10.1 The Company had made a strategic and long term investment of Rs. 9,327.75 lakhs in the shares of OHPPL in earlier years. Considering the adverse financial position of OHPPL and arrangement with lenders of OHPPL, in the earlier years, the Company had made full provision for diminution of investment. Since, the financial performance of the hotel business of OHPPL has improved and also during the year ended 31st March, 2023, the secured loan of lender has been settled, reversal of impairment on Property, Plant and Equipment, the Company has partially reversed the provision for diminution upto Rs. 5,000.00 lakhs and is shown as exceptional income. Provision for diminution of investment remaining as on 31st March, 2024 and 31st March, 2023 amounts to Rs. 4,327.75 lakhs.

10.2 The Company has made a strategic and long term investment of Rs. 533.00 lakhs (Previous year: Rs.533.00 lakhs) in earlier years in the equity shares of Ilex Developers & Resorts Limited (Ilex), a 32.92% joint venture of the Company. In the earlier years, the Company had made full provision for impairment of investment based on assessment carried out by the management.

10.3 Company's investment in equity shares of wholly owned subsidiaries [Kamats Restaurants (India) Private Limited, Fort Jadhavgadh Hotels Private Limited, Mahodadhi Palace Private Limited, Orchid Hotels Eastern (India) Private Limited, and Orchid Hotels Pune Private Limited] and equity shares held in joint venture entity [ILEX Developers and Resorts Limited] is given as security against issue of 14% Rated Listed Secured Redeemable Non-Convertible Debentures by the Company [Refer note no. 26.1].

12.2 Loan to subsidiaries include outstanding loan of Rs. 418.74 lakhs as at 31st March 2024 (Previous year: Rs. 418.74 lakhs) given to Mahodadhi Palace Private Limited (MPPL) (wholly owned subsidiary), whose financial position have been affected due to adverse factor. Considering these adverse factors, in the earlier years the Company had made a provision of Rs. 418.74 lakhs for doubtful of recovery from this subsidiary.

Further, in view of various adverse factors and request made to holding company by MPPL for waiver of interest, the Company has waived off interest on this unsecured loan granted until there is improvement in the financial position of this entity. Considering there is no improvement in current year also, interest is continued to be waived off. This waiver is effective from 28th February 2017.

12.3 In the earlier years, considering the adverse financial position of Orchid Hotels Pune Private Limited (OHPPL) (wholly owned subsidiary) and arrangement with lenders of OHPPL, the Company had treated the unsecured loan to OHPPL as doubtful, made full provision in the books and also discontinued accruing interest income thereon. During the previous year, the Company has considered request from OHPPL for substantial waiver of old loan of Rs. 19,646.40 lakhs and agreed at settlement value of Rs. 6,000.00 lakhs, without further interest till the date of repayment. Consequently, the Company has reversed the provision of doubtful loan of Rs. 6,000.00 lakhs which is shown as exceptional income in the previous year. Company has received Rs. 2,700 lakhs towards part payment of settlement amount during the previous year.

13.1 Security deposit paid having carrying value of Rs. 8,000 lakhs as at 31st March, 2024 (Previous year: Rs.8,000 lakhs) is interest free and is given for leasehold land taken from Plaza Hotels Private Limited in which director of the Company is also member. This deposit has been fair valued under Ind AS 109 - Financial Instrument. Deferred lease asset arising out of the said fair valuation is being amortised on straight line basis (Refer note no. 15).

13.2 Fixed deposit is given as margin money to the Bank for guarantee given by bank to Government and other authorities on behalf of the Company.

15.1 In terms of the Memorandum of Understanding with a Public Trust owning a plot of land in Mumbai, the Company had paid Rs. 488.62 lakhs as security deposit and incurred expenditure of Rs. 207.93 lakhs for a proposed hospitality project on the said land in earlier years. The owner did not fulfil his obligation to complete the infrastructure for the aforesaid project despite follow up by the Company. In view of inordinate delay in the projects, the expenditure incurred on the said incomplete project had been written off in earlier years and a provision had been made in the earlier years for the deposit paid to the said party. Company has initiated legal proceedings against the party and other party has also made counter claim for compensation and interest thereon. The matter is pending to be resolved. Adjustments, if any, to the expenditure written off and provision made as above, will be made on disposal / conclusion of the above matter in the year in which matter will be settled.

