The assets relating to The Oberoi Centre, Gurugram have been classified as investment property as per Ind AS 40, Investment Property. The fair value of the same as assessed by an independent valuer registered under the Companies (Registered Valuers and Valuation) Rules, 2017 using the market value/ capitalised value by income approach, is Rs. 2,667.00 million as on March 31, 2024 (March 31,2023: Rs. 2,300.00 million). The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties.

The rental income generated from Investment property is Rs. 266.3 million (2023: Rs. 250.78 million)

Inventories are valued at lower of cost which is based on 'Cumulative weighted average method' and 'net realisable value'.

The cost of inventories recognised as an expense during the year as consumption of provisions, wines and others Rs. 2,100.58 million (2023: Rs. 1,780.36 million)

Inventories with a carrying amount of Rs. 573.70 million (2023 - Rs. 557.55 million) have been pledged as security for cash credit facility from banks. [Refer note 27( i)]

(ii) Rights and preferences attached to equity shares:

The Company has one class of equity shares having a par value of Rs. 2 per share. These shares rank pari passu in all respects including voting rights and entitlement to dividend.

Pursuant to shareholders approval dated September 28, 2022 and approval of stock exchanges vide letter dated January 9, 2023, Mr. Shib Sanker Mukherji and Mr. Deepak Madhok have been reclassified from the 'promoter and promoter group' category to 'public' category. The shareholding of 'promoter and promoter group' has been updated accordingly

The final dividend proposed for year ending March 31 2023, declared and paid by the Company during the current year ending March 31,2024 and the dividend proposed for FY 2023-24 is in accordance with section 123 of the Companies Act, 2013, as applicable.

Nature and purpose of Reserves

(i) Capital redemption reserve

Capital redemption reserve represents the statutory reserve created by the Company for the redemption of its preference share capital. The same can be utilised by the Company for issuing fully paid bonus shares.

(ii) Securities premium

This reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.

(iii) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

(iv) Retained earnings

Retained earnings represents accumulated profits of the Company. It can be utilised in accordance with the provisions of the Companies Act, 2013.

Particulars of term loans:

i) Security

During the year ended March 31, 2024, the term loan facilities of Rs. 2,035.70 million (balance outstanding as on March 31, 2023: Rs. 565.48 million) from ICICI Bank Limited secured by way of first pari passu charge by way of equitable mortgage on the Company's hotel - The Oberoi, New Delhi, have been repaid and charge satisfied.

Further, the term loan facilities of Rs. 750.00 million from ICICI Bank Limited were repaid and charge was satisfied during the year ended March 31, 2023.

ii) Terms of repayment and Interest rate:

(a) Term loan I outstanding of Rs. Nil [ March 31, 2023: Rs. 565.48 million (including current maturities Rs. 205.63 million)] The term loan was repaid during the year ended March 31, 2024. The rate of interest on such term loan is based on the bank's one-year MCLR plus spread, subject to annual reset and is in the range of 7.55% p.a. to 7.80% p.a. Interest was payable on a monthly basis.

(a) Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits will be available for recovery of these assets.

(b) As at March 31,2024, the Company has unutilised long term capital loss of Rs. 1,797.02 million (as at March 31,2023 Rs. 1796.92 million) and short term capital loss of Rs. 300.00 million (as at March 31,2023 Rs. 299.56 million) for which no deferred tax assets have been recognised in the absence of reasonable certainty that there will be sufficient future taxable income relating to long term capital gains to realise such assets.

Particulars of short term borrowings: i) Security

Cash credit facilities from banks are secured by way of hypothecation of all stock of inventories, book debts and other current assets of the Company, both present and future, ranking pari passu. Amount outstanding towards cash credit is Rs. Nil as at March 31, 2024 and March 31, 2023

Non-fund based facility with HSBC is secured by way of first pari passu charge by way of equitable mortgage on the immovable fixed assets property, plant and equipment of the Company's hotel in Delhi known as Maidens Hotel.

(a) During the year ended March 31, 2023, the Company had received an amount of Rs. 15.77 million as additional consideration as per the terms of Share Purchase Agreement dated July 31, 2018, related to divestment of entire holding in an associate during the year ended March 31, 2019.

