# There is no change in value of investment as company has not provided foreign exchange loss/ gain on amount invested in foreign currency as provision for impairment of investment is provided for full value of investment.

Notes:

(a) The Company presently holds 100% interest in Fineline Hospitality & Consultancy Pte Ltd. (FHCPL), which in turn holds 80% stake in Lexon Hotels Venture Ltd., Mauritius (Lexon); and Lexon in turn holds 99.76% interest in Leading Hotels Limited (Leading). Leading is developing an all Villa Hotel Complex at Goa and an 18 hole, 72 par Championship Golf Course. The said project will be under the management of Four Seasons, a world famed hotel chain and hospitality management company.

(b) In respect of Ultimate Subsidiary company, i.e., Leading Hotels Limited, an Order under section 7 of Insolvency & Bankruptcy Code 2016, read with rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 was passed on June 25, 2021 for initiating Corporate Insolvency Resolution Process (CIRP). Due to the uncertainty related to realisation of amount from the insolvency process the value of investment was fully impaired during the FY 2020-21 by creation of provision for diminution in the value of the investment.

8 - TAXATION - DEFERRED TAX ...contd.

III. Deferred Tax relates to the following...contd. :

Note :- Deferred Tax Asset is not recognised during the financial year on additional business loss / unabsorbed depreciation following the concept of prudence. Deferred Tax Assets created till March 31,2020 have not been reversed as the Company has made operational profits during FY 2022-23 and the Management has drawn plans for further improving profitability including increase of profitability through business lines such as Commercial Real Estate Sales, infusion of funds etc and settlement with the lenders. Accordingly, recognition of any additional Deferred Tax Asset in future shall be dependent on achieving / improving profitability in line with the relevant Accounting Standards. In case the standard is not met, the amount of Deferred Tax Asset outstanding in the books of account shall be reversed.

(b) Terms / rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. For the year ended 31st March, 2023, the amount of per share dividend proposed as distribution to equity shareholders is Nil (31st March, 2022: Rs. Nil). 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.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

* Yes Bank Limited invoked the pledge on the shares of the Company & during the FY 2022-23, Yes bank Limited has transfered all credit facilities including shareholding in the Company to M/s J C Flowers Assets Reconstruction Pvt. Ltd (“ARC”). The Company has challenged the said invocation & transfer / assignment of credit facilities by Yes Bank Limited to the ARC and that this matter is subjudice before Hon'ble Delhi High Court.

(i) As a fallout of the COVID-19 in India in April 2020, the RBI had issued Resolution Framework for One Time Restructuring (“OTR”). In accordance to the same, the financial institution lenders (5 No.s) entered into a Inter-Creditor Agreement on 23^rd December, 2020 invoking the resolution process. As per the Guidelines, once the resolution is invoked, it needs to be implemented within 6 months, i.e., by June 09, 2021. The OTR is for obtaining extension in repayment of principal, reduction in interest rates and conversion of accrued interest into Funded Interest Term Loans (“FITL”). Summary of Revised Interest Rates & Repayment terms are summarized below.

(ii) The Company has been unable to repay Installments due till March 31,2023 as per OTR Sanction letter issued by the respective banks amounting to Rs. 12,976.67 Lakhs (in aggregate for all banks taken together) and interest payment amounting to Rs. 7,723.94 Lakhs (in aggregate for all banks taken together) The delay has been due to non-receipt of NOC for such sale from the lender banks despite several reminders.

iii) During FY 2022-23 YBL assigned all credit facilities to JC Flower Assets Reconstruction Pvt. Ltd. pursuant to assignment agreement dated December 16, 2022. Other lender also issued loan recall notices & initiated recovery action under SARFAESI Act, 2002. Company has argued the said assignment by YBL & recovery actions of other lenders are inconsistent with Interim order passed by the Hon'able Delhi High Court vide order dated 24/02/2022. Hon'able Delhi High Court directed all lender to comply with the order dated 24/02/2022 & stay all recovery actions.

As the future outcome is uncertain, in line with the Inter Creditor Agreement as stated above, the company has accounted all Credit Facilities from lenders as per OTR sanctioned letter issued by them.

