Salient Features of Financial Statements of Subsidiaries 204thelalithotels.in/pdf/Annual Report 2016-17-Bharat Hotels Ltd.pdf · 1 CONTENTS PAGE NO. Board of Directors 2 Board’s

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CONTENTSCONTENTSCONTENTSCONTENTSCONTENTS PPPPPAAAAAGE NOGE NOGE NOGE NOGE NO.....

Board of Directors 2

Board’s Report 3

Standalone FStandalone FStandalone FStandalone FStandalone Financial Statementsinancial Statementsinancial Statementsinancial Statementsinancial Statements

Auditors’ Report 37

Balance Sheet 44

Statement of Profit & Loss 46

Cash Flow Statement 48

Notes to the Financial Statements 50

Consolidated FConsolidated FConsolidated FConsolidated FConsolidated Financial Statements:inancial Statements:inancial Statements:inancial Statements:inancial Statements:

Auditors’ Report 117

Balance Sheet 122

Statement of Profit & Loss 124

Cash Flow Statment 126

Notes to the Financial Statements 128

Salient Features of Financial Statements of Subsidiaries 204

Bharat Hotels Limited

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CHAIRPERSON AND MANACHAIRPERSON AND MANACHAIRPERSON AND MANACHAIRPERSON AND MANACHAIRPERSON AND MANAGING DIRECTGING DIRECTGING DIRECTGING DIRECTGING DIRECTORORORORORDr. Jyotsna Suri

EXECUTIVE DIRECTEXECUTIVE DIRECTEXECUTIVE DIRECTEXECUTIVE DIRECTEXECUTIVE DIRECTORSORSORSORSORSMs. Divya Suri SinghMs. Deeksha SuriMr. Keshav Suri

DIRECTDIRECTDIRECTDIRECTDIRECTORSORSORSORSORSMr. Ramesh SuriMr. Lalit BhasinDr. M.Y. KhanMr. Dharam Vir BatraMr. Dhruv PrakashMr. Vivek Mehra

CHIEF FINANCIAL OFFICERCHIEF FINANCIAL OFFICERCHIEF FINANCIAL OFFICERCHIEF FINANCIAL OFFICERCHIEF FINANCIAL OFFICERMr. Madhav Sikka

COMPCOMPCOMPCOMPCOMPANY SECRETANY SECRETANY SECRETANY SECRETANY SECRETARARARARARYYYYYMr. Sandeep Chandna

REGISTERED OFFICEREGISTERED OFFICEREGISTERED OFFICEREGISTERED OFFICEREGISTERED OFFICEBarakhamba Lane, New Delhi - 110001, India

STSTSTSTSTAAAAATUTTUTTUTTUTTUTORORORORORY AY AY AY AY AUDITUDITUDITUDITUDITORSORSORSORSORSS.R. Batliboi & Co. LLPChartered AccountantsGold View Corporate Tower BSector-42, Sector RoadGurugram - 122002, Haryana, India

BANKERSBANKERSBANKERSBANKERSBANKERSYes Bank Ltd.ICICI Bank Ltd.Axiz Bank Ltd.The Jammu & Kahsmir Bank Ltd.

FINANCIAL INSTITUTIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONKSIDC Ltd.

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BOBOBOBOBOARDARDARDARDARD’S REPORT’S REPORT’S REPORT’S REPORT’S REPORT

TTTTTO THE MEMBERSO THE MEMBERSO THE MEMBERSO THE MEMBERSO THE MEMBERS

The Directors have pleasure in presenting 36th Annual Report together with the Audited Financial Statements andthe Auditor’s Report of the Company for the financial year ended 31st March, 2017.

FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS

The Financial highlights of the Company for the year under review are given below:(Rs. in lacs)

FFFFFinancial Yinancial Yinancial Yinancial Yinancial Yearearearearear

PPPPParticularsarticularsarticularsarticularsarticulars 2016-172016-172016-172016-172016-17 2015-162015-162015-162015-162015-16

Revenue from operationsRevenue from operationsRevenue from operationsRevenue from operationsRevenue from operations 57,477.9857,477.9857,477.9857,477.9857,477.98 52,705.84

Other IncomeOther IncomeOther IncomeOther IncomeOther Income 834.62834.62834.62834.62834.62 2,521.58

Total Income 58,312.6058,312.6058,312.6058,312.6058,312.60 55,227.42

Profit before interest, tax, Depreciation,and amortisation 17,813.0817,813.0817,813.0817,813.0817,813.08 15,528.01

Add: FAdd: FAdd: FAdd: FAdd: Finance Incomeinance Incomeinance Incomeinance Incomeinance Income 4,213.684,213.684,213.684,213.684,213.68 5,301.74

LLLLLess: Fess: Fess: Fess: Fess: Finance costsinance costsinance costsinance costsinance costs 11,418.4711,418.4711,418.4711,418.4711,418.47 10,845.36

LLLLLess: Depreciation & amortisation costsess: Depreciation & amortisation costsess: Depreciation & amortisation costsess: Depreciation & amortisation costsess: Depreciation & amortisation costs 5,087.785,087.785,087.785,087.785,087.78 5,456.93

LLLLLess: Share of net loss of Joint Vess: Share of net loss of Joint Vess: Share of net loss of Joint Vess: Share of net loss of Joint Vess: Share of net loss of Joint Venturesenturesenturesenturesentures ————— —

Profit before tax 5,520.515,520.515,520.515,520.515,520.51 4,527.46

LLLLLess: Tess: Tess: Tess: Tess: Tax expensesax expensesax expensesax expensesax expenses 1,851.281,851.281,851.281,851.281,851.28 931.63

Profit/ (Loss) for the year 3,669.233,669.233,669.233,669.233,669.23 3,595.83

Other comprehensive income/ (loss)Other comprehensive income/ (loss)Other comprehensive income/ (loss)Other comprehensive income/ (loss)Other comprehensive income/ (loss) (7.08)(7.08)(7.08)(7.08)(7.08) 36.19

Net comprehensive income/ (loss) 3,662.153,662.153,662.153,662.153,662.15 3,632.02

Add: Retained Earnings brought forwardAdd: Retained Earnings brought forwardAdd: Retained Earnings brought forwardAdd: Retained Earnings brought forwardAdd: Retained Earnings brought forwardfrom the previous yearfrom the previous yearfrom the previous yearfrom the previous yearfrom the previous year 48,573.6048,573.6048,573.6048,573.6048,573.60 45,398.89

LLLLLess: Cash dividendess: Cash dividendess: Cash dividendess: Cash dividendess: Cash dividend 569.93569.93569.93569.93569.93 379.96

LLLLLess: Tess: Tess: Tess: Tess: Tax on distribution of equity dividendax on distribution of equity dividendax on distribution of equity dividendax on distribution of equity dividendax on distribution of equity dividend 116.03116.03116.03116.03116.03 77.35

Retained Earnings 51,549.7951,549.7951,549.7951,549.7951,549.79 48,573.60

The Ministry of Corporate Affairs vide its notification dated 16.02.2015 has notified the Companies ( IndianAccounting Standards) Rules, 2015 which mandates application of Ind AS Standards (known as Indian AccountingStandards) by the Companies having net worth of the more than Rs. 500 Crores on or after 01.04.2016. InCompliance of the said notification, the financial statements for the year ended 31 March, 2017 have beenprepared in accordance with Ind AS.

OPERAOPERAOPERAOPERAOPERATIONS AND STTIONS AND STTIONS AND STTIONS AND STTIONS AND STAAAAATE OF THE COMPTE OF THE COMPTE OF THE COMPTE OF THE COMPTE OF THE COMPANY’S AFFANY’S AFFANY’S AFFANY’S AFFANY’S AFFAIRSAIRSAIRSAIRSAIRS

Over the years the Lalit Suri Hospitality Group has consolidated its position as one of the leading privately ownedhospitality chain of the country. The group has thirteen operational hotels in the five star deluxe segment and twohotels in the mid segment. During the year, the hotels at London and Mangar (Faridabad) commenced commercialoperations. The hotel of the group at Ahmadabad is in advance stages of construction and likely to be completedby end of 2018.


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The Lalit Suri Hospitality School at Faridabad is the maiden venture of the group in the field of hospitality education& training. The school, partly functional, is scheduled to be fully functional in the coming year.

During the financial year 2016-17, the total turnover of the Company was Rs. 58,312.60 lacs (Previous year: Rs.55,227.42 lacs), an increase of 5.58 % and EBIDTA was Rs. 17,813.08 lacs (Previous year: Rs.15,528.01 lacs),an increase of 14.72 % due to higher turnover, effective cost control and better management. Profit after tax wasRs. 3,669.23 lacs (Previous year: Rs. 3,595.83 lacs), an increase of 2.04% as compared to the previous year.

DIVIDENDDIVIDENDDIVIDENDDIVIDENDDIVIDEND

The Board has recommended a dividend of 10% per share i.e. Rs.1.00 per equity share of Rs. 10/- each. Theproposal is subject to the approval of shareholders at the ensuing Annual General Meeting to be held on 23rd

August, 2017.

The total outgo on account of dividend payment shall be Rs.7.59 Crores

The register of shareholders and share transfer registers shall remain closed from Wednesday, the 16th August,2017 to Wednesday, the 23rd August, 2017 (both days inclusive).

TRANSFER OF UNPTRANSFER OF UNPTRANSFER OF UNPTRANSFER OF UNPTRANSFER OF UNPAID AND UNCLAIMED DIVIDEND TAID AND UNCLAIMED DIVIDEND TAID AND UNCLAIMED DIVIDEND TAID AND UNCLAIMED DIVIDEND TAID AND UNCLAIMED DIVIDEND TO IEPFO IEPFO IEPFO IEPFO IEPF

Pursuant to the provisions of Section 124(6) of the Companies Act, 2013 (“Act”) read with Rule 6 of InvestorEducation and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (as amended fromtime to time) unclaimed dividends upto the financial year 2008-09 have been transferred to the Investor Educationand Protection Fund (“IEPF”) set up by the Govt. of India. The amount of dividend for the financial years 2009-10to 2015-16 remaining unclaimed for a period of seven years from the date of transfer to Unpaid DividendAccount shall be transferred to the IEPF and no payments shall be made in respect of any such claims after thetransfer. Members may note that this year the dividend for the financial year 2009-10 is due for transfer to theIEPF.

In accordance with the procedure laid down in the rules, if a member does not claim the dividend amount for aconsecutive period of seven years or more, then the shares held by him/her shall be transferred to the DEMATAccount of IEPFA. The details of the Members whose shares are liable to be transferred are also posted on thewebsite of the Company i.e. www.thelalit.com.

TRANSFER TTRANSFER TTRANSFER TTRANSFER TTRANSFER TO RESERVESO RESERVESO RESERVESO RESERVESO RESERVES

During the financial year 2016-17, no amount has been transferred to General Reserve (Previous Year-Rs. 400.00 lacs was transferred to General Reserve from revaluation reserves).

EVENTS SUBSEQUENT TEVENTS SUBSEQUENT TEVENTS SUBSEQUENT TEVENTS SUBSEQUENT TEVENTS SUBSEQUENT TO THE DO THE DO THE DO THE DO THE DAAAAATE OF FINANCIAL STTE OF FINANCIAL STTE OF FINANCIAL STTE OF FINANCIAL STTE OF FINANCIAL STAAAAATEMENTSTEMENTSTEMENTSTEMENTSTEMENTS

There was no material change and commitment’s affecting the financial position of the Company between theend of the financial year and the date of this report.

CHANGE IN NACHANGE IN NACHANGE IN NACHANGE IN NACHANGE IN NATURE OF BUSINESSTURE OF BUSINESSTURE OF BUSINESSTURE OF BUSINESSTURE OF BUSINESS

During the year, there has been no change in the nature of business of the Company. All the hotels of theCompany are operated under the brand “The LaLiT”.

SUBSIDIARIESSUBSIDIARIESSUBSIDIARIESSUBSIDIARIESSUBSIDIARIES

The Consolidated Accounts of the Company and all its subsidiaries / joint venture of subsidiaries viz., JyotiLimited, Prime Cellular Limited, Apollo Zipper India Limited, Prima Buildwell Private Limited, Kujjal Builders Pvt.Ltd. (Joint venture of Prime Cellular Limited) and Cavern Hotel & Resorts FZCo (Joint venture of Prima BuildwellPrivate Limited) form part of the Annual Report. Further, a statement containing the salient features of the financial

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statements of all subsidiaries / joint ventures pursuant to Section 129 (3) of the Companies Act, 2013 in theprescribed form AOC- 1 also form part of the Annual Report. The statement provides the details of performanceand financial position of each of the subsidiaries. Further, during the financial year no company became orceased to be subsidiary / Joint Venture / Associate of the Company.

DIRECTDIRECTDIRECTDIRECTDIRECTORS AND KEY MANAORS AND KEY MANAORS AND KEY MANAORS AND KEY MANAORS AND KEY MANAGERIAL PERSONNELGERIAL PERSONNELGERIAL PERSONNELGERIAL PERSONNELGERIAL PERSONNEL

Mr. Vinod Khanna, Director of the Company passed away on 27th April 2017 and Mr. Hanuwant Singh, Directorof the Company passed away on 30th June, 2017. The Board expresses grief at the sudden demise of bothdirectors. The loss is irreparable for the families and the Company.

During the year under review, Mr. Abhay Kumar Navalmal Firodia and Mr. Chakor Lalchand Doshi have ceasedto hold office of director of the Company with effect from 21st May, 2016 and 20th July, 2016 respectively. TheBoard of Directors placed on record its appreciation to the outgoing Directors for the valuable guidance andsupport for the Company.

The Members of the Company at its last Annual General Meeting held on 31st August, 2016, had appointed Mr.Hanuwant Singh, as director of the Company liable to retire by rotation with effect from 27th September, 2016.Ms. Divya Suri Singh and Ms. Deeksha Suri, Executive Directors of the Company were re-appointed as directorsof the Company liable to retire by rotation. Further, in terms of the provisions of Section 149 and 161 of theCompanies Act, 2013, Dr. Mohmmad Yousuf Khan, Mr. Vinod Kishanchand Khanna and Mr. Lalit Bhasin were re-appointed as Independent Directors of the Company for a terms of 5 years with effect from 27th September, 2016by the Members of the Company in the last Annual General Meeting.

Mr. Dhruv Prakash (DIN 05124958) and Mr. Vivek Mehra (DIN 00101328) were appointed as additional directorson the Board of the Company w.e.f. 21st July, 2017.

Mr. Dhruv Prakash and Mr. Vivek Mehra have submitted declarations that they meet the criteria of independenceas provided in Section 149(6) of the Act. Therefore, It is proposed to appoint Mr. Dhruv Prakash and Mr. VivekMehra as Independent Directors of the Company to hold office for a period of five (5) consecutive years w.e.f. 21st

July, 2017, at the forthcoming Annual General Meeting of the Company in terms of Section 149 of the CompaniesAct, 2013.

The Company has received declarations from Mr. Lalit Bhasin and Dr. Mohammad Yousuf Khan, IndependentDirectors of the Company confirming that they meet the criteria of independence in accordance with the provisionsof Section 149(6) of the Companies Act, 2013.

In accordance with the provisions of Section 152(6) of the Companies Act, 2013, Mr. Keshav Suri, ExecutiveDirector and Mr. Dharam Vir Batra, Director of the Company, retire by rotation at the forthcoming Annual GeneralMeeting and, being eligible, offer themselves for re-appointment.

The term of Dr. Jyotsna Suri, Chairperson & Managing Director of the Company will expire on 15th October,2017. The Board of Directors at its meeting held on 21st July, 2017 has considered to re-appoint Dr. Jyotsna Surias Chairperson & Managing Director w.e.f. 16th October, 2017 for a further period of 3 years on the remunerationas recommended by Nomination and Remuneration Committee of the Board subject to the approval of themembers in the forthcoming Annual General Meeting. The terms of re-appointment and remuneration to be paidto Dr. Jyotsna Suri is set out in the Resolution, seeking the approval of shareholders, forms part of the notice of theAnnual General Meeting. Dr. Jyotsna Suri is also the Managing Director of Apollo Zipper India Limited but notdrawing any remuneration from that Company.

Further, the term of Ms. Divya Suri Singh, Ms. Deeksha Suri and Mr. Keshav Suri, Executive Directors of theCompany will expire on 25th August, 2017. The Board of Directors at its meeting held on 21st July, 2017 hasconsidered to re-appoint the above Executive Directors w.e.f. 26th August, 2017 for a further period of 3 years onthe remuneration as recommended by Nomination and Remuneration Committee of the Board subject to the


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approval of the members in the forthcoming Annual General Meeting. The terms of re-appointment andremuneration to be paid to the above Executive Directors are set out in the Resolutions, seeking the approval ofshareholders, forms part of the notice of the Annual General Meeting.

Further during the year, Mr. Himanshu Pandey resigned from the position of Company Secretary w.e.f. 15th

February, 2017 and Mr. Sandeep Chandna was appointed as Company Secretary in his place.

MEETINGS OF THE BOMEETINGS OF THE BOMEETINGS OF THE BOMEETINGS OF THE BOMEETINGS OF THE BOARDARDARDARDARD

The Board of Directors of the Company during the Financial year 2016-17 met five (05) times on 20-5-2016,21-7-2016, 31-8-2016, 21-12-2016 and 22-03-2017. The number and dates of Meetings of the Board andCommittees held during the Financial year 2016-17 indicating the number of Meetings attended by each Directoris given in Annexure IAnnexure IAnnexure IAnnexure IAnnexure I, which forms part of this report.

DIRECTDIRECTDIRECTDIRECTDIRECTORS’ RESPONSIBILITY STORS’ RESPONSIBILITY STORS’ RESPONSIBILITY STORS’ RESPONSIBILITY STORS’ RESPONSIBILITY STAAAAATEMENTTEMENTTEMENTTEMENTTEMENT

In accordance with the provisions of Section 134 (5) of the Companies Act, 2013, the Directors hereby confirmthat:

(a) in the preparation of the Annual Accounts, the applicable accounting standards had been followed alongwith proper explanation relating to material departures;

(b) the directors had selected such accounting policies and applied them consistently and made judgments andestimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of theCompany at the end of the financial year and of the profit and loss of the Company for that period;

(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records inaccordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company andfor preventing and detecting fraud and other irregularities;

(d) the directors had prepared the Annual Accounts on a going concern basis;

(e) the directors, had laid down internal financial controls to be followed by the Company and that such internalfinancial controls are adequate and were operating effectively and

(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws andthat such systems were adequate and operating effectively.

BOBOBOBOBOARD EVARD EVARD EVARD EVARD EVALALALALALUUUUUAAAAATIONTIONTIONTIONTION

The Nomination and Remuneration Committee considered and Board approved the policy setting out the criteriaon which performance evaluation of every director, key managerial personnel and committees of the Board isassessed. The Nomination and Remuneration Committee of the Board has carried out an annual evaluation ofevery director, key managerial personnel and committees of the Board pursuant to the provisions of the CompaniesAct, 2013. The Committee reviewed the performance of the Independent directors on the basis of the criteria suchas attendance and presence in meetings of Board, rendering independent and unbiased opinion, raising ofconcerns to the Board, safeguard of confidential information etc. Further, the Committee reviewed the performanceof the Non- Independent and Executive directors on the basis of the criteria such as strategic planning, operationalperformance of the Company, monitoring performance against plans, steps initiated towards business development,motivating employees, providing assistance & directions etc.

The performance of the committees was evaluated on the basis of the criteria such as committee’s accomplishmentswith respect to performance objectives, redressal of complaints and grievances, coordination with other committeesand Board of Directors, fulfillment of roles and responsibilities etc.

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AAAAAUDIT COMMITTEE OF THE BOUDIT COMMITTEE OF THE BOUDIT COMMITTEE OF THE BOUDIT COMMITTEE OF THE BOUDIT COMMITTEE OF THE BOARDARDARDARDARD

In accordance with the provisions of Section 177 of the Companies Act, 2013, Audit Committee of the Boardcomprises of two Independent Directors viz. Mr. Lalit Bhasin with Dr. M.Y. Khan being the Chairman and LateMr. Hanuwant Singh act as Non-Independent Director. Mr. Madhav Sikka, CFO of the Company represent as theHead of Finance and Mr. Sandeep Chandna, Company Secretary of the Company acts as Secretary of theCommittee. The Committee met three times during the financial year under review and all recommendations ofthe Audit Committee were duly accepted by the Board.

Due to untimely death of Late Sh. Hanuwant Singh, the Board of Directors at its meeting held on 21st July, 2017had re-constituted Audit Committee of the Board and appointed Mr. Vivek Mehra as a new member. The presentconstitution of the Audit Committee is as follows:

1. Dr. M. Y. Khan - Chairman2. Mr. Lalit Bhasin - Member3. Mr. Vivek Mehra - Member

NOMINANOMINANOMINANOMINANOMINATION AND REMUNERATION AND REMUNERATION AND REMUNERATION AND REMUNERATION AND REMUNERATION COMMITTEE OF THE BOTION COMMITTEE OF THE BOTION COMMITTEE OF THE BOTION COMMITTEE OF THE BOTION COMMITTEE OF THE BOARDARDARDARDARD

In accordance with the provisions of Section 178 of the Companies Act, 2013, Nomination and RemunerationCommittee of the Board comprises of following Non- Executive Directors:

1. Mr. Lalit Bhasin - Chairman2. Mr. D.V Batra - Member3. Mr. M. Y. Khan - Member

The Committee met two times during the financial year under review and the Board duly accepted allrecommendations of the Nomination and Remuneration Committee.

The Board of Directors at its meeting held on 21st July, 2017 had re-constituted Nomination and RemunerationCommittee of the Board and has appointed Mr. Dhruv Prakash as a member of the Committee in place ofMr. D.V Batra. The present constitution of the Nomination and Remuneration Committee is as follows:

1. Mr. Lalit Bhasin - Chairman2. Mr. Dhruv Prakash - Member3. Dr. M. Y. Khan - Member

SHARE TRANSFER AND STSHARE TRANSFER AND STSHARE TRANSFER AND STSHARE TRANSFER AND STSHARE TRANSFER AND STAKEHOLDERS RELAAKEHOLDERS RELAAKEHOLDERS RELAAKEHOLDERS RELAAKEHOLDERS RELATIONSHIP COMMITTEE OF THE BOTIONSHIP COMMITTEE OF THE BOTIONSHIP COMMITTEE OF THE BOTIONSHIP COMMITTEE OF THE BOTIONSHIP COMMITTEE OF THE BOARDARDARDARDARD

The Company has constituted the Share Transfer and Stakeholders Relationship Committee as per provisions ofSection 178 of the Companies Act, 2013. During the year, the following directors of the Board were members ofthe Committee:

1. Mr. Hanuwant Singh - Chairman2. Dr. Jyotsna Suri - Member3. Mr. Ramesh Suri - Member

Due to sudden death of Late Sh. Hanuwant Singh, the Board of Directors at its meeting held on 21st July, 2017had re-constituted Share Transfer and Stakeholders Relationship Committee of the Board. Mr Ramesh Suri hasdesignated to the post of Chairman of the Committee and has appointed Ms. Divya Suri Singh as a new member.

The present constitution of the Share Transfer and Stakeholders Relationship Committee is as follows:

1. Mr. Ramesh Suri - Chairman2. Dr. Jyotsna Suri - Member3. Ms. Divya Suri Singh - Member


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CORPORACORPORACORPORACORPORACORPORATE SOCIAL RESPONSIBILITY POLICYTE SOCIAL RESPONSIBILITY POLICYTE SOCIAL RESPONSIBILITY POLICYTE SOCIAL RESPONSIBILITY POLICYTE SOCIAL RESPONSIBILITY POLICY

In accordance with the Companies Act, 2013, the Company has a Corporate Social Responsibility Committeewhich comprises of the following directors:

- Dr. Jyotsna Suri- Chairperson,- Ms. Divya Suri Singh, Executive Director,- Mr. Lalit Bhasin, Director – w.e.f. 31-08-2016- Mr. Hanuwant Singh, Director- upto 31-8-2016.

As required under Section 135 of the Companies Act, 2013, the Board of Directors had approved the CorporateSocial Responsibility Policy of the Company which interalia includes the corporate social responsibility activities tobe taken by the Company. The said policy may be referred at the Company’s website http://media.thelalit.com/d/lalit/media/BHL-_CSR_Policy.pdf. Further, as part of its initiatives under CSR, the Company in partnership withleading non-profit institution(s), has developed programs to address needs in the communities it serves.

The Company wishes to continue the socially beneficial projects it is associated with and accordingly with themotive of ‘limitless hospitality’ and the vision of ‘developing destinations’ the Company has been pioneeringunique initiatives involving local people in the areas of education, art, culture, sports and environment protection,for the benefit of people of those locations where hotels of the Company are situated.

PPPPProject Disha: roject Disha: roject Disha: roject Disha: roject Disha: An initiative of the Lalit Suri Foundation being implemented under the overall CSR policy of BharatHotels seeks to assist at one level school students and youth from the local population to have access to quality“education leading to employment” and on the other to equip them - to understand the benefit & opportunitiesavailable in today’s economic scenario. The Area of Interventions being undertaken includes establishment of aLibrary and supplementing teaching in the areas of English and General Knowledge at school level and, providingemployment oriented vocational training in the hospitality sector including computer literacy, personalitydevelopment, spoken English courses and life skills training with a special emphasis on workplace behavior todisadvantaged youth in the livelihood skill centers that have also been instituted alongside. These centers arecurrently operating at four locations across India namely, Khajuraho, Bekal, Jaipur and Srinagar.

The initiative is being managed by SEED, a National NGO.

Snapshot:• Total Beneficiaries– 11130• Total in school beneficiaries – 7133• Total Vocational Training Beneficiaries – 3997

The Annual Report on CSR activities in accordance with the provisions of Section 135 of the Companies Act, 2013,and the Companies (Corporate Social Responsibility Policy) Rules, 2014 as amended from time to time, is annexedherewith as Annexure Annexure Annexure Annexure Annexure- II.- II.- II.- II.- II.

AAAAAWWWWWARDS & RECOGNITIONSARDS & RECOGNITIONSARDS & RECOGNITIONSARDS & RECOGNITIONSARDS & RECOGNITIONSThe following are some of the awards and recognitions received during the year 2016-17:

The LThe LThe LThe LThe Lalit New Delhi has been awarded:-alit New Delhi has been awarded:-alit New Delhi has been awarded:-alit New Delhi has been awarded:-alit New Delhi has been awarded:-• “Certificate of Excellence” by Trip Advisor for 2016.• National Tourism Awards 2014 – 2015: Hotel providing best facilities for differently abled guests The Lalit

New Delhi.

The LThe LThe LThe LThe Lalit Mumbai has been awarded:-alit Mumbai has been awarded:-alit Mumbai has been awarded:-alit Mumbai has been awarded:-alit Mumbai has been awarded:-• “Loved by Guest” Award of 2016 by Hotels.com (Expedia).• “Excellence Performance “ award for the year 2015-16 by Goibibo.• 2016 Gold Circle award hosted by AGODA.

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The LThe LThe LThe LThe Lalit Ashok Bangalore has been awarded:-alit Ashok Bangalore has been awarded:-alit Ashok Bangalore has been awarded:-alit Ashok Bangalore has been awarded:-alit Ashok Bangalore has been awarded:-• OKO Restaurant – Best Sushi in town by Eazy Diner People’s Choice (February, 2017).

The LThe LThe LThe LThe Lalit Resort & Spa Bekal has been awarded:-alit Resort & Spa Bekal has been awarded:-alit Resort & Spa Bekal has been awarded:-alit Resort & Spa Bekal has been awarded:-alit Resort & Spa Bekal has been awarded:-• AsiaSpa Award 2015 for Best Ayurvedic Spa & Wellness Centre.

The LThe LThe LThe LThe Lalit Golf & Spa Resort Goa has been awarded:-alit Golf & Spa Resort Goa has been awarded:-alit Golf & Spa Resort Goa has been awarded:-alit Golf & Spa Resort Goa has been awarded:-alit Golf & Spa Resort Goa has been awarded:-• Best 5-star Wedding Destination at Goan Hospitality Award of Excellence 2016.• Best 5 Star Horticulturist & Landscaping at Goan Hospitality Award of Excellence 2016.• Best 5 Star with Ethnic Cuisine Restaurants at Goan Hospitality Award of Excellence 2016.• Best 5 Star F&B Manager at Goan Hospitality Award of Excellence 2016.

The LThe LThe LThe LThe Lalit Jaipur has been awarded:-alit Jaipur has been awarded:-alit Jaipur has been awarded:-alit Jaipur has been awarded:-alit Jaipur has been awarded:-• Times Food & Nightlife award 2016.