(b) Includes Rs. 21.77 million recorded during the year ended March 31, 2023, as per the Orders of the Government of Rajasthan, Finance Department (Tax Division) issued from time to time, towards reimbursement of State Tax due and deposited by entities registered under the Rajasthan Goods and Services Tax Act, 2017.

(i) The Company does not have average net profits in the past three years for the financial years ended March 31, 2024 and March 31, 2023 and therefore was not required to spend any amount towards Corporate Social Responsibility (CSR) during the year ended March 31, 2024 and March 31, 2023 and did not have unspent CSR amounts for the year requiring a transfer to a Fund specified in Schedule VII to the Companies Act or special account in compliance with the provisions of sub-section (6) of section 135 of the said Act.

(ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its standalone financial instruments into the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed financial instruments that have quoted price. The fair value of all financial instruments which are traded in the stock exchanges is valued using the closing price as at the end of the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, security deposits included in level 3.

(iii) Assets and liabilities which are measured at amortised cost for which fair values are disclosed

For all the financial assets and financial liabilities measured at amortised cost, carrying value is an approximation of their respective fair value.

(iv) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

Investment in ReNew Wind Energy (Karnataka) Private Limited was made pursuant to the agreement for procuring electricity supply at the hotel. As at March 31, 2024 the contract with the ReNew Wind Energy (Karnataka) Private Limited is due to expire and as per the terms of agreement, the Company is entitled to receive refund of its investment value equivalent to the subscription amount upon termination thereof. Accordingly such investment value is reclassed from Non-current investment to current investment.

Investment in the said company is not usually traded in the market. Considering the terms of the electricity supply agreement, the management of the company has assessed that cost represents the best estimate of its fair value.

For the investment in Golden Jubilee Hotels Private Limited (GJHPL), the management was of the view that carrying value of the investment is representative of its fair value as on April 1, 2015. As on April 1, 2015, no indicators of impairment were existing. However, during the financial year 2015-16, due to the non-payment of bank borrowings and other obligation, petition for the winding up had been filed by the creditors and lenders of the GJHPL. Considering the financial position of the GJHPL and legal proceedings initiated by lenders, the management had fully provided for the investment in GJHPL as on March 31, 2016.

43 FINANCIAL RISK MANAGEMENT

The Company's activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

The Company's risk management is carried out by the treasury department under policies approved by the Board of Directors. The Company's treasury department identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The Board of Directors provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.

(A) Market risk(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognised assets or liabilities denominated in a currency that is not the Company's functional currency (Rs.).

The exposure of the Company to foreign currency risk is not significant. However, this is closely monitored by the management to decide on the requirement of hedging. The position of foreign currency exposure to the Company as at the end of the year expressed in Rs. is as follows:

(B) Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company.

Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the Company does not allow any credit period and therefore, is not exposed to any credit risk.

The Company does not have any derivative transactions and therefore is not exposed to any credit risk on account of derivatives. The Company does not have any long-term contracts for which there are any material foreseeable losses.

(C) Liquidity risk

The Company has a liquidity risk management framework for managing its short term, medium term and long term sources of funding vis-a-vis short term and long term utilisation requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.

The aforementioned cash credit facilities may be drawn at any time and may be terminated by the bank without notice.

* Cash credit facility remained unutilised during the current year and the previous year and was closed during the year ending on March 31, 2024 and the charge in respect of this facility has been satisfied on April 3, 2024.

(ii) Maturities of financial liabilities

The table below analyses the Company's all non-derivative financial liabilities into relevant maturity based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows.

(i) Employee benefit plans

a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Company operates a gratuity plan through the ""EIH Employees' Gratuity Fund"". Gratuity plan is a funded plan and the Company through Gratuity Trust makes contributions of funds to Life Insurance Corporation of India. Provision/write back, if any, is made on the basis of the present value of the liability as at the Balance Sheet date determined by actuarial valuation following Projected Unit Credit Method.

b) Leave encashment

As per the policy of the Company, obligations on account of encashment of accumulated leave of an employee is settled only on separation of the employee. Such liability is recognised on the basis of actuarial valuation following the projected unit credit method. It is an unfunded plan.

(ii) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees as per applicable regulations. The contributions are made to registered provident fund administered by the government.The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contribution plan is Rs. 174.87 Million (March 31, 2023 - Rs. 158.40 Million).