Nature of security and terms of repayment for secured current financial liabilities-borrowings:

(a) DBS Bank Limited -External Commercial Borrowings

ECBs carry interest @ 4.50% p.a. plus 6 months LIBOR / ARR (as per revised RBI Regulaations) and are secured by first pari passu charge of land & building of Hotel Hyatt Regency Delhi and unsold area of New Tower Block A in Hyatt Regency Delhi, first pari passu charge on movable fixed assets (Excluding vehicles, windmills and power saving equipment), first pari passu charge on current assets (Present and Future), personal guarantee of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22nd October, 2021) & Chairman & Managing Director (Mr. Amritesh Jatia) and pledge of shares representing Company's investment in foreign subsidiary company. External commercial borrowings are repayable as under: (i) USD 161.67 Lakhs is payable in 16 unequal half yearly instalments till March, 2030; (ii) USD 175.40 Lakhs is payable in 11 unequal half yearly instalments till March, 2030.

- The Company has been unable to repay the Installments amounting to USD 47.95 Lakhs due till March 31, 2023.

All the Above mentioned Loans (Both Term Loans & FITL) are secured by:- First pari passu charge of land & building of Hotel Hyatt Regency Delhi

- Pari passu charge of unsold area of New Tower Block A in Hyatt Regency Delhi (1st to 6th Floor except 3000 sq ft at 6^th Floor) & Cash Flow thereon

- First pari passu charge on movable fixed assets (Excluding Wind Mills, vehicles and power saving equipment), first pari passu charge on current assets (Present and Future)

- Personal guarantee of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22nd October, 2021) & Chairman & Managing Director (Mr. Amritesh Jatia)

- Pledge of shares representing Company's investment in foreign subsidiary company on pari passu basis.

- The Company has been unable to repay Installments as per OTR Sanction letter due till March 31, 2023 amounting to INR 3,702.87 Lakhs (principal) and INR 2,719.82 Lakhs (interest) issued by the bank on account of NOC not provided by lenders.

*Pari Passu charge of unsold area of New Tower Block A in Hyatt Regency (1st to 6th Floor) not part of sanction from the lender

All the Above mentioned Loans (Both Term Loans & FITLs) are secured by:- First pari passu charge of land & building of Hotel Hyatt Regency Delhi

- First pari passu charge of unsold area of New Tower Block A in Hyatt Regency Delhi (1st to 6th Floor) & Receivable from the sale/lease.

- First pari passu charge on movable fixed assets (Excluding vehicles and power saving equipment), first pari passu charge on current assets.

- Personal guarantee of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22th October, 2021) & Chairman & Managing Director (Mr. Amritesh Jatia)

- Pledge of shareholding of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22th October, 2021), entities controlled by him, Asian Holding Private Limited & Other group Companies (total amounting to 7.29%) in the Company Invoked during FY 2021-22 by Yes Bank Limited.

- First pari passu Pledge of shares representing Company's investment in foreign subsidiary company.

- Charge over two power generation units of 3MW (including its Cashflows) situated at Maharashtra.

Notes:-

i) Company has been unable to repay installments due till March 31, 2023 amounting to INR 2,247.15 Lakhs (principal) and INR 1,863.21 Lakhs (Interest) as per OTR Sanction letter issued by the bank on account of inability to monetize CRE Assets located in hotel premises.

ii) Yes Bank Limited has issued ('YBL') “Loan Recall- Cum- Guarantee Invocation Notice” dated 17th February, 2022 & demanded that the Company should repay entire Term loan, Interest Funded Term Loans & Overdraft facilities. In addition, the Bank also invoked the Fixed Deposits provided by Asian Holding Private Limited (Rs. 500 Lakhs) and has exercised pledge on shareholding of Mr. Shiv Kumar Jatia, entities controlled by him, Asian Holding Private Limited & Other group Companies (total amounting to 7.29%) in the Company.

