segment-wise information is not applicable under Accounting Standard (AS) 17 "Segmental Information" notified by the Companies (Accounting Standards) Rules, 2006 (as amended). There is no geographical segment to be reported since all the operations are undertaken in India.

11. The Company has during the year adopted the useful lives prescribed under Schedule II to the Companies Act, 2015, except for those mentioned in note 2 (vii) to the financial statements. The transitional impact of depreciation amounting to -285.51 lacs on the opening block of fixed assets as of 1st April 2014 consequent to change in useful lives of certain assets as per Schedule II to the Companies act, 2015 is included in the depreciation charge for the year.

12. Previous Year's figures have been regrouped / rearranged, wherever necessary. Figures in brackets indicates those for previous year.

---

Mar 31, 2013

1. Deposits recoverable under Loans and Advances include the following paid under protest:

i) Rs.83.84 lacs paid under the VAT Act pertaining to financial years 2005-06 to 2008-09.

2. Other Commitments: The uncalled liability on account of acquisition of 1,95,37,500 shares of Rs.10/- each of Greenwoods Palaces & Resorts Pvt Ltd, Rs.13,67,62,500/-.

3. The Central Power Distribution Company Limited of Andhra Pradesh (CPDCL of AP) raised demands towards Fuel Surcharge Adjustment (FSA) of Rs.107.15 lacs for the financial years 2008-09 and 2009-10. The Hon''ble High Court of Andhra Pradesh, on a batch petition filed by various consumers, granted stay from collection of the same. Hence, no provision is made for such amount in the books of account. However, an amount of Rs.21.13 lacs has been paid under protest and shown under loans and advances.

i) Disclosure of Trade Payables under Current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" and relied upon by the Auditors.

ii) Details of total outstanding dues to Micro and Small Enterprises as per MSMED Act, 2006:

4. The Executive Chairman and Managing Director are entitled to commission @ 1% each of Net Profits computed in accordance with Section 349 of the Companies Act, 1956 after tax. Due to inadequacy of the profits no commission was provided for the year and the Company is in the process of submitting an application to the Central Government for approval of minimum remuneration as per the terms of appointment.

5. Additional information pursuant to provisions of paragraphs 3, 4 and 4D of Part II of Schedule VI of the Companies Act 1956.

6. Related Parties Disclosure

The Company does not have any holding company or companies controlling the company, as defined under Accounting Standard 18. The company does not have any subsidiary companies. Transactions with various companies related to the company by way of common directorships or firms in which directors are partners, are disclosed hereunder:

Key Management personnel:

Dr. G.V.Krishna Reddy Executive Chairman

Smt.G.Indira Krishna Reddy Managing Director

Smt.Shalini Bhupal Executive Director

Joint Venture with The Indian Hotels Company Limited

Jointly controlled entity Greenwoods Palaces and Resorts Pvt Ltd

Companies/Firms/Trust in which the key management and their relatives are interested:

Accura Constructions (P)

Ltd Accura Estates (P)

Ltd Alaknanda Hydro Power Co Ltd (*)

Allied Estates (P) Ltd

Amtran Constructions (P) Ltd

Anchor Estates (P) Ltd

Appease Estates Private Limited

Bengaluru Airport & Infrastructure Developers Pvt.Ltd

Bengaluru International Airport Ltd (*)

Blue Streak Land Holdings (P)

Ltd Bonanza Real Estates (P)

Ltd Caspian Capital & Finance (P)

Ltd Casuarina Capital & Finanace (P)

Ltd Classic Land Holdings (P)

Ltd Consolidated Real Estates (P)

Ltd Cygnus Real Estates (P)

Ltd Delta Land Holdings (P)

Ltd Dhaulasidh Power (P)

Ltd Eagle Land Holdings (P)

Ltd Fair Value Land Holdings (P)

Ltd Fortune Real Estates (P)

Ltd Fresenius Intraven (P)

Ltd GVK Gautami Power Ltd (*)

Genesis Realtors (P)

Ltd Goldgreen Land Holdings (P)

Ltd Goriganga Hydro Power Co.(P)

Ltd Greenwoods Land Holdings (P)

Ltd Greenwoods Palaces & Resorts (P) Ltd (*)

Greenridge Hotels and Resorts

LLP GVK Airport Developers (P)