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method i.e. projected unit credit method has been applied as that used for calculating the defined benefit liability recognised in the balance sheet.

Sensitivities due to change in demographic and investment assumptions are not material and hence the impact of change due to these is not disclosed.

(vii) Risk exposure

The defined benefit obligations have the undermentioned risk exposures:

Interest rate risk: The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation is likely to increase.

Salary Inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation depends upon the combination of salary increase, discount rate and vesting criteria.

Investment risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. LIC of India primarily invests in debt instruments such as Government securities and highly rated corporate bonds wherein the risk of downward fluctuation in value is minimal.

(viii) Defined benefit liability and employer contributions

Expected contribution to post employment benefit plan during the year ending March 31,2025 is Rs. 71.92 million.

The weighted average duration of the defined benefit obligation is 5 years (2023 - 5.1 years) in case of Gratuity and 6 years (2023- 6 years) in case of leave encashment.

46 CONTINGENCIES (i) Contingent Liabilities

The Company had contingent liabilities as at March 31, 2024 in respect of:

(a) Claims against the Company pending appellate/judicial decisions not acknowledged as debts:

(i) During the year ended March 31, 2024, the Company has received demands (including interest and penalty) aggregating to Rs. 3.68 million for the financial year 2018-19 and 2020-21 from the Deputy Commissioner, Maharashtra Goods and Service Tax, 2017. Contingent liabilities as at March 31, 2024 include amounts in respect thereof. The Company intends to file appeals with the appropriate authorities within the stipulated time.

(ii) Subsequent to the year ended March 31, 2024, the Company has received demands (including interest and penalty) aggregating to Rs. 1.59 million for the financial year 2018-19 which includes Rs. 1.15 million from the Assistant commissioner of revenue, Directorate of Commercial Taxes, West Bengal and Rs. 0.44 million from the Assistant Commissioner (ST) Chromepet Assessment Circle, Chennai. Contingent liabilities as at March 31, 2024 include amounts in respect thereof. The Company intends to file appeals with the appropriate authorities within the stipulated time.

(iii) During the year ended March 31, 2024, Additional Commissioner of GST, Appeals-II, Bengaluru confirmed demands (including interest and penalty) against the Company aggregating to Rs. 0.38 million for the financial year 2017-18. Contingent liabilities as at March 31, 2024 include amounts in respect thereof. The Company intends to file an appeal with the appropriate authorities within the stipulated time.

Note:

The matters listed above are in the nature of statutory dues, namely, Property tax, Sales Tax, Value Added Tax, Goods and Services Tax, Income Tax, Service Tax, Luxury Tax and other claims, all of which are under litigation, the outcome of which would depend on the merits of facts and law at an uncertain future date. The amounts shown in the items above represent the best possible estimates arrived at, are on the basis of currently available information. The Company engages reputed professional advisors to protect its interests, and cases that are disputed by the Company are those where the management has been advised that it has strong legal positions. Hence, the outcomes of the above matters are not envisaged to have any material adverse impact on the Company's financial position.

(b) Guarantees excluding financial guarantees:

i. Counter guarantees issued to banks and remaining outstanding Rs. 44.99 million (2023- Rs. 44.46 million).

46A During the previous year, the Company had recognised an obligation of Rs. 189.27 million, including custom duty on import an asset, consequent to an order of the High Court of Delhi dated January 31, 2023, as disclosed under Exceptional Items in the Standalone Statement of Profit and Loss for the year ended March 31,2023. The Company has preferred an appeal against the said order before the Honorable Supreme Court of India.

46B Pursuant to the Supreme Court order dated November 7, 2022 with respect to levy and computation of property tax under the provisions of the Mumbai Municipal Corporation Act, 1888, an expense of Rs. 192.59 millions had been recognised in 'Other expenses - Rates and taxes' in the Standalone Statement of Profit and Loss for the year ended March 31, 2023.

47 There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

48 COMMITMENTS

(i) Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

(ii) Other commitments:

EIH Flight Services Ltd ("EIHFSL"), Mauritius had availed borrowing facilities of Rs. 610.97 million [MUR 365.5 Million] from State Bank (Mauritius) Ltd ("SBM") which, amongst others, was secured by corporate guarantees of Rs. 622.67 million [MUR 372.5 Million] by the Company. The Company invested MUR 287.20 million (equivalent to Rs. 499.30 million) during the year ended March 31, 2023 pursuant to the approval of the Board of Directors of the Company in its meeting dated March 16, 2022, for the purpose of repayment of all borrowings and liabilities of EIHFSL for the purpose of sale of EIHFSL to an identified buyer. Accordingly, the outstanding borrowings of EIHFSL were repaid, EIHFSL ceased to be a subsidiary and corporate guarantees were cancelled by SBM during the year ended March 31, 2023.