iii) The Company has challenged this action in Delhi High Court & that the Hon'ble High Court has granted stay on “Loan Recall-Cum- Guarantee Invocation Notice” vide Order Dated 24/02/2022. As per Clause 6.2 of the Inter Creditor Agreement signed between the lenders dated 6th August 2020, the Resolution Plan, that is approved by the Majority Lenders, shall be final and binding on all the Lenders (each Lender agrees and undertakes to be bound by the approved Resolution Plan and to the resolution process and its consequent implementation that has been approved by the Majority Lenders). In accordance with this Agreement and the August 6, 2020 Framework, the Lenders have agreed that, except as provided in Clause 11.4, they shall not initiate any legal action or proceedings (including proceedings under IBC) against the Borrower or any other Person that may jeopardise the successful implementation of the Resolution Plan in accordance with the terms of such Resolution Plan.

All the Above mentioned Loans (Both Term Loan & FITL) are secured by:- First pari passu charge of land & building of Hotel Hyatt Regency Delhi

- First pari passu charge of unsold area of New Tower Block A in Hyatt Regency Delhi

- First pari passu charge on Cashflows of the Company.

- First pari passu charge on movable fixed assets (Excluding vehicles and power saving equipment), first pari passu charge on

current assets (Present and Future)

- Personal / corporate guarantee of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22th October, 2021) & Chairman & Managing Director (Mr. Amritesh Jatia)

- Pledge of shareholding of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22th October, 2021), entities controlled by him, Asian Holding Private Limited & Other group Companies (total amounting to 0.16%) in the Company.

- First pari passu Pledge of shares representing Company's investment in foreign subsidiary company.

- The Company has been unable to repay Installment as per OTR Sanction letter issued by the bank due till March 31, 2023 amounting to INR 2,169.02 Lakhs (principal) and INR 1,485.74 Lakhs (interest) on account of non receipt of NOC from lenders.

(e) Exclusive Capital Limited (Assigned from IndusInd Bank Limited)

IndusInd Bank Limited which was not initially part of OTR Scheme has during FY 2021-22 agreed for One time restructuring of all Credit facilities vide Sanction Letter dated 16th December, 2021. During the year credit facilities of IndusInd Bank Limited were assigned to Exclusive Capital Limited vide assignment agreement dated December 28, 2022. Company has not yet received any communication from Exclusive Capital Limited regarding the revision to the said terms, hence, terms as per OTR scheme agreed with Indusind Bank is applied for accounting & disclosure purposes.

All the Above mentioned Loans (Both Term Loan & FITL) are secured by:- First pari passu charge of existing and future land & building of Hotel Hyatt Regency Delhi

- First pari passu charge on movable fixed assets (Excluding vehicles and power saving equipment), first pari passu charge on current assets (Present and Future)

- Pari passu charge of unsold area of New Tower Block A and cashflow thereon

- First pari passu charge on current Assets of the company both present and future.

- Pari passu charge of unsold area of New Tower Block A and Cashflow thereon and cashflow from the sale of 40,000 Sq.

ft area of Shopping Arcade located in Hyatt Regency Delhi.

- First pari passu charge on all cashflow of the company.

- Personal guarantee of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22nd October, 2021) &

Chairman & Managing Director (Mr. Amritesh Jatia)

- First pari passu Pledge of shares representing Company's investment in foreign subsidiary company.

- The Company has been unable to repay Installment as per OTR Sanction letter issued by the bank due till March 31, 2023 amounting to INR 1,575.45 Lakhs (principal) and INR 995.33 Lakhs (interest) on account of non receipt of NOC from lenders.

(f) Kotak Mahindra Prime Limited -Rupee loan for acquisition of vehicles (carries interest @ 7.78% per annum) is secured against hypothecation of the vehicle financed by the loan. Balance repayable in monthly instalments up to April 2023.

The aggregate values of the vehicle loans outstanding from Kotak Mahindra Prime Ltd is Rs. 3.36 Lakhs as at March 31,2023.

(g) Toyota Financial Services India Ltd - Rupee loan for acquisition of a vehicle (carried interest @ 7.74% per annum) is secured against hypothecation of the vehicle financed by the loan. Balance repayable in monthly instalments up to April, 2023.