20.1 Fixed deposit as margin money with bank include minimum amount need to maintain in Debt Service Reserve Account as per the terms of Debenture Trust Deed and for guarantee given by bank to Government & other authorities on behalf of the Company.

20.2 Balance with bank (escrow account) is maintained for servicing of dues payable to debenture holder.

24.2 Terms/ rights attached to equity shares :

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, there are no preferential amounts inter se equity shareholders. The distribution will be in proportion to the number of equity shares held by the shareholders (after due adjustment in case shares are not fully paid up).

24.3 During the year the Company has issued 12,53,601 (previous year: 10,68,805) equity share to promoters having face value of Rs. 10 at Rs. 97 per share, against conversion of share warrants and accordingly premium of Rs.87 per share have been accounted in other equity as security premium.

* These entities have merged with Vishal Amusement Limited with effect from 16th May, 2018, and share has been transferred in the name of transferee during the year, except Kamburger Foods Private Limited and Kamats Super Snacks Private Limited.

# Mr. Vikram V. Kamat and Kamats Holiday Resorts (Silvassa) Ltd has been reclassified from the Promoter category to Public Category pursuant to approval of Stock Exchanges (BSE and NSE) dated 26th June 2023. Therefore, aforementioned members cease to be the part of Promoter group of the Company.

25.1 Capital reserve represent profit on sale of fixed asset related to an entity amalgamated with Company in the earlier years.

25.2 Capital redemption reserve is credited by amount set aside for redemption of preference shares in earlier years.

25.3 Securities premium account is used to record the premium on issue of equity shares. The same will be utilised in accordance with the provisions of the Companies Act, 2013.

25.4 In terms of the Bombay High Court Order dated 13th January, 2012, the amalgamation reserve is not available for distribution as dividend by the Company.

25.5 Money received against share warrants consist of 25% upfront money received against issue of 35,73,608 (Previous year: 48,27,209) preferential convertible warrants which are pending for conversion into equity share. The Company will utilize the proceeds from the preferential issue of Warrants for the purpose of capital expenditures, repayment of debts, working capital requirements and for general corporate purposes.

26.1 29,750, 14% redeemable non-convertible debentures of Rs.1,00,000/- each

26.1.1 The Company has allotted 29,750 "14% Rated Listed Secured Redeemable Non-Convertible Debentures" (NCDs) having face value of Rs. 1 lakh each amounting to Rs. 29,750.00 lakhs through private placement. The Company has utilized the issue proceeds towards settlement of secured debts of the Company, a subsidiary company, joint venture company and loan to a company belonging to the promoter. The redemption of NCDs shall be as per repayment schedule of Debenture Trust Deeds.

26.1.2 Nature of securities/ guarantees of secured debentures

(a) Non-convertible debenture aggregating to Rs. 29,420 lakhs are secured by:

(i) First ranking exclusive charge on lands at "The Orchid" at Vile Parle (East) (owned by Plaza Hotels Private Limited) together with hotel buildings and all appurtenances thereon; Hotel "VITS" at Andheri (East); hotel property at Lotus Goa, land & building belonging to promoter's company at Nagpur, hypothecation of all receivable and current assets of the Company, Orchid Hotels Pune Private Limited (OHPPL), Mahodadhi Palace Private Limited (MPPL), Ilex Developers and Resorts Limited (IDRL), Plaza Hotels Private Limited (PHPL) & Savarwadi Rubber Agro Private Limited (SRPL);

(ii) Pledge of equity shares of the Company held by promoters and promoter companies, pledge of equity shares held by the Company in subsidiaries & joint venture and Pledge of security held by promoter, promoter company and other group company in Plaza Hotels Private Limited & IDRL.

(b) NCDs are secured by corporate guarantee of subsidiaries, joint venture, PHPL, SRPL, Greenboom Developers & Resorts Limited, Vishal Amusements Limited & Kamat Development Private Limited and personal guarantee of Dr. Vithal V. Kamat and Mr. Vishal V. Kamat.

