c) Terms/Rights Attached to Equity Shares

The Company has only one class of equity shares having a par value of ' 1/- per share. 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 remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company declares and pays dividends in Indian Rupees. The Directors have recommended, subject to approval of the shareholders at the ensuing Annual General Meeting, a Final Dividend for the year ended on 2022 : 125% (2021: 100%). Total dividend including interim dividend for the financial year 2022 is 125% (2021 : 100%).

Nature and purpose of reserve:-Capital Reserve on Business Combination

It represent the difference, between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of net asset value of the transferor company acquired by the company.

Capital Redemption Reserves

As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve and it is a non-distributable reserve.

Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance with the provision of the Companies Act, 2013.

Share Options Outstanding Account

The Employee Stock Options Reserve represents reserve in respect of equity settled share options granted to the Company’s employees in pursuance of the Employee Stock Option Plan.

General Reserve

The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act, 1956 wherein certain percentage of profits were required to be transferred to General Reserve before declaring dividends. As per Companies Act 2013, the requirements to transfer profits to General Reserve is not mandatory. General reserve is a free reserve available to the Company.

Note:

(i) The Company has obtained licenses under the Export Promotion Capital Goods Scheme (EPCG) for importing capital goods at a concessional rate of custom duty against submission of bank guarantee and bonds.

Under the terms of the respective schemes, the Company is required to earn foreign exchange value equivalent to, eight times and in certain cases six times of the duty saved in respect of licenses where export obligation has been fixed by the order of the Director General Foreign Trade, Ministry of Finance, as applicable within a specified period from the date of import of capital goods. The Export Promotion Capital Goods Schemes, Foreign Trade Policy 2009-2014 as issued by the Central Government of India, covers both manufacturer’s exports and service providers. Accordingly, in accordance with the Chapter 5 of Foreign Trade Policy 2009-2014, the Company has supplied the export of required value. Awaiting the required confirmation from the authorities, full duty saved amount under the above referred scheme has been disclosed as Contingent Liability.

34 EMPLOYEE BENEFITS:

Brief description of the Plans:

The Company has various schemes for employee benefits such as Provident Fund, ESIC, Gratuity and Leave Encashment. The Company’s defined contribution plans are Provident Fund (in case of certain employees) and Employees State Insurance Fund (under the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952). The Company has no further obligation beyond making the contributions to such plans.

A Defined Benefits Plan

The Company’s defined benefit plans include Gratuity. The gratuity plan is governed by the Payment of Gratuity Act, 1972 under which an employee who has completed five years of service is entitled to specific benefits. The level of benefits provided depends on the member’s length of service and salary at retirement age.

The above sensitivity analyses are based on 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 (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

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.

VIII. The Company expects to contribute ' 1.17 Crores (Previous Year : ' 1.74 Crores) to the gratuity trust during the financial year 2022-23.

B Defined contribution plans

The Company also has certain defined contribution plans. The contributions are made to registered provident fund, Employee State Insurance Corporation and Labour Welfare 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 plans are as follows:

38 LEASES

The Company’s lease asset classes primarily consist of leases for land and buildings. The lease period for these contracts varies from 11 months to 5 years, in certain cases, mainly relating to rent of (parts of) buildings, with extension options. The Right-of-use assets and Lease liabilities as disclosed below, do not include short term and low value leases. In general, as usual with leases, the Company’s obligations under its leases are secured by the lessor’s title to or legal ownership of the leased assets.

C. Rent expenses recorded for short term leases was X 6.69 Crores (Previous Year: X 5.09 Crores) for the year ended 31^st March, 2022

D. The total cash out flows for leases are X 10.01 Crores (Previous Year: X 5.95 Crores) in the year, including the payments relating to short term and low value leases.

F. Leases not yet commenced to which Company is committed amounts to X 0.85 Crores (Previous Year: X 0.85 Crores) for a lease term of 5 years.

G. Rental income on assets given on operating lease is X 0.40 Crores (Previous Year : X 0.40 Crores) for the year ended 31^st March, 2022.

H. The company has applied the practical expedient to all the eligible rent concessions. The amount recognised in profit or loss for F.Y 2021-22 to reflect changes in lease payments that arise from COVID-19 related rent concessions to which the company has applied the practical expedient is X 0.90 Crores (Previous Year : X 0.60 Crores).

The Company is exposed to Currency Risk arising from its trade exposures and Capital receipt / payments denominated, in other than the Functional Currency. The Company has a detailed policy which includes setting of the recognition parameters, benchmark targets, the boundaries within which the treasury has to perform and also lays down the checks and controls to ensure the continuing success of the treasury function.