The LThe LThe LThe LThe Lalit Chandigarh has been awarded:alit Chandigarh has been awarded:alit Chandigarh has been awarded:alit Chandigarh has been awarded:alit Chandigarh has been awarded:• Customer Choice Award 2016 from Make My Trip.• Kitty Su awarded “Best Night Club – Nightlife Category” Times Food & Nightlife Awards 2017 (March 29,

2017).• Baluchi awarded “Best North Indian – Fine Dine Category” Times Food & Nightlife Awards 2017 (March 29,

2017).

The LThe LThe LThe LThe Lalit Talit Talit Talit Talit Temple View Khajuraho has been awarded:emple View Khajuraho has been awarded:emple View Khajuraho has been awarded:emple View Khajuraho has been awarded:emple View Khajuraho has been awarded:• Tripoto Online Portal Award for Best Hotel in Madhya Pradesh out of 29 Best Hotels of 29 States in India

(February 21, 2017).• 10 Best Luxury Hotels in India by Travellers Guild Awards - Tripoto (March, 2017).

The LThe LThe LThe LThe Lalit Suri Hospitality Group has been awarded:alit Suri Hospitality Group has been awarded:alit Suri Hospitality Group has been awarded:alit Suri Hospitality Group has been awarded:alit Suri Hospitality Group has been awarded:· Most Recognizable Brand of Indian Origin by Planman Media (March 18, 2016)

DrDrDrDrDr. Jyotsna Suri, Chairperson & Managing Director of the Company has been bestowed with the following. Jyotsna Suri, Chairperson & Managing Director of the Company has been bestowed with the following. Jyotsna Suri, Chairperson & Managing Director of the Company has been bestowed with the following. Jyotsna Suri, Chairperson & Managing Director of the Company has been bestowed with the following. Jyotsna Suri, Chairperson & Managing Director of the Company has been bestowed with the followingAwards and recognition during the year:Awards and recognition during the year:Awards and recognition during the year:Awards and recognition during the year:Awards and recognition during the year:• PHD Chamber Outstanding Businesswoman of the Year (2016).• HICSA 2016 Lifetime Achievement Award for Mr Lalit Suri (April 5, 2016).• Appointed as member of Board of Governors of IICA.

Awards for Executive Director:Awards for Executive Director:Awards for Executive Director:Awards for Executive Director:Awards for Executive Director:• 3rd North India Travel Awards 2016 as Face of the Future for Mr Keshav Suri.

VIGIL MECHANISM POLICYVIGIL MECHANISM POLICYVIGIL MECHANISM POLICYVIGIL MECHANISM POLICYVIGIL MECHANISM POLICY

Pursuant to Section 177 of the Companies Act, 2013, the Board of Directors had adopted a vigil mechanismpolicy of the Company. This policy facilitates Directors and employees of the Company to report their genuineconcerns or grievances about unethical behavior, actual or suspected fraud or violation of the Company’s policies.The Company has provided adequate safeguards against victimization of employees and Directors who expresstheir concerns. The vigil mechanism policy of the Company can be accessed on the Company’s website atwww.thelalit.com.

RISK MANARISK MANARISK MANARISK MANARISK MANAGEMENT POLICYGEMENT POLICYGEMENT POLICYGEMENT POLICYGEMENT POLICY

The Company has devised and implemented a mechanism for risk management and has developed a RiskManagement Policy. The Risk Management Policy of the Company continuously evaluates the various riskssurrounding business and seeks to review and upgrade its risk management process. The Company has amechanism to inform the Board members about the risk assessment and mitigation plans and periodical reviewto ensure that the executive management controls the critical risks.


10

POLICY ON DIRECTPOLICY ON DIRECTPOLICY ON DIRECTPOLICY ON DIRECTPOLICY ON DIRECTORS’ APPOINTMENT AND REMUNERAORS’ APPOINTMENT AND REMUNERAORS’ APPOINTMENT AND REMUNERAORS’ APPOINTMENT AND REMUNERAORS’ APPOINTMENT AND REMUNERATIONTIONTIONTIONTION

The Board of Directors, on the recommendation of the Nomination & Remuneration Committee framed a policyfor selection and appointment of Directors, Key Managerial Personnel / Senior Management and their remunerationas required under Section 178 of the Companies Act, 2013. The Nomination & Remuneration Policy of theCompany is annexed herewith and marked as Annexure IIIAnnexure IIIAnnexure IIIAnnexure IIIAnnexure III to this Report.

INTERNAL FINANCIAL CONTROLSINTERNAL FINANCIAL CONTROLSINTERNAL FINANCIAL CONTROLSINTERNAL FINANCIAL CONTROLSINTERNAL FINANCIAL CONTROLS

The Company has adequate Internal Control Systems in place to ensure a smooth functioning of the business. Theprocesses and systems are reviewed constantly and improved upon to meet the changing requirements. TheInternal Auditor periodically reviews the internal control systems, policies and procedures for their adequacy,effectiveness and continuous operation for addressing risk management.

AAAAAUDITUDITUDITUDITUDITORSORSORSORSORS

M/s. S.R. Batliboi & Co., LLP (SBC) and M/s. S.R. Batliboi & Associates, LLP (SBA), (Associated Firms) havecompleted a continuous term of ten years as Statutory Auditors of the Company. In terms of provisions of Section139 (2) of the Companies Act, 2013 and Rule 5 of the Companies (Audit and Auditors) Rules, 2014, the Companycannot appoint or re-appoint an audit firm as auditors for more than two terms of consecutive 5 years i.e. upto amaximum 10 years.

The Board of Directors, on recommendation of Audit Committee, proposes the appointment of M/s. WalkerChandiok & Co LLP, Chartered Accountants, (Firm Registration No.001076N/N500013), who have given theirconsent to act as such as Statutory Auditors of the Company, for a term of five years subject to approval ofshareholders in the ensuing AGM of the Company.

AAAAAUDITUDITUDITUDITUDITORS’ REPORTORS’ REPORTORS’ REPORTORS’ REPORTORS’ REPORT

The observations of the Auditors referred to in the Auditors’ Report are appropriately dealt with in the respectiveNotes to Accounts and hence do not call for further explanations.

SECRETSECRETSECRETSECRETSECRETARIAL AARIAL AARIAL AARIAL AARIAL AUDITUDITUDITUDITUDIT

During the year, M/s RSM & Co., Company Secretaries were appointed by the Board to conduct the SecretarialAudit of the Company for the Financial year 2016-17, as required under Section 204 of the Companies Act,2013. The Secretarial Audit Report for the Financial year 2016-17 forms part of this report as Annexure IV Annexure IV Annexure IV Annexure IV Annexure IV..... TheSecretarial Audit Report does not contain any qualification, reservation or adverse remark.

DISCLDISCLDISCLDISCLDISCLOSURE UNDER SECTION 22 OF THE SEXUOSURE UNDER SECTION 22 OF THE SEXUOSURE UNDER SECTION 22 OF THE SEXUOSURE UNDER SECTION 22 OF THE SEXUOSURE UNDER SECTION 22 OF THE SEXUAL HARASSMENT OF WOMEN AAL HARASSMENT OF WOMEN AAL HARASSMENT OF WOMEN AAL HARASSMENT OF WOMEN AAL HARASSMENT OF WOMEN AT WORKPLAT WORKPLAT WORKPLAT WORKPLAT WORKPLACE (PREVENTIONCE (PREVENTIONCE (PREVENTIONCE (PREVENTIONCE (PREVENTION,,,,,PROHIBITION AND REDRESSAL) APROHIBITION AND REDRESSAL) APROHIBITION AND REDRESSAL) APROHIBITION AND REDRESSAL) APROHIBITION AND REDRESSAL) ACTCTCTCTCT, 2013, 2013, 2013, 2013, 2013

The Company has in place an anti harassment policy in line with the requirements of the Sexual Harassment ofWomen at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal complaint committees are set upat each hotel of the Company to redress any sexual harassment complaints received. All employees (permanentor contractual or trainees) are covered under the policy. No complaint was received from any employee of anyhotel or otherwise during the financial year 2016-17 and hence no complaint is outstanding as on 31.3.2017 forredressal.

EXTRAEXTRAEXTRAEXTRAEXTRACT OF ANNUCT OF ANNUCT OF ANNUCT OF ANNUCT OF ANNUAL RETURNAL RETURNAL RETURNAL RETURNAL RETURN

As required pursuant to Section 92(3) of the Companies Act 2013, and Rules there under, the extract of theAnnual Report in prescribed form MGT- 9 is annexed as Annexure - V Annexure - V Annexure - V Annexure - V Annexure - V to this Report.

11

FIXED DEPOSITSFIXED DEPOSITSFIXED DEPOSITSFIXED DEPOSITSFIXED DEPOSITS

The Company has not accepted deposits from public as envisaged under Sections 73 to 76 of Companies Act,2013 read with Companies (Acceptance of Deposit) Rules, 2014 from the public during the year. There are nounpaid or unclaimed deposits lying with the Company.

LLLLLOOOOOANSANSANSANSANS, GU, GU, GU, GU, GUARANTEES OR INVESTMENTSARANTEES OR INVESTMENTSARANTEES OR INVESTMENTSARANTEES OR INVESTMENTSARANTEES OR INVESTMENTS

Particulars of loans given, investments made, guarantees and securities provided by the Company are given in thenotes forming part of the standalone financial statements 2016-17 of the Company and need no separatemention.

RELARELARELARELARELATED PTED PTED PTED PTED PARTY TRANSAARTY TRANSAARTY TRANSAARTY TRANSAARTY TRANSACTIONSCTIONSCTIONSCTIONSCTIONS

During the financial year all transactions entered by the Company with related parties were in the ordinary courseof business and on arm’s length basis hence, no details have been given pursuant to clause (h) of sub-section (3)of Section 134 of Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules 2014 in part 2 ofform no. AOC-2. Particulars of all related parties transactions entered during the financial year 2016-17, excepttransaction with M/s. Hemkunt Service Station Pvt. Ltd. with whom an amount of Rs. 52.64 lacs (Previous Year Rs.54.39 lacs) were entered for purchase of petrol / diesel etc. and vehicles maintenance charges, are given in note46 to the financial statement.

INFORMAINFORMAINFORMAINFORMAINFORMATION REGARDING PTION REGARDING PTION REGARDING PTION REGARDING PTION REGARDING PARTICULARS OF EMPLARTICULARS OF EMPLARTICULARS OF EMPLARTICULARS OF EMPLARTICULARS OF EMPLOOOOOYEESYEESYEESYEESYEES

Information as per Rules 5(2) & (3) of the Companies (Appointment and Remuneration of Managerial Personnel)Rules, 2014 as amended vide notification dated 30th June, 2016, a statement showing the names and otherparticulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided asAnnexure VI.Annexure VI.Annexure VI.Annexure VI.Annexure VI.

INFORMAINFORMAINFORMAINFORMAINFORMATION REGARDING CONSERVTION REGARDING CONSERVTION REGARDING CONSERVTION REGARDING CONSERVTION REGARDING CONSERVAAAAATION OF ENERGTION OF ENERGTION OF ENERGTION OF ENERGTION OF ENERGYYYYY,TECHNOL,TECHNOL,TECHNOL,TECHNOL,TECHNOLOGOGOGOGOGYYYYY, ABSORPTION AND FOREIGN, ABSORPTION AND FOREIGN, ABSORPTION AND FOREIGN, ABSORPTION AND FOREIGN, ABSORPTION AND FOREIGNEXEXEXEXEXCHANGES EARNINGS AND OUTGOCHANGES EARNINGS AND OUTGOCHANGES EARNINGS AND OUTGOCHANGES EARNINGS AND OUTGOCHANGES EARNINGS AND OUTGO

Information required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies(Accounts) Rules, 2014, pertaining to conservation of energy, technology absorption and foreign exchangesearnings and outgo, as required to be disclosed under the Act, are provided in Annexure VIIAnnexure VIIAnnexure VIIAnnexure VIIAnnexure VII to this Report.

OOOOOTHER DISCLTHER DISCLTHER DISCLTHER DISCLTHER DISCLOSURESOSURESOSURESOSURESOSURES

No disclosure or reporting is required in respect of the following items as there were no transactions or instanceon these items during the Financial year under review:1. Details relating to deposits covered under Chapter V of the Companies Act, 2013 as required pursuant to

the Rule 8(5) of the Companies (Accounts) Rules, 2014.2. Issue of equity shares with differential rights as to dividend, voting or otherwise.3. Issue of Sweat Equity Shares in terms of Section 54 of the Companies Act, 2013 and Stock Option Scheme

to the employees in terms of Section 62 of the Companies Act, 2013 and Rules there under.4. The Company has not provided any financial assistance to any person for the purpose of purchase or

subscription of the shares in the Company in terms of Section 67 of the Companies Act, 2013.5. Neither the Chairperson & Managing Director nor any Executive Directors of the Company received any

remuneration or commission from any of its subsidiaries except sitting fees received by Dr. Jyotsna Suri andMr. Keshav Suri for attending the Board meetings of Apollo Zipper India Limited.

6. No significant or material orders were passed by the Regulators, Courts or Tribunals impacting the goingconcern status and Company’s operations in future.


12

AAAAACKNOWLEDGEMENTCKNOWLEDGEMENTCKNOWLEDGEMENTCKNOWLEDGEMENTCKNOWLEDGEMENT

The Directors acknowledge with gratitude the whole-hearted support and the co-operation extended by all associatedwith the operations Hotels of the Company as well as the Hotels under construction and renovation. They alsoexpress their appreciation to the employees at all levels for their dedication and sincerity. The employee-managementrelations were cordial throughout the year.

Your Directors also place on record their sincere appreciation for the wholehearted support extended by theGovernment and other Statutory Authorities, Company’s Bankers and lenders, Business Associates, Auditors, allthe stakeholders and members of public for their continued support and confidence reposed in the managementof the Company.

For and on behalf of the Board

Sd/-(Dr(Dr(Dr(Dr(Dr. JY. JY. JY. JY. JYOOOOOTSNA SURI)TSNA SURI)TSNA SURI)TSNA SURI)TSNA SURI)

CHAIRPERSON AND MANACHAIRPERSON AND MANACHAIRPERSON AND MANACHAIRPERSON AND MANACHAIRPERSON AND MANAGING DIRECTGING DIRECTGING DIRECTGING DIRECTGING DIRECTORORORORORDINDINDINDINDIN: 00004603: 00004603: 00004603: 00004603: 00004603

Dated: July 21, 2017Place: New Delhi

13

ANNEXUREANNEXUREANNEXUREANNEXUREANNEXURE-I-I-I-I-I

Disclosure of Meetings of the Board and Committees held during the FDisclosure of Meetings of the Board and Committees held during the FDisclosure of Meetings of the Board and Committees held during the FDisclosure of Meetings of the Board and Committees held during the FDisclosure of Meetings of the Board and Committees held during the Financial Yinancial Yinancial Yinancial Yinancial Year 2016-17ear 2016-17ear 2016-17ear 2016-17ear 2016-17

A) Meeting of Board of DirectorsMeeting of Board of DirectorsMeeting of Board of DirectorsMeeting of Board of DirectorsMeeting of Board of Directors:- Number of Meetings : 5 (Five)- Date of Meetings : 20-5-2016, 21-7-2016, 31-8-2016, 21-12-2016 and 22-3-2017

SSSSS.No..No..No..No..No. PPPPParticulars of Directorsarticulars of Directorsarticulars of Directorsarticulars of Directorsarticulars of Directors No. of Meeting(s) attendedNo. of Meeting(s) attendedNo. of Meeting(s) attendedNo. of Meeting(s) attendedNo. of Meeting(s) attended

1. Dr. Jyotsna Suri, Chairperson & Managing Director 5

2. Ms. Divya Suri Singh, Executive Director 5

3. Ms. Deeksha Suri, Executive Director 4

4. Mr. Keshav Suri, Executive Director 5

5. Mr. Ramesh Suri, Director 4

6. Mr. Dharam Vir Batra, Director 2

7. Mr. Lalit Bhasin, Director 5

8. Dr. M.Y. Khan, Director 4

9. Mr. Hanuwant Singh, Director 4

10. Mr. Vinod Khanna, Director 1

11. Mr. Chakor L. Doshi, Director (Upto 20-7-2016) 1

12. Mr. Abhay N. Firodia, Director (Upto 21-5-2016) -

B)B)B)B)B) Committees of Board of Directors :Committees of Board of Directors :Committees of Board of Directors :Committees of Board of Directors :Committees of Board of Directors :i)i)i)i)i) Audit CommitteeAudit CommitteeAudit CommitteeAudit CommitteeAudit Committee- Number of Meetings : 3(Three)- Date of Meetings : 19-5-2016, 18-7-2016 and 20-12-2016

SSSSS.No..No..No..No..No. PPPPParticulars of Membersarticulars of Membersarticulars of Membersarticulars of Membersarticulars of Members No. of Meeting(s) attendedNo. of Meeting(s) attendedNo. of Meeting(s) attendedNo. of Meeting(s) attendedNo. of Meeting(s) attended

1. Dr. M.Y. Khan, Chairman 2

2. Mr. Lalit Bhasin 3

3. Mr. Hanuwant Singh 3

ii)ii)ii)ii)ii) Share TShare TShare TShare TShare Transfer and Stakeholders Relationship Committeeransfer and Stakeholders Relationship Committeeransfer and Stakeholders Relationship Committeeransfer and Stakeholders Relationship Committeeransfer and Stakeholders Relationship Committee- Number of Meetings : 11 (Eleven)- Date of Meetings : 28-4-2016, 19-5-2016, 14-6-2016, 21-7-2016,

23-8-2016, 8-10- 2016, 24-11-2016, 20-12-2016,21-1-2017, 21-2-2017 and 15-3-2017


1. Mr. Hanuwant Singh, Chairman 10

2. Dr. Jyotsna Suri 11

3. Mr. Ramesh Suri 11


14

iii)iii)iii)iii)iii) Management CommitteeManagement CommitteeManagement CommitteeManagement CommitteeManagement Committee- Number of Meetings : 5 (Five)- Date of Meetings : 24-9-2016, 20-10-2016, 11-11-2016, 26-12-2016 and 15-2-2017


1. Dr. Jyotsna Suri, Chairperson 5

2. Ms. Divya Suri Singh 5

3. Ms. Deeksha Suri 5

4. Mr. Keshav Suri 5

iv) Nomination and Remuneration Committeeiv) Nomination and Remuneration Committeeiv) Nomination and Remuneration Committeeiv) Nomination and Remuneration Committeeiv) Nomination and Remuneration Committee- Number of Meetings : 2 (Two)- Date of Meetings : 21-7-2016 and 15-2-2017


1. Mr. Hanuwant Singh, Chairman (up to 31-8-2016) 1

2. Mr. Dharam Vir Batra 2

3. Mr. Vinod Khanna 1

4. Mr. Lalit Bhasin (w.e.f. 31-8-2016) 1

15

ANNEXURE IIANNEXURE IIANNEXURE IIANNEXURE IIANNEXURE II

Annual Report on Corporate Social Responsibility (CSR) activities as required under Section 135 of the CompaniesAnnual Report on Corporate Social Responsibility (CSR) activities as required under Section 135 of the CompaniesAnnual Report on Corporate Social Responsibility (CSR) activities as required under Section 135 of the CompaniesAnnual Report on Corporate Social Responsibility (CSR) activities as required under Section 135 of the CompaniesAnnual Report on Corporate Social Responsibility (CSR) activities as required under Section 135 of the CompaniesAct, 2013 read with Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014, as amended,Act, 2013 read with Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014, as amended,Act, 2013 read with Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014, as amended,Act, 2013 read with Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014, as amended,Act, 2013 read with Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014, as amended,forming part of the Board’s Report for the year ended March 31, 2017:forming part of the Board’s Report for the year ended March 31, 2017:forming part of the Board’s Report for the year ended March 31, 2017:forming part of the Board’s Report for the year ended March 31, 2017:forming part of the Board’s Report for the year ended March 31, 2017:

1.1.1.1.1. A brief outline on the CompanyA brief outline on the CompanyA brief outline on the CompanyA brief outline on the CompanyA brief outline on the Company’s CSR P’s CSR P’s CSR P’s CSR P’s CSR Policyolicyolicyolicyolicy, including overview of projects or programs proposed to be, including overview of projects or programs proposed to be, including overview of projects or programs proposed to be, including overview of projects or programs proposed to be, including overview of projects or programs proposed to beundertaken and a reference to the webundertaken and a reference to the webundertaken and a reference to the webundertaken and a reference to the webundertaken and a reference to the web-link to the CSR policy and projects or programs:-link to the CSR policy and projects or programs:-link to the CSR policy and projects or programs:-link to the CSR policy and projects or programs:-link to the CSR policy and projects or programs:

Bharat Hotels Limited (The L(The L(The L(The L(The Lalit Suri Hospitality Group)alit Suri Hospitality Group)alit Suri Hospitality Group)alit Suri Hospitality Group)alit Suri Hospitality Group) believes in developing destinations not just hotels. It is thepeople and the environment of the destinations that account for the success of our hotels. Therefore, our initiativesinvolve the local population, promote their handicrafts, culture and food, give training and employment to theyouth thereby giving a boost to the economic environment. Accordingly, the Company has not lost sight of itscommitment to play its role as an enlightened corporate citizen and Corporate Social Responsibility hasalways been on the company agenda.

CSR Initiatives of the Company:CSR Initiatives of the Company:CSR Initiatives of the Company:CSR Initiatives of the Company:CSR Initiatives of the Company:

Green Initiatives :Green Initiatives :Green Initiatives :Green Initiatives :Green Initiatives : After the successful green initiative by planting saplings in Bangalore the Company has takenit up at Khajuraho and New Delhi and also organized free air pollution camps at New Delhi.

PPPPProject Disha :roject Disha :roject Disha :roject Disha :roject Disha : An initiative of the Lalit Suri Foundation being implemented under the overall CSR policy of BharatHotels seeks to assist at one level school students and youth from the local population to have access to quality“education leading to employment” and on the other to equip them - to understand the benefit & opportunitiesavailable in today’s economic scenario.

The CSR Policy of Bharat Hotels Ltd. sets out the framework guiding the CSR activities. The CSR Policy also sets outthe rules that need to be adhered to while taking up and implementing CSR activities. The said policy may bereferred at the Company’s website www.thelalit.com.

The CSR Committee is the governing body that will articulate the scope of CSR activities for Bharat Hotels andensure compliance with the CSR Policy. The Company’s CSR activities are largely focused in the areas of education,health, skill development & sustainable livelihoods and financial inclusion, support employee engagement in CSRactivities and other activities as the Company may choose to select in fulfilling its CSR objectives.

2.2.2.2.2. The composition of the CSR Committee:The composition of the CSR Committee:The composition of the CSR Committee:The composition of the CSR Committee:The composition of the CSR Committee:

The CSR Committee comprises of following directors:

- Dr. Jyotsna Suri- Chairperson,- Ms. Divya Suri Singh, Executive Director,- Mr. Lalit Bhasin, Director – w.e.f. 31-08-2016- Mr. Hanuwant Singh, Director- upto 31-8-2016.....

3.3.3.3.3. Average net profit of the Company for last three financial years:Average net profit of the Company for last three financial years:Average net profit of the Company for last three financial years:Average net profit of the Company for last three financial years:Average net profit of the Company for last three financial years:

The average net profit of the Company for the last three financial years calculated as specified in theCompanies Act, 2013 was approximately Rs.204.42 lacs.

4.4.4.4.4. PPPPPrescribed CSR Expenditure (two percent of the amount as in item 3 above)rescribed CSR Expenditure (two percent of the amount as in item 3 above)rescribed CSR Expenditure (two percent of the amount as in item 3 above)rescribed CSR Expenditure (two percent of the amount as in item 3 above)rescribed CSR Expenditure (two percent of the amount as in item 3 above)

The prescribed CSR expenditure requirement for FY 2016-17 was approximately Rs. 4.09 lacs.


16

5.5.5.5.5. Details of CSR spent during the financial year:Details of CSR spent during the financial year:Details of CSR spent during the financial year:Details of CSR spent during the financial year:Details of CSR spent during the financial year:

(a)(a)(a)(a)(a) TTTTTotal amount to be spent for the financial year:otal amount to be spent for the financial year:otal amount to be spent for the financial year:otal amount to be spent for the financial year:otal amount to be spent for the financial year: Total amount spent towards CSR expenditure in the manneras specified in the Companies (Corporate Social Responsibility) Rules, 2014, during F/y. 2016-17 was Rs.33.40 lacs.

(b)(b)(b)(b)(b) Amount unspent, if anyAmount unspent, if anyAmount unspent, if anyAmount unspent, if anyAmount unspent, if any : NA

(c)(c)(c)(c)(c) Manner in which the amount spent during the financial year is detailed below:Manner in which the amount spent during the financial year is detailed below:Manner in which the amount spent during the financial year is detailed below:Manner in which the amount spent during the financial year is detailed below:Manner in which the amount spent during the financial year is detailed below:

(1)(1)(1)(1)(1) (2)(2)(2)(2)(2) (3)(3)(3)(3)(3) (4)(4)(4)(4)(4) (5)(5)(5)(5)(5) (6)(6)(6)(6)(6) (7)(7)(7)(7)(7) (8)(8)(8)(8)(8)

* SEED- Society For Educational Welfare & Economic Development

6.6.6.6.6. In case the company has failed to spend the two percent of the average net profit of the last three financialIn case the company has failed to spend the two percent of the average net profit of the last three financialIn case the company has failed to spend the two percent of the average net profit of the last three financialIn case the company has failed to spend the two percent of the average net profit of the last three financialIn case the company has failed to spend the two percent of the average net profit of the last three financialyears or any part thereofyears or any part thereofyears or any part thereofyears or any part thereofyears or any part thereof, the company shall provide the reasons for not spending the amount in the, the company shall provide the reasons for not spending the amount in the, the company shall provide the reasons for not spending the amount in the, the company shall provide the reasons for not spending the amount in the, the company shall provide the reasons for not spending the amount in theBoard report: Board report: Board report: Board report: Board report: Not Applicable

7.7.7.7.7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR PA responsibility statement of the CSR Committee that the implementation and monitoring of CSR PA responsibility statement of the CSR Committee that the implementation and monitoring of CSR PA responsibility statement of the CSR Committee that the implementation and monitoring of CSR PA responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policyolicyolicyolicyolicy, is, is, is, is, isin compliance with CSR objectives and Pin compliance with CSR objectives and Pin compliance with CSR objectives and Pin compliance with CSR objectives and Pin compliance with CSR objectives and Policy of the Company:olicy of the Company:olicy of the Company:olicy of the Company:olicy of the Company:

The CSR Committee hereby confirms that the implementation and monitoring of CSR activities is in compliancewith CSR objectives and the CSR Policy of the Company.

Sd/-(Dr(Dr(Dr(Dr(Dr. Jyotsna Suri). Jyotsna Suri). Jyotsna Suri). Jyotsna Suri). Jyotsna Suri)

Place: New Delhi Chairperson & Managing DirectorChairperson & Managing DirectorChairperson & Managing DirectorChairperson & Managing DirectorChairperson & Managing DirectorDate: 21 July, 2017 Chairperson of CSR CommitteeChairperson of CSR CommitteeChairperson of CSR CommitteeChairperson of CSR CommitteeChairperson of CSR Committee

CSR PCSR PCSR PCSR PCSR Projectrojectrojectrojectrojector activityor activityor activityor activityor activityidentifiedidentifiedidentifiedidentifiedidentified

Sector in whichSector in whichSector in whichSector in whichSector in whichthe project isthe project isthe project isthe project isthe project iscoveredcoveredcoveredcoveredcovered

PPPPProject orroject orroject orroject orroject orprogramsprogramsprogramsprogramsprograms(1) L(1) L(1) L(1) L(1) Local area orocal area orocal area orocal area orocal area orotherotherotherotherother(2) Specify the(2) Specify the(2) Specify the(2) Specify the(2) Specify thestate and districtstate and districtstate and districtstate and districtstate and districtwhere projectswhere projectswhere projectswhere projectswhere projectsor programsor programsor programsor programsor programswas undertakenwas undertakenwas undertakenwas undertakenwas undertaken

Amount outlayAmount outlayAmount outlayAmount outlayAmount outlay( b u d g e t )( b u d g e t )( b u d g e t )( b u d g e t )( b u d g e t )project orproject orproject orproject orproject orprograms wiseprograms wiseprograms wiseprograms wiseprograms wise

(In Rs.) (In Rs.) (In Rs.) (In Rs.) (In Rs.)