26.1.4 One time settlement of outstanding loan with ARC's and with banks

During the earlier year, the Company had proposed for settlement of outstanding loan and interest due to Asset Reconstruction Companies (ARCs), which was in-principle approved by the respective lenders. Further developments in this respect are as below:

During the previous year ended 31st March, 2023, the Company had settled and paid the dues of ARCs and obtained No Dues Certificates (NDC). The Company had accounted for settlement and derecognized the loan liability (principal and interest), the difference between liability as per books and the settlement amount is accounted as under :

• Rs. 7,773.47 lakhs is disclosed as ""Exceptional Income (net of expenses)"" and

• Rs. 2,451.51 lakhs is reversed from the finance cost for the year, the same pertains to finance cost accounted during previous financial year 2022-23 (i.e. prior to the settlement)."

In the opinion of the management, and in continuation of the view taken earlier, reporting for the event of default is not warranted and hence no intimation is required to be given to the stock exchange for unpaid loan instalments / settlement amounts till the date of settlements as required by SEBI circular dated 21st November, 2019. The statutory auditors have drawn attention on the said matter in their independent auditor's reports of earlier year.

26.2 Term loan sanctioned of Rs. 19,425.00 lakhs from Axis Finance Limited

The company has disbursed Rs 11,400.00 lakhs as on 31st March, 2024 from the said term loan.

26.2.1 Nature of securities/ guarantees w.r.t term loan

(a) First exclusive charge by way of registered/equitable mortgage over land along with the hotel structure- The Orchid Mumbai' along with 'KHIL House (except 5th and 6th floor)'. along with all borrowers development rights, title, interest of the borrower on the property, claims, benefits & the amenities thereon, both present and future.

(b) Negative lien on the land along with hotel structure Lotus Eco Beach Resort Goa' along with deposit of title deeds, along with all borrower's development rights, title, interest of the borrower on the property, claims, benefits and the amenities thereon, both present and future.

(c) First exclusive charge by way of hypothecation over all accounts, cashflows from all Hotels of the Borrower and Operating Companies group and current assets of the borrower and Operating companies group, both present and future.

(d) First exclusive charge by way of hypothecation over the movable fixed assets of the borrower and corporate guarantor group, both present and future, including any insurance proceeds from the security in clause (a) and (b).

(e) First exclusive charge by way of mortgage over Sewage Treatment Plant owned by Savarwadi Rubber Agro Private Limited.

(f) Pledge of 100% of shares of the corporate guarantor group

(g) Corporate Guarantee of corporate guarantor group

(h) Personal Guarantee of promoters i.e. Dr. Vithal Kamat, Mr. Vishal Kamat

(i) Corporate guarantors group:

(i) Orchid Hotels Pune Private Limited

(ii) Envotel Hotels Himachal Private Limited

(iii) Ilex Developers and Resorts limited

(iv) Plaza Hotels Private Limited

(v) Savarwadi Rubber Argo Private Limited

26.3 Intercorporate loan amounting to Rs. 64.01 lakhs (Previous year: Rs. 546.69 lakhs), carrying interest rate of 11% p.a is repayable after 1 year from the end of current year.

26.4 Intercorporate loan amounting to Rs. 707.92 lakhs (Previous year: Rs. 760.73 lakhs) is repayable not later than 10 years from the date of disbursement of loan or earlier on availability of funds with the Company.

26.5 Borrowings are guaranteed by executive chairman and managing director and his relatives;

28.1 Security deposit received having carrying value of Rs. 80.00 lakhs as at 31st March 2024 (Previous year: Rs. 80.00 lakhs) is interest free and is received against hotel property given by the Company under operation and management agreement. This deposit is fair valued in accordance with Ind AS 109 - Financial Instrument. Unwinding of deferred lease liability arising out of the said fair valuation is being recognised on straight line basis. (Refer note no. 35)

30.3 The tax rate used for 2023-2024 and 2022-2023 reconciliation above is the corporate tax rate (including cess and relevant surcharge) applicable for corporate entities in India on taxable profits under the Indian tax laws.

30.4 The management of the view that the company is not liable for income tax during the current financial year after considering judicial pronouncement and legal opinion as regards taxability of certain credit and allowability of certain items included in the financials statements

46.4 Capital commitments and other commitments

(i) Estimated amount of capital commitments to be executed on capital accounts and not provided for Rs. 67.61 lakhs as at 31st March 2024 (Previous year: Rs. 48.42 lakhs) (Net of advances).