The aggregate values of the vehicle loans outstanding from Toyota Financial Services India Ltd is Rs. 0.67 Lakhs as at March 31, 2023.

Nature of security and terms of repayment for secured current financial liabilities-borrowings:

(a) Yes Bank Limited

- Overdraft facilities (carried interest @ 9.85 % per annum)

- Yes Bank Limited -FITL I OD (carried interest @ 10.55 % per annum) - Bullet repayment on March, 2023

Both facilities are secured by

- First pari passu charge of land & building of Hotel Hyatt Regency Delhi

- First pari passu charge of unsold area of New Tower Block A in Hyatt Regency Delhi (1st to 6th Floor except 3000 sq ft at

6th Floor) & Receivable from the sale/lease.

21 - CURRENT FINANCIAL LIABILITIES - BORROWINGS...contd.

- First pari passu charge on movable fixed assets (Excluding vehicles and power saving equipment), first pari passu charge on current assets

- Personal guarantee of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22th October, 2021) & Chairman & Managing Director (Mr. Amritesh Jatia)

- Pledge of shareholding of Mr. Shiv Kumar Jatia, entities controlled by him, Asian Holding Private Limited & Other group Companies (total amounting to 7.2%) in the Company.

- First pari passu Pledge of shares representing Company's investment in foreign subsidiary company.

- Charge over two power generation units of 3MW (including its Cashflows) situated at Maharashtra.

- Presently the OD is overdrawn by Rs. 1300.05 Lakhs.

- Refer Notes under Note 18 above

(b) Axis Bank Limited - Overdraft facilities (carried interest @ 11.65% per annum) and is secured by :-

- first pari passu charge of land & building of Hotel Hyatt Regency Delhi and unsold area of New Tower Block A in Hyatt Regency Delhi,

- first pari-passu charge on the Land and Building pertaining to the existing Hotel complex.

- first pari passu charge on movable fixed assets (Excluding vehicles, windmills and power saving equipment), first pari passu charge on current assets (Present and Future),

- personal guarantee of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22th October, 2021) & Chairman & Managing Director (Mr. Amritesh Jatia),

- pledge of shares representing Company's investment in foreign subsidiary company

- Presently the OD is in default & discussion is going with bank to settle the same.

(c) Exclusive Capital Limited - Overdraft facilities & FITL (OD) (Assigned from IndusInd Bank Limited)

IndusInd Bank Limited which was not initially part of OTR Scheme has during FY 2021-22 agreed for One time restructuring of all Credit facilities vide Sanction Letter dated 16th December, 2021. During the year credit facilities of IndusInd Bank Limited assigned to Exclusive Capital Limited vide assignment agreement dated December 28, 2022. The Company is yet to receive communication from Exclusive Capital Limited, accordingly, the terms as per OTR scheme agreed with Indusind Bank is applied for accounting & disclosure purposes.

All the Above mentioned Credit facilities are secured by:- First pari passu charge of existing and future land & building of Hotel Hyatt Regency Delhi

- First pari passu charge on movable fixed assets (Excluding vehicles, windmills and power saving equipment), first pari

passu charge on current assets (Present and Future)

- First pari passu charge on current Assets of the company both present and future.

- Pari passu charge of unsold area of New Tower Block A and Cashflow thereon.

- First pari passu charge on all cashflows of the company.

- Fixed Deposit of Rs. 600.00 Lakhs to be held as exclusive collateral and will be provided by Personal guarantors as per schedule provided by IndusInd Bank.

- Personal guarantee of Mr. Shiv Kumar Jatia (Resigned from Chairman & Managing Director w.e.f 22nd October, 2021) and Chairman & Managing Director (Mr. Amritesh Jatia)

- First pari passu Pledge of shares representing Company's investment in foreign subsidiary company.

- Presently the OD is in default & discussion is going with Exclusive Capital Limited to settle the same.

