Notes to Deferred Tax:

i) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

ii) Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

iii) In the previous year, the Company had recognised Deferred tax assets on unabsorbed business losses and unabsorbed Depreciation as it was confident that it would be able to generate sufficient taxable profits (post recovery from Covid -19 pandemic) against which these unabsorbed business losses and depreciation could be utilised.

Rights and terms attached to equity shares

(i) The Company has issued one class of shares referred to as Equity Shares having a par value of ? 2/-. Each holder is entitled to one vote per share.

(ii) The Company declares and pays dividends in Indian Rupees (?). The payment of interim dividend is approved by the Board of Directors and ratified by the Shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.

(iii) In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Description of nature and purpose of each reserve:

(a) Capital Reserve: Capital reserve mainly consists of capital profit on sale of business undertaking and profit on re-issue of forfeited shares.

(b) Capital Redemption Reserve: Capital Redemption Reserve was created on redemption of Debentures in earlier years.

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

(d) General Reserve: The Company has transferred a portion of the net profit before declaring dividend to general reserve.

(e) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(f) Other Comprehensive Income: This represents the cumulative actuarial gain and losses on remeasurement of the defined benefit plans.

i) The Saraswat Co-op. Bank Ltd. had sanctioned credit facilities comprising of term loan of ? 300.00 lakhs, overdraft facility of ? 1500.00 lakhs and non-funded Bank Guarantee provided of ? 100.00 lakhs, which are secured by a mortgage charge by deposit of title deeds of Company's immovable property being Caravela Beach Resort Goa and pledge of shares of Saraswat Bank (Refer Note 7A).

ii) Particulars of terms of repayment of loans / rate of interest

A) Rate of Interest: PLR Less 5.75 bps, i.e. 8.75% p.a. at present

B) Repayment:

Overdraft: Repayable in 7 years or on demand with a moratorium of 2 years with reduction of ? 150.00 lakhs in each of the next financial year.

During the year, on the request of the Company, the term loan facility has been cancelled and the overdraft facility limit has been reduced to ? 100.00 lakhs.

The Company is not declared a willful defaulter by the bank from whom the above borrowing is taken.

The Company's present borrowing from Bank as above are secured by mainly immovable property of the Company as mentioned above and not on the security of the Current Assets of the Company and Company is not required to submit any quarterly statement of Current Assets to the lender.

The Vehicle term loans taken from Bank in earlier years have been utilised for purchase of vehicles and have since been fully repaid during the year.

The operations of the Company's hotel at Goa were temporarily closed for part of the previous year (May 4, 2021 to August 11,2021) due to COVID-19 pandemic attack which affected the revenue of previous year. Hence, the figures of the current year are not comparable with the figures of the previous year. Refer Note 35.

Other disclosures as per Ind AS 115: "Revenue from Contracts with Customers''

i) Revenue from contracts with customers is recognised by the Company, net of indirect taxes.

ii) The Company derived its revenue from the transfer of goods and services over time in its major service lines.

iii) Contract balances: Advance collection is recognised when payment is received before the related performance obligation is satisfied. This includes advances received from customers towards hotel services. Revenue is recognised once performance obligation is met, i.e. on room stay, sale of food and beverages. provision of banquet & weddings and conference services. The particulars of contract balances outstanding are given in Note 23.

The Company has not surrendered or disclosed as income during the year or previous year, any transactions not recorded in the books of account in the tax assessment under the Income Tax Act, 1961.

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year or previous year

1. The discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of obligations.

2. The estimates of rate of escalation in salary is considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

3. The gratuity plan is funded through Life Insurance Corporation of India and earned leave is unfunded.

27.2 In the year 2018 - 2019, an ex-employee of the Company, after receiving the Notice of termination with respect of her employment with the Company, made defamatory allegations against the Company and its Directors. The Company appointed legal advisors and the matter is being handled under their guidance and advice. A majority of the complaints filed by the ex-employee have been closed by the concerned authorities. The Company’s legal advisers are of the view that no other claims of the ex-employee are legally maintainable with respect to the Medico-Legal cases filed by the disgruntled ex-employee against the Company and its Directors. Furthermore, the Company and its Directors have filed Criminal and Civil Defamation Suits against the said ex-employee due to the defamatory allegations, etc. The respective authorities have passed Process Orders and a Charge-Sheet in the favour of the Company and its Directors.

27.3 The Company signed two wage settlement agreements during the year ended March 31, 2023 and thus closed four legal cases with the Employees Union for the period from February 2013 to March 2022 and paid arrears of ' 371.36 lakhs net of provision of ' 255.41 lakhs made in earlier years. Negotiations for the settlement of the third chartered of demands are in progress. The Company is hopeful for an early settlement.

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

27.5 Refer Note 39 ( c ) for particulars of payment of remuneration to managerial personnel, which is included in the Employees Benefits Expenses.

32. CONTINGENT LIABILITIES

34. SEGMENT INFORMATION

Hotel business is the Company’s only business segment and hence disclosure of segment-wise information is not applicable under Indian Accounting Standard 108 -“Operating Segments”.