(ii) The Company had put up Sewage Treatment Plant ("STP") on an adjacent immovable property owned by Savarwadi Rubber Agro Private Limited (previously known as Kamats Amusements Private Limited) in earlier years for its Orchid Hotel, Mumbai and continues to use the same. The Company is obliged to compensate appropriately to the owner for such use of the property. The modalities of the same being worked out.

46.5 Other litigations

Refer note no. 15.1 in respect of dispute regarding Bandra Kurla Project.

48.4 Transactions with related parties and outstanding balances at the year end are disclosed at transaction value/ carrying value. In addition to above transactions,

(i) Mahodadhi Palace Private Limited, Kamats Restaurant (India) Private Limited, Fort Jadhav Gadh Hotels Private Limited, Ilex Developers & Resorts Limited, Plaza Hotels Private Limited, Kamat Holiday Resorts (Silvassa) Limited, Dr. Vithal V. Kamat, Mr. Vikram V. Kamat have given joint corporate/personal guarantee amounting to Rs. 38,583.00 lakhs to banks/ others for credit facilities availed by the Company [Share of respective entities/ persons is not quantifiable], which is released during the previous year ended 31st March, 2023.

(ii) Mahodadhi Palace Private Limited, Kamats Restaurant (India) Private Limited, Fort Jadhav Gadh Hotels Private Limited, Ilex Developers & Resorts Limited, Plaza Hotels Private Limited, Kamat Development Private Limited, Orchid Hotels Pune Private Limited, Orchid Hotels Eastern (India) Private Limited, Savarwadi Rubber Agro Private Limited, Greenboom Developers & Resorts Limited, Vishal Amusements Limited, Dr. Vithal V. Kamat, Mr. Vishal V. Kamat have given joint corporate/personal guarantee amounting to Rs. 29,750.00 lakhs against issue of Secure 14% Rated Listed Redeemable Non Convertible Debentures face value of Rs. 1 lakh each .[Share of respective entities/ persons is not quantifiable].

(iii) Securities held by promoter, promoter Company and others in Mahodadhi Palace Private Limited, Kamats Restaurant (India) Private Limited, Fort Jadhav Gadh Hotels Private Limited, Ilex Developers & Resorts Limited, Plaza Hotels Private Limited, Orchid Hotels Pune Private Limited, Orchid Hotels Eastern (India) Private Limited pledge with debenture trustee to secure 29,750 14% Secured Rated Listed Redeemable Non Convertible Debentures face value of Rs.1 lakh each.

(iv) Plaza Hotels Private Limited has mortgaged its property situated at Vile Parle (East) Mumbai as security in favour of debenture trustee to secure 29,750 14% Secured Rated Listed Redeemable Non Convertible Debentures face value of Rs.1 lakh each.

(v) Mahodadhi Palace Private Limited, Ilex Developers & Resorts Limited, Plaza Hotels Private Limited, Savarwadi Rubber Agro Private Limited & Orchid Hotels Pune Private Limited, have hypothecated its current asset and all receivable with debenture trustee to secure 29,750 14% Secured Rated Listed Redeemable Non Convertible Debentures face value of Rs 1 lakh each.

(vi) Plaza Hotels Private Limited, Vishal Amusements Limited, Dr Vithal V. Kamat, Mr Vishal V. Kamat had given joint corporate/personal guarantee amounting to Rs. 2,135.56 lakhs to bank for credit facilities availed by the Company [Share of respective entities/ persons is not quantifiable], which is released during the previous year ended 31st March, 2023.

(vii) KMP, relatives of KMP and entities in which KMP has significant influence have pledged equity shares held by them in the Company and other specified investments to the trustee against issue of Secure 14% Rated Listed Redeemable Non Convertible Debentures by Company.

(viii) Orchid Hotels Pune Private Limited, Envotel Hotels Himachal Private Limited, Ilex Developers and Resorts limited, Plaza Hotels Private Limited and Savarwadi Rubber Argo Private Limited have given joint corporate guarantee amounting to Rs. 194.25 lakhs against loan sanctioning from Axis Finance Limited. [Share of respective entities/ persons is not quantifiable]. Refer note no. 26.2.1.

