Asset held for sale includes:

(a) During the year, the Company has reclassified the Company's vacant freehold land measuring 13.8375 acres situated at village Mohammadpur, Gujjar, near Sohna Road, Gurugram, Haryana, from held for sale to property, plant and equipment.

(b) The Board of Directors of the Company, at its meeting held on March 16, 2022, approved the sale of the entire shareholding in the wholly-owned subsidiary viz. EIH Flight Services Ltd., Mauritius (EIHFSL) subject to regulatory approvals. Accordingly, the investment in the wholly-owned subsidiary EIHFSL was classified as "assets held for sale" in the Standalone Financial Statements as on March 31, 2022.

During the year ended March 31, 2023, on receipt of regulatory approvals, the Company transferred its entire shareholding in the wholly-owned subsidiary to the buyer (an unrelated party). [refer note 54]

Nature and purpose of Reserves

(i) Capital redemption reserve

Capital redemption reserve represents the statutory reserve created by the Company for the redemption of its preference share capital. The same can be utilised by the Company for issuing fully paid bonus shares.

(ii) Securities premium

This reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.

(iii) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

(iv) Retained earnings - Surplus

Retained earnings represents accumulated profits of the Company. It can be utilised in accordance with the provisions of the Companies Act, 2013.

Particulars of term loans : i) Security

The sanctioned term loan facilities of ' 2,035.70 million (March 31, 2022: ' 2,785.70) from ICICI Bank Limited are secured by way of first pari passu charge by way of equitable mortgage on the Company's hotel - The Oberoi, New Delhi.

During the year ended March 31,2023, the term loan facilities of ' 750.00 million have been repaid and charge has been satisfied.

ii) Terms of repayment and Interest rate :

Term loans from ICCI Bank Limited amounting to ' 565.48 million (non-current borrowings ' 359.85 million and

current maturities in respect thereof ' 205.63 million) comprised:

(a) Term loan I outstanding of ' 565.48 million (including current maturities ' 205.63 million) is repayable in 11 equal quarterly installments of ' 51.41 million. The term loan is repayable by December 2025. The rate of interest on such term loan is based on the bank's one-year MCLR plus spread, subject to annual reset and is in the range of 7.55% p.a. to 7.80% p.a. Interest is payable on a monthly basis.

(b) Term loan II outstanding of ' Nil (March 31,2022: ' 564.76 million). The rate of interest on such term loan was based on the bank's one-year MCLR plus spread, subject to annual reset and was in the range of 7.55% p.a. to 8.00% p.a. Interest was payable on a monthly basis.

Notes:

(a) Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits will be available for recovery of these assets.

(b) As at March 31,2023, the Parent company has unutilised long-term capital loss of ' 1,796.92 million (as at March 31, 2022'161.48 million), short-term capital loss of ' 299.56 million (as at March 31, 2022 ' Nil million) and the impairment loss of ' Nil million (as at March 31, 2022: ' 1,345.49 million) for which no deferred tax assets have been recognised in the absence of reasonable certainty that there will be sufficient future taxable income relating to long-term capital gains to realise such assets.

Particulars of short-term borrowings :

i) Security

Cash credit facilities from banks are secured by way of hypothecation of all stock of inventories, book debts and other current assets of the Company, both present and future, ranking pari passu.

Cash credit with PNB was additionally secured by way of second charge on the movable and immovable fixed assets of the Company's hotel in Kolkata known as The Oberoi Grand. The facility was withdrawn and charge satisfied during the financial year 2021 -22.

Non-fund based facility with HSBC is secured by way of first pari passu charge by way of equitable mortgage on the immovable fixed assets of the Company's hotel in Delhi known as Maidens Hotel.

ii) Terms of repayment and Interest rateCash credit from banks - Secured

Cash credit facility from ICICI having Nil outstanding (March 31,2022: ' 73.29 million) is repayable on demand and carries interest linked to the bank's six months MCLR plus 0.30% p.a. on the draw down date.

Cash credit facility from HSBC having Nil outstanding (March 31,2022: ' 0.64 million) is repayable on demand and carries interest linked to the bank's overnight MCLR on the draw down date.

Cash credit facility from HDFC having Nil outstanding is repayable on demand and carries interest linked to the bank's three months MCLR plus 1.00% p.a. on the draw down date.