34 - SEGMENT REPORTING

The Company operates only in one major reportable segment, i.e. Hospitality / Hotel Business. Other business segments i.e. power generation operations & Real Estate operations are governed by different set of risks and returns. However, the respective revenue streams and net profit / (loss) related to those segments though not material for disclosure purposes as separate reportable segment, but, as per condition laid down by Lenders of the Company in One Time Restructuring (OTR) Scheme, the Company is required to give a separate disclosure for the same in the financial statements. Accordingly, in compliance with conditions laid down by the said lenders, the Company has done Segment reporting for Hospitality / Hotel Business, power generation operations & Real Estate operations respectively.

35. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 19 EMPLOYEE BENEFITS

The Company has classified the various benefits provided to employees as under:-

(a) Defined contribution plans -Provident fund

The Company has recognized the following amounts in the statement of profit and loss:

Employers' contribution to provident fund :- Current Year Rs. 194.41 Lakhs (Previous Year Rs. 156.62 Lakhs)

(b) Defined benefit plans

- Gratuity

- Compensated absences - Earned leave

In accordance with Indian Accounting Standard 19, actuarial valuation was done in respect of the aforesaid defined benefit plans based on the following assumptions-Economic Assumptions

The discount rate and salary increases assumed are the key financial assumptions and should be considered together; it is the difference or 'gap' between these rates which is more important than the individual rates in isolation.

Discount Rate

The discounting rate is based on the gross redemption yield on medium to long term risk free investments. The estimated term of the benefits/obligations works out to zero years. For the current valuation a discount rate of 7.36% p.a. (Previous Year 7.18% p.a.) compound has been used.

Salary Escalation Rate

The salary escalation rate usually consists of at least three components, viz. regular increments, price inflation and promotional increases. In addition to this any commitments by the management regarding future salary increases and the Company's philosophy towards employee remuneration are also to be taken into account. Again a long-term view as to trend in salary increase rates has to be taken rather than be guided by the escalation rates experienced in the immediate past, if they have been influenced by unusual factors.

36. CORPORATE SOCIAL RESPONSIBILITY

Pursuant to the provisions of section 135(5) of the Companies Act, 2013 (the Act), the Company has formed its Corporate Social Responsibility (CSR) Committee. As per the relevant provisions of the Act read with Rule 2(1)(f) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company is required to spend at least 2% of the average net profits determined under section 198 of the Companies Act 2013 during the immediately three financial years. However, due to inadequacy of profits as per Section 198 of the Companies Act, 2013, the company is not required to spend any amount on CSR activities for Financial Year 2022-23.

Gross amount required to be spent by the Company during the year: Rs. NIL (Previous year - Rs. NIL)

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

1. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

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 effects on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effects on the recorded fair value that are not based on observable market data.

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The company's financial risk management policy is set by the Managing Board.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company's position with regards to the 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 it total portfolio.

The company is not exposed to significant interest rate risk as at the specified reporting date.

Refer Note 18 and Note 21 for interest rate profile of the Company's interest-bearing financial instrument at the reporting date. Foreign currency risk

The Company operates locally, however, the nature of its operations requires it to transact in several currencies and consequently the Company is exposed to foreign exchange risk in various foreign currencies.

The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies.

I. Foreign Currency Exposure

Refer Note 37 for foreign currency exposure as at March 31, 2023 and March 31, 2022 respectively.

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

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 throughout each reporting period. To assess whether there is significant increase in credit risk the company compares the risk of a default occurring an the asset at the reporting date with the risk of default as 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 mere its obligation,

(iv) Significant increase in credit risk on other financial instruments of the same counterparty.

(v) Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorizes a loan or receivable for write off when a debtor fails to make contractual payments greater than 2 years past due. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

IV. Provision for expected credit losses again “II” and “III” above

The company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence based on historic default rates, the Company believes that, no impairment allowance is necessary in respect of above mentioned financial assets.

Liquidity Risk

Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company's net liquidity position through rolling forecast on the basis of expected cash flows.

Capital management

For the purposes of the Company's capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company's Capital Management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

Note

*Revaluation Reserve of Rs. 40,407.36 Lakhs (Rs. 41,348.25 Lakhs in FY 2021-22) is considered as part of Shareholder's equity for the purpose of calculation of ratios.