Ltd GVK Airport Holdings (P) Ltd

GVK Biosciences (P) Ltd (*)

GVK City (P) Ltd

GVK Cements Pvt Ltd

GVK Coal (Tokisud) Co.(P) Ltd (*)

GVK Davix Research (P)

Ltd GVK Davix Technologies (P)

Ltd GVK Deoli Kota Expressway (P)

Ltd GVK Developmental Projects (P)

Ltd GVK Foundation (*)

GVK EMRI (UP) Pvt Ltd GVK Energy Holdings (P)

Ltd GVK Energy Ltd (*)

GVK Energy Ventures (P)

Ltd GVK Estates Private Limited GVK Hydel (P)

Ltd GVK Industries Ltd (*)

GVK Jaipur Expressway Private Ltd (*)

GVK Natural Resources (P) Ltd GVK Oil & Gas Limited (*)

GVK Perambalur SEZ (P) Ltd GVK Power & Infrastructure Ltd (*)

GVK Power (Goindwal Sahib) Ltd (*)

GVK Properties & Management Co.(P) Ltd

GVK Projects & Technical Services Ltd. (*)

GVK Technical & Consultancy Private Ltd (*)

GVK Ratle Hydro Electric Project Pvt Ltd (*)

GVK Transportation (P) Ltd (*)

GVK Virudhnagar SEZ (P) Ltd

Inc GVK Bio (P) Ltd

Innovative Land Holdings (P) Ltd

Inogent Laboratories (P) Ltd

GVK EMRI(*)

Mallikarjuna Estates (P) Ltd

Mallikarjuna Finance (P) Ltd

Marriot Land Holdings (P) Ltd

Metro Architects & Contractors (P) Ltd

Midas Estates (P) Ltd

Mumbai Airotropolis Pvt Ltd

Mumbai Airport Habitation Pvt Ltd

Navi Mumbai Airport Developers (P) Ltd

Mumbai Aviation Fuel Form Facility (P) Ltd

Mumbai International Airport (P) Ltd (*)

Novopan Industries Ltd (*)

Orbit Travel & Tours (P) Ltd (*)

Oxford Land Holdings (P) Ltd

Pace Constructions (P) Ltd

Pace Estates (P) Ltd

Paigah House Hotel (P )Ltd

Parthasarathy A/c Tourists (P) Ltd

Pinakini Share & Stock Brokers Ltd

Pinnacle Land Holdings (P) Ltd

Raghavendra Finance (P) Ltd

Raghavendra Land Holdings (P) Ltd

Regulus Estates (P) Ltd

Rocktown Estates Pvt Ltd(*)

Seregarha Mines Limited

SR Finance (P) Ltd

Starlet Land Holdings (P) Ltd

Suphala Real Estates (P) Ltd

Vertex Infratech (P) Ltd

Vertex Projects Ltd

Volantis Land Holdings (P) Ltd

Vulcon Constructions (P) Ltd

Zinger Investments (P) Ltd

(*) - companies with which there are transactions during the year

7. Deferred Tax:

In accordance with the Accounting Standard 22 (AS-22) ''Accounting for Taxes on Income'' issued by the Institute of Chartered Accountants of India, the company has provided for deferred tax liability up to 31.03.2013 comprising of the following components.

8. Disclosure of interest in jointly controlled entities:

i) The Company holds 26.05% (Previous year 21.06%) of the total share capital of M/s Greenwoods Palaces & Resorts Pvt Ltd (Greenwoods), which is incorporated in India.

ii) The share of contracts to be executed on capital account of the Company in Greenwoods is Rs.1159.60 lacs (Rs.775.34 lacs).

iii) The interest of the Company in Greenwoods'' assets and liabilities as required to be disclosed as per Accounting Standard 27, Reporting of interests in Joint Ventures, is given below:

9. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realise in the ordinary course of business approximately the value at which they are stated in accounts.

10. Previous Year''s figures have been regrouped / rearranged, wherever necessary. Figures in brackets indicates those for previous year.

