XIII. Provisions, Contingent Liabilities and Contingent Assets Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense and is recorded over the estimated time period until settlement of the obligation. Provisions are reviewed and adjusted, when required, to reflect the current best estimate at the end of each reporting period.

The Company recognizes decommissioning provisions in the period in which a legal or constructive obligation arises. A corresponding decommissioning cost is added to the carrying amount of the associated property, plant and equipment, and it is depreciated over the estimated useful life of the asset.

A provision for onerous contracts is recognized when the expected benefits to be derived by the company from a contract are lower than the unavoidable cost of meeting its obligations under contract. The provision is measured at the present value of the lower of expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the company recognizes any impairment loss on the assets associated with that contract.

Liquidated Damages / Penalty as per the contracts / Additional Contract Claims under the contract entered into with Vendors and Contractors are recognised at the end of the contract or as agreed upon.

Contingent Liabilities

Contingent liability is disclosed in case of

• A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation;

• A present obligation arising from past events, when no reliable estimate is possible;

• A possible obligation arising from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the company where the probability of outflow of resources is not remote.

Contingent Assets

Contingent assets are not recognized but disclosed in the financial statements when as inflow of economic benefits is probable

XIV. Revenue Recognition

The Company's business is to sell Club ownership, provide Tour & Holiday services, accommodation services, Training/Coaching in recreational activities relating to art, culture & sports, fitness training and clubbing to its members for a specified period, for which fee is collected either in full up front, or on deferred payment basis. Revenue from Membership is fees which is non refundable is recognized as income on admission of a member. Requests for cancellation of membership are accounted for when it is accepted by the Company. Revenue from Tour operating services is recognized as and when collected

Annual room charges are recognized as income as and when collected. Income from resorts, Income from room rental, food and beverages income etc., is recognized as and when services are rendered.

XV. Foreign Currency Transactions

Transactions in foreign currencies are translated to the functional currency of the company, at exchange rates in effect at the transaction date.

At each reporting date monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate in effect at the date of the statement of financial position.

The translation for other non-monetary assets is not updated from historical exchange rates unless they are carried at fair value.

XVI. Minimum Alternative Tax (MAT)

MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal Income Tax during the specified period.

XVII. Earnings per Share

Basic earnings per share are calculated by dividing:

• The profit attributable to owners of the company

• By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

• The after income tax effect of interest and other financing costs associated with dilutive potential equity shares

• The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

From Banks

a) Term Loans from Punjab National Bank, Loans I & II of '2,500 Lakhs for expansion of existing Clubs and secured by The Country Club (EROS Regency) situated at land Bearing killa no. 2,9,10/1,10/2 & 11/4 at village lakarpur, EROS Regency Township, Surajkund, Faridabad, Haryana. The Outstanding Balance for the Current year is '.Nil (Previous Year '.1,137.04 Lakhs)

b) Term Loans from Saraswat Co Op Bank, Loan of '.7,500 Lakhs for expansion of existing Clubs and secured by way of mortgage by deposit of title deed immovable property being land and building known as Hotel Amrutha Castle Constructed on plot of land bearing municipal nos.5-9-16, 5-9-17, and 6-9-18 and adjoining plot and land bearing municipal nos. 5-9-19, and 5-9-18/3 situated at Saifabad, Secretarial Road Hyderabad solely belonging to the company and deposit of title deed of immovable property located at Country Club Hotel Golden Star # 623,624 Next to Pramukh Swami Hospital Adajan, Surat - 395 009 owned by Club Arzee Ltd., immovable property at Country Club Resort, Plot No. 496, Bhuvan Village, Kolad, Dist. Raigad. owned by Amruta Estates Pvt. Ltd., immovable property, Hotel Amruta Castle, opp Secretariate, Saifabad, Hyderabad and additional charge on immovable property at The Country Club, Balamatta Road, Mangalore 575 001. belonging to the Company. The Outstanding Balance for the Current year is '. 2,869.63 Lakhs (Previous Year '.3,955.35 Lakhs)

c) Term Loans from Cosmos Bank, Loan of '.6,000 Lakhs for expansion of existing Clubs, refurbishment and modernization of its clubs located at Pune, Kolkata, Goa and Indore, secured by property located at “The Country Club De Goa” No.836/1, Anjuna Bardez, Goa owned by Aquarian Realtors Pvt. Ltd. and “The Country Club Spring” situated at C.T.S No. 1104/03 of village Kandivali, Parekh Nagar, Kandivali owned by M/s Swami Vivekanand Training and Education Centre Pvt. Ltd and additional security by way of registered equitable mortgage on “Country Club Fun & Food”, 7thKm, Khandwa Road, Kasturbaagram, Indore owned by the Company. The Outstanding Balance for the Current year is '.Nil (Previous Year '.2,010.54 Lakhs)

d) Overdraft from Yes Bank Limited, Loan of '.2,020 Lakhs for Company Working Capital is secured against the Company's Fixed Deposits. The Outstanding Balance for the Current year is '.1,111.96 Lakhs (Previous Year '1,082.06). Further, The quarterly returns filed by the company with bank are in agreement with books of accounts.

Other Loans

e) Lease Finance Loan from NOIDA Authority is secured against the plot no. N-14, Sector - 18, Noida, Uttar Pradesh. The Outstanding Balance for the Current year is '.271.65 Lakhs (Previous Year '.271.65 Lakhs). Company has not recognized interest on the loan in the current year as the Company is in the process of settling the loan.

38. The company doesn't have any transactions which are not recorded in books of accounts that has been surrender or disclosed for tax assessments under Income Tax Act, 1961 during the year.

39. The company has not traded or invested in crypto currency or virtual currency during the financial year.

40. The company has not been declared as willful defaulter by any bank or financial institution.

41. There are no significant events that occurred after the Balance Sheet Date.

42. The Company doesn't have any transactions or relationship with struck off companies.

43. There are no proceedings initiated or pending against the company or the group for holding any benami property under the benami transaction (prohibition) Act, 1988.

44. There are no charges or satisfaction of charges yet to be registered with ROC beyond the statutory period.

45. During the current financial year, the Company has sold its properties located at Bangalore, Mysore, Kolkata & Hyderabad. Sale proceeds are utilized to repay the loans to Punjab National Bank & Cosmos Co-operative Bank Ltd.

46. The company has not applied for any scheme of arrangements in terms of section 230 to 237 of the companies Act, 2013.

47. The company has complied with number of layers prescribed under clause (87) of section 2 of the act read with company rules, 2017.

48. The Company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or kind of 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 (“Ultimate Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

49. 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 (“Ultimate Beneficiaries”) by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

53. The Company has received a One Time settlement offer from Cosmos Bank. During the year, the Company has made entire payments to the said bank and received interest waiver. Interest amount which is charged to P&L in previous years amounting to '880.02 lakhs has been considered in other income in the current financial year.

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

For P Murali & Co, COUNTRY CLUB HOSPITALITY & HOLIDAYS LIMITED

Chartered Accountants FRN: 007257S

M.V JOSHI

Partner Y. RAJEEV REDDY Y. SIDDHARTH REDDY

Membership No. 024784 Chairman & Managing Director Vice-Chairman, JMD & CEO

UDIN: 24024784BKAUEH7871 DIN. 00115430 DIN. 00815456

Place: Hyderabad M ANJANEYA PRASAD KHUSHBOO AGARWAL J

Date: 30-05-2024 Chief Financial Officer Company Secretary