Short-term loan from banks - Unsecured

Short-term loan from ICICI for ' 500.00 million outstanding as on March 31, 2022 was repayable on April 14, 2022 and carried interest linked to the bank's repo rate on the draw down date, i.e. 5.50% p.a.

Short-term loan from ICICI for ' 500.00 million outstanding as on March 31,2022 was repayable on September 18, 2022 and carried interest linked to the bank's repo rate on the draw down date, i.e. 5.90% p.a.

(a) Includes ' 15.77 million (Previous year: Nil) received by the Company in respect of additional consideration as per the terms of Share Purchase Agreement dated July 31, 2018 in relation to divestment of entire holding in an associate during the year ended March 31, 2019.

(b) Includes ' 21.77 million (Previous year: Nil) received as per the Orders of the Government of Rajasthan, Finance Department (Tax Division) issued from time to time, towards reimbursement of State Tax due and deposited by entities registered under the Rajasthan Goods and Services Tax Act, 2017.

(i) The Company does not have average net profits in the past three years for the financial years ended March 31, 2023 and March 31, 2022 and therefore was not required to spend any amount towards Corporate Social Responsibility (CSR) during the year ended March 31, 2023 and March 31, 2022. Accordingly, there are no unspent CSR amounts for the year requiring a transfer to a Fund specified in Schedule VII to the Companies Act or special account in compliance with the provisions of sub-section (6) of Section 135 of the said Act.

(ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its standalone financial instruments into the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed financial instruments that have quoted price. The fair value of all financial instruments which are traded in the stock exchanges is valued using the closing price as at the end of the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, security deposits included in level 3.

(iii) Assets and liabilities which are measured at amortised cost for which fair values are disclosed

For all the financial assets and financial liabilities measured at amortised cost, carrying value is an approximation of their respective fair value.

(iv) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

Investment in Green Infra Wind Generation Limited and ReNew Wind Energy (Karnataka) Private Limited are made pursuant to the contract for procuring electricity supply at the hotels units. Investment in the said companies is not usually traded in the market. Considering the terms of the electricity supply contract, the management of the Company has assessed that cost represents the best estimate of its fair value.

For the investment in Golden Jubilee Hotels Private Limited (GJHPL), the management was of the view that carrying value of the investment is representative of its fair value as on April 1, 2015. As on April 1, 2015, no indicators of impairment were existing. However, during the financial year 2015-16, due to the non-payment of bank borrowings and other obligation, petition for the winding up had been filed by the creditors and lenders of the GJHPL. Considering the financial position of the GJHPL and legal proceedings initiated by lenders, the management had fully provided for the investment in GJHPL as on March 31, 2016.

43 FINANCIAL RISK MANAGEMENT

The Company's activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

The Company's risk management is carried out by the treasury department under policies approved by the Board of Directors. The Company's treasury department identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The Board of Directors provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments, and investment of excess liquidity.

(A) Market risk

(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognised assets or liabilities denominated in a currency that is not the Company's functional currency (').

(iii) Price risk

The Company's exposure to equity securities' price risk arises from investments held by the Company in equity securities and classified in the balance sheet as fair value through profit or loss (refer note 8). However, the Company does not have a practice of investing in equity securities with a view to earn gain from change in fair value. As per the Company's policies, whenever any investment is made by the Company in equity securities, the same is made either with some strategic objective or as a part of contractual arrangement.

(B) Credit risk

Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company.

Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the Company does not allow any credit period and therefore, is not exposed to any credit risk.

The Company does not have any derivative transactions and therefore is not exposed to any credit risk on account of derivatives. The Company does not have any long-term contracts for which there are any material foreseeable losses.

(C) Liquidity risk

The Company has a liquidity risk management framework for managing its short-term, medium-term and long-term sources of funding vis-a-vis short-term and long-term utilisation requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.

(i) Employee benefit plans

a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Company operates a gratuity plan through the "EIH Employees' Gratuity Fund". Gratuity plan is a funded plan and the Company through Gratuity Trust makes contributions of funds to Life Insurance Corporation of India. Provision/write back, if any, is made on the basis of the present value of the liability as at the Balance Sheet date determined by actuarial valuation following Projected Unit Credit Method.

b) Leave encashment

As per the policy of the Company, obligations on account of encashment of accumulated leave of an employee is settled only on separation of the employee. Such liability is recognised on the basis of actuarial valuation following the projected unit credit method. It is an unfunded plan.