---

Mar 31, 2012

I) Term Loans from banks

Rs 90 crores from Housing Development Finance Corporation Limited secured by first charge on all assets of Taj Krishna & Taj Deccan is repayable in 32 equal instalments after 2 years from date of each disbursement. First instalment payable in June 2012. Interest at a weighted average rate of 11.15% p.a with an annual reset clause

Rs 72 crores from HDFC Bank Ltd secured by first charge on all assets of Taj Club House, Chennai is repayable in 32 equal instalments after 2 years from date of each disbursement. First instalment payable in June 2012. Interest at a weighted average rate of 11.40% p.a with an annual reset clause

ii) Loans from related parties

Rs 5 crores from The Indian Hotels Company Limited repayable in July 2013. Interest at a rate of 7% p.a

i) Secured loans - Bank overdraft

Rs 6,60,64,046/- from Hongkong and Shanghai Banking Corporation Ltd secured by first charge on all assets of Taj Chandigarh at an interest rate of 10.75% p.a

Rs 2,71,33,594/- from IDBI Bank Ltd secured by hypothecation of Operating Supplies, Stores, Food & Beverages and Receivables at an interest rate of 12.25% p.a

ii) Unsecured loans

Loan from the Bank of Nova Scotia for a tenure of 67 days from the drawal date at an interest rate of 11.90% p.a

i) The Non-Trade Unquoted Investment are made in a company with which the Company entered into a power purchase agreement for supply of 3 million units of power or 5.65% of its actual generation whichever is less in order to comply with regulatory requirement for supply of such power.

ii) The Company has acquired 1,58,00,000 Equity Shares (21.06% of total shares issued) of Rs10/- each (Rs3/- paid up) of Greenwoods Palaces & Resorts Pvt Ltd from M/s Greenridge Hotels and Resorts Pvt Ltd at a premium of Rs 20/- per share. The Company is setting up a 5 Star Deluxe (Luxury category) Hotel Project comprising of 275 rooms near Terminal 1C, Santacruz, Mumbai at Mumbai International Airport, under the 'TAJ' brand with M/s. Greenridge Hotels & Resorts Private Limited (a GVK Company) through its SPV M/s. Green Woods Palaces & Resorts Private Limited. As per the MOU signed with M/s Greenridge, the Company is entitled to acquire upto 49% stake in the SPV. As per the conditions of the share holders' agreement, the same is treated as a jointly controlled entity as per the Accounting Standards in vogue.

1. Contingent liabilities not provided for in respect of :

(Rs in lacs) Sl. Particulars As at As at No. 31-03-2012 31-03-2011

i. Sales Tax matters 169.45 169.45

ii. Income Tax matters 7.60 86.41

iii. Service Tax matters 23.65 23.65

iv. Excise duty 3.21 -

v. Probable customs duty payable on the Equipment Imported under Export Promotion Capital Goods Scheme 487.18 613.74

vi. Letters of Credit - 224.31

vii. Bank Guarantees - Others 153.26 140.43

viii.Estimated amount of contracts remaining to be executed on capital account. 274.10 2422.66

ix. Telephone charges in dispute with BSNL 13.73 13.73

2. Deposits recoverable under Loans and Advances include the following paid under protest:

i) Rs 83.84 lacs paid under the VAT Act pertaining to financial years 2005-06 to 2008-09.

3. Other Commitments: The uncalled liability on account of acquisition of 1,58,00,000 shares of Rs10/- each of Greenwoods Palaces & Resorts Pvt Ltd, Rs 11,06,00,000/-

4. i) Disclosure of Trade Payables under Current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" and relied upon by the Auditors.

ii) Details of total outstanding dues to Micro and Small Enterprises as per MSMED Act, 2006:

5. The Executive Chairman and Managing Director are entitled to commission @ 1% each of Net Profits computed in accordance with Section 349 of the Companies Act, 1956 after tax. Due to inadequacy of the profits no commission was provided for the year and the Company is in the process of submitting an application to the Central Government for approval of minimum remuneration as per the terms of appointment.

6. Disclosure of interest in jointly controlled entities:

i) The Company holds 21.06% (Previous year NIL) of the total share capital of M/s Greenwoods Palaces & Resorts Pvt Ltd (Greenwoods), which is incorporated in India.

ii) The share of contracts to be executed on capital account of the Company in Greenwoods is Rs 775.34 lacs as of 31.03.2012.

7. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realise in the ordinary course of business approximately the value at which they are stated in accounts.

8. Previous Year's figures have been regrouped / rearranged, wherever necessary. Figures in brackets indicates those for previous year.