Amount spentAmount spentAmount spentAmount spentAmount spenton the projectson the projectson the projectson the projectson the projectsor programsor programsor programsor programsor programssubsubsubsubsub-heads-heads-heads-heads-heads(1) Direct(1) Direct(1) Direct(1) Direct(1) Directexpenditure onexpenditure onexpenditure onexpenditure onexpenditure onprojects orprojects orprojects orprojects orprojects orprogramsprogramsprogramsprogramsprograms(2) Overheads(2) Overheads(2) Overheads(2) Overheads(2) Overheads(In Rs.)(In Rs.)(In Rs.)(In Rs.)(In Rs.)

C u m u l a t i v eC u m u l a t i v eC u m u l a t i v eC u m u l a t i v eC u m u l a t i v eexpenditure upexpenditure upexpenditure upexpenditure upexpenditure upto the reportingto the reportingto the reportingto the reportingto the reportingperiodperiodperiodperiodperiod

(In Rs.)(In Rs.)(In Rs.)(In Rs.)(In Rs.)

Amount spentAmount spentAmount spentAmount spentAmount spentDirect or throughDirect or throughDirect or throughDirect or throughDirect or throughimp lemen t i ngimp lemen t i ngimp lemen t i ngimp lemen t i ngimp lemen t i ngagencyagencyagencyagencyagency

PPPPProject Disharoject Disharoject Disharoject Disharoject Disha(An initiative of(An initiative of(An initiative of(An initiative of(An initiative ofthe Lthe Lthe Lthe Lthe Lal i t Surial i t Surial i t Surial i t Surial i t SuriFFFFF o u n d a t i o no u n d a t i o no u n d a t i o no u n d a t i o no u n d a t i o nb e i n gb e i n gb e i n gb e i n gb e i n gimp lemen tedimp lemen tedimp lemen tedimp lemen tedimp lemen tedunder the CSRunder the CSRunder the CSRunder the CSRunder the CSRpolicy ofpolicy ofpolicy ofpolicy ofpolicy ofBharat HotelsBharat HotelsBharat HotelsBharat HotelsBharat HotelsLtd.)Ltd.)Ltd.)Ltd.)Ltd.)

PPPPPromotion ofromotion ofromotion ofromotion ofromotion ofEducation andEducation andEducation andEducation andEducation andSkills DevelopSkills DevelopSkills DevelopSkills DevelopSkills Develop-----mentmentmentmentment

- Srinagar- Srinagar- Srinagar- Srinagar- Srinagar(J&K)(J&K)(J&K)(J&K)(J&K)

-Khajuraho-Khajuraho-Khajuraho-Khajuraho-Khajuraho(M.P(M.P(M.P(M.P(M.P.).).).).)

- Bekal- Bekal- Bekal- Bekal- Bekal(K(K(K(K(Kerala)erala)erala)erala)erala)

- Jaipur- Jaipur- Jaipur- Jaipur- Jaipur(Raj.)(Raj.)(Raj.)(Raj.)(Raj.)

- Manpower- Manpower- Manpower- Manpower- ManpowerCost:Cost:Cost:Cost:Cost:21,00,00021,00,00021,00,00021,00,00021,00,000

- P- P- P- P- ProjectrojectrojectrojectrojectExpenses:Expenses:Expenses:Expenses:Expenses:12,42,09612,42,09612,42,09612,42,09612,42,096

-P-P-P-P-ProjectrojectrojectrojectrojectManagementManagementManagementManagementManagementExpenses:Expenses:Expenses:Expenses:Expenses:On actualOn actualOn actualOn actualOn actualbasisbasisbasisbasisbasis

20,92,57220,92,57220,92,57220,92,57220,92,572

10,80,41010,80,41010,80,41010,80,41010,80,410

1,67,1051,67,1051,67,1051,67,1051,67,105

33,40,08733,40,08733,40,08733,40,08733,40,087

20,92,57220,92,57220,92,57220,92,57220,92,572

31,72,98231,72,98231,72,98231,72,98231,72,982

33,40,08733,40,08733,40,08733,40,08733,40,087

33,40,08733,40,08733,40,08733,40,08733,40,087

SEED*SEED*SEED*SEED*SEED*

SEEDSEEDSEEDSEEDSEED

SEEDSEEDSEEDSEEDSEED

SSSSS.....No.No.No.No.No.

11111

TTTTTotalotalotalotalotal

17

ANNEXUREANNEXUREANNEXUREANNEXUREANNEXURE- III- III- III- III- III

POLICY ON DIRECTPOLICY ON DIRECTPOLICY ON DIRECTPOLICY ON DIRECTPOLICY ON DIRECTOROROROROR’S APPOINTMENT AND REMUNERA’S APPOINTMENT AND REMUNERA’S APPOINTMENT AND REMUNERA’S APPOINTMENT AND REMUNERA’S APPOINTMENT AND REMUNERATIONTIONTIONTIONTION

Introduction:Introduction:Introduction:Introduction:Introduction:In terms of provisions of Section 178 of the Companies Act, 2013 read with Rule no. 6 of (Meeting of Board andits Powers) Rule, 2014, the Nomination and Remuneration Committee of the Board entrusted with the followingpowers:

i) To identify persons who are qualified to become directors and who may be appointed to senior managementin accordance with the criteria laid down and recommend to the Board their appointment and removal;

ii) To carry out the evaluation of every director’s performance;

iii) To formulate the criteria for determining qualification, positive attributes and independence of directors.

iv) To recommend remuneration of Executive Directors and any increase therein from time to time, withinthe limit approved by the members of the Company.

v) To recommend remuneration to Non Executive Directors in the form of sitting fees for attending meetings ofBoard and its Committees, remuneration for other services, commission on profits.

vi) To recommend to the Board a policy, relating to the remuneration for the directors, key Managerial personneland other employees.

vii) To engage the services of any consulting/ professional or other agency for the purpose of recommendingto the Committee on compensation structure/ policy.

viii) To exercise such other powers as may be delegated to it by the Board from time to time

PPPPPolicy Statement :olicy Statement :olicy Statement :olicy Statement :olicy Statement :This Policy shall be read in line with the requirement of Section 178 of the Companies Act, 2013 read with Ruleno. 6 of (Meeting of Board and its Powers) Rule, 2014 and such other rules, regulations, circulars andnotifications as may be applicable and as amended from time to time and have the following aims :

i) To identify persons who are qualified to become directors, Key Managerial Personnel (KMP) / SeniorManagement Personnel and criteria for determining qualification, positive attributes and independence ofdirectors.

ii) To recommend remuneration of Executive Directors, Non- Executive, Independent Director , Key ManagerialPersonnel (KMP) / Senior Management Personnel and any increase therein.

Applicability:Applicability:Applicability:Applicability:Applicability:The Nomination and Remuneration Policy (the Policy) is applicable to all Directors, Key Managerial Personnel(KMP) / Senior Management Personnel.

Appointment criteria and qualifications for appointment of Director and KAppointment criteria and qualifications for appointment of Director and KAppointment criteria and qualifications for appointment of Director and KAppointment criteria and qualifications for appointment of Director and KAppointment criteria and qualifications for appointment of Director and Key Managerial Pey Managerial Pey Managerial Pey Managerial Pey Managerial Personnel:ersonnel:ersonnel:ersonnel:ersonnel:The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person forappointment as Director, Key Managerial Personnel and recommend to the Board his / her appointment.

A person should possess adequate qualification, expertise and experience for the position he / she is consideredfor appointment. The Committee has discretion to decide whether qualification, expertise and experience possessedby a person is sufficient / satisfactory for the concerned position.


18

The Company shall not appoint any person as Managing Director / Whole-time Director who has attained theage of seventy years. Provided that the term of the person holding this position may be extended beyond the ageof seventy years with the approval of shareholders by passing a special resolution based on the justification forextension of appointment beyond seventy years.

TTTTTerm / Term / Term / Term / Term / Tenure :enure :enure :enure :enure :

Managing Director/WholeManaging Director/WholeManaging Director/WholeManaging Director/WholeManaging Director/Whole-time Director-time Director-time Director-time Director-time Director:The Company shall appoint or re-appoint any person as its Executive Chairman, Managing Director or ExecutiveDirector for a term not exceeding such term as may be specified under the Act. No re-appointment shall be madeearlier than one year before the expiry of term, and which shall be done with the approval of the shareholders ofthe Company.

Independent Director:Independent Director:Independent Director:Independent Director:Independent Director:An Independent Director shall hold office for a term in accordance with the Companies Act, 2013 on the Boardof the Company and will be eligible for reappointment on passing of a special resolution by the Company anddisclosure of such appointment in the Board’s report. No Independent Director shall hold office for more than twoconsecutive terms, but such Independent Director shall be eligible for appointment after expiry of three years ofceasing to become an Independent Director. Provided that an Independent Director shall not, during the saidperiod of three years, be appointed in or be associated with the Company in any other capacity, either directly orindirectly.

Remuneration to WholeRemuneration to WholeRemuneration to WholeRemuneration to WholeRemuneration to Whole-time / Executive / Managing Director and K-time / Executive / Managing Director and K-time / Executive / Managing Director and K-time / Executive / Managing Director and K-time / Executive / Managing Director and Key Managerial Pey Managerial Pey Managerial Pey Managerial Pey Managerial Personnel:ersonnel:ersonnel:ersonnel:ersonnel:Managing Director / Whole-time Director shall be eligible for a monthly remuneration as may be approved bythe Board on the recommendation of the Nomination & Remuneration Committee. The breakup of the pay scaleand quantum of perquisites including, employer’s contribution to provident fund, medical expenses, LTA, clubfees etc. shall be decided and approved by the Board and approved by the shareholders and Central Government,if required and the same shall be in accordance with the provisions of the Companies Act, 2013 and Rules madethereunder.

If, in any financial year, the Company has no profits or its profits are inadequate, the Company shall payremuneration to its Managing Director / Whole-time Director in accordance with the provisions of Schedule V ofthe Act and if it is not able to comply with such provisions, with the previous approval of the Central Government.

Remuneration to Non- Executive / Independent Director:Remuneration to Non- Executive / Independent Director:Remuneration to Non- Executive / Independent Director:Remuneration to Non- Executive / Independent Director:Remuneration to Non- Executive / Independent Director:a) Remuneration / Commission:Remuneration / Commission:Remuneration / Commission:Remuneration / Commission:Remuneration / Commission: The remuneration / commission shall be fixed as per as per the limits mentioned

in the Act, subject to approval from the shareholders as applicable.

b) Sitting FSitting FSitting FSitting FSitting Feeseeseeseesees: The Non- Executive / Independent Director shall receive remuneration by way of fees forattending meetings of Board or Committee thereof. Provided that the amount of such fees shall not exceedsuch amount as may be prescribed by the Central Government from time to time.

Remuneration to KRemuneration to KRemuneration to KRemuneration to KRemuneration to Key Managerial Pey Managerial Pey Managerial Pey Managerial Pey Managerial Personnel (other than Wholeersonnel (other than Wholeersonnel (other than Wholeersonnel (other than Wholeersonnel (other than Whole-time / Executive / Managing Director)-time / Executive / Managing Director)-time / Executive / Managing Director)-time / Executive / Managing Director)-time / Executive / Managing Director)The Chairperson & Managing Director on the recommendation of Nomination and Remuneration Committeeshall approve the remuneration of the Key Managerial Personnel.

Amendments and Updations:Amendments and Updations:Amendments and Updations:Amendments and Updations:Amendments and Updations:The Nomination and Remuneration Committee periodically shall review this Policy and may recommendamendments to this Policy from time to time as it deems appropriate, which shall be in accordance with theprovisions of the Companies Act, 2013. In case of any modifications, amendments or inconsistencies with the Act,the provisions of the Act and the rules made thereunder would prevail over the Policy.

19

SECRETSECRETSECRETSECRETSECRETARIAL AARIAL AARIAL AARIAL AARIAL AUDIT REPORTUDIT REPORTUDIT REPORTUDIT REPORTUDIT REPORTFOR THE FINANCIAL YEAR ENDED ON 31FOR THE FINANCIAL YEAR ENDED ON 31FOR THE FINANCIAL YEAR ENDED ON 31FOR THE FINANCIAL YEAR ENDED ON 31FOR THE FINANCIAL YEAR ENDED ON 31STSTSTSTST MARCH MARCH MARCH MARCH MARCH, 2017, 2017, 2017, 2017, 2017

FORM NOFORM NOFORM NOFORM NOFORM NO. MR. MR. MR. MR. MR-3-3-3-3-3[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014

The MembersBharat Hotels Limited(CIN: U74899DL1981PLC011274)Barakhamba Road,NEW DELHI -110 001

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherenceto good corporate practices by BHARABHARABHARABHARABHARAT HOT HOT HOT HOT HOTELS LIMITEDTELS LIMITEDTELS LIMITEDTELS LIMITEDTELS LIMITED (hereinafter called “the Company”). Secretarial Auditwas conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutorycompliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and returns filed and otherrecords maintained by the Company and also the information provided by the company, its officers, agents andauthorised representatives during the conduct of secretarial audit, we hereby report that in our opinion, theCompany has, during the audit period covering the financial year ended on March 31, 2017 complied with thestatutory provisions listed hereunder and also that the Company has proper Board - processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by theCompany for the financial year ended on 31st March, 2017 according to the provisions of:

1. The Companies Act, 2013 (“the Act”) and the rules made thereunder;

2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;

3. The Depositories Act, 1996 and the Regulations and Bye - laws framed thereunder;

4. Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent ofForeign Direct Investment, Overseas Direct Investment, and External Commercial Borrowings;

5. The Securities of the Company are not listed with any stock exchange , therefore Regulations and Guidelinesprescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act) are not applicable.

WWWWWe further report that:e further report that:e further report that:e further report that:e further report that:6. We have relied on the representation made by the Company and its officers for systems and mechanism

formed by the Company for compliances under the other applicable Act, Laws and Regulations to the

D-63, JFF COMPLEX,JHANDEWALAN, NEW DELHI 110 055

PHONE 011 236 238 13, 9911919008Email. [email protected]

R S M & Co.COMPANY SECRETARIES

ANNEXUREANNEXUREANNEXUREANNEXUREANNEXURE-IV-IV-IV-IV-IV


20

Company. Therefore, we are opinion that the management has adequate systems and processes in thecompany commensurate with the size and operations of the company to monitor and ensure compliancewith applicable laws, rules, regulations and guidelines.

The laws, as informed and certified by the management of the Company which are specifically applicableto the Company based on their sector/industry are:i) Food Safety & Standard Act 2006ii) Food Safety and Standard Rules 2011

Beside above, the Company has complied with the applicable central and state laws, including those relatedto Environment, Legal Metrology Act laws pertaining to the hotels of the Company. The Company has alsoobtained the necessary license/registrations/approvals from respective authorities which are mandatory torun activities related to hotel(s)

7. We further report the compliance by the Company of applicable financial laws, like direct and indirect taxlaws, has not been reviewed in this Audit since the same have been subject to review by Statutory Auditorsand other designated Professionals.

We have also examined the compliance with the applicable clauses of the following:-(i) Secretarial Standards issued by the Institute of Company Secretaries of India

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,Guidelines, Standards etc. mentioned above.

8. WWWWWe further report that:-e further report that:-e further report that:-e further report that:-e further report that:-The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors thattook place during the period under review were carried out in compliance with the provisions of the Act;

Adequate notice is given to all directors to schedule the Board and Committee Meetings, agenda anddetailed notes on agenda were sent at least seven days in advance, and a system exists for seeking andobtaining further information and clarification on the agenda items before the meeting and for meaningfulparticipation at the meeting; and

All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in theminutes of meetings of the Board of Directors or committees of the Company, as the case may be.

9. We further report that during the audit period, there were no specific events / actions having a major bearingon the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards,etc.

10. This report is to be read with our letter of even date which is annexed as “AnnexureAnnexureAnnexureAnnexureAnnexure-A-A-A-A-A””””” and forms an integralpart of this report.

FFFFFor RSM & COor RSM & COor RSM & COor RSM & COor RSM & CO.....Company secretariesCompany secretariesCompany secretariesCompany secretariesCompany secretaries

Sd/-Sd/-Sd/-Sd/-Sd/-RARARARARAVI SHARMAVI SHARMAVI SHARMAVI SHARMAVI SHARMAPPPPPARTNERARTNERARTNERARTNERARTNERFCS NOFCS NOFCS NOFCS NOFCS NO. 4468, C. P. 4468, C. P. 4468, C. P. 4468, C. P. 4468, C. P. NO. NO. NO. NO. NO. 3666. 3666. 3666. 3666. 3666Place : New DelhiDate: July 21, 2017

21

ANNEXURE AANNEXURE AANNEXURE AANNEXURE AANNEXURE AThe MembersBharat Hotels Limited(CIN: U74899DL1981PLC011274)Barakhamba Road,NEW DELHI -110 001

Our Report of even date is to be read along with this letter.

1. Maintenance of Secretarial records is the responsibility of the Management of the Company. Our responsibilityis to express an opinion on the Secretarial Records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assuranceabout the correctness of the contents of the Secretarial records. The verifications were done on the test basisto ensure that correct facts are reflected in secretarial records. We believe that the processes and practices,we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial and books of accounts of the Company.

4. Wherever required, we have obtained the Management representation about the compliances of Laws,Rules and Regulations and happening of events etc.

5. The compliance of the provisions of corporate and other applicable Laws, rule and regulations, standards isthe responsibility of the Management. Our examination was limited to the verification of procedures on testbasis.

6. Our Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of theefficiency or effectiveness with which the Management has conducted the affairs of the Company

FFFFFor RSM & COor RSM & COor RSM & COor RSM & COor RSM & CO.....Company secretariesCompany secretariesCompany secretariesCompany secretariesCompany secretaries

Sd/-Sd/-Sd/-Sd/-Sd/-RARARARARAVI SHARMAVI SHARMAVI SHARMAVI SHARMAVI SHARMAPPPPPARTNERARTNERARTNERARTNERARTNERFCS NOFCS NOFCS NOFCS NOFCS NO. 4468 , C. P. 4468 , C. P. 4468 , C. P. 4468 , C. P. 4468 , C. P. NO. NO. NO. NO. NO. 3666. 3666. 3666. 3666. 3666

Place : New DelhiDate: July 21, 2017

D-63, JFF COMPLEX,JHANDEWALAN, NEW DELHI 110 055

PHONE 011 236 238 13, 9911919008Email. [email protected]

R S M & Co.COMPANY SECRETARIES


22

ANNEXUREANNEXUREANNEXUREANNEXUREANNEXURE- V- V- V- V- VFFFFForm No. MGorm No. MGorm No. MGorm No. MGorm No. MGTTTTT-9-9-9-9-9

EXTRAEXTRAEXTRAEXTRAEXTRACT OF ANNUCT OF ANNUCT OF ANNUCT OF ANNUCT OF ANNUAL RETURNAL RETURNAL RETURNAL RETURNAL RETURNAs on the FAs on the FAs on the FAs on the FAs on the Financial year ended on 31.03.2017inancial year ended on 31.03.2017inancial year ended on 31.03.2017inancial year ended on 31.03.2017inancial year ended on 31.03.2017

[Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management andAdministration) Rules, 2014]

I. REGISTRAI. REGISTRAI. REGISTRAI. REGISTRAI. REGISTRATION AND OTION AND OTION AND OTION AND OTION AND OTHER DETTHER DETTHER DETTHER DETTHER DETAILSAILSAILSAILSAILS:

i) CIN : U74899DL1981PLC011274

ii) Registration Date : 22/01/1981

iii) Name of the Company : Bharat Hotels Limited

iv) Category / Sub-Category of the Company : Public Company

v) Address of the Registered office : Barakhamba Lane, New Delhi-110001and contact details Tel.: 011-44447777, Fax: 011-44441234,

Email Address: [email protected]

vi) Whether listed company (Yes / No) : Unlisted

vii) Name, Address and Contact details of : M/S Karvy Computershare Private LimitedRegistrar and Transfer Agent, if any 305 New Delhi House, 27,

Barakhamba Road, New Delhi-110001

II.II.II.II.II. PRINCIPPRINCIPPRINCIPPRINCIPPRINCIPAL BUSINESS AAL BUSINESS AAL BUSINESS AAL BUSINESS AAL BUSINESS ACTIVITIES OF THE COMPCTIVITIES OF THE COMPCTIVITIES OF THE COMPCTIVITIES OF THE COMPCTIVITIES OF THE COMPANYANYANYANYANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:

Sl.Sl.Sl.Sl.Sl. Name and Description of main products / servicesName and Description of main products / servicesName and Description of main products / servicesName and Description of main products / servicesName and Description of main products / services NIC Code of theNIC Code of theNIC Code of theNIC Code of theNIC Code of the % to total turnover% to total turnover% to total turnover% to total turnover% to total turnoverNo.No.No.No.No. PPPPProduct/ serviceroduct/ serviceroduct/ serviceroduct/ serviceroduct/ service of the companyof the companyof the companyof the companyof the company

1. Hotel & Restaurant Operations 55101, 56 * 98.57 %

(There is no other activities contributing 10 % or more of the total turnover of the Company)* NIC Code* NIC Code* NIC Code* NIC Code* NIC Code-2008-2008-2008-2008-2008

III.III.III.III.III. PPPPPARTICULARS OF HOLDINGARTICULARS OF HOLDINGARTICULARS OF HOLDINGARTICULARS OF HOLDINGARTICULARS OF HOLDING, SUBSIDIAR, SUBSIDIAR, SUBSIDIAR, SUBSIDIAR, SUBSIDIARY AND ASSOCIAY AND ASSOCIAY AND ASSOCIAY AND ASSOCIAY AND ASSOCIATE COMPTE COMPTE COMPTE COMPTE COMPANIESANIESANIESANIESANIES

Sl.Sl.Sl.Sl.Sl. Name and Address of theName and Address of theName and Address of theName and Address of theName and Address of the CIN/GLNCIN/GLNCIN/GLNCIN/GLNCIN/GLN Holding/Holding/Holding/Holding/Holding/ % of% of% of% of% of ApplicableApplicableApplicableApplicableApplicableNo.No.No.No.No. Company Company Company Company Company Subsidiary/Subsidiary/Subsidiary/Subsidiary/Subsidiary/ sharessharessharessharesshares SectionSectionSectionSectionSection

AssociateAssociateAssociateAssociateAssociate heldheldheldheldheld

1.1.1.1.1. Jyoti Limited U55101JK1964PLC000286 Subsidiary 99.99 Section 2(87)(ii)Gulab Bhawan, Gupkar Road,Srinagar (J&K)

2.2.2.2.2. Apollo Zipper India Limited U36999WB2004PLC097656 Subsidiary 90.00 Section 2(87)(ii)18, Hemanta Basu Sarani,Kolkata (West Bengal)

3.3.3.3.3. Prime Cellular Limited U74899DL1995PLC066703 Subsidiary 99.60 Section 2(87)(ii)401, World Trade Tower,Barakhamba Lane,New Delhi-110001

4.4.4.4.4. Prima Buildwell Private Limited U70109DL2006PTC149732 Subsidiary 99.99 Section 2(87)(ii)25, Ground Floor, World TradeTower, Barakhamba Lane,New Delhi-110001

23

IVIVIVIVIV..... SHARE HOLDING PSHARE HOLDING PSHARE HOLDING PSHARE HOLDING PSHARE HOLDING PAAAAATTERN (Equity Share Capital Breakup as percentage of TTTERN (Equity Share Capital Breakup as percentage of TTTERN (Equity Share Capital Breakup as percentage of TTTERN (Equity Share Capital Breakup as percentage of TTTERN (Equity Share Capital Breakup as percentage of Total Equity)otal Equity)otal Equity)otal Equity)otal Equity)

i)i)i)i)i) CategoryCategoryCategoryCategoryCategory-wise Share Holding-wise Share Holding-wise Share Holding-wise Share Holding-wise Share Holding

Category ofCategory ofCategory ofCategory ofCategory of No. of Shares held at the beginning of the yearNo. of Shares held at the beginning of the yearNo. of Shares held at the beginning of the yearNo. of Shares held at the beginning of the yearNo. of Shares held at the beginning of the year No. of Shares held at the end of the yearNo. of Shares held at the end of the yearNo. of Shares held at the end of the yearNo. of Shares held at the end of the yearNo. of Shares held at the end of the year % Change% Change% Change% Change% ChangeShareholdersShareholdersShareholdersShareholdersShareholders ( 01-04-2016)( 01-04-2016)( 01-04-2016)( 01-04-2016)( 01-04-2016) ( 31-03-2017) ( 31-03-2017) ( 31-03-2017) ( 31-03-2017) ( 31-03-2017) during the during the during the during the during the

yearyearyearyearyear

DematDematDematDematDemat PhysicalPhysicalPhysicalPhysicalPhysical TTTTTotalotalotalotalotal % of% of% of% of% of DematDematDematDematDemat PhysicalPhysicalPhysicalPhysicalPhysical TTTTTotalotalotalotalotal % of% of% of% of% ofTTTTTotalotalotalotalotal TTTTTotalotalotalotalotal

SharesSharesSharesSharesShares SharesSharesSharesSharesShares

AAAAA. P. P. P. P. Promotersromotersromotersromotersromoters

(1) Indian(1) Indian(1) Indian(1) Indian(1) Indian

(a) Individual/ HUF 1999998 10779882 12779880 16.82% 1999998 10779882 12779880 16.82% —

(b) Central Govt. — — — — — — — — —

(c) State Govt(s) — — — — — — — — —

(d) Bodies Corp. 3274077 37590861 40864938 53.77% 3274077 37590861 40864938 53.77% —

(e) Banks / FI — — — — — — — — —

(f) Any Other — — — — — — — —

Sub-Total (A) (1) 52740755274075527407552740755274075 4837074348370743483707434837074348370743 5364481853644818536448185364481853644818 70.59%70.59%70.59%70.59%70.59% 52740755274075527407552740755274075 4837074348370743483707434837074348370743 5364481853644818536448185364481853644818 70.59%70.59%70.59%70.59%70.59% —

(2) F(2) F(2) F(2) F(2) Foreignoreignoreignoreignoreign

(a) NRIs - Individuals — — — — — — — — —

(b) Other- Individuals — — — — — — — — —

(c) Bodies Corp. — — — — — — — — —

(d) Banks / FI — — — — — — — — —

(e) Any Other — — — — — — — — —

SubSubSubSubSub-----TTTTTotal (A) (2) :-otal (A) (2) :-otal (A) (2) :-otal (A) (2) :-otal (A) (2) :- — — — — — — — — —

TTTTTotal Shareholding ofotal Shareholding ofotal Shareholding ofotal Shareholding ofotal Shareholding of 52740755274075527407552740755274075 4837074348370743483707434837074348370743 5364481853644818536448185364481853644818 70.59%70.59%70.59%70.59%70.59% 52740755274075527407552740755274075 4837074348370743483707434837074348370743 5364481853644818536448185364481853644818 70.59%70.59%70.59%70.59%70.59% —PPPPPromoter A = (A) (1) +romoter A = (A) (1) +romoter A = (A) (1) +romoter A = (A) (1) +romoter A = (A) (1) +(A) (2)(A) (2)(A) (2)(A) (2)(A) (2)

BBBBB. Public Shareholding. Public Shareholding. Public Shareholding. Public Shareholding. Public Shareholding

1. Institutions1. Institutions1. Institutions1. Institutions1. Institutions

(a) Mutual Funds 8298 699 8997 0.01% 8298 699 8997 0.01% —

(b) Banks / FI 99 1548 1647 0.00% 99 1548 1647 0.00% —

(c) Central Govt. — — — — — — — — —

(d) State Govt(s) — — — — — — — — —

(e) Venture Capital Funds — — — — — — — — —

(f) Insurance Companies — — — — — — — — —

(g) FIIs — — — — — — — — —

(h) Foreign VentureCapital Funds — — — — — — — — —

(i) Others (specify) — — — — — — — — —

SubSubSubSubSub-total (B) (1) :--total (B) (1) :--total (B) (1) :--total (B) (1) :--total (B) (1) :- 83978397839783978397 22472247224722472247 1064410644106441064410644 0.01%0.01%0.01%0.01%0.01% 83978397839783978397 22472247224722472247 1064410644106441064410644 0.01%0.01%0.01%0.01%0.01% —

2. Non-Institutions2. Non-Institutions2. Non-Institutions2. Non-Institutions2. Non-Institutions

(a) Bodies Corp

(i) Indian 109412 50121 159533 0.21% 99512 50419 149931 0.20% -0.01%

(ii) Overseas 66 9591200 9591266 12.63% 66 9591200 9591266 12.63% —


24

(b) Individuals

(i)Individual shareholdersholding nominal sharecapital upto Rs. 1 lakh 1151078 603401 1754479 2.31% 1165547 595903 1761450 2.31% —

(ii)Individual shareholdersholding nominal sharecapital exceed ofRs. 1 lakh 182434 — 182434 0.24% 195932 — 195932 0.26% +0.02%

(c) Others (specify)

NRIs:

(i) Holding nominalshare capital uptoRs. 1 lakh 53217 133696 186914 0.25% 60350 133697 194047 0.25% —

(ii) Holding nominalshare capital exceedof Rs. 1 lakh 10417998 39064 10457062 13.76% 10399998 39064 10439062 13.74% -0.02%

Foreign Nationals 3999 — 3999 0.01% 3999 — 3999 0.01% —

Trust (Indian) 50 — 50 0.00% 50 — 50 0.00% —

SubSubSubSubSub-total (B) (2)-total (B) (2)-total (B) (2)-total (B) (2)-total (B) (2) :- 1191825411918254119182541191825411918254 1041748210417482104174821041748210417482 2233573722335737223357372233573722335737 29.40%29.40%29.40%29.40%29.40% 1192545411925454119254541192545411925454 1041028310410283104102831041028310410283 2233573722335737223357372233573722335737 29.40%29.40%29.40%29.40%29.40% —————

TTTTTotal Publicotal Publicotal Publicotal Publicotal PublicShareholding (B) =Shareholding (B) =Shareholding (B) =Shareholding (B) =Shareholding (B) =(B) (1) + (B) (2)(B) (1) + (B) (2)(B) (1) + (B) (2)(B) (1) + (B) (2)(B) (1) + (B) (2) 11926651 10419729 22346381 29.41% 11933851 10412530 22346381 29.41% —

Grand TGrand TGrand TGrand TGrand Total (A+B)otal (A+B)otal (A+B)otal (A+B)otal (A+B) 1720072617200726172007261720072617200726 5879047258790472587904725879047258790472 7599119975991199759911997599119975991199 100.0%100.0%100.0%100.0%100.0% 1720792617207926172079261720792617207926 5878327358783273587832735878327358783273 7599119975991199759911997599119975991199 100.00%100.00%100.00%100.00%100.00% —

ii Shareholding of Pii Shareholding of Pii Shareholding of Pii Shareholding of Pii Shareholding of Promoterromoterromoterromoterromoter-----

SSSSS..... ShareholderShareholderShareholderShareholderShareholder’s Name ’s Name ’s Name ’s Name ’s Name Shareholding at the beginning of the yearShareholding at the beginning of the yearShareholding at the beginning of the yearShareholding at the beginning of the yearShareholding at the beginning of the year Share holding at the end of the yearShare holding at the end of the yearShare holding at the end of the yearShare holding at the end of the yearShare holding at the end of the year % change% change% change% change% changeNo.No.No.No.No. 01-04-2016)01-04-2016)01-04-2016)01-04-2016)01-04-2016) (31-03-2017)(31-03-2017)(31-03-2017)(31-03-2017)(31-03-2017) in sharein sharein sharein sharein share

holdingholdingholdingholdingholdingNo. ofNo. ofNo. ofNo. ofNo. of % of total% of total% of total% of total% of total % of% of% of% of% of No. ofNo. ofNo. ofNo. ofNo. of % of total% of total% of total% of total% of total % of% of% of% of% of duringduringduringduringduringSharesSharesSharesSharesShares SharesSharesSharesSharesShares SharesSharesSharesSharesShares SharesSharesSharesSharesShares SharesSharesSharesSharesShares SharesSharesSharesSharesShares the year the year the year the year the year

of theof theof theof theof the Pledged/Pledged/Pledged/Pledged/Pledged/ of theof theof theof theof the PledgedPledgedPledgedPledgedPledgedcompanycompanycompanycompanycompany encumberedencumberedencumberedencumberedencumbered companycompanycompanycompanycompany encumberedencumberedencumberedencumberedencumbered

to totalto totalto totalto totalto total to totalto totalto totalto totalto totalsharessharessharessharesshares sharessharessharessharesshares

1 Deeksha Holding Ltd 30710301 40.41 — 30710301 40.41 — —

2 Dr. Jyotsna Suri 7247935 9.54 — 7247935 9.54 — —

3 Responsible BuildersPvt Ltd 7106400 9.35 — 7106400 9.35 — —

4 Jyotsna Holding Pvt Ltd 3024039 3.98 — 3024039 3.98 — —

5 Mr. Keshav Suri 3880596 5.11 — 3880596 5.11 — —

6 Mr. Ramesh Suri 1219998 1.61 — 1219998 1.61 — —

7 Lalit Suri (HUF) 202950 0.27 — 202950 0.27 — —

8 Ramesh Suri (HUF) 159999 0.21 — 159999 0.21 — —

9 Ms. Ritu Suri 68400 0.09 — 68400 0.09 — —

10 Premium Exports Ltd 18000 0.02 — 18000 0.02 — —11 Mercantile Capital &

Financial Services Ltd. 6198 0.01 — 6198 0.01 — —

12 Ms. Deeksha Suri 1 0.00 — 1 0.00 — —

13 Ms. Divya Suri 1 0.00 — 1 0.00 — —

TTTTTotalotalotalotalotal 5364481853644818536448185364481853644818 70.59%70.59%70.59%70.59%70.59% — 5364481853644818536448185364481853644818 70.59%70.59%70.59%70.59%70.59% — —

25

(iii) Change in P(iii) Change in P(iii) Change in P(iii) Change in P(iii) Change in Promoters’ shareholdingromoters’ shareholdingromoters’ shareholdingromoters’ shareholdingromoters’ shareholding

Sl.Sl.Sl.Sl.Sl. Name of shareholderName of shareholderName of shareholderName of shareholderName of shareholder Shareholding at theShareholding at theShareholding at theShareholding at theShareholding at the Cumulative ShareholdingCumulative ShareholdingCumulative ShareholdingCumulative ShareholdingCumulative ShareholdingNo.No.No.No.No. beginning of the yearbeginning of the yearbeginning of the yearbeginning of the yearbeginning of the year during the year during the year during the year during the year during the year

(01-04-2016) (01-04-2016) (01-04-2016) (01-04-2016) (01-04-2016)

No. of sharesNo. of sharesNo. of sharesNo. of sharesNo. of shares % of total% of total% of total% of total% of total No. of sharesNo. of sharesNo. of sharesNo. of sharesNo. of shares % of total% of total% of total% of total% of totalshares of theshares of theshares of theshares of theshares of the shares of theshares of theshares of theshares of theshares of the

companycompanycompanycompanycompany companycompanycompanycompanycompany

1. Deeksha Holding LtdDeeksha Holding LtdDeeksha Holding LtdDeeksha Holding LtdDeeksha Holding LtdAt the beginning of the year 30710301 40.41 30710301 40.41Increase / Decrease: — — — —

At the End of the yearAt the End of the yearAt the End of the yearAt the End of the yearAt the End of the year 30710301 40.41 3071030130710301307103013071030130710301 40.4140.4140.4140.4140.41

2. DrDrDrDrDr. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna SuriAt the beginning of the year 7247935 9.54 7247935 9.54Increase / Decrease: — — — —


3. Responsible Builders Pvt LtdResponsible Builders Pvt LtdResponsible Builders Pvt LtdResponsible Builders Pvt LtdResponsible Builders Pvt LtdAt the beginning of the year 7106400 9.35 7106400 9.35Increase / Decrease: — — — —

At the End of the year 7106400 9.35 71064007106400710640071064007106400 9.359.359.359.359.35

4 Jyotsna Holding Pvt LtdJyotsna Holding Pvt LtdJyotsna Holding Pvt LtdJyotsna Holding Pvt LtdJyotsna Holding Pvt LtdAt the beginning of the year 3024039 3.98 3024039 3.98Increase / Decrease: — — — —


5. MrMrMrMrMr. K. K. K. K. Keshav Surieshav Surieshav Surieshav Surieshav SuriAt the beginning of the year 3880596 5.11 3880596 5.11Increase / Decrease: — — — —


6. MrMrMrMrMr. Ramesh Suri. Ramesh Suri. Ramesh Suri. Ramesh Suri. Ramesh SuriAt the beginning of the year 1219998 1.61 1219998 1.61Increase / Decrease: — — — —


7. LLLLLalit Suri (HUF)alit Suri (HUF)alit Suri (HUF)alit Suri (HUF)alit Suri (HUF)At the beginning of the year 202950 0.27 202950 0.27Increase / Decrease: — — — —


8. Ramesh Suri (HUF)Ramesh Suri (HUF)Ramesh Suri (HUF)Ramesh Suri (HUF)Ramesh Suri (HUF)At the beginning of the year 159999 0.21 159999 0.21Increase / Decrease: — — — —



26

(iv) Shareholding P(iv) Shareholding P(iv) Shareholding P(iv) Shareholding P(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Pattern of top ten Shareholders (other than Directors, Pattern of top ten Shareholders (other than Directors, Pattern of top ten Shareholders (other than Directors, Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs andromoters and Holders of GDRs andromoters and Holders of GDRs andromoters and Holders of GDRs andromoters and Holders of GDRs andADRs):ADRs):ADRs):ADRs):ADRs):

Sl.Sl.Sl.Sl.Sl. FFFFFor Each of the Tor Each of the Tor Each of the Tor Each of the Tor Each of the Top 10op 10op 10op 10op 10 Shareholding at theShareholding at theShareholding at theShareholding at theShareholding at the Cumulative ShareholdingCumulative ShareholdingCumulative ShareholdingCumulative ShareholdingCumulative ShareholdingNo.No.No.No.No. ShareholdersShareholdersShareholdersShareholdersShareholders beginning of the yearbeginning of the yearbeginning of the yearbeginning of the yearbeginning of the year during the year during the year during the year during the year during the year

(01-04-2016)(01-04-2016)(01-04-2016)(01-04-2016)(01-04-2016)

No. ofNo. ofNo. ofNo. ofNo. of % of total% of total% of total% of total% of total No. ofNo. ofNo. ofNo. ofNo. of % of total% of total% of total% of total% of totalsharessharessharessharesshares shares of theshares of theshares of theshares of theshares of the sharessharessharessharesshares shares of theshares of theshares of theshares of theshares of the


1. MrMrMrMrMr.Jayant Nanda.Jayant Nanda.Jayant Nanda.Jayant Nanda.Jayant NandaAt the beginning of the year 10399998 13.69 10399998 13.69Date wise Increase/Decrease &Reasons: — — — —

At the End of the yearAt the End of the yearAt the End of the yearAt the End of the yearAt the End of the year 10399998 13.69 10399998 13.69

2. Richmond Enterprises SRichmond Enterprises SRichmond Enterprises SRichmond Enterprises SRichmond Enterprises S.A.A.A.A.AAt the beginning of the year 5491200 7.23 5491200 7.23Date wise Increase/Decrease &Reasons: — — — —


9. Ms. Ritu SuriMs. Ritu SuriMs. Ritu SuriMs. Ritu SuriMs. Ritu SuriAt the beginning of the year 68400 0.09 68400 0.09Increase / Decrease: — — — —


10 PPPPPremium Exports Ltdremium Exports Ltdremium Exports Ltdremium Exports Ltdremium Exports LtdAt the beginning of the year 18000 0.02 18000 0.02Increase / Decrease: — — — —


11. Mercantile Capital &Mercantile Capital &Mercantile Capital &Mercantile Capital &Mercantile Capital &FFFFFinancial Services Ltd.inancial Services Ltd.inancial Services Ltd.inancial Services Ltd.inancial Services Ltd.At the beginning of the year 6198 0.01 6198 0.01Increase / Decrease: — — — —


12. Ms. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriAt the beginning of the year 1 0.00 1 0.00Increase / Decrease: — — — —


13. Ms. Divya SuriMs. Divya SuriMs. Divya SuriMs. Divya SuriMs. Divya SuriAt the beginning of the year 1 0.00 1 0.00Increase / Decrease: — — — —


27

3. Dubai VDubai VDubai VDubai VDubai Ventures Limitedentures Limitedentures Limitedentures Limitedentures LimitedAt the beginning of the year 4100000 5.40 4100000 5.40Date of Decrease :19-5-2016Reasons: Transfer (-) 4100000 5.40 — —

At the End of the yearAt the End of the yearAt the End of the yearAt the End of the yearAt the End of the year — — ——

4. Groves Universal Group SGroves Universal Group SGroves Universal Group SGroves Universal Group SGroves Universal Group S.A.A.A.A.A.....At the beginning of the year — — — —

Date of Increase : 19-05-2016Reasons: Transfer (+) 4100000 5.40 4100000 5.40


5. MrMrMrMrMr. Y. Y. Y. Y. Yash Pash Pash Pash Pash Paul Sabharwalaul Sabharwalaul Sabharwalaul Sabharwalaul SabharwalAt the beginning of the year 57000 0.08 57000 0.08Date wise Increase / Decrease &Reasons: — — — —


6. Southern India Depository Services Pvt LtdSouthern India Depository Services Pvt LtdSouthern India Depository Services Pvt LtdSouthern India Depository Services Pvt LtdSouthern India Depository Services Pvt LtdAt the beginning of the year 30750 0.04 30750 0.04Date wise Increase / Decrease &Reasons: — — — —


7. Smt. Raj KSmt. Raj KSmt. Raj KSmt. Raj KSmt. Raj Kumari Nandaumari Nandaumari Nandaumari Nandaumari NandaAt the beginning of the year 19998 0.03 19998 0.03Date wise Increase / Decrease &Reasons: — — — —


8. MrMrMrMrMr. Ajay K. Ajay K. Ajay K. Ajay K. Ajay KumarumarumarumarumarAt the beginning of the year 18842 0.02 18842 0.02Date wise Increase / Decrease &Reasons: — — — —


9. MrMrMrMrMr. Samuel K. Samuel K. Samuel K. Samuel K. Samuel K. Abraham. Abraham. Abraham. Abraham. AbrahamAt the beginning of the year 18660 0.02 18660 0.02Date wise Increase / Decrease &Reasons: — — — —


10. Hungerford Consultants PHungerford Consultants PHungerford Consultants PHungerford Consultants PHungerford Consultants Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate LimitedAt the beginning of the year 17772 0.02 17772 0.02Date wise Increase / Decrease &Reasons: — — — —



28

(V) Shareholding of Directors and K(V) Shareholding of Directors and K(V) Shareholding of Directors and K(V) Shareholding of Directors and K(V) Shareholding of Directors and Key Managerial Pey Managerial Pey Managerial Pey Managerial Pey Managerial Personnel:ersonnel:ersonnel:ersonnel:ersonnel:

Sl.Sl.Sl.Sl.Sl. FFFFFor Each of the Directorsor Each of the Directorsor Each of the Directorsor Each of the Directorsor Each of the Directors Shareholding at theShareholding at theShareholding at theShareholding at theShareholding at the Cumulative ShareholdingCumulative ShareholdingCumulative ShareholdingCumulative ShareholdingCumulative ShareholdingNo.No.No.No.No. and KMP(s) and KMP(s) and KMP(s) and KMP(s) and KMP(s) beginning of the yearbeginning of the yearbeginning of the yearbeginning of the yearbeginning of the year during the year during the year during the year during the year during the year

(01-04-2016)(01-04-2016)(01-04-2016)(01-04-2016)(01-04-2016)

No. ofNo. ofNo. ofNo. ofNo. of % of total% of total% of total% of total% of total No. ofNo. ofNo. ofNo. ofNo. of % of total% of total% of total% of total% of totalsharessharessharessharesshares shares of theshares of theshares of theshares of theshares of the sharessharessharessharesshares shares of theshares of theshares of theshares of theshares of the


1. DrDrDrDrDr. Jyotsna Suri, CMD. Jyotsna Suri, CMD. Jyotsna Suri, CMD. Jyotsna Suri, CMD. Jyotsna Suri, CMD

At the beginning of the yearAt the beginning of the yearAt the beginning of the yearAt the beginning of the yearAt the beginning of the year 7247935 9.54 7247935 9.54Date wise Increase / Decrease &Reasons: — — — —


2. Ms. Divya Suri Singh, Executive DirectorMs. Divya Suri Singh, Executive DirectorMs. Divya Suri Singh, Executive DirectorMs. Divya Suri Singh, Executive DirectorMs. Divya Suri Singh, Executive DirectorAt the beginning of the year 1 0.00 1 0.00Date wise Increase / Decrease& Reasons: — — — —


3. Ms. Deeksha Suri, Executive DirectorMs. Deeksha Suri, Executive DirectorMs. Deeksha Suri, Executive DirectorMs. Deeksha Suri, Executive DirectorMs. Deeksha Suri, Executive DirectorAt the beginning of the year 1 0.00 1 0.00Date wise Increase / Decrease &Reasons: — — — —


4. MrMrMrMrMr. K. K. K. K. Keshav Suri, Executive Directoreshav Suri, Executive Directoreshav Suri, Executive Directoreshav Suri, Executive Directoreshav Suri, Executive DirectorAt the beginning of the year 3880596 5.11 3880596 5.11Date wise Increase / Decrease &Reasons: — — — —


5. MrMrMrMrMr. Ramesh Suri, Director. Ramesh Suri, Director. Ramesh Suri, Director. Ramesh Suri, Director. Ramesh Suri, DirectorAt the beginning of the year 1219998 1.60 1219998 1.60Date wise Increase / Decrease &Reasons: — — — —


11. Hanurang PHanurang PHanurang PHanurang PHanurang Projects Projects Projects Projects Projects Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate LimitedAt the beginning of the year 17772 0.02 17772 0.02Date wise Increase / Decrease &Reasons: — — — —


12. MrMrMrMrMr. Arvind Sachdev. Arvind Sachdev. Arvind Sachdev. Arvind Sachdev. Arvind SachdevAt the beginning of the year 16684 0.02 16684 0.02Date wise Increase / Decrease & Reasons: — — — —


29

6. MrMrMrMrMr. Dharam Vir Batra, Director. Dharam Vir Batra, Director. Dharam Vir Batra, Director. Dharam Vir Batra, Director. Dharam Vir Batra, DirectorAt the beginning of the year — — — —

Date wise Increase / Decrease &Reasons: — — — —

At the End of the yearAt the End of the yearAt the End of the yearAt the End of the yearAt the End of the year — — — —

7. MrMrMrMrMr. L. L. L. L. Lalit Bhasin, Directoralit Bhasin, Directoralit Bhasin, Directoralit Bhasin, Directoralit Bhasin, DirectorAt the beginning of the year — — — —



8. DrDrDrDrDr. M.Y. M.Y. M.Y. M.Y. M.Y. Khan, Director. Khan, Director. Khan, Director. Khan, Director. Khan, DirectorAt the beginning of the year — — — —



9. MrMrMrMrMr. Hanuwant Singh, Director. Hanuwant Singh, Director. Hanuwant Singh, Director. Hanuwant Singh, Director. Hanuwant Singh, DirectorAt the beginning of the year — — — —



10. MrMrMrMrMr. Vinod Khanna, Director. Vinod Khanna, Director. Vinod Khanna, Director. Vinod Khanna, Director. Vinod Khanna, DirectorAt the beginning of the year — — — —



11. MrMrMrMrMr. Chakor L. Chakor L. Chakor L. Chakor L. Chakor L. Doshi, Director. Doshi, Director. Doshi, Director. Doshi, Director. Doshi, DirectorAt the beginning of the year — — — —


At the End of the year At the End of the year At the End of the year At the End of the year At the End of the year (Upto 20-7-2016) — — — —

12. MrMrMrMrMr. Abhay N. Abhay N. Abhay N. Abhay N. Abhay N. F. F. F. F. Firodia, Directorirodia, Directorirodia, Directorirodia, Directorirodia, DirectorAt the beginning of the year — — — —


At the End of the year At the End of the year At the End of the year At the End of the year At the End of the year (Upto 21-5-2016) — — — —

13. MrMrMrMrMr. Madhav Sikka, Chief F. Madhav Sikka, Chief F. Madhav Sikka, Chief F. Madhav Sikka, Chief F. Madhav Sikka, Chief Financial Officerinancial Officerinancial Officerinancial Officerinancial OfficerAt the beginning of the year — — — —




30

VVVVV. INDEBTEDNESS. INDEBTEDNESS. INDEBTEDNESS. INDEBTEDNESS. INDEBTEDNESSIndebtedness of the Company including interest outstanding / accrued but not due for paymentIndebtedness of the Company including interest outstanding / accrued but not due for paymentIndebtedness of the Company including interest outstanding / accrued but not due for paymentIndebtedness of the Company including interest outstanding / accrued but not due for paymentIndebtedness of the Company including interest outstanding / accrued but not due for payment

(Amt. in L(Amt. in L(Amt. in L(Amt. in L(Amt. in Lacs)acs)acs)acs)acs)Secured LSecured LSecured LSecured LSecured Loansoansoansoansoans UnsecuredUnsecuredUnsecuredUnsecuredUnsecured DepositsDepositsDepositsDepositsDeposits TTTTTotalotalotalotalotal

excludingexcludingexcludingexcludingexcluding L L L L Loansoansoansoansoans Indebtedness Indebtedness Indebtedness Indebtedness Indebtednessdepositsdepositsdepositsdepositsdeposits

Indebtedness at the beginning of theIndebtedness at the beginning of theIndebtedness at the beginning of theIndebtedness at the beginning of theIndebtedness at the beginning of the

financial year :financial year :financial year :financial year :financial year :i) Principal Amount 87,018.20 11,168.58 98,186.78(ii) Interest due but not paid — — — —

(iii) Interest accrued but not due 749.34 — — 749.34

TTTTTotal (i+ii+iii)otal (i+ii+iii)otal (i+ii+iii)otal (i+ii+iii)otal (i+ii+iii) 87,767.54 11,168.58 — 98,936.12

Change in Indebtedness during theChange in Indebtedness during theChange in Indebtedness during theChange in Indebtedness during theChange in Indebtedness during thefinancial year :financial year :financial year :financial year :financial year :Addition 25,071.57 — — 25,071.57Reduction — 5,805.85 — 5,805.85

Net ChangeNet ChangeNet ChangeNet ChangeNet Change 25,071.57 5,805.85 ————— 19,265.72

Indebtedness at the end of theIndebtedness at the end of theIndebtedness at the end of theIndebtedness at the end of theIndebtedness at the end of thefinancial year:financial year:financial year:financial year:financial year:i) Principal Amount 1,11,926.87 5,362.73 — 1,17,289.60(ii) Interest due but not paid — — — —(iii) Interest accrued but not due 912.24 — — 912.24Total (i+ii+iii) 1,12,839.11 5,362.73 — 1,18,201.84

14. MrMrMrMrMr. Himanshu P. Himanshu P. Himanshu P. Himanshu P. Himanshu Pandeyandeyandeyandeyandey, Company Secretary, Company Secretary, Company Secretary, Company Secretary, Company SecretaryAt the beginning of the yearDate wise Increase / Decrease &Reasons: — — — —

At the End of the year*At the End of the year*At the End of the year*At the End of the year*At the End of the year*

15. MrMrMrMrMr. Sandeep Chandna, Company Secretary. Sandeep Chandna, Company Secretary. Sandeep Chandna, Company Secretary. Sandeep Chandna, Company Secretary. Sandeep Chandna, Company SecretaryAt the beginning of the year**Date wise Increase / Decrease &Reasons: — — — —

At the End of the yearAt the End of the yearAt the End of the yearAt the End of the yearAt the End of the year

* Date of resignation: 15-02-2017** Date of appointment : 15-02-2017

31

VI. REMUNERAVI. REMUNERAVI. REMUNERAVI. REMUNERAVI. REMUNERATION OF DIRECTTION OF DIRECTTION OF DIRECTTION OF DIRECTTION OF DIRECTORS AND KEY MANAORS AND KEY MANAORS AND KEY MANAORS AND KEY MANAORS AND KEY MANAGERIAL PERSONNELGERIAL PERSONNELGERIAL PERSONNELGERIAL PERSONNELGERIAL PERSONNEL:::::

AAAAA..... Remuneration to Managing DirectorRemuneration to Managing DirectorRemuneration to Managing DirectorRemuneration to Managing DirectorRemuneration to Managing Director, Whole, Whole, Whole, Whole, Whole-time-time-time-time-time- Directors and/or Manager:- Directors and/or Manager:- Directors and/or Manager:- Directors and/or Manager:- Directors and/or Manager:(Amount in Rs.)(Amount in Rs.)(Amount in Rs.)(Amount in Rs.)(Amount in Rs.)

Name of MD/WTD/ManagerName of MD/WTD/ManagerName of MD/WTD/ManagerName of MD/WTD/ManagerName of MD/WTD/Manager

Sl.Sl.Sl.Sl.Sl. PPPPParticulars ofarticulars ofarticulars ofarticulars ofarticulars of DrDrDrDrDr. Jyotsna. Jyotsna. Jyotsna. Jyotsna. Jyotsna Ms. DivyaMs. DivyaMs. DivyaMs. DivyaMs. Divya Ms. DeekshaMs. DeekshaMs. DeekshaMs. DeekshaMs. Deeksha MrMrMrMrMr. K. K. K. K. Keshaveshaveshaveshaveshav TTTTTotalotalotalotalotalNo.No.No.No.No. Remuneration Remuneration Remuneration Remuneration Remuneration SuriSuriSuriSuriSuri Suri SinghSuri SinghSuri SinghSuri SinghSuri Singh SuriSuriSuriSuriSuri SuriSuriSuriSuriSuri Amount Amount Amount Amount Amount

ChairpersonChairpersonChairpersonChairpersonChairperson ExecutiveExecutiveExecutiveExecutiveExecutive ExecutiveExecutiveExecutiveExecutiveExecutive ExecutiveExecutiveExecutiveExecutiveExecutive & Managing & Managing & Managing & Managing & Managing DirectorDirectorDirectorDirectorDirector DirectorDirectorDirectorDirectorDirector DirectorDirectorDirectorDirectorDirector

DirectorDirectorDirectorDirectorDirector

1. Gross salary(a) Salary as per provisions

contained in section 17(1)of the Income-tax Act, 1961 76,16,580 65,28,498 65,28,498 65,28,498 27,202,074

(b) Value of perquisites u/s17(2) Income-tax Act, 1961 — — — — —————

(c) Profits in lieu of salary undersection 17(3) Income-taxAct, 1961 — — — — —————

2. Stock Option — — — — —————

3. Sweat Equity — — — — —————

4. Commission -As % of profit-Others, specify — — — — —————

5. Others (PF) 7,83,420 6,71,502 6,71,502 6,71,502 27,97,926

TTTTTotal (A)otal (A)otal (A)otal (A)otal (A) 84,00,00084,00,00084,00,00084,00,00084,00,000 72,00,00072,00,00072,00,00072,00,00072,00,000 72,00,00072,00,00072,00,00072,00,00072,00,000 72,00,00072,00,00072,00,00072,00,00072,00,000 3,00,00,0003,00,00,0003,00,00,0003,00,00,0003,00,00,000

Ceiling as per the Act * * * * —

* The Company had received approval of the Central Government for payment of Managerial Remuneration.

BBBBB..... Remuneration to other directors:Remuneration to other directors:Remuneration to other directors:Remuneration to other directors:Remuneration to other directors:

1. Independent Directors

Sl.Sl.Sl.Sl.Sl. PPPPParticularsarticularsarticularsarticularsarticulars Name of DirectorName of DirectorName of DirectorName of DirectorName of DirectorNo.No.No.No.No.

MrMrMrMrMr. L. L. L. L. Lalit Bhasinalit Bhasinalit Bhasinalit Bhasinalit Bhasin DrDrDrDrDr. M.Y. M.Y. M.Y. M.Y. M.Y. Khan. Khan. Khan. Khan. Khan MrMrMrMrMr. Hanuwant Singh*. Hanuwant Singh*. Hanuwant Singh*. Hanuwant Singh*. Hanuwant Singh*(1)(1)(1)(1)(1) (2)(2)(2)(2)(2) (3)(3)(3)(3)(3)

1. Fee for attending Board/Committee meetings 2,50,000 2,10,000 4,20,000

2. Commission — — —

3. Others — — —

TTTTTotalotalotalotalotal 2,50,0002,50,0002,50,0002,50,0002,50,000 2,10,0002,10,0002,10,0002,10,0002,10,000 4,20,0004,20,0004,20,0004,20,0004,20,000

*Upto 31-08-2016: Independent Director


32


MrMrMrMrMr. Chakor. Chakor. Chakor. Chakor. Chakor MrMrMrMrMr. Vinod. Vinod. Vinod. Vinod. Vinod T T T T TotalotalotalotalotalLLLLL. Doshi. Doshi. Doshi. Doshi. Doshi KhannaKhannaKhannaKhannaKhanna AmountAmountAmountAmountAmount

(4)(4)(4)(4)(4) (5)(5)(5)(5)(5)

1. Fee for attending Board/Committee meetings 20,000 40,000 9,40,0009,40,0009,40,0009,40,0009,40,000



TTTTTotal - B (1)otal - B (1)otal - B (1)otal - B (1)otal - B (1) 20,00020,00020,00020,00020,000 40,00040,00040,00040,00040,000 9,40,0009,40,0009,40,0009,40,0009,40,000

BBBBB..... 2. Other Non Executive Directors 2. Other Non Executive Directors 2. Other Non Executive Directors 2. Other Non Executive Directors 2. Other Non Executive Directors


MrMrMrMrMr. Ramesh Suri. Ramesh Suri. Ramesh Suri. Ramesh Suri. Ramesh Suri MrMrMrMrMr. D. D. D. D. D. V. V. V. V. V. Batra. Batra. Batra. Batra. Batra TTTTTotalotalotalotalotal(1)(1)(1)(1)(1) (2)(2)(2)(2)(2)

1. Fee for attending Board/Committee meetings 3,60,000 1,10,000 4,70,000



Total - B (2) 3 ,60,0003 ,60,0003 ,60,0003 ,60,0003 ,60,000 1,10,0001,10,0001,10,0001,10,0001,10,000 4,70,0004,70,0004,70,0004,70,0004,70,000

Total (B) = B (1) + B(2) — — 14,10,00014,10,00014,10,00014,10,00014,10,000

Total Managerial Remuneration — — 14,10,00014,10,00014,10,00014,10,00014,10,000

Overall Ceiling as per the Act — — *

* Overall ceiling as per the Act is not applicable to sitting fees paid to Non- Executive Directors.