53 DISCLOSURE ON CONTRACT BALANCES: a) Trade receivables

A trade receivable is recorded when the Company has an unconditional right to receive payment. In respect of revenue from rooms, food and beverages and other services invoice is typically issued as the related performance obligations are satisfied as described in note 1(b) - Material accounting policies-Revenue Recognition (Refer note 14-Trade receivables).

54 During the year ended March 31, 2023, on receipt of regulatory approvals, the Company transferred its entire shareholding held in the wholly owned subsidiary to the buyer (an unrelated party) and EIH Flight Services Ltd (""EIHFSL"") ceased to be a subsidiary of the Company. The Company had received sale consideration as per the terms and conditions stipulated in the Share Purchase Agreement and had consequently recorded a loss amounting to Rs. 21.09 million which had been disclosed under "Exceptional items" in the Standalone Statement of Profit and Loss for the year ended March 31, 2023.

EIHFSL had accordingly been classified as asset held for sale in line with the requirements of Ind AS 105 (Non-current Assets Held for Sale and Discontinued Operations) and the appropriate accounting treatment/disclosures had been made in the Standalone Financial Statements for the year ended March 31, 2023.

Further, during the interim period ended on September 30, 2022, the fair value of the enterprise. The fair value of the enterprise (sale consideration) was adjusted with net financial debt at the closing date (as defined in the offer letter/"SPA"), along with costs to sell to arrive at fair value less costs to sell. The Company accordingly recognised an impairment loss in investment in EIHFSL amounting to Rs. 95.20 million during the year ended March 31, 2023 which was disclosed under "Exceptional items" in the Standalone Statement of Profit and Loss.

55 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India and subsequently on November 13, 2020 draft rules were published and invited for stakeholders' suggestions. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code and rules thereunder become effective.

59 OTHER STATUTORY INFORMATION

i. Title deeds of Immovable Properties are in the name of the Company, other than as disclosed in the note 56.

ii. The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

iii. The Company has been sanctioned a fund based and non-fund based working capital limit from banks on the basis of security of current assets, including fixed deposits. Based on the sanction letter/acknowledgment of correspondence with the bank, the quarterly returns or statements comprising stock statements and book debt statements filed by the Company with four such banks till the date of approval of these financial statements are in agreement with unaudited books of account of the Company for the quarter ended June 30, 2023, September 30, 2023 and December 31, 2023. The Company intends to submit the return/ statement as at the quarter ended March 31, 2024, with the banks.

iv. The Company was not holding any benami property and no proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

v. The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

vii. The Company did not have any charges or satisfaction which were yet to be registered with ROC beyond the statutory period.

viii. The Company has not traded or invested in Crypto currency or Virtual Currency during year ended March 31, 2024.

ix. The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) any funds to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

x. The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi. The Company did not have any transaction which had not been recorded in the books of account that had 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).

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

60 The Company has maintained books of account as required by law including back up on daily basis of books of account maintained in electronic mode in a server physically located in India.

61 As per the requirements of the rule 3(1) of the Companies (Accounts) rule 2014 the Company uses only such accounting softwares for maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an edit log of each change made in the books of account along with the date when such changes were made and who made those changes within such accounting softwares except for (a) one software, audit trail feature was not enabled at the application level for certain tables, and at the database level to log any direct data changes, (b) certain softwares which did not have a feature of recording audit trail (edit log) facility at the database level to log any direct data changes and (c) in respect of certain third party softwares used by the Company for maintaining and processing certain relevant transactions, the independent auditor's report does not cover whether the audit trail was enabled or not, as per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014. The Company has not noted any tampering of the audit trail feature in respect of the software for which the audit trail feature was operating.

The Company has established and maintained internal financial controls over financial reporting and such internal financial controls were operating effectively throughout the year.

62 The standalone financial statements were approved for issue by the Board of Directors on May 28, 2024.