---

Mar 31, 2011

1. Contingent liabilities not provided for in respect of :

Rs. in lacs

Sl. Particulars As at As at No. 31-03-2011 31-03-2010

i. Sales Tax matters 169.45 135.86

ii. Income-tax matters 86.41 86.41

iii. Service Tax matters 23.65 –

iv. Probable customs duty payable on the Equipment Imported under Export Promotion Capital Goods Scheme 126.56 144.69

v. Letters of Credit 224.31 11.08

vi. Bank Guarantees-Others 140.43 453.22

vii. Estimated amount of contracts remaining to be executed on capital account. 2422.66 3080.55

viii. Telephone charges in dispute with BSNL 13.73 13.73

2. None of the suppliers informed the Company regarding their status under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, dues to the suppliers under this Act could not be furnished.

3. Balances in current accounts under Cash and Bank balances include Rs.150.47 lacs (Rs. 139.20 lacs) on account of unclaimed dividends.

4. MANAGERIAL REMUNERATION :

Computation of Profit under Section 349 of the Companies Act, 1956

The Executive Chairman and Managing Director are entitled to commission @ 1% each of Net Profits computed in accordance with Section 349 of the Companies Act, 1956 after tax. Due to inadequacy of the profits no commission was provided for the year and the Company is in the process of submitting an application to the Central Government for approval of minimum remuneration as per the terms of appointment.

5. Deposits recoverable under Loans and Advances include the following paid under protest:

i) Rs. 86.41 lacs, Rs. 18.77 lacs and Rs. 6.96 lacs paid under the Income Tax Act pertaining to A.Y 2003-04, A.Y 2007-08 and A.Y 2008-09 respectively.

ii) Rs. 45.12 lacs paid under the VAT Act pertaining to financial years 2005-06 to 2008-09.

6. The Company has subscribed to 18000 Equity Shares of Rs. 10/- each of Green Infra Windfarms Limited, with whom the Company entered into a power purchase agreement for supply of 3 million units of power or 5.65% of its actual generation whichever is less in order to comply with regulatory requirement for supply of such power.

7. Additional information pursuant to provisions of paragraphs 3, 4 and 4D of Part II of Schedule VI of the Companies Act 1956.

8. a) Related Parties Disclosures

The Company does not have any holding Company or Companies controlling the Company, as defined under Accounting Standard 18. The Company does not have any subsidiary Companies. Transactions with various Companies related to the Company by way of common directorships or firms in which directors are partners, are disclosed hereunder:

Key Management personnel:

Dr. G.V.Krishna Reddy Executive Chairman

Smt.G.Indira Krishna Reddy Managing Director

Smt.Shalini Bhupal Executive Director

Joint Venture with

Companies/Firms/Trust in which the key management

and their relatives are interested:

Accura Constructions (P) Ltd

Accura Estates (P) Ltd

Alaknanda Hydro Power Co Ltd (*)

Allied Estates (P) Ltd

Altitude Design & Development (P) Ltd

Amtran Constructions (P) Ltd

Anchor Estates (P) Ltd

Appease Estates Private Limited

Bengaluru Airport & Infrastructure Developers Pvt.Ltd (*)

Bengaluru International Airport Ltd (*)

Blue Streak Consultants (P) Ltd

Blue Streak Land Holdings (P) Ltd

Bonanza Real Estates (P) Ltd

Caspian Capital & Finance (P) Ltd

Casuarina Capital & Finanace (P) Ltd

Classic Land Holdings (P) Ltd

Consolidated Real Estates (P) Ltd

Cygnus Real Estates (P) Ltd

Delta Land Holdings (P) Ltd

Dhaulasidh Power (P) Ltd

Eagle Land Holdings (P) Ltd

Fair Value Land Holdings (P) Ltd

Fortune Real Estates (P) Ltd

Fresenius Intraven (P) Ltd

Gautami Power Ltd (*)