48.5 Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. In case of advances given to two wholly owned subsidiary MPPL, Company has waived interest. For the previous year ended 31st March 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. Company has recorded impairment of receivable and investment in MPPL in earlier years. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

50.2 Defined benefit plans and other long term benefits50.2.1 Defined benefit obligations - Gratuity (funded)

The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, every employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the employee's length of service and salary at retirement age. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn) for each completed year of service as per the provisions of the Payment of Gratuity Act, 1972. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The discounting rate is based on material yield on government bonds having currency and terms consistent with the currency and terms of post-employment benefit obligations. The overall expected rate of return on assets is based on the LIC structure of interest rates on gratuity funds.

As per the policy of the Company, obligations on account of benefit of accumulated leave of an employee is settled only on termination / retirement of the employee. Such liability is recognised on the basis of actuarial valuation following Project Unit Credit Method.

The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The discounting rate is based on material yield on government bonds having currency and terms consistent with the currency and terms of post-employment benefit obligations. The overall expected rate of return on assets is based on the LIC structure of interest rates on gratuity funds.

51. Leases51.1 Where Company is lessee:51.1.1 Operating lease

(i) The Company has taken hotel property under operating lease or leave and license agreements. The lease payment recognised in the Statement of Profit and Loss as management fees/ rent expenses of Rs. 1,739.85 lakhs during the year (Previous Year Rs. 579.44 lakhs).

(ii) With respect to above hotel properties/ land taken under lease/ operation and management arrangement, Company is liable to pay management fees/ rent based on gross operating profits, revenue etc. Since future revenue is contingent in nature, other disclosures as required under Ind AS 116 - 'Leases' are not quantifiable with respect to such arrangements as at 31st March 2024 and as at 31st March, 2023.

51.1.3 The right of use asset is depreciated using the straight-line method (SLM) from the commencement date over the lease term of right of use asset. For details of addition, depreciation and carrying amount of right of use asset (Refer note no. 7)

Total contingent rent income (in the form of management or royalty fees) recognised is Rs.62.12 lakhs (Previous year Rs. 14.92 lakhs).

Note:

(i) With respect to hotel properties/ land taken under lease/ operation and management arrangement, Company is liable to pay management fees/ rent based on gross operating profits, revenue etc. Since future revenue is contingent in nature, other disclosures as required under Ind AS 17 - 'Leases' are not quantifiable with respect to such arrangements as at 31st March 2021.

54. During the previous year, the Company has entered into a binding term sheet with a buyer agreeing to transfer one of the hotel properties at an agreed value of Rs. 12,500.00 lakhs on or before 12 months from the date of term sheet (i.e. 18th January, 2023). The Company has received Rs. 100.00 lakhs as advance as agreed in the said term sheet. The resultant gain on the said transaction will be accounted in the period / year in which final agreement is executed.

55. Disclosures as required by Indian Accounting Standard (Ind AS) 108 - Operating Segments

There are no reportable segments under Ind AS-108 'Operating Segments' as the Company is operating only in the hospitality service segment, therefore, disclosures of segment wise information is not applicable. Further, no single customer represents 10% or more of the Company's total revenue during the year ended 31st March 2024 and 31st March 2023.

56. Going concern assumption

As per the standalone financial results, current liabilities are significantly greater than the current assets as on 31st March, 2024 and 31st March, 2023. In the opinion of the management, considering the revival of hospitality business, positive net worth as on 31st March, 2024, positive earnings before interest, taxes and depreciation (EBITDA) for the year ended 31st March, 2024 and year ended 31st March, 2023, increase in operations and profit during the current year, settlement of secured debts due to ARCs, settlement of loan given to subsidiary Company which was fully provided in earlier year, reversal of provision for diminution in value of investment in subsidiary Company (OHPPL), signing of term sheet for proposed sale of one of the hotel properties, issue of NCDs, considering the future business prospects and the fair value of the assets of the Company being significantly higher than the borrowings / debts, these standalone results have been prepared on a going concern basis which contemplates realisation of assets and settlement of liabilities in the normal course of the Company's business.

57.2 Above disclosure excludes investments (gross) in subsidiaries and joint venture amounting to Rs. 9,865.75 lakhs as on 31st March, 2024 (Previous year: Rs.9,864.75 lakhs) as these are valued at cost in accordance with Ind AS 27 -'Separate Financial Statement'.

57.3 Carrying amounts of cash and cash equivalents, trade receivables, loans and trade payables as at 31st March, 2024 and 31st March, 2023, approximate the fair value due to their nature. Carrying amounts of bank deposits, other financial assets, other financial liabilities and borrowings which are subsequently measured at amortised cost also approximate the fair value due to their nature in each of the periods presented. Fair value measurement of lease liabilities is not required.