33

C.C.C.C.C. REMUNERAREMUNERAREMUNERAREMUNERAREMUNERATION TTION TTION TTION TTION TO KEY MANAO KEY MANAO KEY MANAO KEY MANAO KEY MANAGERIAL PERSONNEL OGERIAL PERSONNEL OGERIAL PERSONNEL OGERIAL PERSONNEL OGERIAL PERSONNEL OTHER THAN MD/MANATHER THAN MD/MANATHER THAN MD/MANATHER THAN MD/MANATHER THAN MD/MANAGER/WTD :GER/WTD :GER/WTD :GER/WTD :GER/WTD :

Sl.Sl.Sl.Sl.Sl. PPPPParticulars of Remunerationarticulars of Remunerationarticulars of Remunerationarticulars of Remunerationarticulars of Remuneration KKKKKey Managerial Pey Managerial Pey Managerial Pey Managerial Pey Managerial Personnelersonnelersonnelersonnelersonnel TTTTTotalotalotalotalotalNo.No.No.No.No. AmountAmountAmountAmountAmount

MrMrMrMrMr. Madhav Sikka. Madhav Sikka. Madhav Sikka. Madhav Sikka. Madhav Sikka MrMrMrMrMr.Himanshu.Himanshu.Himanshu.Himanshu.Himanshu MrMrMrMrMr. Sandeep. Sandeep. Sandeep. Sandeep. Sandeep(CFO)(CFO)(CFO)(CFO)(CFO) PPPPPandey (CS)andey (CS)andey (CS)andey (CS)andey (CS) Chandna(CS)Chandna(CS)Chandna(CS)Chandna(CS)Chandna(CS)

(w(w(w(w(w.e.f.e.f.e.f.e.f.e.f. 1-4-2016. 1-4-2016. 1-4-2016. 1-4-2016. 1-4-2016 (w(w(w(w(w.e.f.e.f.e.f.e.f.e.f. 15-2-2017. 15-2-2017. 15-2-2017. 15-2-2017. 15-2-2017to 15-2-2017)*to 15-2-2017)*to 15-2-2017)*to 15-2-2017)*to 15-2-2017)* to 31-3-2017)** to 31-3-2017)** to 31-3-2017)** to 31-3-2017)** to 31-3-2017)**

1. Gross salary(a) Salary as perprovisions contained in section17(1) of the Income-tax Act,1961 46,02,876 15,34,539 2,86,308 64,23,72364,23,72364,23,72364,23,72364,23,723

(b) Value of perquisites u/s17(2) Income-tax Act, 1961 — — — —————

(c) Profits in lieu of salary undersection 17(3) Income-tax Act,1961 — — — —————

2. Stock Option — — — —————

3. Sweat Equity — — — —————

4. Commission As % ofprofitOthers, specify — — — —————

5. Others (PF) 2,72,161 84,110 14,436 3,70,7073,70,7073,70,7073,70,7073,70,707

TTTTTotalotalotalotalotal 48,75,03748,75,03748,75,03748,75,03748,75,037 16,18,64916,18,64916,18,64916,18,64916,18,649 3,00,7433,00,7433,00,7433,00,7433,00,743 67,94,43067,94,43067,94,43067,94,43067,94,430

* Resignation**Appointment

VII.VII.VII.VII.VII. PENALPENALPENALPENALPENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCESTIES / PUNISHMENT / COMPOUNDING OF OFFENCESTIES / PUNISHMENT / COMPOUNDING OF OFFENCESTIES / PUNISHMENT / COMPOUNDING OF OFFENCESTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:::::

Type Section of the Brief Details of Penalty Authority AppealCompanies Description / Punishment / (RD / NCLT made,

Act Compounding / COURT) if any.fees imposed

AAAAA..... COMPCOMPCOMPCOMPCOMPANYANYANYANYANY

PenaltyPunishment No Penalties, Punishments or Compounding of OffencesCompounding

BBBBB..... DIRECTDIRECTDIRECTDIRECTDIRECTORORORORORS


C.C.C.C.C. OOOOOTHER OFFICERS IN DEFTHER OFFICERS IN DEFTHER OFFICERS IN DEFTHER OFFICERS IN DEFTHER OFFICERS IN DEFAAAAAULULULULULTTTTT



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35

ANNEXURE – VIIANNEXURE – VIIANNEXURE – VIIANNEXURE – VIIANNEXURE – VII

PPPPParticulars of Energy Conservation, Tarticulars of Energy Conservation, Tarticulars of Energy Conservation, Tarticulars of Energy Conservation, Tarticulars of Energy Conservation, Technology Absorption and Fechnology Absorption and Fechnology Absorption and Fechnology Absorption and Fechnology Absorption and Foreign Exchange Earnings and Outgo requiredoreign Exchange Earnings and Outgo requiredoreign Exchange Earnings and Outgo requiredoreign Exchange Earnings and Outgo requiredoreign Exchange Earnings and Outgo requiredunder Rule 8 (3) the Companies (Accounts) Rules, 2014under Rule 8 (3) the Companies (Accounts) Rules, 2014under Rule 8 (3) the Companies (Accounts) Rules, 2014under Rule 8 (3) the Companies (Accounts) Rules, 2014under Rule 8 (3) the Companies (Accounts) Rules, 2014

(A) CONSERV(A) CONSERV(A) CONSERV(A) CONSERV(A) CONSERVAAAAATION OF ENERGTION OF ENERGTION OF ENERGTION OF ENERGTION OF ENERGYYYYY

Various energy conservation measures adopted by the Company in respect of all hotels are as follows:

i) Chilled water system changed from primary to secondary-primary system and divided by different Zone wisehaving VFD’s for chilled water pumping systems in order to save the energy getting wasted by the conventionalsystem.

ii) Light Fixtures having conventional halogen bulbs , CFL are being replaced by LED’s resulting in electricalenergy savings.

iii) For better comfort condition in guest rooms, other area, and replacement of analog thermostats by digital tosaves the electrical energy.

The implementation of Energy Conservation programme:-The implementation of Energy Conservation programme:-The implementation of Energy Conservation programme:-The implementation of Energy Conservation programme:-The implementation of Energy Conservation programme:-

i) The Company has been continuously studying fuel and utility bills; measuring the results of tracking energyconsumptions and the objectives of record keeping; having commitment to and accountability for energyconservation at all levels of the operations of all the hotels; established an energy conservation committee;making a walk-through inspection of the hotel to identify wasteful conditions; implementing changes inoperating procedures by instructions to the staff regarding wasteful energy practices, setting realistic energysaving objectives.

ii) Energy conservation efforts are being greatly enhanced by a strong planned Preventive MaintenanceProgramme. Each month the Maintenance Department compiles an Energy Consumption Report for thehotel that is a valuable energy conservation tool. Discussions with regard to the same are held on a continuousbasis to achieve better results.

iii) Internal energy Audit’s are carried out to balance total energy inputs with use to identify all of the energystreams into a facility and to quantify energy use according to discrete functions.

iv) As a result of the aforesaid measures taken and firm commitment of the management, considerable savingin Electrical unit, PNG & HSD has been achieved. The Company continues to make all efforts to keepconsumption at optimum level.

(B) TECHNOL(B) TECHNOL(B) TECHNOL(B) TECHNOL(B) TECHNOLOGOGOGOGOGY ABSORPTIONY ABSORPTIONY ABSORPTIONY ABSORPTIONY ABSORPTION

i) The Company has adopted the worldwide standards with regard to uniform accounting system. Hotel’sentire operation both front of the house and back of the house is fully computerised. To ensure the securityof the guests and property as such, all the hotels have installed within the premises a Closed Circuit SecuritySurveillance System.

The Company has adopted the latest technology especially with regard to Engineering Design Standards toensure against the hazards of fire and the like.

The Company has made successful efforts to adopt latest human resource development techniques whichare being used extensively to motivate and train staff and to ensure that the standards are constantly metand continuously further improved.


36

The Company as part of continual product up gradation, has installed new Telephone Exchanges, which arespecially designed for Hotels and are considered to be the latest in the world. This has resulted into moreefficient and improved service to the Hotel Guests.

The Company as part of continual product up gradation, is upgrading electrical installation of hotels , toreceive incentive for maintaining higher power factor above 0.95

The Company as part of product up gradation has already installed state of the art Reverse Osmoses systemto provide best quality of portable water to the hotel Guests.

The hotel is continuously innovating by implementing new ideas, upgrading or replacing existing equipmentwith more energy efficient version with a view to enhance the facilities that can be enjoyed by its guests.

The company has made successful efforts to use renewable energy in, operating hotel by using 2,00,000units generated by wind mills.

ii) As a result of the effective utilisation of technological resources, the Company has been able to achieve highlevel of customer’s satisfaction, operational efficiency and development of variety of standards and skillsin a short span of time after having become operational.

iii) The Company has acquired a variety of International standards and skills especially with regard to thefacilities offered to the guests, fire safety systems, life safety standards and more importantly the servicestandards. In addition to the above, the Company is constantly developing:

- Training modules which develop and fine-tune employee’s skills with regard to leadership,communication, supervision and general management.

- Hands on Culinary Skills Training for specialised cuisines, focusing on hygiene, foods preparation andfood service.

- Assistance with setting up minimum standards of operations, in terms of quality of service and facilitiesprovided in a hotel.

- Assistance with developing marketing strategies and relating the same with planning employeeperformance.

- Company has installed state of the art technology VRF for Guest Room Air Conditioning .

- Company is as part of product up gradation plan is, already replacing all the hot and cold water pipelines of the properties.

(C)(C)(C)(C)(C) FOREIGN EXFOREIGN EXFOREIGN EXFOREIGN EXFOREIGN EXCHANGE EARNING AND OUTGOCHANGE EARNING AND OUTGOCHANGE EARNING AND OUTGOCHANGE EARNING AND OUTGOCHANGE EARNING AND OUTGO:::::(Rs. in Lacs)

PPPPParticularsarticularsarticularsarticularsarticulars FFFFFinancial Yinancial Yinancial Yinancial Yinancial Yearearearearear

2016-172016-172016-172016-172016-17 2015-16

CIF Value of Imports 210.09 166.50

Expenditure in Foreign Currency 1,565.26 1,395.92

Earnings in Foreign Exchange 10,357.64 9,581.16

37

INDEPENDENT AINDEPENDENT AINDEPENDENT AINDEPENDENT AINDEPENDENT AUDITUDITUDITUDITUDITOROROROROR’S REPORT’S REPORT’S REPORT’S REPORT’S REPORT

To the Members of Bharat Hotels Limited

Report on the Standalone Ind AS FReport on the Standalone Ind AS FReport on the Standalone Ind AS FReport on the Standalone Ind AS FReport on the Standalone Ind AS Financial Statementsinancial Statementsinancial Statementsinancial Statementsinancial Statements

We have audited the accompanying standalone Ind AS financial statements of Bharat Hotels Limited (“theCompany”), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, includingthe statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes inEquity for the year then ended, and a summary of significant accounting policies and other explanatory information.

ManagementManagementManagementManagementManagement’s Responsibility for the F’s Responsibility for the F’s Responsibility for the F’s Responsibility for the F’s Responsibility for the Financial Statementsinancial Statementsinancial Statementsinancial Statementsinancial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,2013 (“the Act”) with respect to the preparation of these standalone Ind AS financial statements that give a trueand fair view of the financial position, financial performance including other comprehensive income, cash flowsand changes in equity of the Company in accordance with accounting principles generally accepted in India,including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies(Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; and the design,implementation and maintenance of adequate internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records, relevant to the preparation and presentation of theInd AS financial statements that give a true and fair view and are free from material misstatement, whether dueto fraud or error.

AuditorAuditorAuditorAuditorAuditor’s Responsibility’s Responsibility’s Responsibility’s Responsibility’s Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.We have taken into account the provisions of the Act, the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and the Rules made thereunder.We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards onAuditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessment ofthe risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.In making those risk assessments, the auditor considers internal financial control relevant to the Company’spreparation of the standalone Ind AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors,as well as evaluating the overall presentation of the standalone Ind AS financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone Ind AS financial statements.

OpinionOpinionOpinionOpinionOpinion

In our opinion and to the best of our information and according to the explanations given to us, the standaloneInd AS financial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of theCompany as at March 31, 2017, its profit including other comprehensive income, its cash flows and the changesin equity for the year ended on that date.


38

Report on Other LReport on Other LReport on Other LReport on Other LReport on Other Legal and Regulatory Requirementsegal and Regulatory Requirementsegal and Regulatory Requirementsegal and Regulatory Requirementsegal and Regulatory Requirements

1. As required by the Companies (Auditor’s report) Order, 2016 (“the Order”) issued by the Central Governmentof India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books;

(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other ComprehensiveIncome, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the books of account;

(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standardsspecified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules,2015, as amended;

(e) On the basis of written representations received from the directors as on March 31, 2017, and taken onrecord by the Board of Directors, none of the directors is disqualified as on March 31, 2017, frombeing appointed as a director in terms of section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to thisreport;

(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information andaccording to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standaloneInd AS financial statements – Refer Note 53 to the standalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which therewere any material foreseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Educationand Protection Fund by the Company;

iv. The Company has provided requisite disclosures in Note 60 to these standalone Ind AS financialstatements as to the holding of Specified Bank Notes on November 8, 2016 and December 30,2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 toDecember 30, 2016. Based on our audit procedures and relying on the management representationregarding the holding and nature of cash transactions, including Specified Bank Notes, we reportthat these disclosures are in accordance with the books of accounts maintained by the Companyand as produced to us by the Management.

For SSSSS.R. Batliboi & CO.R. Batliboi & CO.R. Batliboi & CO.R. Batliboi & CO.R. Batliboi & CO. LLP. LLP. LLP. LLP. LLPChartered AccountantsICAI Firm Registration Number: 301003E/E300005

Sd/-per Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj AgrawalPartnerMembership Number: 82028Place of Signature: GurugramDate: July 21, 2017

39

Annexure 1 referred to in paragraph 1 of our report of even dateAnnexure 1 referred to in paragraph 1 of our report of even dateAnnexure 1 referred to in paragraph 1 of our report of even dateAnnexure 1 referred to in paragraph 1 of our report of even dateAnnexure 1 referred to in paragraph 1 of our report of even dateRe: Bharat Hotels Limited (‘the Company’)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative detailsand situation of fixed assets.

(b) All fixed assets have not been physically verified by the management during the year but there is aregular programme of verification which, in our opinion, is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management, the title deeds of immovableproperties included in property, plant and equipment are held in the name of the Company.

(ii) The management has conducted physical verification of inventory at reasonable intervals during the yearand no material discrepancies were noticed on such physical verification.

(iii) (a) The Company has granted loans to four companies and one other party covered in the register maintainedunder section 189 of the Companies Act, 2013. In our opinion and according to the information andexplanations given to us, the terms and conditions of the grant of such loans not prejudicial to theCompany’s interest.

(b) We are informed that the Company has not demanded repayment of any loan, as stated in (iii)(a)above during the year, and thus, there has been no default on the part of the parties to whom themoney has been lent. According to the information and explanations given to us, the Company has notgranted any loans, secured or unsecured, to firms or Limited Liability Partnerships covered in the registermaintained under section 189 of the Companies Act, 2013.

(c) There are no amounts of loans granted to companies, firms or other parties listed in the registermaintained under section 189 of the Companies Act, 2013 which are overdue for more than ninetydays.

(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and186 of the Companies Act 2013 to the extent applicable in respect of loans and advances given, investmentsmade, guarantees and securities given have been complied with by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and theCompanies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v)of the Order are not applicable and, hence not commented upon.

(vi) To the best of our knowledge and as explained, the Central Government has not specified the maintenanceof cost records under Section 148(1) of the Companies Act, 2013, for the products/services of the Company.

(vii) (a) Undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax,service tax, duty of custom, duty of excise , value added tax, cess and other statutory dues have notbeen regularly deposited with the appropriate authorities in few cases though the delays in deposithave not been serious.

(b) According to the information and explanations given to us, no undisputed amounts payable in respectof provident fund, employees’ state insurance, income-tax, , service tax, sales-tax, duty of custom, dutyof excise, value added tax, cess and other statutory dues were outstanding, at the year end, for a periodof more than six months from the date they became payable.

(c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, , service tax,duty of custom, duty of excise , value added tax and cess on account of any dispute, are as follows:


40

Name of statuteName of statuteName of statuteName of statuteName of statute Nature of duesNature of duesNature of duesNature of duesNature of dues Amount (Rs.)Amount (Rs.)Amount (Rs.)Amount (Rs.)Amount (Rs.) PPPPPeriod to which theeriod to which theeriod to which theeriod to which theeriod to which the FFFFForum whereorum whereorum whereorum whereorum whereamount relatesamount relatesamount relatesamount relatesamount relates dispute is pendingdispute is pendingdispute is pendingdispute is pendingdispute is pending

Finance Act,1994 Service tax 35,039,447 FY 2004-05 to 2011-12 CESTAT

Finance Act,1994 Service tax 3,445,176 FY 2009-10 & 2010-11 High Court ofKerala

Kerala Work Work contract tax 2,935,130 FY 2007-08 – 2008-09 DeputyContract Tax Commissioner

of Appeals

Custom Act Custom duty 96,805,372 FY 2006-07 CESTAT

Urban development Urbantax Act development tax 18,020,991 FY 2007-08 to 2015-16 High Court of

Jodhpur

Central ExciseAct, 1944 Excise duty 641,711 FY 2006-08 CESTAT

Maharashtra Value Value added tax 6,243,814 FY 2005-06, 2007-08 CommissionerAdded Tax Act, 2002 and 2010-11 Appeals

Maharashtra Value Value added tax 5,324,011 FY 2006-07, 2008-09 TribunalAdded Tax Act, 2002 and 2009 -10

(viii) In our opinion and according to the information and explanations given by the management, the Companyhas not defaulted in repayment of dues to a financial institution, bank or government. The Company didnot have any outstanding dues to debenture holders during the year.

(ix) According to the information and explanations given by the management, the Company has not raised anymoney by way of initial public offer/further public offer. Based upon the audit procedures performed for thepurpose of reporting the true & fair view of the financial statements and according to the information andexplanations given by the management and on an overall examination of the balance sheet, we report thatmonies raised by way of term loans were applied for the purpose for which those were raised.

(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of thefinancial statements and according to the information and explanations given by the management, wereport that no fraud by the Company or no fraud on the Company by the officers and employees of theCompany has been noticed or reported during the year.

(xi) According to the information and explanations given by the management, the managerial remunerationhas been paid / provided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Act, 2013.

(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the Orderare not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the management, transactions with the relatedparties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and thedetails have been disclosed in the notes to the financial statements, as required by the applicable accountingstandards.

41

(xiv) According to the information and explanations given to us and on an overall examination of the balancesheet, the Company has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review and hence, reporting requirements under clause3(xiv) are not applicable to the Company and, hence not commented upon.

(xv) According to the information and explanations given by the management, the Company has not enteredinto any non-cash transactions with directors or persons connected with him as referred to in section 192 ofCompanies Act, 2013.

(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the ReserveBank of India Act, 1934 are not applicable to the Company and, hence not commented upon.


Sd/-per Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj AgrawalPartnerMembership Number: 82028

Place of Signature: GurugramDate: July 21, 2017


42

ANNEXURE 2 TANNEXURE 2 TANNEXURE 2 TANNEXURE 2 TANNEXURE 2 TO THE INDEPENDENT AO THE INDEPENDENT AO THE INDEPENDENT AO THE INDEPENDENT AO THE INDEPENDENT AUDITUDITUDITUDITUDITOROROROROR’S REPORT OF EVEN D’S REPORT OF EVEN D’S REPORT OF EVEN D’S REPORT OF EVEN D’S REPORT OF EVEN DAAAAATE ON THE STTE ON THE STTE ON THE STTE ON THE STTE ON THE STANDANDANDANDANDALALALALALONE IND ASONE IND ASONE IND ASONE IND ASONE IND ASFINANCIAL STFINANCIAL STFINANCIAL STFINANCIAL STFINANCIAL STAAAAATEMENTS OF BHARATEMENTS OF BHARATEMENTS OF BHARATEMENTS OF BHARATEMENTS OF BHARAT HOT HOT HOT HOT HOTELS LIMTEDTELS LIMTEDTELS LIMTEDTELS LIMTEDTELS LIMTED

Report on the Internal FReport on the Internal FReport on the Internal FReport on the Internal FReport on the Internal Financial Controls under Clause (i) of Subinancial Controls under Clause (i) of Subinancial Controls under Clause (i) of Subinancial Controls under Clause (i) of Subinancial Controls under Clause (i) of Sub-----section 3 of Section 143 of the Companiessection 3 of Section 143 of the Companiessection 3 of Section 143 of the Companiessection 3 of Section 143 of the Companiessection 3 of Section 143 of the CompaniesAct, 2013 (“the ActAct, 2013 (“the ActAct, 2013 (“the ActAct, 2013 (“the ActAct, 2013 (“the Act”)”)”)”)”)

We have audited the internal financial controls over financial reporting of Bharat Hotels Limited (“the Company”)as of March 31, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

ManagementManagementManagementManagementManagement’s Responsibility for Internal F’s Responsibility for Internal F’s Responsibility for Internal F’s Responsibility for Internal F’s Responsibility for Internal Financial Controlsinancial Controlsinancial Controlsinancial Controlsinancial Controls

The Company’s Management is responsible for establishing and maintaining internal financial controls basedon the internal control over financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design,implementation and maintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business, including adherence to the Company’s policies, thesafeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness ofthe accounting records, and the timely preparation of reliable financial information, as required under theCompanies Act, 2013.


Our responsibility is to express an opinion on the Company’s internal financial controls over financial reportingbased on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing as specified undersection 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controlsand, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting was established and maintained andif such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financialcontrols system over financial reporting and their operating effectiveness. Our audit of internal financial controlsover financial reporting included obtaining an understanding of internal financial controls over financial reporting,assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectivenessof internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement,including the assessment of the risks of material misstatement of the financial statements, whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the internal financial controls system over financial reporting.

Meaning of Internal FMeaning of Internal FMeaning of Internal FMeaning of Internal FMeaning of Internal Financial Controls Over Financial Controls Over Financial Controls Over Financial Controls Over Financial Controls Over Financial Reportinginancial Reportinginancial Reportinginancial Reportinginancial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that (1) pertain to the maintenance of recordsthat, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparationof financial statements in accordance with generally accepted accounting principles, and that receipts and

43

expenditures of the company are being made only in accordance with authorisations of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal FInherent Limitations of Internal FInherent Limitations of Internal FInherent Limitations of Internal FInherent Limitations of Internal Financial Controls Over Financial Controls Over Financial Controls Over Financial Controls Over Financial Controls Over Financial Reportinginancial Reportinginancial Reportinginancial Reportinginancial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibilityof collusion or improper management override of controls, material misstatements due to error or fraud mayoccur and not be detected. Also, projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial control over financial reporting maybecome inadequate because of changes in conditions, or that the degree of compliance with the policies orprocedures may deteriorate.


In our opinion, the Company has, in all material respects, an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting were operating effectively as atMarch 31, 2017, based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants of India.


Sd/-Sd/-Sd/-Sd/-Sd/-per Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj AgrawalPartnerMembership Number: 82028Place of Signature: GurugramDate: July 21, 2017


44

STSTSTSTSTANDANDANDANDANDALALALALALONE BALANCE SHEET AS AONE BALANCE SHEET AS AONE BALANCE SHEET AS AONE BALANCE SHEET AS AONE BALANCE SHEET AS AT 31 MARCH 2017T 31 MARCH 2017T 31 MARCH 2017T 31 MARCH 2017T 31 MARCH 2017

PPPPParticularsarticularsarticularsarticularsarticulars NotesNotesNotesNotesNotes As at As at As at As at As at As atAs atAs atAs atAs at As atAs atAs atAs atAs at31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

ASSETSASSETSASSETSASSETSASSETSNon-Non-Non-Non-Non-Current AssetsCurrent AssetsCurrent AssetsCurrent AssetsCurrent Assetsa) Property, plant and equipment 2 121,813.43 115,108.24 121,715.39b) Capital work-in-progress 14,939.28 21,802.54 19,490.49c) Intangible assets 3 78.51 128.94 175.00d) Financial assets

(i) Investments 4 42,909.79 12,775.30 13,076.30(ii) Loans 5 36,410.72 43,621.11 37,426.93 (iii) Other non currenttttt financial assets 6 1,351.49 1,168.19 1,326.03

e) Other non-current assets 7 8,736.28 8,807.38 8,887.20

TTTTTotal non current assetsotal non current assetsotal non current assetsotal non current assetsotal non current assets 226,239.50226,239.50226,239.50226,239.50226,239.50 203,411.70203,411.70203,411.70203,411.70203,411.70 202,097.34202,097.34202,097.34202,097.34202,097.34

Current AssetsCurrent AssetsCurrent AssetsCurrent AssetsCurrent Assetsa) Inventories 8 1,653.62 1,764.46 1,552.92b) Financial assets

(i) Trade receivables 9 4,371.58 3,948.96 3,924.83(ii) Cash and cash equivalents 10 6,597.89 1,829.61 6,556.44(iii) Other bank balances 11 1,056.59 548.14 536.50(iv) Loans 12 109.55 106.73 141.15(v) Other current financial assets 13 11,257.06 15,801.12 11,245.50

c) Other current assets 14 2,420.08 2,653.15 2,491.89

Assets classified as held for saleAssets classified as held for saleAssets classified as held for saleAssets classified as held for saleAssets classified as held for sale 15 1,638.77 1,648.77 30.00

TTTTTotal current assetsotal current assetsotal current assetsotal current assetsotal current assets 29,105.1429,105.1429,105.1429,105.1429,105.14 28,300.9428,300.9428,300.9428,300.9428,300.94 26,479.2326,479.2326,479.2326,479.2326,479.23

TTTTTotal assetsotal assetsotal assetsotal assetsotal assets 255,344.64255,344.64255,344.64255,344.64255,344.64 231,712.64231,712.64231,712.64231,712.64231,712.64 228,576.57228,576.57228,576.57228,576.57228,576.57

EQUITY AND LIABILITIESEQUITY AND LIABILITIESEQUITY AND LIABILITIESEQUITY AND LIABILITIESEQUITY AND LIABILITIESEquityEquityEquityEquityEquitya) Equity share capital 16 7,599.12 7,599.12 7,599.12b) Other Equity 17 100,373.18 97,396.99 94,222.28

TTTTTotal equityotal equityotal equityotal equityotal equity 107,972.30107,972.30107,972.30107,972.30107,972.30 104,996.11104,996.11104,996.11104,996.11104,996.11 101,821.40101,821.40101,821.40101,821.40101,821.40

Non-Non-Non-Non-Non-current liabilitiescurrent liabilitiescurrent liabilitiescurrent liabilitiescurrent liabilitiesa) Financial liabilities

(i) Borrowings 18 95,865.90 77,767.78 73,678.50(ii) Other non current financial liabilities 19 380.76 344.58 195.23

b) Provisions 20 766.65 685.30 692.90c) Deferred tax liabilities (net) 21 12,731.76 12,143.77 12,164.32d) Other non-current liablities 22 3,663.86 3,801.39 3,884.39

TTTTTotal non current liabilitiesotal non current liabilitiesotal non current liabilitiesotal non current liabilitiesotal non current liabilities 113,408.93113,408.93113,408.93113,408.93113,408.93 94,742.8294,742.8294,742.8294,742.8294,742.82 90,615.3490,615.3490,615.3490,615.3490,615.34

45

Current liabilitiesCurrent liabilitiesCurrent liabilitiesCurrent liabilitiesCurrent liabilitiesa) Financial liabilities

(i) Borrowings 23 16,868.85 17,379.05 10,908.26(ii) Trade payables 24 3,630.67 2,364.51 2,838.80(iii) Other current financial liabilities 25 9,618.73 8,489.67 19,334.58

b) Provisions 26 679.80 663.13 864.11c) Other current liabilities 27 3,165.36 3,077.35 2,194.08

TTTTTotal current liabilitiesotal current liabilitiesotal current liabilitiesotal current liabilitiesotal current liabilities 33,963.4133,963.4133,963.4133,963.4133,963.41 31,973.7131,973.7131,973.7131,973.7131,973.71 36,139.8336,139.8336,139.8336,139.8336,139.83

TTTTTotal equity and liabilitiesotal equity and liabilitiesotal equity and liabilitiesotal equity and liabilitiesotal equity and liabilities 255,344.64255,344.64255,344.64255,344.64255,344.64 231,712.64231,712.64231,712.64231,712.64231,712.64 228,576.57228,576.57228,576.57228,576.57228,576.57

Summary of significant accounting policies 1 0.00

The accompanying notes are an integral part of the financial statements.