Genesis Realtors (P) Ltd

GIKR Land Holdings (P) Ltd

Goldgreen Land Holdings (P) Ltd

Goriganga Hydro Power Co.(P) Ltd

Greenridge Hotels & Resorts(P)Ltd

The Indian Hotels Company Limited

JK Operation & Maintainance (P) Ltd

KR Bhupal Land Holdings (P) Ltd

KRAMB Land Holdings (P) Ltd

KRBSB Estates Private Limited

KRGV Land Holdings (P) Ltd

Krishna Enterprises

Lakshmi Enterprises

Lepus Land Holdings (P) Ltd

Mallikarjuna Estates (P) Ltd

Mallikarjuna Finance (P) Ltd

Marine Developers

Marine Enterprises

Marine Estates

Marriot Land Holdings (P) Ltd

Marwell Architects & Contractors (P) Ltd

Metro Architects & Contractors (P) Ltd

Midas Estates (P) Ltd

MMR Constructions

MR Constructions

MRK Constructions

Mumbai Airport Developers (P) Ltd

Mumbai Aviation Fuel Form Facility (P) Ltd

Mumbai International Airport (P) Ltd (*)

Mystique Jewellery & Accessories P Ltd

Novopan Industries Ltd (*)

Orbit Travel & Tours (P) Ltd (*)

Oxford Land Holdings (P) Ltd

Pace Constructions (P) Ltd

Pace Estates (P) Ltd

Paigah House Hotel (P )Ltd

GSR Land Holdings (P) Ltd

GVK Airport Developers (P) Ltd

GVK Airport Holdings (P) Ltd

GVK Biosciences (P) Ltd (*)

GVK Cements Pvt Ltd (*)

GVK City (P) Ltd

GVK Coal (Tokisud) Co.(P) Ltd (*)

GVK Davix Research (P) Ltd

GVK Davix Technologies (P) Ltd

GVK Developmental Projects (P) Ltd

GVK Foundation (*)

GVK Energy Holdings (P) Ltd

GVK Energy Ltd (*)

GVK Enterprises

GVK Estates Private Limited

GVK Hydel (P) Ltd

GVK Industries Ltd (*)

GVK Jaipur Expressway Private Ltd (*)

GVK Power (Jegurupadu) Pvt Ltd

GVK Oil & Gas Limited (*)

GVK Perambalur SEZ (P) Ltd

GVK Power & Infrastructure Ltd (*)

GVK Power (Goindwal Sahib) Ltd (*)

GVK Power (Krishnapatnam) (P) Ltd

GVK Power (Ratlam) Private Ltd

GVK Properties & Management Co.(P) Ltd (*)

GVK Projects & Technical Services Ltd.

GVK Technical & Consultancy Private Ltd

GVK Transportation (P) Ltd

GVK Virudhnagar Sez (P) Ltd

IKR Land Holdings (P) Ltd

Inc GVK Bio (P) Ltd

Indigo Enterprises

Indigo Estates

Indira Constructions

Indira Enterprises

Innovative Land Holdings (P) Ltd

Inogent Laboratories (P) Ltd (*)

ISR Infrastructure

Parthasarathy A/c Tourists (P) Ltd

Patikari Power Private Ltd

Pinakini Share & Stock Brokers Ltd

Pinnacle Land Holdings (P) Ltd

Plateau Construction & Engg.(P) Ltd

Plateau Land Holdings (P) Ltd

Raghavendra Finance (P) Ltd

Raghavendra Land Holdings (P) Ltd

Regulus Estates (P) Ltd

Revatha Aqua Mineral (P) Ltd

RK Estates

S.Bhupal & Others

SBSR Land Holdings (P) Ltd

Sheraton Estates (P) Ltd (*)

SHSB Land Holdings (P) Ltd

Siregraha Mines Limited

SOMKRB Land Holdings (P) Ltd

SR Finance & Others

SR Finance (P) Ltd

Sri Hari Developers

Sri Hari Enterprises

Sri Hari Estates

Sri Lakshmi Enterprises

Sri Parvathi Enterprises

Sri Shiva Enterprises

Sri Venkateswara Enterprises

Sri Vishnu Enterprises

Starlet Land Holdings (P) Ltd

Sunshine Properties (P) Ltd

Suphala Real Estates (P) Ltd

TRG Constructions

Trinity Advisors (P) Ltd

Ubiquitous Infratech (P) Ltd

Verdura

Vertex Infratech (P) Ltd

Vertex Projects Ltd

Volantis Land Holdings (P) Ltd

Vulcon Constructions (P) Ltd

Zinger Investments (P) Ltd

(*) - Companies with which there are transactions during the year

9. The company operates a post retirement benefit plan for gratuity.

10. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realise in the ordinary course of business approximately the value at which they are stated in accounts.