Remarks for change in ratio by more than 25% with respect to previous year :-Current Ratio

There is improvement in ratio due to increase in current assets as there is improvement in business operations.

Debt - Equity Ratio

Ratio is adverse because of continuous increase in Debts (due to capitalization of Interest & Creation of FITL) and decrease in Equity due to continuous loss.

Debt Service Coverage Ratio

Ratio is adverse as company unable to generate enough cash to service its outstanding Debts. There improvement in ratio due to recovery in the business.

Trade receivables turnover ratio

Ratio has become more favourable as compared to previous year because last year due COVID- 19 pandemic operations of hotels & restaurants halted for some months in last year which resulted in delay in collection from corporate clients.

42. Additional Regulatory Information ...contd.

Inventory Turnover Ratio

Ratio has become more favourable as compared to previous year because last year due COVID- 19 pandemic operations of hotels & restaurants closed for substantial period during year which resulted in ineffective utilization of inventory.

Trade payables turnover ratio

Due to cash crunch company has been unable to repay its operational creditors which resulted in adverse ratio overall. There is improvement during the year due to recovery of business during the year.

Net capital turnover ratio

Ratio is negative because Working capital of the company is negative & the ratio has become more adverse because working capital pressure is more and the current liabilities exceed current assets by a higher amount during the current year as compared to the last year.

Net profit ratio

Ratio is adverse due to losses incurred by company. There is improvement in ratio as company has made operational profit during the year.

Return on capital employed (ROCE)

- There is improvement in ratio as compared to last year due improvement in EBIT.

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

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

(ii) Details of Benami Property held :

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

(iii) Borrowings secured against current assets

The Company has borrowings from banks on the basis of security of current assets. Currently OD limits are out of order & negotiation is going on with bankers to restructure the same.

(iv) Utilisation of borrowed funds and share premium :

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or behalf of the Ultimate Beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the group shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company financial institutions have been applied for the purposes for which such loans were taken.

(vi) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(vii) Relationship with struck off companies

The Company did not have any transactions with Companies struck off u/s companies Act, 2013 or Companies Act, 1956.

(viii) Compliance with number of layers of companies

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

(ix) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(x) Undisclosed income

The Company does not have any 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 provision of the Income Tax Act,1961).

(xi) Loans or advances to specified persons

The Company has not granted loans or advances to promoters, directors, key management personnel and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

(xii) Details of crypto currency or virtual currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the current or previous years.

(xiii) Valuation of Property, Plant and Equipment, intangible assets and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(xiv) Title deeds of immovable properties not held in name of the Company

The title deeds of immovable properties (other than immovable properties where the Company is the lessee and the leases agreements are duly executed in favour of the company) are held in the name of the Company.

Note: 43: Commitment Charges

The Company has not provided for Commitment charge worth Rs. 755.26 Lakhs in respect of Space Buying Agreement signed with various parties as the Company is confident of securing waivers / settlement from them for the same.

Note 44: Loss of Control over Foreign Subsidiaries

In respect of foreign subsidiaries, i.e., M/s Fineline Hospitality & Consultancy Pte Ltd. (FHCPL) & M/s Lexon Hotels Venture Ltd., Mauritius (Lexon) notice for appointment of liquidator has been accepted by the competent authority in Mauritius. As a result of the same, the Company has lost control of these entities. Accordingly, the Company will not be presenting Consolidated Financial Statements for FY 2022-23.

Note: 45 : Current State of Business Operations and Ability to Continue as Going Concern

The Company's financial statements are prepared on a going concern basis, which contemplates the utilization of assets and the satisfaction of obligations in the normal course of business. While impact of COVID is still felt, operating profitability for the Company is improving significantly and it will be further aided by several cost reduction measures being adopted by the Company. The Company is in amicable discussions with Banks and Financial Institutions, to resolve financial matters in the best interest for bankers as well as shareholders. The Management is confident that its planned financial settlement will enable the Company to continue as a going concern.

Note: 46 : Regrouped, Recast, Reclassified

Figures of the earlier year have been regrouped or reclassified to confirm to Ind AS presentation requirements.