The Company has defined strategies for addressing the risks for each category of exposures (e.g. for imports, for loans, etc.). The centralised treasury function aggregates the foreign exchange exposure and takes prudent measures to hedge the exposure based on prevalent macroeconomic conditions.

41 CREDIT RISK

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, additional loss on collection of receivable is recognised.

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, additional loss on collection of receivable is recognised.

Trade Receivables:

The maximum exposure to the credit risk at the reporting date is primarily from trade receivable amounting to ' 2.49 crores as on 31^st March, 2022 (Previous Year : ' 2.84 Crores).

42 CAPITAL RISK MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings offset by cash and cash equivalent) and total equity of the Company.

The Company determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic investment plans. The funding requirements are met through Non Current and Current borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

43 LIQUIDITY RISK

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows.

44 INTEREST RATE RISK & SENSITIVITY ANALYSIS

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, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. At the year end, there was no borrowing outstanding.

45 OTHER PRICE RISKS

The Company is exposed to price risks arising from equity and mutual fund investments. Certain of the Company’s equity investments are held for strategic rather than trading purposes.

In accordance with Ind AS 108 ‘Operating Segment’, segment information has been given in the consolidated financial statements and therefore, no separate disclosure on segment information is given in these Standalone financial statements.

Exceptional Item for the year ended 31^st March, 2022 includes ? 12.46 Crores towards impairment of investment in wholly owned Subsidiary at Mauritius, which has investment in its wholly owned subsidiary at Sri Lanka. Considering the uncertainties around Sri Lankan economy which does not seems to be improve soon, Company has made impairment provision as a matter of prudence. It also includes ? 1.08 Crores towards interest paid to Government of Goa in relation to transfer of Casino License pursuant to merger of an erstwhile subsidiary company with the company in earlier year. In previous year, the Company has recovered loan of ? 55.95 Crores from Deltin Cruises and Entertainment Private Limited, and accordingly, the provision made towards doubtful recovery is reversed and shown under exceptional item for the year ended 31^st March, 2021.

49 EVENT OCCURRING AFTER BALANCE SHEET DATE

a) The Board of Directors has recommended final Equity dividend of ? 1.25 per equity share (Previous year ? 1/- per equity share) for the financial year 2021-22.

b) On 11^th April, 2022 The Board of Director of the Company has approved the Scheme of Amalgamation (“Scheme”) which comprise of amalgamation of wholly owned subsidiary Companies Daman Hospitality Private Limited and Daman Entertainment Private Limited with the Company. The Appointed date is 1^st April, 2022. The Scheme is subject to approval of regulatory authorities and will be given effect to in the financial statement on receipt of such approvals.

Due to COVID-19 pandemic and the consequent lock downs announced by the respective Government Authorities, the operations of the Company were suspended since the third week of March, 2020 to October, 2020. During the current financial year also, consequent to the lock down due to the second/third wave of pandemic announced by the state governments, the Company could operate partially as follows:

- Casinos at Goa: For a part of April 2021 at 50% of normal capacity and with effect from 20^th September 2021 with restrictions

- Hotel at Goa: For a part of April 2021 at 50% of normal capacity and with effect from 5^th July 2021 with restrictions.

- Casino at Sikkim: For April 2021 and part of May, 2021 at 50 % of normal capacity and with effect from 16^th August 2021 with restrictions.

The casino operation are allowed to operate at 100% capacity in Goa from 7^th March 2022 and in Sikkim from 11^th February 2022. In Daman, Government restriction for Hotel Industry were in force upto 28^th February 2022 and thereafter no such restriction has been imposed.

Considering the overall gradual returning to normalcy of all segments of the Company the positive performance for the year and the management’s assessment of the possible impact of this pandemic on the business operation and financial position of the Company and based on its initial assessment of the current indicators of the future economic condition, the Company expects that the COVID-19 pandemic would not have any material adverse impact on the recoverable values of its financial and non-financial assets and on the net worth of the Company.

Further, the Company is debt free and would have adequate liquidity available to honour its liabilities and obligations, as and when due. The management will continue to monitor any material changes to its COVID-19 impact assessment, resulting from the future economic conditions and future uncertainty, if any.