As per our report of even date

FFFFFor Sor Sor Sor Sor S.R. Batliboi & Co. LLP.R. Batliboi & Co. LLP.R. Batliboi & Co. LLP.R. Batliboi & Co. LLP.R. Batliboi & Co. LLP FFFFFor and on behalf of the Board of Directors ofor and on behalf of the Board of Directors ofor and on behalf of the Board of Directors ofor and on behalf of the Board of Directors ofor and on behalf of the Board of Directors ofFFFFFirm Registration Number: 301003E/ E300005irm Registration Number: 301003E/ E300005irm Registration Number: 301003E/ E300005irm Registration Number: 301003E/ E300005irm Registration Number: 301003E/ E300005 Bharat Hotels LimitedBharat Hotels LimitedBharat Hotels LimitedBharat Hotels LimitedBharat Hotels LimitedChartered AccountantsChartered AccountantsChartered AccountantsChartered AccountantsChartered Accountants

Sd/-Sd/-Sd/-Sd/-Sd/-per Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj Agrawal Sd/- Sd/-Partner DrDrDrDrDr. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri Ms. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri SinghMembership No. 82028 Chairperson and Managing Director Executive DirectorPlace: Gurugram (DIN 00004603) (DIN 00004559)Date: 21 July, 2017

Sd/- Sd/-Ms. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha Suri MrMrMrMrMr. K. K. K. K. Keshav Surieshav Surieshav Surieshav Surieshav SuriExecutive Director Executive Director(DIN 00005367) (DIN 00005370)

Sd/- Sd/-Madhav SikkaMadhav SikkaMadhav SikkaMadhav SikkaMadhav Sikka Sandeep Chandna Sandeep Chandna Sandeep Chandna Sandeep Chandna Sandeep Chandna

Chief Financial Officer Company SecretaryM. No. FCS-6345

Place : New DelhiDate : 26 May, 2017


46

STSTSTSTSTANDANDANDANDANDALALALALALONE STONE STONE STONE STONE STAAAAATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017TEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017TEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017TEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017TEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017

P P P P Particularsarticularsarticularsarticularsarticulars NotesNotesNotesNotesNotes F F F F For the year endedor the year endedor the year endedor the year endedor the year ended F F F F For the year endedor the year endedor the year endedor the year endedor the year ended31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L (Rupees in L (Rupees in L (Rupees in L (Rupees in Lacs)acs)acs)acs)acs)

RevenueRevenueRevenueRevenueRevenue

Revenue from operations 28 57,477.98 52,705.84

Other income 29 834.62 2,521.58

TTTTTotal incomeotal incomeotal incomeotal incomeotal income 58,312.6058,312.6058,312.6058,312.6058,312.60 55,227.4255,227.4255,227.4255,227.4255,227.42

ExpensesExpensesExpensesExpensesExpenses

Cost of food and beverages consumed 30 6,751.18 6,273.07

Purchase of traded goods 74.60 59.62

Change in inventories of traded goods 31 (23.65) (1.03)

Excise duty on sale of food 31.84 29.26

Employee benefits expense 32 10,197.09 9,213.75

Other expenses 33 23,468.46 24,124.74

TTTTTotal expensesotal expensesotal expensesotal expensesotal expenses 40,499.5240,499.5240,499.5240,499.5240,499.52 39,699.4139,699.4139,699.4139,699.4139,699.41

Earnings before interest, tax, depreciationEarnings before interest, tax, depreciationEarnings before interest, tax, depreciationEarnings before interest, tax, depreciationEarnings before interest, tax, depreciationand amortisationand amortisationand amortisationand amortisationand amortisation 17,813.0817,813.0817,813.0817,813.0817,813.08 15,528.0115,528.0115,528.0115,528.0115,528.01

Finance income 34 4,213.68 5,301.74

Finance costs 35 11,418.47 10,845.36

Depreciation and amortisation expense 36 5,087.78 5,456.93

PPPPProfit before taxrofit before taxrofit before taxrofit before taxrofit before tax 5,520.515,520.515,520.515,520.515,520.51 4,527.464,527.464,527.464,527.464,527.46

TTTTTax expense:ax expense:ax expense:ax expense:ax expense: 39Current tax 1,259.54 971.34Deferred tax charge/(credit) 1,851.28 1,188.39MAT Credit (1,259.54) (1,228.10)

TTTTTotal Total Total Total Total Tax Expenseax Expenseax Expenseax Expenseax Expense 1,851.281,851.281,851.281,851.281,851.28 931.63931.63931.63931.63931.63

PPPPProfit for the yearrofit for the yearrofit for the yearrofit for the yearrofit for the year 3,669.233,669.233,669.233,669.233,669.23 3,595.833,595.833,595.833,595.833,595.83

Other comprehensive incomeOther comprehensive incomeOther comprehensive incomeOther comprehensive incomeOther comprehensive income

Items that will not be reclassified to profit orItems that will not be reclassified to profit orItems that will not be reclassified to profit orItems that will not be reclassified to profit orItems that will not be reclassified to profit or

loss in subsequent yearsloss in subsequent yearsloss in subsequent yearsloss in subsequent yearsloss in subsequent years

Remeasurements of the net defined benefit plans -

Actuarial Gain or Loss (10.83) 55.35

Income tax effect 3.75 (19.16)

(7.08) (7.08) (7.08) (7.08) (7.08) 36.1936.1936.1936.1936.19

Net comprehensive incomeNet comprehensive incomeNet comprehensive incomeNet comprehensive incomeNet comprehensive income 3,662.153,662.153,662.153,662.153,662.15 3,632.023,632.023,632.023,632.023,632.02

47

Earnings per equity shareEarnings per equity shareEarnings per equity shareEarnings per equity shareEarnings per equity share

1) Basic 40 4.83 4.73

2) Diluted 40 4.83 4.73

Summary of significant accounting policies 1










48

STSTSTSTSTANDANDANDANDANDALALALALALONE STONE STONE STONE STONE STAAAAATEMENT OF CASH FLTEMENT OF CASH FLTEMENT OF CASH FLTEMENT OF CASH FLTEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2017OWS FOR THE YEAR ENDED 31 MARCH 2017OWS FOR THE YEAR ENDED 31 MARCH 2017OWS FOR THE YEAR ENDED 31 MARCH 2017OWS FOR THE YEAR ENDED 31 MARCH 2017

PPPPParticularsarticularsarticularsarticularsarticulars FFFFFor the year endedor the year endedor the year endedor the year endedor the year ended FFFFFor the year endedor the year endedor the year endedor the year endedor the year ended31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

AAAAA CASH FLCASH FLCASH FLCASH FLCASH FLOW FROM OPERAOW FROM OPERAOW FROM OPERAOW FROM OPERAOW FROM OPERATING ATING ATING ATING ATING ACTIVITIESCTIVITIESCTIVITIESCTIVITIESCTIVITIES

PPPPProfit before taxrofit before taxrofit before taxrofit before taxrofit before tax 5,520.51 4,527.46Non-cash adjustments to reconcile profit before tax to net cash flows:Depreciation and amortisation expenses 5,087.78 5,456.93Provision for diminution in the value of investment — 301.00Bad debts written off — 9.38Provision for doubtful debts 206.18 476.88Provision for doubtful advances 166.71 388.26Excess provision/ credit balances written back (424.05) (992.30)Loss/ (profit) on sale of property, plant and equipment (net) 18.15 (1,191.24)Advances written off 10.16 —Unwinding of discount on security deposits (24.78) (22.07)Other balances written off 148.32 227.67Amortisation of deferred lease rent 103.10 104.62Interest Income (4,188.89) (5,279.66)Interest expense 11,418.47 10,845.37Assets held for sale reduced to net realisable value 10.00 —Government Grant Income (47.80) (47.80)Unrealized foreign exchange (gain) (230.38) (136.83)

Operating profit before working capital changes:Operating profit before working capital changes:Operating profit before working capital changes:Operating profit before working capital changes:Operating profit before working capital changes: 17,773.4817,773.4817,773.4817,773.4817,773.48 14,667.6714,667.6714,667.6714,667.6714,667.67

Movements in working capital:Decrease in loans other financial and other assets 517.07 90.74(Increase) in trade receivable (628.80) (510.40)Decrease/(Increase) in inventories 110.83 (211.53)Increase/(Decrease) in trade payable 1,690.21 (281.99)(Decrease)/Increase in other financial liabilities,other liabilities and provisions (1,073.41) 592.10

Cash Generated from OperationsCash Generated from OperationsCash Generated from OperationsCash Generated from OperationsCash Generated from Operations 18,389.3818,389.3818,389.3818,389.3818,389.38 14,346.5914,346.5914,346.5914,346.5914,346.59

T T T T Tax Pax Pax Pax Pax Paid (net)aid (net)aid (net)aid (net)aid (net) (1,245.27) (1,102.66)

Net cash flow from operating activities (a)Net cash flow from operating activities (a)Net cash flow from operating activities (a)Net cash flow from operating activities (a)Net cash flow from operating activities (a) 17,144.1117,144.1117,144.1117,144.1117,144.11 13,243.9313,243.9313,243.9313,243.9313,243.93

BBBBB CASH FLCASH FLCASH FLCASH FLCASH FLOWS FROM INVESTING AOWS FROM INVESTING AOWS FROM INVESTING AOWS FROM INVESTING AOWS FROM INVESTING ACTIVITIESCTIVITIESCTIVITIESCTIVITIESCTIVITIESPurchase of property, plant and equipment (Refer note 3 below) (4,622.61) (3,165.08)Proceeds from sale of property, plant and equipment 115.29 4,105.38Loans to subsidiaries (7,495.08) (1,502.51)Loan to joint venture of subsidiaries (6,755.13) (3,235.57)Loan to The Lalit Suri Educational and Charitable Trust (823.69) (855.98)Interest received and finance lease income 512.64 470.61(Investment in)/proceeds from bank deposits (681.91) 33.18

Net Cash flow from/(used in ) investing activities (b)Net Cash flow from/(used in ) investing activities (b)Net Cash flow from/(used in ) investing activities (b)Net Cash flow from/(used in ) investing activities (b)Net Cash flow from/(used in ) investing activities (b) (19,750.49)(19,750.49)(19,750.49)(19,750.49)(19,750.49) (4,149.97)(4,149.97)(4,149.97)(4,149.97)(4,149.97)

CCCCC CASH FLCASH FLCASH FLCASH FLCASH FLOWS FROM FINANCING AOWS FROM FINANCING AOWS FROM FINANCING AOWS FROM FINANCING AOWS FROM FINANCING ACTIVITIESCTIVITIESCTIVITIESCTIVITIESCTIVITIESProceeds from long term borrowings 23,024.27 33,994.94Repayment of long term borrowings (3,236.75) (42,357.50)Proceeds from short term borrowings 113.92 8,019.27Repayment of short term borrowings (624.11) (1,548.48)Interest paid (12,100.87) (12,508.67)Deferred payment liabilities (47.55) (45.60)Dividend paid (569.93) (379.96)Tax on dividend paid (116.03) (77.35)

Net Cash flow from/ (used in ) financing activities (c)Net Cash flow from/ (used in ) financing activities (c)Net Cash flow from/ (used in ) financing activities (c)Net Cash flow from/ (used in ) financing activities (c)Net Cash flow from/ (used in ) financing activities (c) 6,442.956,442.956,442.956,442.956,442.95 (14,903.35)(14,903.35)(14,903.35)(14,903.35)(14,903.35)

49

NET INCREASE/(DECREASE) IN CASH & CASH EQUIVNET INCREASE/(DECREASE) IN CASH & CASH EQUIVNET INCREASE/(DECREASE) IN CASH & CASH EQUIVNET INCREASE/(DECREASE) IN CASH & CASH EQUIVNET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS (A+B+C)ALENTS (A+B+C)ALENTS (A+B+C)ALENTS (A+B+C)ALENTS (A+B+C) 3,836.573,836.573,836.573,836.573,836.57 (5,809.39)(5,809.39)(5,809.39)(5,809.39)(5,809.39)

CASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVALENTS AALENTS AALENTS AALENTS AALENTS AT THE BEGINNING OF THE YEART THE BEGINNING OF THE YEART THE BEGINNING OF THE YEART THE BEGINNING OF THE YEART THE BEGINNING OF THE YEAR 1,829.621,829.621,829.621,829.621,829.62 6,556.446,556.446,556.446,556.446,556.44

CASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVALENTS AALENTS AALENTS AALENTS AALENTS AT THE END OF THE YEART THE END OF THE YEART THE END OF THE YEART THE END OF THE YEART THE END OF THE YEAR(for the purpose of cash flows, cash and cash equivalents 5,666.195,666.195,666.195,666.195,666.19 747.05747.05747.05747.05747.05comprise book overdraft)

COMPONENTS OF CASH AND CASH EQUIVCOMPONENTS OF CASH AND CASH EQUIVCOMPONENTS OF CASH AND CASH EQUIVCOMPONENTS OF CASH AND CASH EQUIVCOMPONENTS OF CASH AND CASH EQUIVALENTSALENTSALENTSALENTSALENTSBalances with banks:-

On current accounts 6,368.91 532.54On EEFC Accounts 69.67 22.76Deposits with original maturity of less than three months 11.25 1,146.14

Cheques/drafts on hand 89.16 48.64Cash on Hand 58.90 79.53Less: Book Overdraft (931.70) (1,082.56)

5,666.195,666.195,666.195,666.195,666.19 747.05747.05747.05747.05747.05

Notes:1. The figures in bracket indicates outflows.2. The cash flow has been prepared under the “Indirect method” as set out in Indian Accounting Standard (Ind AS)

7 - Statement of Cash FlowsSee accompanying notes to the financial statements.








PPPPParticularsarticularsarticularsarticularsarticulars FFFFFor the year endedor the year endedor the year endedor the year endedor the year ended FFFFFor the year endedor the year endedor the year endedor the year endedor the year ended31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)


50

NONONONONOTES TTES TTES TTES TTES TO THE STO THE STO THE STO THE STO THE STANDANDANDANDANDALALALALALONE FINANCIALS STONE FINANCIALS STONE FINANCIALS STONE FINANCIALS STONE FINANCIALS STAAAAATEMENTS FOR THE YEAR ENDED 31 MARCH 2017TEMENTS FOR THE YEAR ENDED 31 MARCH 2017TEMENTS FOR THE YEAR ENDED 31 MARCH 2017TEMENTS FOR THE YEAR ENDED 31 MARCH 2017TEMENTS FOR THE YEAR ENDED 31 MARCH 2017

1.1.1.1.1. i)i)i)i)i) Corporate InformationCorporate InformationCorporate InformationCorporate InformationCorporate Information

Bharat Hotels Limited, (‘the Company’) is a public company domiciled in India and incorporated under theprovisions of the Companies Act, 1956. The Company is engaged in the business of operating hotels. TheCompany has properties in twelve locations (including one under construction) and has its principal place ofbusiness located at Barakhamba Lane, New delhi -110001.

The standalone financial statements were authorised for issue in accordance with a resolution of the directorson 26 May, 2017.

ii)ii)ii)ii)ii) Basis of PBasis of PBasis of PBasis of PBasis of Preparationreparationreparationreparationreparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards(Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended.

For all periods up to and including the year ended 31 March 2016, the Company prepared its financialstatements in accordance with accounting standards notified under the section 133 of the Companies Act2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Thesefinancial statements for the year ended 31 March 2017 are the first the Company has prepared in accordancewith Ind AS. Refer to note 61 for information on how the Company adopted Ind AS.

The financial statements have been prepared on a historical cost basis, except for the following assets andliabilities which have been measured at fair value or revalued amount:

• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financialinstruments),

• Property, plant and equipment and intangible assets have been carried at deemed cost (which includesrevalued amount of land and building at certain locations) on the date of transition using the optionalexemption allowed under Ind AS 101

The standalone financial statements are presented in INR and all values are rounded to the nearest lacs(INR 00,000), except when otherwise indicated.

iii)iii)iii)iii)iii) Significant Accounting PSignificant Accounting PSignificant Accounting PSignificant Accounting PSignificant Accounting Policiesoliciesoliciesoliciesolicies

a)a)a)a)a) Current versus non-Current versus non-Current versus non-Current versus non-Current versus non-current classificationcurrent classificationcurrent classificationcurrent classificationcurrent classificationThe Company presents assets and liabilities in the balance sheet based on current/ non-currentclassification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle• Held primarily for the purpose of trading• Expected to be realised within twelve months after the reporting period, or• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least

twelve months after the reporting period

All other assets are classified as non-current.A liability is current when:• It is expected to be settled in normal operating cycle• It is held primarily for the purpose of trading• It is due to be settled within twelve months after the reporting period, or• There is no unconditional right to defer the settlement of the liability for at least twelve months after the

reporting period

51

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation incash and cash equivalents. The Company has identified twelve months as its operating cycle.

b)b)b)b)b) PPPPPropertyropertyropertyropertyroperty, Plant and Equipment, Plant and Equipment, Plant and Equipment, Plant and Equipment, Plant and Equipment

Recognition and initial measurement

Under the previous GAAP (Indian GAAP), property plant and equipment were carried in the balancesheet at their cost of purchase except for land and building at certain locations which were carried atrevalued amount. Using the deemed cost exemption available as per Ind AS 101, the Company haselected to carry forward these carrying value of PPE under Indian GAAP as on 31 March 2015 as bookvalue of such assets under Ind AS as at the transition date i.e. 1 April 2015.

Capital work in progress, plant and equipment is stated at cost, net of accumulated depreciation andaccumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant andequipment and borrowing costs for long-term construction projects if the recognition criteria are met.When significant parts of plant and equipment are required to be replaced at intervals, the Companydepreciates them separately based on their specific useful lives. Likewise, when a major inspection isperformed, its cost is recognised in the carrying amount of the plant and equipment as a replacementif the recognition criteria are satisfied. All other repair and maintenance costs are recognised in statementof profit or loss as incurred. The present value of the expected cost for the decommissioning of an assetafter its use is included in the cost of the respective asset if the recognition criteria for a provision aremet.

Subsequent measurement (depreciation and useful lives)Depreciation on property, plant and equipment is provided on the straight-line method using the ratesarrived on the basis of the useful life which coincides with the useful life prescribed under Schedule II ofthe Companies Act, 2013. The identified components are depreciated over their useful lives; the remainingasset is depreciated over the life of the principal asset.

Leasehold buildings are amortized on a straight line basis over the unexpired period of lease or usefullife, whichever is lower.

Non RCC structures for conference halls are depreciated over the period of eight years or their estimateduseful life, whichever is lower.

The residual values, useful lives and method of depreciation of are reviewed at each financial year endand adjusted prospectively, if appropriate.

De-recognitionAn item of property, plant and equipment and any significant part initially recognised is derecognizedupon disposal or when no future economic benefits are expected from its use or disposal. Any gain orloss arising on de-recognition of the asset (calculated as the difference between the net disposal proceedsand the carrying amount of the asset) is included in the income statement when the asset is derecognized.

c)c)c)c)c) Intangible AssetsIntangible AssetsIntangible AssetsIntangible AssetsIntangible Assets

Recognition and initial measurement

Intangible assets acquired separately are measured on initial recognition at cost. Following initialrecognition, intangible assets are carried at cost less any accumulated amortisation and accumulatedimpairment losses, if any.


52

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairmentwhenever there is an indication that the intangible asset may be impaired. The amortisation period andthe amortisation method for an intangible asset with a finite useful life are reviewed at least at the endof each reporting period. Changes in the expected useful life or the expected pattern of consumption offuture economic benefits embodied in the asset are considered to modify the amortisation period ormethod, as appropriate, and are treated as changes in accounting estimates. The amortisation expenseon intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditureforms part of carrying value of another asset.

Using the deemed cost exemption available as per Ind AS 101, the Company has elected to carryforward the carrying value of intangible assets under Indian GAAP as on 31 March 2015 as book valueof such assets under Ind AS as at the transition date i.e. 1 April 2015.

Subsequent measurementThe Company has capitalised computer software in the nature of software licenses as intangible assetsand the cost of software is amortized over the license period or three years, being their expected usefuleconomic life, whichever is lower.

Gains or losses arising from derecognition of an intangible asset are measured as the difference betweenthe net disposal proceeds and the carrying amount of the asset and are recognised in the statement ofprofit or loss when the asset is derecognised.

d)d)d)d)d) Impairment of non-financial AssetsImpairment of non-financial AssetsImpairment of non-financial AssetsImpairment of non-financial AssetsImpairment of non-financial AssetsThe Company assesses, at each reporting date, whether there is an indication that an asset may beimpaired. If any indication exists, or when annual impairment testing for an asset is required, theCompany estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of anasset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverableamount is determined for an individual asset, unless the asset does not generate cash inflows that arelargely independent of those from other assets or groups of assets. When the carrying amount of anasset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down toits recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using apre-tax discount rate that reflects current market assessments of the time value of money and the risksspecific to the asset. In determining fair value less costs of disposal, recent market transactions are takeninto account. If no such transactions can be identified, an appropriate valuation model is used. Thesecalculations are corroborated by valuation multiples, quoted share prices for publicly traded companiesor other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, whichare prepared separately for each of the Company’s CGUs to which the individual assets are allocated.These budgets and forecast calculations generally cover a period of five years. For longer periods, along-term growth rate is calculated and applied to project future cash flows after the fifth year. Toestimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Companyextrapolates cash flow projections in the budget using a steady or declining growth rate for subsequentyears, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the market in which the asset is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in thestatement of Profit and Loss, except for properties previously revalued with the revaluation surplus takento OCI. For such properties, the impairment is recognised in OCI up to the amount of any previousrevaluation surplus.

53

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaininguseful life.

The impairment assessment for all assets is made at each reporting date to determine whether there isan indication that previously recognised impairment losses no longer exist or have decreased. If suchindication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previouslyrecognised impairment loss is reversed only if there has been a change in the assumptions used todetermine the asset’s recoverable amount since the last impairment loss was recognised. The reversal islimited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed thecarrying amount that would have been determined, net of depreciation, had no impairment loss beenrecognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss.

e)e)e)e)e) FFFFForeign Currenciesoreign Currenciesoreign Currenciesoreign Currenciesoreign CurrenciesItems included in the financial statements of the Company are measured using the currency of theprimary economic environment in which the Company operates (‘the functional currency’). The financialstatements are presented in Indian Rupee (INR), which is the Company’s functional and presentationcurrency.

TTTTTransactions and balancesransactions and balancesransactions and balancesransactions and balancesransactions and balancesTransactions in foreign currencies are initially recorded by the Company at its functional currency spotrates at the date the transaction first qualifies for recognition. However, for practical reasons, the Companyuses an average rate if the average approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currencyspot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in profit orloss.

Under previous GAAP, from accounting periods commencing on or after 1 April 2011, exchangedifferences arising on translation/ settlement of long term foreign currency monetary items pertaining tothe acquisition of a depreciable asset were adjusted to the cost of the asset. In accordance with MCAcircular dated 09 August 2012, exchange differences adjusted to the cost of fixed assets are totaldifferences, arising on long-term foreign currency monetary items pertaining to the acquisition of adepreciable asset, for the period. In other words, the Company does not differentiate between exchangedifferences arising from foreign currency borrowings to the extent they are regarded as an adjustmentto the interest cost and other exchange difference. Such exchange differences arising on translation/settlement of longterm foreign currency monetary items and pertaining to the acquisition of a depreciableasset were amortised over the remaining useful lives of the assets. The Company has elected to continuewith the said policy on exchange differences arising on long term foreign currency monetary itemsexisting on 31 March 2016 as allowed under Ind AS 101.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translatedusing the exchange rates at the dates of the initial transactions. Non-monetary items measured at fairvalue in a foreign currency are translated using the exchange rates at the date when the fair value isdetermined. The gain or loss arising on translation of non-monetary items measured at fair value istreated in line with the recognition of the gain or loss on the change in fair value of the item (i.e.,translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss arealso recognised in OCI or profit or loss, respectively).

f)f)f)f)f) FFFFFair Vair Vair Vair Vair Value Measurementalue Measurementalue Measurementalue Measurementalue MeasurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. The fair value measurement is based


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on the presumption that the transaction to sell the asset or transfer the liability takes place either:• In the principal market for the asset or liability, or• In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants woulduse when pricing the asset or liability, assuming that market participants act in their economic bestinterest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability togenerate economic benefits by using the asset in its highest and best use or by selling it to anothermarket participant that would use the asset in its highest and best use.

BHL uses valuation techniques that are appropriate in the circumstances and for which sufficient dataare available to measure fair value, maximizing the use of relevant observable inputs and minimizingthe use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements arecategorized within the fair value hierarchy, described as follows, based on the lowest level input that issignificant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement is Unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, BHLdetermines whether transfers have occurred between levels in the hierarchy by re-assessing categorization(based on the lowest level input that is significant to the fair value measurement as a whole) at the endof each reporting period or each case.

For the purpose of fair value disclosures, BHL has determined classes of assets and liabilities on thebasis of the nature, characteristics and risks of the asset or liability and the level of the fair valuehierarchy as explained above.

This note summarizes accounting policy for fair value. Other fair value related disclosures are given inthe relevant notes.

o Disclosures for valuation methods, significant estimates and assumptions

o Quantitative disclosures of fair value measurement hierarchy

o Investment in unquoted equity shares

o Financial instruments

g)g)g)g)g) Revenue RecognitionRevenue RecognitionRevenue RecognitionRevenue RecognitionRevenue RecognitionRevenue is recognised to the extent that it is probable that the economic benefits will flow to the Companyand the revenue can be reliably measured, regardless of when the payment is being made. Revenue ismeasured at the fair value of the consideration received or receivable, taking into account contractuallydefined terms of payment and excluding taxes or duties collected on behalf of the government. TheCompany has concluded that it is the principal in all of its revenue arrangements since it is the primaryobligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory andcredit risks.

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The Company applies the revenue recognition criteria to each separately identifiable component of thesales transaction as set out below:

Revenue from hotel operations:Revenue from hotel operations:Revenue from hotel operations:Revenue from hotel operations:Revenue from hotel operations:Revenue from hotel operations comprise sale of rooms and apartments, food and beverages, liquorand wine, banquet rentals and other services relating to hotel operations including telecommunication,laundry, business centre, health centre etc. Revenue is recognized as and when the services are renderedand is disclosed net of allowances.

Aircraft charter:Aircraft charter:Aircraft charter:Aircraft charter:Aircraft charter:Revenue from hiring of the aircraft is recognized as and when services are rendered.

Rent:Rent:Rent:Rent:Rent:Income from rent is recognized over the period of the contract on straight line basis. Initial direct cost isexpensed off when incurred.

Maintenance charges:Maintenance charges:Maintenance charges:Maintenance charges:Maintenance charges:Amounts collectible as maintenance charges are recognized over the period of the contract, on anaccrual basis. Corresponding costs are recorded as incurred.

Membership programme:Membership programme:Membership programme:Membership programme:Membership programme:Membership revenue is recognized pro rata over the period of the membership term. Joining fee isrecorded as income on sale of membership card.

LLLLLoyalty points programme:oyalty points programme:oyalty points programme:oyalty points programme:oyalty points programme:The Company operates a Lalit loyalty points programme, Lalit Connect, Lalit Plus, Lalit Engage, whichallows customers to accumulate points when they stay in the hotels of the Company. The points can beredeemed for free stay, subject to a minimum number of points being obtained. The fair value of thepoints issued is deferred and recognized as revenue when the points are redeemed.