57.4 Fair value hierarchy

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

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

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

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Management of the company considers that the carrying amounts of financial assets and financial liabilities recognised in the balance sheet approximate their fair values.

The following tables provides the fair value measurement hierarchy of the Company's financial assets and liabilities that are measured at fair value or where fair value disclosure is required.

There have been no transfers between Level 1 and Level 2 for the years ended March 31,2024 and March 31,2023.

57.5 Valuation technique to determine fair value

The following methods and assumptions were used to estimate the fair values of financial instruments:

(i) Short-term financial assets and liabilities such as cash and cash equivalents, trade receivables, trade payables, other current financial assets and other current financial liabilities are stated at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short-term nature.

(ii) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

58. Financial risk management

The Company has exposure to credit risk, funding / liquidity risk and market risk. The Company's overall risk management programme focuses on the unpredictability of financial environment and seeks to minimise potential adverse effects on the Company's financial performance. The Company does not have any derivative financial instruments. The Board of directors has overall responsibility for the establishment of the Company's risk management framework. Risk management systems are reviewed periodically to reflect changes in market conditions and Company's activities.

(a) Credit risk :

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

The financial guarantee disclosed under note no. 46.2 represents the maximum exposure to credit risk. In this regards the Company does not foresee any significant credit risk exposure.

Financial instruments that are subject to credit risk consist of trade receivables, loans, investments, cash and cash equivalents, bank deposits and other financial assets. For expected credit loss of trade receivable, company follows simplified approach as per which provision is made for receivable exceeding six months/ one year based on category of receivable. This is based on historically observed default rates over the expected life of trade receivables. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. None of the other financial instruments of the company result in material concentration of credit risk.

(b) Liquidity risk :

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company consistently generated sufficient cash flows from operations to meet its financial obligations including lease liabilities as and when they fall due.

(c) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the company's position with regards to interest income and interest expenses and to manage the interest rate risk, Board of Directors perform a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The company's interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

(d) Market risk

The company does not deal in transaction in currency other than its functional currency therefore it is not exposed to foreign currency exchange risk. Similarly, the company does not have exposures to interest bearing securities.

59. Capital risk management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company's capital management is to maximise the shareholder's value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

61.1 Exceptional income is not considered while calculating the above ratios, in order to make the ratios comparable.

61.2 Due to repayment of borrowings during the year.

61.3 Due to repayment of borrowings during the year and issuance of shares on account of conversion of share warrants.

61.4 Due to decrease in revenue and profit during the year vis-a-vis last year.

61.5 Increase in fair value of investments.

61.6 Increase in interest income from fixed deposits, also increase in investment in fixed deposit the vis-a-vis last year.

62. Following are additional regulatory information in terms of Division II to Schedule III of the Act:62.1 Wilful defaulter

As on 31st March, 2024, the Company has not been declared wilful defaulter by any bank/financial institution or other lender.

62.2 Details of crypto currency or virtual currency

The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence no disclosure is required.

62.3 Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company does not have any charges or satisfaction yet to be registered with the registrar of companies(ROC) beyond the statutory period as at 31st March, 2024.

62.4 Compliance with number of layers of companies

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

62.5 Utilisation of borrowed funds

The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or entities, including foreign entities ("Intermediaries"), with the understanding that the intermediary shall whether directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of ultimate beneficiaries.

The Company has not received any funds from any person(s) or entities including foreign entities ("Funding Parties") with the understanding 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 guarantee, security or the like on behalf of the Ultimate beneficiaries.

62.6 Borrowings secured against current assets

The Company had obtained term loans which was secured against current assets, however the Company was not required to file quarterly returns or statement of current assets.

62.7 Benami property

No proceedings have been initiated or are pending against the Company as on 31st March, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

62.8 Relationship with struck off companies

The Company does not have any transaction with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 and hence no disclosure is required.

62.9 Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

62.10 Undisclosed income

There is no transaction that is not recorded in the books of accounts of the enterprise that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

63. Previous Year Figures have been regrouped/rearranged wherever necessary. The Company has classified provision for outstanding expenses under other payables (Refer note no. 34). This was earlier forming part of 'trade payables -others'. (Refer note no. 33).