51 SHARE-BASED PAYMENTS

a Details of the Employee Share Option Plan of the Company

The options are granted at the price determined by the Nomination Remuneration Compensation Committee. Each option entitles the holder to exercise the right to apply for and seek allotment of one equity share of ' 1/- each. The Option granted in Financial Year 2017-18 and 2018-19 shall vest in three installments. On 23^rd September, 2019, terms of option granted in FY 2018-19 have been modified, repriced and vesting period reduced to three years from four years. Accordingly fair value recalculated with modified terms. Details of options granted during the financial year 2017-18 & 2018-19 duly approved by the Nomination Remuneration Compensation Committee under the said scheme are given below.

Each employee share option converts into one equity share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

b Details of the Employee Share Appreciation Rights of the Company

The Nomination Remuneration Compensation Committee has granted Employee Stock Appreciation Rights (“ESAR”) on 17^th March, 2020 and 10^th November, 2020 to certain eligible employees pursuant to the Company’s Employee Stock Appreciation Rights plan, (“Plan”). The grant price is determined based on a formulas as defined in the Plan. There are scheme under each plan with different vesting periods. The Plans is a administered by the Nomination Remuneration Compensation Committee.

An Employee Stock Appreciation Right (ESAR) is an award which provides the holder with the ability to profit from the appreciation in value of a set number of shares of company stock over a set period of time. The valuation of a stock appreciation right operates exactly like a stock option in that the employee benefits from any increases in stock price above the price set in the award. However, unlike an option, the employee is not required to pay an exercise price to exercise them, but simply receives the net amount of the increase in the stock price in either shares of company stock or Cash, as decided by The Nomination Remuneration Compensation Committee.

a) Volatility: Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during the year. The measure of volatility is used in Black Scholes annualized standard deviation of the continuously compounded rate of return on the stock over a period of time. The Company considered the daily historical volatility of the Company’s expected life of each vest.

b) Risk Free Rate: The risk free rate being considered for the calculation is the interest rate applicable for a maturity equal to the expected life of the options based on the zero - coupon securities.

c) Expected Life of the Options / ESARs: Expected life of the options / ESARs is the period for which the Company expects the options/ ESARs to be live. The minimum life of a stock option / ESARs is the minimum period before which the options/ ESARs cannot be exercised and the maximum life is the period after which the options / ESARs cannot be exercised. The Company has calculated expected life as the average of life of the options / ESARs.

Reasons for more than 25% variance

1. Current ratio: There is more than 25% reduction in Current Ratio from March, 2021 to March, 2022 primarily due to change in terms, the Company has classified Inter Corporate Deposit given to Delta Pleasure Cruises Company Private Limited and Marvel Resort Private Limited of ' 75 Crores & ' 125 Crores respectively as Investment in Quasi Equity in Subsidiary Company, as a consequence of which Current Assets reduced as compared to previous year resulting into decrease in current ratio.

2. Trade Payable turnover ratio: Increase in trade payable turnover in the financial year 2021-22, due to increase in revenue of the Company. Which resulted into more operational outflow during the current year.

3. Net capital turnover ratio: During the financial year 2021-22, Sales turnover of the Company increased as compared to previous year as a consequence of this working capital of the Company got increased, which resulted in to increase in net capital turnover ratio.

4. Net profit ratio: During the previous year, Company has booked Profit of ' 55.95 Crores as Exceptional Item due to which Net Profit ratio of previous year increased. Hence previous year ratio is not comparable with Current Year ratio.

5. Trade Receivable turnover ratio: For the financial year 2021-22 there is increase in trade receivable turnover ratio, due to increase in revenue of the Company, which resulted into more operational inflow during the current year.

6. Inventory turnover ratio: Increase in Inventory turnover in the financial year 2021-22, The Company has more operational days as compared to previous year. Hence Inventory turnover ratio increased as compared to previous year.

7 Return on Investment ratio and Return on Capital Employed: Company has made earning before tax of ' 108.19 Crores against ' 99.58 crores due to which return of investment ratio and return on Capital Employed improved in Current Year.

8. Debt Equity ratio and Debt Service Coverage Ratio: During the Current Year, the Company is Debt Free therefore Debt Equity Ratio and Debt Service Coverage Ratio is not applicable

57 OTHER STATUTORY INFORMATION:

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has identified five parties having status as struck off companies. Total value of purchase of goods & services from these struck off companies amounts to ' 0.15 Crores and having Closing balance of ' 0.02 Crores payable at the year end.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered

or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(vi) No funds have been advanced or loaned or invested by the Company to or in any person(s) or entity(ies), including foreign entities (‘the 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 (‘the Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries.

(vii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (‘the 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.

b) Fair Value Hierarchy and Method of Valuation

Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments recognised in the financial statements approximate their fair values.

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.