Sale of goods (TSale of goods (TSale of goods (TSale of goods (TSale of goods (Trading goods)rading goods)rading goods)rading goods)rading goods)Revenue is recognized when all significant risks and rewards of ownership of the goods have passed tothe buyer.

Interest Income:Interest Income:Interest Income:Interest Income:Interest Income:For all debt instruments measured either at amortised cost or at fair value through other comprehensiveincome, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactlydiscounts the estimated future cash payments or receipts over the expected life of the financial instrumentor a shorter period, where appropriate, to the gross carrying amount of the financial asset or to theamortised cost of a financial liability. When calculating the effective interest rate, the Company estimatesthe expected cash flows by considering all the contractual terms of the financial instrument (for example,prepayment, extension, call and similar options) but does not consider the expected credit losses. Interestincome is included in finance income in the statement of profit and loss.

Interest income on fixed deposits is recognised on a time proportion basis taking into account theamount outstanding and the applicable interest rate.

Commission Income:Commission Income:Commission Income:Commission Income:Commission Income:Income is recognized when right to receive payment is established by the terms of the contract.

Consultancy / Management fee:Consultancy / Management fee:Consultancy / Management fee:Consultancy / Management fee:Consultancy / Management fee:Consultancy / Management fee is recognized on accrual basis when right to receive payment is establishedby the terms of the contract.


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Dividend incomeDividend incomeDividend incomeDividend incomeDividend incomeDividend income is recognised at the time when right to receive the payment is established, which isgenerally when the shareholders approve the dividend.

h)h)h)h)h) Borrowing CostsBorrowing CostsBorrowing CostsBorrowing CostsBorrowing CostsBorrowing costs directly attributable to the acquisition, construction or production of an asset thatnecessarily takes a substantial period of time to get ready for its intended use or sale are capitalized aspart of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowingof funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment tothe borrowing costs.

i)i)i)i)i) FFFFFinancial Instrumentsinancial Instrumentsinancial Instrumentsinancial Instrumentsinancial InstrumentsA financial instrument is any contract that gives rise to a financial asset of one entity and a financialliability or equity instrument of another entity.

FFFFFinancial assetsinancial assetsinancial assetsinancial assetsinancial assetsInitial recognition and measurementAll financial assets are recognised initially at fair value plus, in the case of financial assets not recordedat fair value through profit or loss, transaction costs that are attributable to the acquisition of the financialasset. Purchases or sales of financial assets that require delivery of assets within a time frame establishedby regulation or convention in the market place (regular way trades) are recognised on the trade date,i.e., the date that the Company commits to purchase or sell the asset.

For purposes of subsequent measurement, financial assets are classified in four categories:• Debt instruments at amortised cost• Equity instruments at fair value through profit or loss (FVTPL)• Derecognition• Impairment of financial assets

Debt instruments at amortised costDebt instruments at amortised costDebt instruments at amortised costDebt instruments at amortised costDebt instruments at amortised costA ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:a) The asset is held within a business model whose objective is to hold assets for collecting contractual

cash flows, andb) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of

principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using theeffective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount orpremium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation isincluded in finance income in the profit or loss. The losses arising from impairment are recognised inthe profit or loss. This category generally applies to trade, security deposits and other receivables.

Equity investmentsEquity investmentsEquity investmentsEquity investmentsEquity investmentsAll equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which areheld for trading and contingent consideration recognised by an acquirer in a business combination towhich Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company maymake an irrevocable election to present in other comprehensive income subsequent changes in the fairvalue. The Company makes such election on an instrument-by-instrument basis. The classification ismade on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on theinstrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts fromOCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain orloss within equity.

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Equity instruments included within the FVTPL category are measured at fair value with all changesrecognized in the P&L.

DerecognitionDerecognitionDerecognitionDerecognitionDerecognitionA financial asset (or, where applicable, a part of a financial asset or part of a group of similar financialassets) is primarily derecognised (i.e. removed from the Company’s consolidated balance sheet) when:

• The rights to receive cash flows from the asset have expired, or• The Company has transferred its rights to receive cash flows from the asset or has assumed an

obligation to pay the received cash flows in full without material delay to a third party under a‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risksand rewards of the asset, or (b) the Company has neither transferred nor retained substantially allthe risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into apass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards ofownership. When it has neither transferred nor retained substantially all of the risks and rewards of theasset, nor transferred control of the asset, the Company continues to recognise the transferred asset tothe extent of the Company’s continuing involvement. In that case, the Company also recognises anassociated liability. The transferred asset and the associated liability are measured on a basis thatreflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at thelower of the original carrying amount of the asset and the maximum amount of consideration that theCompany could be required to repay.

Impairment of financial assetsImpairment of financial assetsImpairment of financial assetsImpairment of financial assetsImpairment of financial assetsIn accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurementand recognition of impairment loss on the following financial assets and credit risk exposure:a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debtsecurities, deposits, trade receivables and bank balanceb) Lease receivables under Ind AS 17c) Trade receivables or any contractual right to receive cash or another financial asset that result fromtransactions that are within the scope of Ind AS 11 and Ind AS 18d) Financial guarantee contracts which are not measured as at FVTPLThe Company follows ‘simplified approach’ for recognition of impairment loss allowance on:• Trade receivables; and• All lease receivables resulting from transactions within the scope of Ind AS 17

The application of simplified approach does not require the Company to track changes in credit risk.Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, rightfrom its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determinesthat whether there has been a significant increase in the credit risk since initial recognition. If credit riskhas not increased significantly, 12-month ECL is used to provide for impairment loss. However, if creditrisk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of theinstrument improves such that there is no longer a significant increase in credit risk since initial recognition,then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expectedlife of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results fromdefault events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance withthe contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted


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at the original EIR. When estimating the cash flows, an entity is required to consider:• All contractual terms of the financial instrument (including prepayment, extension, call and similar

options) over the expected life of the financial instrument. However, in rare cases when the expectedlife of the financial instrument cannot be estimated reliably, then the entity is required to use theremaining contractual term of the financial instrument

• Cash flows from the sale of collateral held or other credit enhancements that are integral to thecontractual terms

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowanceon portfolio of its trade receivables. The provision matrix is based on its historically observed defaultrates over the expected life of the trade receivables and is adjusted for forward-looking estimates. Atevery reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the the Company estimates the following provisionmatrix at the reporting date, except to the individual cases where recoverability is certain:

LLLLLess than or equal to 365 daysess than or equal to 365 daysess than or equal to 365 daysess than or equal to 365 daysess than or equal to 365 days More than 365 daysMore than 365 daysMore than 365 daysMore than 365 daysMore than 365 days

Default rate 0% 100%

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the statement of profit and loss. This amount is reflected under the head ‘other expenses’ inthe statement of profit and loss. The balance sheet presentation for financial instruments is describedbelow:• Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an

integral part of the measurement of those assets in the balance sheet. The allowance reduces thenet carrying amount. Until the asset meets write-off criteria, the Company does not reduceimpairment allowance from the gross carrying amount.

For assessing increase in credit risk and impairment loss, the Company combines financial instrumentson the basis of shared credit risk characteristics with the objective of facilitating an analysis that isdesigned to enable significant increases in credit risk to be identified on a timely basis.

FFFFFinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilities

Initial recognition and measurementInitial recognition and measurementInitial recognition and measurementInitial recognition and measurementInitial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profitor loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in aneffective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings andpayables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings includingbank overdrafts and financial guarantee contracts.

Subsequent measurementSubsequent measurementSubsequent measurementSubsequent measurementSubsequent measurementThe measurement of financial liabilities depends on their classification, as described below:

LLLLLoans and borrowingsoans and borrowingsoans and borrowingsoans and borrowingsoans and borrowingsThis is the category most relevant to the Company. After initial recognition, interest-bearing loans andborrowings are subsequently measured at amortised cost using the EIR method. Gains and losses arerecognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisationprocess.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees orcosts that are an integral part of the EIR. The EIR amortisation is included as finance costs in thestatement of profit and loss. This category generally applies to borrowings.

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FFFFFinancial guarantee contractsinancial guarantee contractsinancial guarantee contractsinancial guarantee contractsinancial guarantee contractsFinancial guarantee contracts issued by the Company are those contracts that require a payment to bemade to reimburse the holder for a loss it incurs because the specified debtor fails to make a paymentwhen due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognisedinitially as a liability at fair value, adjusted for transaction costs that are directly attributable to theissuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of lossallowance determined as per impairment requirements of Ind AS 109 and the amount recognised lesscumulative amortisation.

DerecognitionDerecognitionDerecognitionDerecognitionDerecognitionA financial liability is derecognised when the obligation under the liability is discharged or cancelled orexpires. When an existing financial liability is replaced by another from the same lender on substantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange ormodification is treated as the derecognition of the original liability and the recognition of a new liability.The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assetsReclassification of financial assetsReclassification of financial assetsReclassification of financial assetsReclassification of financial assetsThe Company determines classification of financial assets and liabilities on initial recognition. Afterinitial recognition, no reclassification is made for financial assets which are equity instruments andfinancial liabilities. For financial assets which are debt instruments, a reclassification is made only ifthere is a change in the business model for managing those assets. Changes to the business model areexpected to be infrequent. The Company’s senior management determines change in the businessmodel as a result of external or internal changes which are significant to the Company’s operations.Such changes are evident to external parties. A change in the business model occurs when the Companyeither begins or ceases to perform an activity that is significant to its operations. If the Company reclassifiesfinancial assets, it applies the reclassification prospectively from the reclassification date which is the firstday of the immediately next reporting period following the change in business model. The Companydoes not restate any previously recognised gains, losses (including impairment gains or losses) orinterest.

The following table shows various reclassification and how they are accounted for:

OriginalOriginalOriginalOriginalOriginal RevisedRevisedRevisedRevisedRevised Accounting treatmentAccounting treatmentAccounting treatmentAccounting treatmentAccounting treatmentclassificationclassificationclassificationclassificationclassification classification classification classification classification classification

Amortised cost FVTPL Fair value is measured at reclassification date. Difference betweenprevious amortized cost and fair value is recognised in P&L

FVTPL Amortised Cost Fair value at reclassification date becomes its new gross carryingamount. EIR is calculated based on the new gross carrying amount

Amortised cost FVTOCI Fair value is measured at reclassification date. Difference betweenprevious amortised cost and fair value is recognised in OCI. Nochange in EIR due to reclassification

FVTOCI Amortised cost Fair value at reclassification date becomes its new amortised costcarrying amount. However, cumulative gain or loss in OCI isadjusted against fair value. Consequently, the asset is measuredas if it had always been measured at amortised cost

FVTPL FVTOCI Fair value at reclassification date becomes its new carryingamount. No other adjustment is required

FVTOCI FVTPL Assets continue to be measured at fair value. Cumulative gain orloss previously recognised in OCI is reclassified to P&L at thereclassification date


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Offsetting of financial instrumentsOffsetting of financial instrumentsOffsetting of financial instrumentsOffsetting of financial instrumentsOffsetting of financial instrumentsFinancial assets and financial liabilities are offset and the net amount is reported in the balance sheet ifthere is a currently enforceable legal right to offset the recognised amounts and there is an intention tosettle on a net basis, to realize the assets and settle the liabilities simultaneously.

j)j)j)j)j) Retirement and other employee benefitsRetirement and other employee benefitsRetirement and other employee benefitsRetirement and other employee benefitsRetirement and other employee benefitsRetirement benefit in the form of provident fund is a defined contribution scheme. The Company has noobligation, other than the contribution payable to the provident fund. The Company recognizescontribution payable to the provident fund scheme as an expense, when an employee renders therelated service. The Company has no obligation other than the contribution payable to the ProvidedFund.

The Company operates a defined benefit gratuity plan in India. The cost of providing benefits under thedefined benefit plan is determined using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net intereston the net defined benefit liability are recognized immediately in the balance sheet with a correspondingdebit or credit to retained earnings through OCI in the period in which they occur. Remeasurements arenot reclassified to profit or loss in subsequent periods.

Other Employee BenefitsOther Employee BenefitsOther Employee BenefitsOther Employee BenefitsOther Employee Benefits

Compensated absencesLiability in respect of compensated absences becoming due or expected to be availed within one yearfrom the balance sheet date is recognised on the basis of undiscounted value of estimated amountrequired to be paid or estimated value of benefit expected to be availed by the employees. Liability inrespect of compensated absences becoming due or expected to be availed more than one year after thebalance sheet date is estimated on the basis of an actuarial valuation performed by an independentactuary using the projected unit credit method. The Company presents the entire leave as a currentliability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12months after the reporting date.

k)k)k)k)k) PPPPProvisionsrovisionsrovisionsrovisionsrovisions

GeneralGeneralGeneralGeneralGeneralProvisions are recognised when the Company has a present obligation (legal or constructive) as a resultof a past event, it is probable that an outflow of resources embodying economic benefits will be requiredto settle the obligation and a reliable estimate can be made of the amount of the obligation. When theCompany expects some or all of a provision to be reimbursed, for example, under an insurance contract,the reimbursement is recognised as a separate asset, but only when the reimbursement is virtuallycertain. The expense relating to a provision is presented in the statement of Profit and Loss net of anyreimbursement.

l)l)l)l)l) Earnings per shareEarnings per shareEarnings per shareEarnings per shareEarnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable toequity shareholders (after deducting attributable taxes) by the weighted average number of equityshares outstanding during the period. The weighted average number of equity shares outstandingduring the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributableto equity shareholders and the weighted average number of shares outstanding during the period areadjusted for the effects of all dilutive potential equity shares.

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m)m)m)m)m) LLLLLeaseseaseseaseseaseseasesThe determination of whether an arrangement is (or contains) a lease is based on the substance of thearrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of thearrangement is dependent on the use of a specific asset or assets and the arrangement conveys a rightto use the asset or assets, even if that right is not explicitly specified in an arrangement.

For arrangements entered into prior to 1 April 2015, the Company has determined whether thearrangement contain lease on the basis of facts and circumstances existing on the date of transition.

Company as a LCompany as a LCompany as a LCompany as a LCompany as a LesseeesseeesseeesseeesseeA lease is classified at the inception date as a finance lease or an operating lease. A lease that transferssubstantially all the risks and rewards incidental to ownership to the Company is classified as a financelease.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of theleased property or, if lower, at the present value of the minimum lease payments. Lease payments areapportioned between finance charges and reduction of the lease liability so as to achieve a constantrate of interest on the remaining balance of the liability. Finance charges are recognised in finance costsin the statement of profit and loss. Contingent rentals are recognised as expenses in the periods inwhich they are incurred. Lease management fees, legal charges and other initial direct costs arecapitalized.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certaintythat the Company will obtain ownership by the end of the lease term, the asset is depreciated over theshorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on astraight-line basis over the lease term, except in case where lease rentals are structured to increase inline with expected general inflation to compensate for the lessor’s expected inflationary cost.

Company as a LCompany as a LCompany as a LCompany as a LCompany as a LessoressoressoressoressorLeases in which the Company does not transfer substantially all the risks and rewards of ownership ofan asset are classified as operating leases. Rental income from operating lease is recognised on astraight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating andarranging an operating lease are added to the carrying amount of the leased asset and recognised overthe lease term on the same basis as rental income. Contingent rents are recognised as revenue in theperiod in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownershiptransfer from the Company to the lessee. Amounts due from lessees under finance leases are recordedas receivables at the Company’s net investment in the leases. Finance lease income is allocated toaccounting periods so as to reflect a constant periodic rate of return on the net investment outstandingin respect of the lease.

n)n)n)n)n) TTTTTaxesaxesaxesaxesaxes

Current income taxCurrent income taxCurrent income taxCurrent income taxCurrent income taxCurrent income tax assets and liabilities are measured at the amount expected to be recovered from orpaid to the taxation authorities. The tax rates and tax laws used to compute the amount are those thatare enacted or substantively enacted, at the reporting date in the countries where the Company operatesand generates taxable income.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss(either in other comprehensive income or in equity). Current tax items are recognised in correlation to


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the underlying transaction either in OCI or directly in equity. Management periodically evaluates positionstaken in the tax returns with respect to situations in which applicable tax regulations are subject tointerpretation and establishes provisions where appropriate.

Deferred taxDeferred taxDeferred taxDeferred taxDeferred taxDeferred tax is provided using the liability method on temporary differences between the tax bases ofassets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

• When the deferred tax liability arises from the initial recognition of goodwill or an asset or liabilityin a transaction that is not a business combination and, at the time of the transaction, affectsneither the accounting profit nor taxable profit or loss

• In respect of taxable temporary differences associated with investments in subsidiaries, associatesand interests in joint ventures, when the timing of the reversal of the temporary differences can becontrolled and it is probable that the temporary differences will not reverse in the foreseeablefuture

Deferred tax assets are recognised for all deductible temporary differences, the carry forward ofunused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent thatit is probable that taxable profit will be available against which the deductible temporary differences,and the carry forward of unused tax credits and unused tax losses can be utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises from the initialrecognition of an asset or liability in a transaction that is not a business combination and, at thetime of the transaction, affects neither the accounting profit nor taxable profit or loss

• In respect of deductible temporary differences associated with investments in subsidiaries, associatesand interests in joint ventures, deferred tax assets are recognised only to the extent that it isprobable that the temporary differences will reverse in the foreseeable future and taxable profitwill be available against which the temporary differences can be utilized

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extentthat it is no longer probable that sufficient taxable profit will be available to allow all or part of thedeferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reportingdate and are recognised to the extent that it has become probable that future taxable profits will allowthe deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the yearwhen the asset is realised or the liability is settled, based on tax rates (and tax laws) that have beenenacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (eitherin other comprehensive income or in equity). Deferred tax items are recognised in correlation to theunderlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set offcurrent tax assets against current tax liabilities and the deferred taxes relate to the same taxable entityand the same taxation authority.

o)o)o)o)o) Non-Non-Non-Non-Non-current assets held for salecurrent assets held for salecurrent assets held for salecurrent assets held for salecurrent assets held for saleThe Company classifies non-current assets and disposal groups as held for sale/ distribution to ownersif their carrying amounts will be recovered principally through a sale/ distribution rather than through

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continuing use. Actions required to complete the sale should indicate that it is unlikely that significantchanges to the sale will be made or that the decision to sell will be withdrawn. Management must becommitted to the sale expected within one year from the date of classification.

For these purposes, sale transactions include exchanges of non-current assets for other non-currentassets when the exchange has commercial substance. The criteria for held for sale classification isregarded met only when the assets or disposal group is available for immediate sale in its presentcondition, subject only to terms that are usual and customary for sales/ distribution of such assets (ordisposal groups), its sale is highly probable; and it will genuinely be sold, not abandoned. The Companytreats sale of the asset highly probable when:

o The appropriate level of management is committed to a plan to sell the asset (or disposal group),o An active programme to locate a buyer and complete the plan has been initiated (if applicable),o The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in

relation to its current fair value,o The sale is expected to qualify for recognition as a completed sale within one year from the date of

classification, ando Actions required to complete the plan indicate that it is unlikely that significant changes to the plan

will be made or that the plan will be withdrawn.

p)p)p)p)p) InventoriesInventoriesInventoriesInventoriesInventoriesInventories are valued at the lower of cost and net realisable value. Costs incurred in bringing eachproduct to its present location and condition are accounted for as follows:

Stores and spares inventory comprises cutlery, crockery, linen, other store items food and beverage,liquor and wine items in hand: Cost is determined on first in first out basis. Circulating stock of crockeryand cutlery issued for more than two months is charged to the profit and loss account as consumption.

Trading goods: Cost includes cost of purchase and other costs incurred in bringing the inventories totheir present location and condition. Cost is determined on a first in first out basis.

Net realizable value is the estimated selling price in the ordinary course of the business, less estimatedcosts necessary to make the sale.

Inventory of food and beverage items in hand includes items used for staff cafeteria and is charged toconsumption, net of recoveries, when issued.

q)q)q)q)q) Government grants and subsidiesGovernment grants and subsidiesGovernment grants and subsidiesGovernment grants and subsidiesGovernment grants and subsidiesGovernment grants are recognised where there is reasonable assurance that the grant will be receivedand all attached conditions will be complied with. When the grant relates to an expense item, it isrecognised as income on a systematic basis over the periods that the related costs, for which it isintended to compensate, are expensed. When the grant relates to an asset, it is recognised as incomein equal amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fairvalue amounts and released to profit or loss over the expected useful life in a pattern of consumption ofthe benefit of the underlying asset i.e. by equal annual instalments. When loans or similar assistanceare provided by governments or related institutions, with an interest rate below the current applicablemarket rate, the effect of this favourable interest is regarded as a government grant. The loan orassistance is initially recognised and measured at fair value and the government grant is measured asthe difference between the initial carrying value of the loan and the proceeds received. The loan issubsequently measured as per the accounting policy applicable to financial liabilities.


64

r)r)r)r)r) Use of estimatesUse of estimatesUse of estimatesUse of estimatesUse of estimatesThe preparation of the financial statements in conformity with Ind AS requires management to makeestimates, judgments and assumptions. These estimates, judgments and assumptions affect the applicationof accounting policies and the reported amounts of assets and liabilities, the disclosures of contingentassets and liabilities at the date of the financial statements and reported amounts of revenues andexpenses during the period. Application of accounting policies that require critical accounting estimatesinvolving complex and subjective judgments and the use of assumptions in these financial statementshave been disclosed in note 41. Accounting estimates could change from period to period. Actualresults could differ from those estimates. Appropriate changes in estimates are made as managementbecomes aware of changes in circumstances surrounding the estimates. Changes in estimates arereflected in the financial statements in the period in which changes are made and, if material, theireffects are disclosed in the notes to the financial statements.

s)s)s)s)s) Segment reportingSegment reportingSegment reportingSegment reportingSegment reportingOperating segments are reported in a manner consistent with the internal reporting provided to thechief operating decision maker.

Identification of segments:Identification of segments:Identification of segments:Identification of segments:Identification of segments:In accordance with Ind AS 108– Operating Segment, the operating segments used to present segmentinformation are identified on the basis of information reviewed by the Company’s management toallocate resources to the segments and assess their performance. An operating segment is a componentof the Company that engages in business activities from which it earns revenues and incurs expenses,including revenues and expenses that relate to transactions with any of the Company’s other components.Results of the operating segments are reviewed regularly by the management team (chairman and chieffinancial officer) which has been identified as the chief operating decision maker (CODM), to makedecisions about resources to be allocated to the segment and assess its performance and for whichdiscrete financial information is available.

Allocation of common costs:Allocation of common costs:Allocation of common costs:Allocation of common costs:Allocation of common costs:Common allocable costs are allocated to each segment accordingly to the relative contribution of eachsegment to the total common costs.

Unallocated items:Unallocated items:Unallocated items:Unallocated items:Unallocated items:Unallocated items include general corporate income and expense items which are not allocated to anybusiness segment.

Segment accounting policiesSegment accounting policiesSegment accounting policiesSegment accounting policiesSegment accounting policiesThe Company prepares its segment information in conformity with the accounting policies adopted forpreparing and presenting the financial statements of the Company as a whole.

t)t)t)t)t) Cash and cash equivalentsCash and cash equivalentsCash and cash equivalentsCash and cash equivalentsCash and cash equivalentsCash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-termdeposits with an original maturity of three months or less, which are subject to an insignificant risk ofchanges in value.

u)u)u)u)u) Cash dividend distribution to equity holdersCash dividend distribution to equity holdersCash dividend distribution to equity holdersCash dividend distribution to equity holdersCash dividend distribution to equity holdersThe Company recognises a liability to make cash distributions to equity holders when the distribution isauthorised and the distribution is no longer at the discretion of the Company. As per the corporate lawsin India, a distribution is authorised when it is approved by the shareholders. A corresponding amountis recognised directly in equity.

65

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arch

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16

At

31

Mar

ch 2

01

63

6,2

45

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36

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5.1

43

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45

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5.1

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18

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4.6

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8,0

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4.6

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0,8

28

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40

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8.5

44

0,8

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8.5

44

0,8

28

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16

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1.0

81

6,5

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16

,59

1.0

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6,5

91

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16

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1.0

82

71

.00

27

1.0

02

71

.00

27

1.0

02

71

.00

2,6

65

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2,6

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3.5

03

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0,4

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Acc

umul

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ulat

ed d

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ciat

ion

Acc

umul

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dep

reci

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ulat

ed d

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ciat

ion

Acc

umul

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ciat

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char

ge fo

r th

e ye

ar (R

efer

not

e 3

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663,

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7684

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666.

2212

0.46

316.

9610

2.05

5,38

6.59

Dis

posa

ls

—

——

——

——

——

—

At

31

Mar

ch 2

01

6A

t 3

1 M

arch

20

16

At

31

Mar

ch 2

01

6A

t 3

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arch

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16

At

31

Mar

ch 2

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6

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41

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34

1.2

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41

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34

1.2

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41

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2.6

67

52

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2.6

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2.7

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2.7

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0.4

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55

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6.5

95

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6.5

95

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6.5

95

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6.5

95

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6.5

9N

et b

ook

valu

e at

31

Mar

ch 2

01

6N

et b

ook

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e at

31

Mar

ch 2

01

6N

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ook

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31

Mar

ch 2

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31

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ch 2

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86

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18

6.8

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86

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6.8

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1,9

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1,9

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20

3.0

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11

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11

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11

5,1

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FFFF F or

the

year

end

ed 3

1 M

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20

17

or t

he y

ear

ende

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20

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or t

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31

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36,

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Add

ition

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ts (R

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w)

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Exch

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At

31

Mar

ch 2

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7A

t 3

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31

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31

Mar

ch 2

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7

3

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3

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2.5

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4,8

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27

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7.6

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27

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3,1

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60

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t 31

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ch 2

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arge

for

the

year

(Ref

er n

ote

36

)—

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7

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et b

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31

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ch 2

01

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et b

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31

Mar

ch 2

01

7N

et b

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31

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ch 2

01

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et b

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31

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ch 2

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ch 2

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14

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14

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85

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1,9

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6.5

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a.

a.a.

a. a.

Cap

italis

ed b

orro

win

g co

sts

Cap

italis

ed b

orro

win

g co

sts

Cap

italis

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orro

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g co

sts

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orro

win

g co

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Cap

italis

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orro

win

g co

sts

The

borr

owin

g co

st c

apita

lized

dur

ing

the

year

end

ed 3

1 M

arch

20

17

was

Rs.

1,4

13

.28

lacs

(net

of i

nter

est e

arne

d Rs

. 5.3

4 la

cs) (

31

Mar

ch 2

01

6:

Rs. 1

,65

5.7

6 la

cs (n

et o

f int

eres

t ear

ned

Rs. 9

.79

lacs

), 0

1 A

pril

20

15

: Rs

. 1,9

27

.10

lacs

(net

of i

nter

est e

arne

d Rs

. 56

.69

lacs

). T

he C

ompa

ny c

apita

lized

this

bor

row

ing

cost

to th

e ca

pita

l wor

k-in

-pro

gres

s (C

WIP

). (R

efer

not

e 4

8).

b.

b.b.

b. b.

Ass

ets

unde

r co

nstr

uctio

nA

sset

s un

der

cons

truc

tion

Ass

ets

unde

r co

nstr

uctio

nA

sset

s un

der

cons

truc

tion

Ass

ets

unde

r co

nstr

uctio

nC

apita

l wor

k in

pro

gres

s as

at 3

1 M

arch

20

17

com

pris

es e

xpen

ditu

re fo

r th

e ho

tels

in th

e co

urse

of c

onst

ruct

ion.

Tot

al a

mou

nt o

f CW

IP is

Rs.

14,

939.

28 la

cs (3

1 M

arch

201

6: R

s. 2

1,80

2.53

lacs

, 01

Apr

il 20

15:

Rs. 1

9,49

0.48

lacs

).

c.c.c.c. c.Bu

ildin

g in

clud

e th

ose

cons

truc

ted

on l

ease

hold

lan

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ildin

g in

clud

e th

ose

cons

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on l

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e th

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e th

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on l

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cons

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on l

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hold

lan

d:PPPP P a

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ualr

sar

ticua

lrs

artic

ualr

sar

ticua

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artic

ualr

s 3

1 M

arch

, 2

01

7 3

1 M

arch

, 2

01

7 3

1 M

arch

, 2

01

7 3

1 M

arch

, 2

01

7 3

1 M

arch

, 2

01

7 3

1 M

arch

, 2

01

6 3

1 M

arch

, 2

01

6 3

1 M

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, 2

01

6 3

1 M

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, 2

01

6 3

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, 2

01

6 0

1 A

pril,

20

15

01

Apr

il, 2

01

5 0

1 A

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20

15

01

Apr

il, 2

01

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1 A

pril,

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15

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ss b

lock

/Dee

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cos

t

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9,3

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40

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6.9

3A

ccum

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ion

1,5

34

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7

52

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Dep

reci

atio

n fo

r th

e ye

ar

78

1.5

9

75

2.6

6N

et b

ook

valu

e

37

,780

.03

39,

314.