11. Previous Years figures have been regrouped / rearranged, wherever necessary. Figures in brackets indicates those for previous year

---

Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

Rs.in lacs SI. Particulars As at As at No. 31-03-2010 31-03-2009 i. Sales Tax matters 135.86 71.80 ii. Income-tax matters 86.41 86.41 iii. Probable customs duty payable on the Equipment Imported under Export Promotion Capital Goods Scheme against which Bank Guarantees of Rs.72.34 lacs are given. (Previous Year: Rs.107.81 lacs) 144.69 215.62 iv. Letters of Credit 11.08 283.09 v. Bank Guarantees-Others 453.22 482.07 vi. Estimated amount of contracts remaining to be executed on capital account. 3080.55 1013.07 vii. Telephone charges in dispute with BSNL 13.73 -

2. None of the suppliers informed the Company regarding their status under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the dues to the supplier under this Act and interest payable, if any could not be furnished.

3. Balances in current accounts under Cash and Bank balances include Rs.139.20 lacs (Rs. 119.29 lacs) on account of unclaimed dividends.

4. MANAGERIAL REMUNERATION :

Computation of Profit under Section 349 of the Companies Act, 1956

The Executive Chairman and Managing Director are entitled to commission @ 1% each of Net Profits computed in accordance with Section 349 of the Companies Act, 1956 after tax. Due to inadequacy of the profits no commission was provided for the year and the Company has submitted an application to the Central Government for approval of minimum remuneration as per the term of appointment.

5. Deposits recoverable under Loans and Advances include the following being paid under protest: i) Rs.86.41 lacs paid under the Income Tax Act pertaining to A.Y 2003-04.

ii) Rs.32.64 lacs paid under the VAT Act pertaining to the years 2005-06 to 2008-09

6. The Company has subscribed to 18000 Equity Shares of Rs.10/- each of Green Infra Windfarms Limited, with whom the Company entered into a power purchase agreement for supply of 3 million units of power or 5.65% of its actual generation whichever is less in order to comply with regulatory requirement for supply of such power.

7. Additional information pursuant to provisions of paragraphs 3, 4 and 4D of Part II of Schedule VI of the Companies Act 1956.

i) As per the Order No.46/179/2008 CL - III dated 17/06/2008 issued by the Department of Company Affairs, the Company has been exempted from giving the quantitative details of turnover in respect of supply of Food & Beverages, Liquors & Wines and Accomodation.

11. a) Related Parties Disclosures

The Company does not have any holding company or companies controlling the company, as defined under Accounting Standard 18. The company does not have any subsidiary companies. Transactions with various companies related to the company by way of common directorships or firms in which directors are partners, are disclosed hereunder:

Key Management personnel:

Sri C.V.Krishna Reddy Executive Chairman

Smt.G.Indira Krishna Reddy Managing Director

Smt.Shalini Bhupal Executive Director

Joint Venture with The Indian Hotels Company Limited (*)

Companies/Firms/Trust in which the key management and their relatives are interested:

Accura Constructions (P) Ltd Accura Estates (P) Ltd Alaknanda Hydro Power Co Ltd (*) Allied Estates (P) Ltd (*) Altitude Design & Development (P) Ltd Amtran Constructions (P) Ltd Anchor Estates (P) Ltd Appease Estates Private Limited Blue Streak Consultants (P) Ltd Blue Streak Land Holdings (P) Ltd Bonanza Real Estates (P) Ltd Caspian Capital & Finance (P) Ltd Casuarina Capital & Finanace (P) Ltd Classic Land Holdings (P) Ltd Consolidated Real Estates (P) Ltd Cygnus Real Estates (P) Ltd Delta Land Holdings (P) Ltd Dhaulasidh Power (P) Ltd Eagle Land Holdings (P) Ltd Fair Value Land Holdings (P) Ltd Fortune Real Estates (P) Ltd Fresenius Intraven (P) Ltd Gautami Power (samalkot) Private Ltd Gautami Power Ltd (*) Genesis Realtors (P) Ltd GIKR Land Holdings (P) Ltd Goldgreen Land Holdings (P) Ltd Goriganga Hydro Power Co.(P) Ltd Green Woods Golf & Resorts (P) Ltd Greenridge Hotels &Resorts(P)Ltd GSR Land Holdings (P) Ltd GVK Airport Developers (P) Ltd GVK Airport Holdings (P) Ltd GVK Aviation (P) Ltd GVK Biosciences (P) Ltd (*) GVK Cements Ltd GVK City (P) Ltd GVK Coal (Tokisud) Co.(P) Ltd (*) GVK Davix Research (P) Ltd (*) GVK Davix Technologies (P) Ltd GVK Developmental Projects (P) Ltd GVK Foundation (*) GVK Energy Holdings (P) Ltd GVK Energy Ltd GVK Estates Private Limited GVK Hydel (P) Ltd GVK Industries Ltd (*) GVK Infrastructure Holdings (P) Ltd. GVK Infratech (P) Ltd GVK Jaipur Expressway Private Ltd (*) GVK Oil & Gas Limited (*) GVK Perambalur SEZ (P) Ltd ISR Infrastructure Jegurupadu Power Plant Services (P) Ltd JK Operation & Maintainance (P) Ltd KR Bhupal Land Holdings (P) Ltd KRAMB Land Holdings (P) Ltd KRBSB Estates Private Limited KRGV Land Holdings (P) Ltd Krishna Enterprises Lakshmi Enterprises Lepus Land Holdings (P) Ltd Mallikarjuna Estates (P) Ltd Mallikarjuna Finance (P) Ltd Marine Developers Marine Enterprises Marine Estates Marriot Land Holdings (P) Ltd Marwell Architects & Contractors (P) Ltd Metro Architects & Contractors (P) Ltd Midas Estates (P) Ltd MMR Constructions MR Constructions MRK Constructions Mumbai Airport Developers (P) Ltd Mumbai International Airport (P) Ltd (*) Mystique Jewellery & Accessories P Ltd Novopan Industries Ltd (*) Orbit Travel & Tours (P) Ltd (*) Oxford Land Holdings (P) Ltd Pace Constructions (P) Ltd Pace Estates (P) Ltd Paigah House Hotel (P )Ltd Parthasarathy A/c Tourists (P) Ltd Patikari Power Private Ltd Pinakini Share & Stock Brokers Ltd Pinnacle Land Holdings (P) Ltd Plateau Construction & Engg.(P) Ltd Plateau Land Holdings (P) Ltd Raghavendra Finance (P) Ltd Raghavendra Land Holdings (P) Ltd Regulus Estates (P) Ltd Revatha Aqua Mineral (P) Ltd RK Estates S.Bhupal & Others (*) SBSR Land Holdings (P) Ltd Sheraton Estates (P) Ltd (*) SHSB Land Holdings (P) Ltd Siregraha Mines Limited SOMKRB Land Holdings (P) Ltd , SR Finance & Others SR Finance (P) Ltd Sri Hari Developers Sri Hari Enterprises GVK Power & Infrastructure Ltd (*) GVK Power & Infrastructure Private Ltd GVK Power (Goindwal Sahib) Ltd (*) GVK Power (Krishnapatnam) (P) Ltd (*) GVK Power (Ratlam) Private Ltd GVK Properties & Management Co.(P) Ltd (*) GVK Projects Ltd GVK Technical & Consultancy Private Ltd (*) GVK Virudhnagar Sez (P) Ltd IKR Land Holdings (P) Ltd Inc GVK Bio (P) Ltd Indigo Enterprises Indigo Estates Indira Constructions Indira Enterprises (*) Innovative Land Holdings (P) Ltd Inogent Laboratories (P) Ltd (*) Sri Hari Estates Sri Lakshmi Enterprises Sri Shiva Enterprises Sri Venkateswara Enterprises Sri Vishnu Enterprises Starlet Land Holdings (P) Ltd Sunshine Properties (P) Ltd Suphala Real Estates (P) Ltd TRG Constructions Trinity Advisors (P) Lid Ubiquitous Infratech (P) Ltd Verdura Vertex Infratech (P) Ltd Vertex Projects Ltd Volantis Land Holdings (P) Ltd Vulcon Constructions (P) Ltd Zinger Investments (P) Ltd

(*) Companies with which there are transactions during the year

8. In the opinion of the Board of Directors of the company, the current assets, loans and advances are expected to realise in the ordinary course of business approximately the value at which they are stated in accounts.

9. Previous Years figures have been regrouped / rearranged, wherever necessary. Figures in brackets indicates those for previous year.