(ii) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees as per applicable regulations. The contributions are made to registered provident 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 plan is ' 158.40 million (March 31, 2022 - ' 142.70 million).

The above sensitivity analyses are based on a 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 i.e. projected unit credit method has been applied as that used for calculating the defined benefit liability recognised in the balance sheet.

Sensitivities due to change in demographic and investment assumptions are not material and hence the impact of change due to these is not disclosed.

(vii) Risk exposure

The defined benefit obligations have the undermentioned risk exposures :

interest rate risk: The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation is likely to increase.

Salary Inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation depends upon the combination of salary increase, discount rate and vesting criteria.

investment risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. LIC of India primarily invests in debt instruments such as Government securities and highly rated corporate bonds wherein the risk of downward fluctuation in value is minimal.

(viii) Defined benefit liability and employer contributions

Expected contribution to post employment benefit plan during the year ending March 31,2024 is ' 191.52 million.

The weighted average duration of the defined benefit obligation is 5.1 years (2022 - 6 years) in case of Gratuity and 6 years (2022- 6 years) in case of leave encashment.

Note:

The matters listed above are in the nature of statutory dues, namely, Property tax, Sales Tax, Value Added Tax, Income Tax, Service Tax, Customs Duty, Luxury Tax and other claims, all of which are under litigation, the outcome of which would depend on the merits of facts and law at an uncertain future date. The amounts shown in the items above represent the best possible estimates arrived at, are on the basis of currently available information. The Company engages reputed professional advisors to protect its interests, and cases that are disputed by the Company are those where the management has been advised that it has strong legal positions. Hence, the outcomes of the above matters are not envisaged to have any material adverse impact on the Company's financial position.

(b) Guarantees:

i. Guarantees given to banks for ' Nil (2022- ' 622.67 million) against financial facilities availed by a subsidiary company, EIHFSL, classified as held for sale.

ii. Counter guarantees issued to banks and remaining outstanding ' 44.46 million (2022- ' 34.70 million).

46A During the year, the Company has recognised an obligation of ' 189.27 million, including custom duty on import an asset, consequent to an order of the High Court of Delhi dated January 31,2023, as disclosed under Exceptional Items in the Standalone Statement of Profit and Loss for the year ended March 31, 2023. The Company has preferred an appeal against the said order before the Supreme Court of India.

46B Pursuant to the Supreme Court order dated November 7, 2022 with respect to levy and computation of property tax under the provisions of the Mumbai Municipal Corporation Act, 1888, an expense of ' 192.59 millions has been recognised in 'Other expenses - Rates and taxes' in the Standalone Statement of Profit and Loss for the year ended March 31, 2023.

47 There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

(ii) Other commitments:

a) EIH Flight Services Ltd. ("EIHFSL"), Mauritius had availed borrowing facilities of ' 610.97 million [MUR 365.5 million] from State Bank (Mauritius) Ltd. ("SBM") which, amongst others, was secured by corporate guarantees of ' 622.67 million [MUR 372.5 million] by the Company. The unprecedented adversity in business conditions resulting from COVID-19 continued to prevail resulting in an uncertainty for EIHFSL to be able to fund the loan repayment obligations amounting to MUR 98.10 million (equivalent to ' 162.41 million) up to March 31, 2022 from internal generations. In view of this uncertainty, the Company had infused funds amounting to MUR 100.00 million (equivalent to ' 176.67 million) during the year ended March 31, 2022 towards shareholder's equity against which equity shares were issued by March 31, 2022. Further, the Company invested MUR 287.20 million (equivalent to ' 499.30 million) during the year ended March 31,2023 pursuant to the approval of the Board of Directors of the Company in its meeting dated March 16, 2022, for the purpose of repayment of all borrowings and liabilities of EIHFSL for the purpose of sale of EIHFSL to an identified buyer (refer note 54). Accordingly, the outstanding borrowings were repaid, EIHFSL ceased to be a subsidiary and corporate guarantees were cancelled by SBM during the year ended March 31, 2023.

b) The Company had provided a letter of support confirming that financial support to its subsidiary, EIHFSL classified as held for sale as at March 31, 2022 which was sold during the current year.