35. IMPACT OF COVID-19

The business for the first quarter of previous year was impacted due to the outbreak of third wave of COVID-19.

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

36. FINANCIAL RISK MANAGEMENT

36.1 Risk Management Framework

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

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

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

• Credit Risk

• Liquidity Risk

• Market Risk

a) Credit Risk

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

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

The Company has established a credit policy under which each new customer is analysed individually for credit worthiness before entering into a contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Company.

b) Liquidity Risk

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

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

c) Market Risk

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

The Company uses derivatives to manage its exposure to foreign currency risk and interest rate risk. All such transactions are carried out within the guidelines set by the Risk Management Committee.

Foreign Currency Risk

The primary market risk to the Company is foreign exchange risk. The Company is exposed to foreign exchange risk through its purchases from overseas suppliers and payment of services availed in various foreign currencies. The Company pays off its foreign exchange exposure within a short period of time, thereby mitigating the risk of material changes in exchange rate of foreign currency exposure.

b) Fair Value Measurements

The carrying amount of financial assets and financial liabilities measured at amortised cost in the Financial Statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. All the fair values as disclosed above have been determined on the basis of Level 3 hierarchy except in respect of investment in mutual funds which are determined on the basis of Level 1 hierarchy.

38. DIVIDEND

a) The dividends declared by the Company and approved by the Board of Directors are based on the profits and retained earnings available for distribution as reported in the Financial Statements of the Company.

b) The Board of Directors at its meeting held on May 19, 2023, has approved the payment of second Interim Dividend of ' 1.40 (70%) per share of face value of ' 2/- (Previous year ' 1.40 (70%)) for Financial Year 2022-23. The outgo for the Interim Dividend will be ' 647.07 lakhs. With this, the total Interim Dividend for the Year will be ' 3.40 (170%) per share of face value of ' 2/-(Previous Year ' 1.40 (70%). The total outgo for the two Interim Dividends will be ' 1571.46 lakhs (Previous year ' 647.07 lakhs).

40 OTHER MATTERS

a) From April 1,2022, based on advice received, the Company has considered the cost of operational items of circulating stock like

crockery, cutlery, glassware, silverware, linen, etc., which are issued as consumption cost. As a result of the above change in the accounting estimate, the net profit of the Company for the year ended March 31,2023 and value of closing inventory as at March 31, 2023 are lower by ' 64.60 lakhs and ' 64.60 lakhs respectively.

b) Refer note 38 (b) for Interim Dividend.

41 ADDITIONAL REGULATORY INFORMATION:

Following disclosures are made to the best of the information, knowledge and belief of the Management as required by sub-clause (L) of clause (6) of General Instructions for preparation of Balance Sheet in Division II of Schedule III to the Companies Act, 2013:

a) The Company has not made any loans or advances in the nature of loans to Promoters, Directors, KMPs and the related parties either severally or jointly with any other person during the year.

b) The Company has not entered into any transactions with companies struck off by the Registrar of Companies (ROC).

c) There were no charges, which were yet to be registered with ROC beyond the statutory period as on the close of the Financial Year. there was no satisfaction of charge as on March 31,2023, which was yet to be registered with ROC.

d) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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.

e) No funds have been received by the Company from any person(s) entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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.

f) The Company does not have any subsidiaries, joint ventures and associates during the year ended March 31,2023, hence, disclosure for compliance with number of layers of companies is not applicable.

g) The disclosure regarding effect of Scheme of Arrangements being accounted for in the Books of Accounts in accordance with the Scheme and accounting standards and deviations, if any is not applicable to the Company as no such Scheme was filed by the Company for approval before any authority.

h) Disclosures in respect of other items of the sub-clause (L) of clause (6) of General Instructions for preparation of Balance Sheet in Division II of Schedule III to the Companies Act, 2013 have been given elsewhere in the Financial Statements to the extent applicable to the Company.

. The Current Ratio is higher due to increase in Current Investment, which were invested out of increased profits in the current year.

ii Debt Equity Ratio has gone up due to utilisation of Overdraft Limit of ' 80 lakhs at the year-end.

_iii Debt Service Coverage Ratio has increased due to increase in cash operating earnings of the current year over previous year.

iv Return on Equity Ratio has increased due to increase in the profit after tax for the current year.

Inventory Turnover Ratio has not been given since the Company holds inventory for the consumption in the service of food & beverage and the proportion of such inventory is insignificant to cost of goods sold.

Trade Receivable Turnover Ratio has increased with increase in volume of business and credit offered to various

^vi parties during the current year.

vii Trade Payable Ratio has increased due to improved business volume during the current year.

_iii Net Profit Ratio has improved during the current year with improvement in business volume and cost containment measures taken during the year.

ix Return on Capital Employed improved with improvement in operating margins during the current year.

* The Return on Equity shown here has been calculated by using the Average Shareholder's Equity over the 12 month period and not as at March 31, 2023

Previous period figures have been re-grouped/ re-classified wherever necessary, to conform to current period's 43 classification and to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective April 1, 2021.