54 The Board of Directors of the Company, at its meeting held on March 16, 2022, had approved the sale of the entire shareholding in the wholly-owned subsidiary viz. EIH Flight Services Ltd., Mauritius (EIHFSL), subject to regulatory approvals. Accordingly, the investment in the wholly-owned subsidiary EIHFSL was classified as "assets held for sale" in the Standalone Balance Sheet as on March 31, 2022, in line with the requirements of Ind AS 105, "Non-current Assets Held for Sale and Discontinued Operations".

The Company had received a firm offer from an interested buyer (an unrelated party) during the year ended March 31, 2022 and a "Share Purchase Agreement" ("SPA") was executed by and between the parties in this respect during the year ended March 31, 2023. The sale consideration was considered as the fair market value of the enterprise. The fair value of the enterprise was adjusted with net financial debt at the closing date (as defined in the offer letter/"SPA"), along with costs to sell to arrive at fair value less costs to sell. The Company recognised an impairment loss in investment in EIHFSL amounting to ' 694.23 million and ' 95.20 million during the year ended March 31, 2022 and March 31, 2023, respectively, which has been disclosed under "Exceptional items" in the Standalone Statement of Profit and Loss.

Further, on receipt of regulatory approvals, the Company transferred its entire shareholding in the wholly-owned subsidiary to the buyer and EIHFSL ceased to be a subsidiary of the Company. The Company has received the sale consideration as per the terms and conditions stipulated in the Share Purchase Agreement and has consequently recorded a loss on sale of subsidiary amounting to ' 21.09 million which has been disclosed under "Exceptional items" in the Standalone Statement of Profit and Loss for the year ended March 31, 2023.

55 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India and subsequently on November 13, 2020 draft rules were published and invited for stakeholders' suggestions. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code and rules thereunder become effective.

56 Pursuant to the approval of the Board of Directors of the Company at its meeting held on March 2, 2022, the Company, during the year ended March 31, 2022, sold the assets of it's EIH Printing Press unit located at Manesar, Haryana. The assets comprised 7,875 square meters of land, 3-storied building including basement covering total area of approximately 13,750 square meters. The assets sold comprising property, plant and equipment included generators, air-conditioners, electrical fittings, furniture and fixtures, printing machinery, computers and vehicles. The total consideration from the sale of these assets amounted to ' 952.90 million resulting in a profit of ' 552.43 million which was recognised as an "Exceptional Item" in the Standalone Statement of Profit and Loss for the year ended March 31, 2022.

59 IMPACT OF COVID-19 ON BUSINESS OPERATIONS

The consequences of the COVID-19 outbreak on the Company's business for the year ended March 31, 2022 and March 31, 2021 had been severe. However, with vaccination programmes being implemented in India and across the globe, domestic air travel improved and international flights resumed. Consequently, both business and leisure travel resumed, resulting in improved revenue during the year ended March 31, 2023 as compared to the period prior to outbreak of COVID-19 i.e. the corresponding year in FY 2019-20. With improved business conditions, management based on its assessment, does not foresee stress on liquidity. Based on current indicators of future economic conditions, the Company expects to recover the carrying amounts of its assets as on March 31, 2023. The impact of COVID-19 on the business may be different from that estimated on the date of approval of these Standalone Financial Statements. The management of the Company will continue to closely monitor any material changes to future economic conditions.

60 other statutory information

i. Title deeds of Immovable Properties are in the name of the Company, other than as disclosed in the note 57.

ii. The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

iii. The Company has been sanctioned a fund based and non-fund based working capital limit from banks on the basis of security of current assets, including fixed deposits. Based on the sanction letter/acknowledgement of correspondence with the bank, no returns or statements were required to be filed by the Company with one such bank till the date of approval of these financial statements and the quarterly returns/statements comprising stock statements and book debt statements filed by the Company with three such banks are in agreement with unaudited books of account of the Company of the respective quarters.

iv. The Company was not holding any benami property and no proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

v. The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

ix. The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) any funds to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

x. The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi. The Company did not have any transaction which had not been recorded in the books of account that had 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).

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

61 The standalone financial statements were approved for issue by the Board of Directors on May 22, 2023.

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

viii. The Company has not traded or invested in Crypto currency or Virtual Currency during year ended March 31, 2023.