27

40,

066.

93

d.

d.d.

d. d.

Build

ing

incl

ude

thos

e gi

ven

on o

pera

ting

leas

e:Bu

ildin

g in

clud

e th

ose

give

n on

ope

ratin

g le

ase:

Build

ing

incl

ude

thos

e gi

ven

on o

pera

ting

leas

e:Bu

ildin

g in

clud

e th

ose

give

n on

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ratin

g le

ase:

Build

ing

incl

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thos

e gi

ven

on o

pera

ting

leas

e:PPPP P a

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ualr

sar

ticua

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ticua

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artic

ualr

s 3

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arch

, 2

01

7 3

1 M

arch

, 2

01

7 3

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arch

, 2

01

7 3

1 M

arch

, 2

01

7 3

1 M

arch

, 2

01

7 3

1 M

arch

, 2

01

6 3

1 M

arch

, 2

01

6 3

1 M

arch

, 2

01

6 3

1 M

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, 2

01

6 3

1 M

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, 2

01

6 0

1 A

pril,

20

15

01

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il, 2

01

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15

01

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il, 2

01

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1 A

pril,

20

15

Gro

ss b

lock

/Dee

med

cos

t

2

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5.5

9

2

,23

0.2

3A

ccum

ulat

ed d

epre

ciat

ion

89

.04

44

.64

Dep

reci

atio

n fo

r th

e ye

ar

4

4.4

0

4

4.6

4N

et b

ook

valu

e

2

,096

.55

2,1

85.5

9

2,

230.

23e.e.e.e. e.

Dep

reci

atio

n ch

arge

for

the

year

incl

udes

Rs.

25

.99

lacs

(pre

viou

s ye

ar R

s. 2

6.3

1 la

cs) t

rans

ferr

ed to

Pre

oper

ativ

e ex

pend

iture

pen

ding

allo

catio

n un

der

note

48

.ffff f .... .

Add

ition

s/A

djus

tmen

ts in

clud

es in

vest

men

t in

proj

ect u

nder

dev

elop

men

t/de

velo

ped

duri

ng th

e ye

ar R

s. 2

95

6.8

9 la

cs (3

1st

Mar

ch, 2

01

6:

Rs. 1

47

2.7

9 la

cs)

67

Note 3 : INTNote 3 : INTNote 3 : INTNote 3 : INTNote 3 : INTANGIBLE ASSETSANGIBLE ASSETSANGIBLE ASSETSANGIBLE ASSETSANGIBLE ASSETS (Rupees in lacs) (Rupees in lacs) (Rupees in lacs) (Rupees in lacs) (Rupees in lacs)

PPPPParticularsarticularsarticularsarticularsarticulars SOFTW SOFTW SOFTW SOFTW SOFTWAREAREAREAREARE

FFFFFor the year ended 31 March 2016or the year ended 31 March 2016or the year ended 31 March 2016or the year ended 31 March 2016or the year ended 31 March 2016Gross carrying amountGross carrying amountGross carrying amountGross carrying amountGross carrying amountDeemed cost as at 1 April 2015 175.00Additions 50.64Disposals (0.81)

As at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016 224.83 224.83 224.83 224.83 224.83

Accumulated amortisationAccumulated amortisationAccumulated amortisationAccumulated amortisationAccumulated amortisationAmortisation for the year (Refer note 36) 96.66Disposals (0.77)


Net book value as at 31 March 2016Net book value as at 31 March 2016Net book value as at 31 March 2016Net book value as at 31 March 2016Net book value as at 31 March 2016 128.94 128.94 128.94 128.94 128.94

Gross carrying amountGross carrying amountGross carrying amountGross carrying amountGross carrying amountAs at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016 224.83Additions 32.12Disposals (0.99)


Accumulated amortisationAccumulated amortisationAccumulated amortisationAccumulated amortisationAccumulated amortisationAs at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016 95.89Amortisation for the year (Refer note 36) 82.50Disposals (0.94)


Net book value as at 31 March 2017 Net book value as at 31 March 2017 Net book value as at 31 March 2017 Net book value as at 31 March 2017 Net book value as at 31 March 2017 78.51 78.51 78.51 78.51 78.51


68

Note 4 : INVESTMENTSNote 4 : INVESTMENTSNote 4 : INVESTMENTSNote 4 : INVESTMENTSNote 4 : INVESTMENTS

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Investments at CostInvestments at CostInvestments at CostInvestments at CostInvestments at CostUnquoted equity shares of subsidiary companiesUnquoted equity shares of subsidiary companiesUnquoted equity shares of subsidiary companiesUnquoted equity shares of subsidiary companiesUnquoted equity shares of subsidiary companies727,832 (31 March 2016: 727,832,01 April 2015: 727,832) equity shares ofRs. 10 each fully paid up inApollo Zipper India Limited(Refer note 46 & 58(b)) 5,213.08 5,213.08 5,213.08

62,998 (31 March 2016: 62,998,01 April 2015: 62,998) equity shares ofRs. 100 each fully paid up in Jyoti Limited(Refer note 46 & 58(a)) 3,107.89 3,107.89 3,107.89

3,984,000 (31 March 2016: 3,984,000,01 April 2015: 3,984,000) equity shares ofRs. 100 each fully paid up in Prime CellularLimited (Refer note 46 & 58(c)) 3,984.00 3,984.00 3,984.00

3,010,000 (31 March 2016: 3,010,000,01 April 2015: 3,010,000) equity sharesof Rs. 10 each fully paid up in Prima BuildwellPrivate Limited (Refer note 46) 301.00 301.00 301.00Less: Provision for diminution in the value ofinvestment in Prima Buildwell Private Limited(Refer note 46) (301.00) (301.00) —

Deemed investment in subsidiary companies Deemed investment in subsidiary companies Deemed investment in subsidiary companies Deemed investment in subsidiary companies Deemed investment in subsidiary companies Investment in the form of interest free loan toApollo Zipper India Limited (Refer note 46 & 58(c)) 30,134.49 — —

Investment in the form of interest free loan toJyoti Limited (Refer note 46 & 58(a)) 466.73 466.73 466.73

Investments at fair value through P&LInvestments at fair value through P&LInvestments at fair value through P&LInvestments at fair value through P&LInvestments at fair value through P&LUnquoted equity sharesUnquoted equity sharesUnquoted equity sharesUnquoted equity sharesUnquoted equity shares 36,000 (31 March 2016: 36,000,01 April 2015: 36,000) equity shares ofRs. 10 each fully paid up in Green Infra WindPower Generation Limited 3.60 3.60 3.60

TTTTTotalotalotalotalotal 42,909.7942,909.7942,909.7942,909.7942,909.79 12,775.3012,775.3012,775.3012,775.3012,775.30 13,076.3013,076.3013,076.3013,076.3013,076.30

Aggregate value of unquoted investmentsAggregate value of unquoted investmentsAggregate value of unquoted investmentsAggregate value of unquoted investmentsAggregate value of unquoted investments 43,210.7943,210.7943,210.7943,210.7943,210.79 13,076.3013,076.3013,076.3013,076.3013,076.30 13,076.3013,076.3013,076.3013,076.3013,076.30Aggregate value of impairment in value ofAggregate value of impairment in value ofAggregate value of impairment in value ofAggregate value of impairment in value ofAggregate value of impairment in value ofinvestmentsinvestmentsinvestmentsinvestmentsinvestments 301.00301.00301.00301.00301.00 301.00301.00301.00301.00301.00 —————

69


Note 5 : LNote 5 : LNote 5 : LNote 5 : LNote 5 : LOOOOOANSANSANSANSANS(Unsecured, considered good unless otherwise stated)

L L L L Loans to Related Poans to Related Poans to Related Poans to Related Poans to Related Partiesartiesartiesartiesarties Subsidiary and joint venture companies (A) Subsidiary and joint venture companies (A) Subsidiary and joint venture companies (A) Subsidiary and joint venture companies (A) Subsidiary and joint venture companies (A) —Loans to Subsidiary Companies(Refer note 46 & 58(a,b & c)) 4,987.19 19,549.42 18,046.91 —Loans to Joint Venture of subsidiaries(Refer note 46 & 58(c)) 27,906.83 21,151.71 17,916.14 —Considered Doubtful 529.02 529.02 140.76

33,423.04 33,423.04 33,423.04 33,423.04 33,423.04 41,230.1541,230.1541,230.1541,230.1541,230.15 36,103.8136,103.8136,103.8136,103.8136,103.81

Less: Provision for doubtful advances (529.02) (529.02) (140.76)

32,894.0232,894.0232,894.0232,894.0232,894.02 40,701.1340,701.1340,701.1340,701.1340,701.13 35,963.0535,963.0535,963.0535,963.0535,963.05TTTTTrust (B)rust (B)rust (B)rust (B)rust (B) —Loans to The Lalit Suri Educational and Charitable Trust(Refer note 46 & 57) 3,016.67 2,341.30 912.99 —Considered Doubtful — — 800.00

3,016.673,016.673,016.673,016.673,016.67 2,341.302,341.302,341.302,341.302,341.30 1,712.991,712.991,712.991,712.991,712.99

Less: Provision for doubtful advances — — (800.00)3,016.673,016.673,016.673,016.673,016.67 2,341.302,341.302,341.302,341.302,341.30 912.99912.99912.99912.99912.99

T T T T Total (A+B)otal (A+B)otal (A+B)otal (A+B)otal (A+B) 35,910.6935,910.6935,910.6935,910.6935,910.69 43,042.4343,042.4343,042.4343,042.4343,042.43 36,876.0436,876.0436,876.0436,876.0436,876.04

Security deposits Security deposits Security deposits Security deposits Security deposits 500.03 578.68 550.89

36,410.7236,410.7236,410.7236,410.7236,410.72 43,621.1143,621.1143,621.1143,621.1143,621.11 37,426.9337,426.9337,426.9337,426.9337,426.93

Note 6 : ONote 6 : ONote 6 : ONote 6 : ONote 6 : OTHER NON CURRENT FINANCIAL ASSETSTHER NON CURRENT FINANCIAL ASSETSTHER NON CURRENT FINANCIAL ASSETSTHER NON CURRENT FINANCIAL ASSETSTHER NON CURRENT FINANCIAL ASSETS(Unsecured, considered good unless otherwise stated)

Balances with Banks:Balances with Banks:Balances with Banks:Balances with Banks:Balances with Banks:- Deposits with original maturity of more than 12 months — — 52.97- Margin money deposited (held as security) 364.51 191.05 235.86Interest accrued on deposits with banks 32.48 22.45 82.33Finance Lease Receivable 954.50 954.69 954.87

1,351.491,351.491,351.491,351.491,351.49 1,168.191,168.191,168.191,168.191,168.19 1,326.031,326.031,326.031,326.031,326.03

Margin money deposits with a carrying amount of Rs. 9.88 lacs (31 March 2016: Rs. 9.26 lacs; 1 April 2015: Rs.64.33 lacs) held as bank guarantee, Rs. 176.94 lacs (31 March 2016: Rs. Nil, 1 April 2015: Rs. Nil) held by Yesbank against term loan and Rs. 177.69 lacs (31 March 2016: Rs. 181.79 lacs; 1 April 2015: Rs. 171.53 lacs)held by ICICI Bank Ltd against external commercial borrowings.


70


Note 7 : ONote 7 : ONote 7 : ONote 7 : ONote 7 : OTHER NON CURRENT ASSETSTHER NON CURRENT ASSETSTHER NON CURRENT ASSETSTHER NON CURRENT ASSETSTHER NON CURRENT ASSETS(Unsecured, considered good unless otherwise stated)

Capital advances 1,667.36 1,586.99 1,556.73Income tax paid under protest — — 107.39Prepaid expenses 5.29 1.88 2.81Prepaid rent (including prepayments of leasehold land) 3,423.94 3,564.55 3,697.63Advance income tax (net of provision amounting toRs. 2,616.72 lacs (31 March 2016: Rs. 1,357.18 lacs01 April 2015: Rs. 337.55 lacs) 3,639.69 3,653.96 3,522.64

8,736.288,736.288,736.288,736.288,736.28 8,807.388,807.388,807.388,807.388,807.38 8,887.208,887.208,887.208,887.208,887.20

Note 8 : INVENTNote 8 : INVENTNote 8 : INVENTNote 8 : INVENTNote 8 : INVENTORIESORIESORIESORIESORIES

Traded goods 124.30 100.65 99.62 Food and Beverage (excluding liquor and wine) 253.43 278.79 244.44 Liquor and wine 561.61 688.35 586.13 Stores, cutlery, crockery, linen, provisions and others 714.28 696.67 622.73 (including stock in transit Rs. Nil (31 March 2016:Rs. Nil, 1 April 2015: Rs. 18.31 lacs))

1,653.621,653.621,653.621,653.621,653.62 1,764.461,764.461,764.461,764.461,764.46 1,552.921,552.921,552.921,552.921,552.92

Note 9 : TRADE RECEIVNote 9 : TRADE RECEIVNote 9 : TRADE RECEIVNote 9 : TRADE RECEIVNote 9 : TRADE RECEIVABLESABLESABLESABLESABLES

Secured, considered good 61.73 36.85 32.42Unsecured, considered good 4,309.85 3,912.11 3,892.41Unsecured, considered doubtful 867.74 664.37 198.64

5,239.32 5,239.32 5,239.32 5,239.32 5,239.32 4,613.334,613.334,613.334,613.334,613.33 4,123.474,123.474,123.474,123.474,123.47

Less : Provision for doubtful debts (867.74) (664.37) (198.64)

4,371.584,371.584,371.584,371.584,371.58 3,948.963,948.963,948.963,948.963,948.96 3,924.833,924.833,924.833,924.833,924.83

Trade receivables are non-interest bearing and are generally on terms of 0 to 60 days (Refer note 45).

Trade receivable includes dues from directors or other officers of the Company or from private companies andfirms in which Company’s any director is a partner or director (Refer note 46).

Note 10 : CASH AND CASH EQUIVNote 10 : CASH AND CASH EQUIVNote 10 : CASH AND CASH EQUIVNote 10 : CASH AND CASH EQUIVNote 10 : CASH AND CASH EQUIVALENTSALENTSALENTSALENTSALENTS

Balances with banks:- On current accounts 6,368.91 532.54 3,164.97 On EEFC Accounts 69.67 22.76 65.30 Deposits with original maturity of less than three months 11.25 1,146.14 3,213.95Cheques/drafts on hand 89.16 48.64 45.92Cash on hand 58.90 79.53 66.30

6,597.896,597.896,597.896,597.896,597.89 1,829.611,829.611,829.611,829.611,829.61 6,556.446,556.446,556.446,556.446,556.44

(i) Available undrawn committed borrowings facilities 8227.40 4647.83 35156.99

(ii) The Company has pledged a part of its short-term deposits.Refer Note 23 for details.

71


Note 11 : ONote 11 : ONote 11 : ONote 11 : ONote 11 : OTHER BANK BALANCESTHER BANK BALANCESTHER BANK BALANCESTHER BANK BALANCESTHER BANK BALANCESBalances with banks:-Balances with banks:-Balances with banks:-Balances with banks:-Balances with banks:-Margin money (held against bank guarantee) 627.15 41.05 251.54Deposits with original maturity of more thanthree months but less than twelve months 406.52 482.55 258.34Unpaid dividend account 22.92 24.54 26.62

1,056.591,056.591,056.591,056.591,056.59 548.14548.14548.14548.14548.14 536.50536.50536.50536.50536.50

Note 12 : LNote 12 : LNote 12 : LNote 12 : LNote 12 : LOOOOOANSANSANSANSANS(Unsecured, considered good unless otherwise stated)Security deposits 109.55 106.73 141.15

109.55109.55109.55109.55109.55 106.73106.73106.73106.73106.73 141.15141.15141.15141.15141.15

Note 13 : ONote 13 : ONote 13 : ONote 13 : ONote 13 : OTHER CURRENT FINANCIAL ASSETSTHER CURRENT FINANCIAL ASSETSTHER CURRENT FINANCIAL ASSETSTHER CURRENT FINANCIAL ASSETSTHER CURRENT FINANCIAL ASSETS (Unsecured, considered good unless otherwise stated)Recoverable from related partiesRecoverable from related partiesRecoverable from related partiesRecoverable from related partiesRecoverable from related parties—Subsidiary companies (Refer note 46 & 58(a,b & c))) 1,378.62 8,656.88 6,456.13 —Joint ventures of a subsidiary company(Refer note 46 & 58(c)) 9,654.93 6,819.38 4,537.07

11,033.5511,033.5511,033.5511,033.5511,033.55 15,476.2615,476.2615,476.2615,476.2615,476.26 10,993.2010,993.2010,993.2010,993.2010,993.20

Interest accrued on deposits with banks 28.33 90.21 24.41 Subsidy receivable 93.89 133.16 125.85 Other advance recoverable 101.10 101.31 101.88 Finance Lease Receivable 0.19 0.18 0.16

11,257.0611,257.0611,257.0611,257.0611,257.06 15,801.1215,801.1215,801.1215,801.1215,801.12 11,245.5011,245.5011,245.5011,245.5011,245.50

Note 14 : O Note 14 : O Note 14 : O Note 14 : O Note 14 : OTHER CURRENT ASSETSTHER CURRENT ASSETSTHER CURRENT ASSETSTHER CURRENT ASSETSTHER CURRENT ASSETS (Unsecured, considered good unless otherwise stated)

Unbilled revenue 321.85 426.37 225.62 Prepaid expenses 720.39 737.99 720.98 Balances with stautory authorities 792.63 726.93 834.08 Prepaid rent (including prepayments of leasehold land) 140.64 133.01 140.98 Advances recoverable in cash or in kind - considered good 444.57 628.85 570.23 - considered doubtful 170.77 4.06 4.06

615.34 615.34 615.34 615.34 615.34 632.91632.91632.91632.91632.91 574.29574.29574.29574.29574.29

Less: Provision for doubtful advances (170.77) (4.06) (4.06) 444.57 444.57 444.57 444.57 444.57 628.85628.85628.85628.85628.85 570.23570.23570.23570.23570.23

2,420.08 2,420.08 2,420.08 2,420.08 2,420.08 2,653.152,653.152,653.152,653.152,653.15 2,491.892,491.892,491.892,491.892,491.89

Note 15 : ASSETS CLASSIFIED AS HELD FOR SALENote 15 : ASSETS CLASSIFIED AS HELD FOR SALENote 15 : ASSETS CLASSIFIED AS HELD FOR SALENote 15 : ASSETS CLASSIFIED AS HELD FOR SALENote 15 : ASSETS CLASSIFIED AS HELD FOR SALELand (Refer note 59) 1,618.77 1,618.77 — Plant and machinery 20.00 30.00 30.00

1,638.77 1,638.77 1,638.77 1,638.77 1,638.77 1,648.771,648.771,648.771,648.771,648.77 30.0030.0030.0030.0030.00


72

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73

Note 17 : ONote 17 : ONote 17 : ONote 17 : ONote 17 : OTHER EQUITYTHER EQUITYTHER EQUITYTHER EQUITYTHER EQUITYSecurities PSecurities PSecurities PSecurities PSecurities Premium Accountremium Accountremium Accountremium Accountremium AccountAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April 29,034.73 29,034.73Change during the year — —

As at 31 MarchAs at 31 MarchAs at 31 MarchAs at 31 MarchAs at 31 March 29,034.7329,034.7329,034.7329,034.7329,034.73 29,034.7329,034.7329,034.7329,034.7329,034.73

Retained EarningsRetained EarningsRetained EarningsRetained EarningsRetained EarningsAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April 48,573.60 45,398.89Add: Net profit for the year 3,669.23 3,595.83Add: Other Comprehensive income for the year (7.08) 36.19Less: Cash dividend (569.93) (379.96)Less: Tax on distribution of equity dividend (116.03) (77.35)


General ReserveGeneral ReserveGeneral ReserveGeneral ReserveGeneral ReserveAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April 8,503.61 8,103.61Add: Amount transferred from Debenture Redemptionreserve on account of redemption of debentures — 400.00

As at 31 March As at 31 March As at 31 March As at 31 March As at 31 March 8,503.618,503.618,503.618,503.618,503.61 8,503.618,503.618,503.618,503.618,503.61

Capital ReserveCapital ReserveCapital ReserveCapital ReserveCapital ReserveAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April 11,285.05 11,285.05Change during the year — —


Debenture Redemption ReserveDebenture Redemption ReserveDebenture Redemption ReserveDebenture Redemption ReserveDebenture Redemption ReserveAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April — 400.00Add: Amount transferred to general reserve onaccount of redemption of debentures — (400.00)


31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)


74


Note 18 : BORROWINGSNote 18 : BORROWINGSNote 18 : BORROWINGSNote 18 : BORROWINGSNote 18 : BORROWINGS

Non current borrowings (Refer note 21 below)Non current borrowings (Refer note 21 below)Non current borrowings (Refer note 21 below)Non current borrowings (Refer note 21 below)Non current borrowings (Refer note 21 below)TTTTTerm loanserm loanserm loanserm loanserm loansSecuredSecuredSecuredSecuredSecuredRupee loans from banks (Refer note 1 to 15 below) 91,604.69 70,296.29 53,830.13Rupee loans from financial institutions(Refer note 16 & 17 below) 416.73 604.48 20,675.31Foreign currency loan from a bank (Refer note 18 below) 8,399.33 9,906.96 10,291.65

UnsecuredUnsecuredUnsecuredUnsecuredUnsecuredRupee loan from a bank (Refer note 19 below) — — 2,147.45Debentures (Refer note 20 below) — — 1,600.00

100,420.75100,420.75100,420.75100,420.75100,420.75 80,807.7380,807.7380,807.7380,807.7380,807.73 88,544.5488,544.5488,544.5488,544.5488,544.54

Less: Current maturities (Refer note 25) 4,554.85 3,039.95 14,866.04

95,865.9095,865.9095,865.9095,865.9095,865.90 77,767.7877,767.7877,767.7877,767.7877,767.78 73,678.5073,678.5073,678.5073,678.5073,678.50

Notes:Notes:Notes:Notes:Notes:1 Term Loan from Yes Bank aggregating to Rs. 53,715.72 lacs (31 March 2016: Rs. 54,202.22 lacs, 01 April

2015: Rs. 24,373.25 lacs) carries interest @ 11.75% per annum. The loan is repayable in 44 structuredquarterly installments starting from February 2016 after a moratorium of 1 year from the date of firstdisbursement. The loan is secured by first pari-passu charge on land and building of Mumbai and Ahmedabadhotels and first pari-passu charge on movable fixed assets of Mumbai, Goa, Ahmedabad, Bangalore, Delhiand Udaipur hotels owned by the Company.

2 Term Loan from Axis Bank aggregating to Rs. 13,908.06 lacs (31 March 2016: Rs 12,326.02 lacs; 1 April2015: Rs. 12,164.80 lacs) carries interest @ 11.75% per annum. The loan is repayable in 44 structuredquarterly installments starting from November 2015 after a moratorium of 1 year from the date of firstdisbursement. The loan is secured by first pari-passu charge by way of hypothecation of movable fixedassets of Mumbai, Goa, Ahmedabad, Bangalore, Delhi and Udaipur hotels owned by Company (bothpresent and future) and first pari-passu charge by way of mortgage over immovable fixed assets of Mumbaiand Ahmedabad hotels.

3 Term Loan from Tamilnadu Mercantile Bank (TMB) aggregating to Rs. 2,435.01 lacs (31 March 2016: Rs.2,474.48 lacs, 1 April 2015: Rs. Nil), (sanctioned amount Rs. 2,500.00 lacs) carries interest @ 12.00 % perannum. The loan is repayable in 44 structured quarterly installments starting from February 2016 after amoratorium of 1 year from the date of first disbursement. The loan is secured by first pari-passu charge onland and building of Mumbai and Ahmedabad hotels and first pari-passu charge on movable fixed assetsof Mumbai, Goa, Ahmedabad, Bangalore, Delhi and Udaipur hotels owned by the Company.

4 Term Loan from ICICI Bank aggregating to Rs. 2,237.07 lacs (31 March 2016: Rs. 1,079.49 lacs, 1 April2015: Rs. Nil), (sanctioned amount Rs. 3,600.00 lacs) carries interest @ 13.35% per annum. The loan isrepayable in 40 quarterly installments after a moratorium of 8 quarters from the date of first disbursement.The loan is secured by first pari-passu charge on Jaipur and Khajuraho property and routing of Cash Flowsof Jaipur, Srinagar and Khajuraho property through the designated accounts.

5 Term Loan from The Jammu & Kashmir Bank aggregating to Rs. 9,965.61 lacs (March 2016: Rs. Nil, 1 April2015: Rs. Nil) carries interest @ 10.70% per annum. The loan is repayable in 32 structured quarterlyinstallments starting from June 2019 after a moratorium of 2 years from the date of first disbursement. Theloan is secured by way of equitable mortgage on exclusively first charge over land and building of Srinagarhotel of the Company.

6 Term Loan from Yes Bank aggregating to Rs. 5,523.89 lacs (31 March 2016: Rs. Nil, 1 April 2015: Rs. Nil)

75

carries interest @ 11.70% per annum. The loan is repayable in 52 structured quarterly installments startingfrom February 2017. The loan is secured by extension of first pari-passu charge on land and building ofMumbai and Ahmedabad hotels and extension of first pari-passu charge on movable fixed assets of Mumbai,Goa, Ahmedabad, Bangalore, Delhi and Udaipur hotels owned by the Company.

7 Term Loan from Axis Bank aggregating to Rs. 3,805.30 lacs (31 March 2016: Rs. Nil, 1 April 2015: Rs. Nil)carries interest @ 11.95% per annum. The loan is repayable in 42 structured quarterly installments startingfrom October 2017 after a moratorium of 1 year from the date of first disbursement. The loan is secured byextension of first pari-passu charge by way of hypothecation of movable fixed assets of Mumbai, Goa,Ahmedabad, Bangalore, Delhi and Udaipur hotels owned by Company (both present and future) andextension of first pari-passu charge by way of mortgage over immovable fixed assets of Mumbai andAhmedabad hotels.

8 Term Loan from Yes Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 696.82 lacs)carried interest @ 13.50% per annum. The Company had prepaid 2 installments of Rs. 120.19 lacs eachwhich were due in FY 2016-17. The loan was secured by exclusive charge on 109S Grand Helicopter.

9 Term Loan from Yes Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 855.17 lacs)carried interest @ 13.75% per annum. The Company had got the entire amount of Rs. 857.14 lacs refinancedby taking a loan from Yes Bank of Rs. 60,000.00 lacs. The loan is secured by equitable mortgage of landand building of Mumbai and Goa Hotels and hypothecation of plant and machinery and all other movablefixed assets of Mumbai and Goa hotels on pari-passu basis.

10 Term Loan from Yes Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 3,583.64 lacs)carried interest @ 12.50% per annum. The Company had got the entire amount of Rs. 3,600.00 lacsrefinanced by taking a loan from Yes Bank of Rs. 60,000.00 lacs. The loan was secured by equitablemortgage on movable fixed assets of Mumbai and Goa Hotels both present and future and charge on land& building of Mumbai & Goa Hotels on pari-passu basis.


12 Term Loan from J&K Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 4,995.59 lacs)carried interest @ 13.25% per annum. The Company had got the entire loan of Rs. 5,000.00 lacs refinancedby taking a loan from Yes Bank of Rs. 60,000.00 lacs. The loan was secured by extension of exclusivecharge over Ahmedabad Hotel (under construction) and by charge over movable and immovable fixedassets of Mumbai & Goa Hotels on pari-passu basis.


14 Term Loan from IDBI Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 2,500.00 lacs)carried interest @ 13.25%. The Company had got the entire amount of Rs. 2,500.00 lacs refinanced bytaking a loan from Yes Bank of Rs. 60,000.00 lacs. The loan was secured by hypothecation of all movablefixed assets of the hotel at New Delhi and exclusive charge on movable and immovable fixed assets of theCompany lying and situated at hotel, The Lalit Grand Palace, Srinagar and exclusive charge/mortgage onthe ownership rights of Sh. NK Batra on the land.

15 Term Loan from State Bank of India aggregating to Rs. 13.98 lacs (31 March 2016: Rs 214.06 lacs; 1 April2015: Rs. 435.97 lacs) carries interest @ 14.00% per annum. The loan is secured by equitable mortgage ofland situated at Udma Village, Hosdurg Taluk in the District of Kasaragod and property landed at KalnadVillage, Hosdurg Taluk in District of Kasaragod by way of mortgage of lease deed and pari-passu 1stcharge over all existing and future plant and machinery, fixtures and fittings and other movable fixed assetsof the Bekal Hotel.

16 Term loan from Kerala State Industrial Development Corporation (‘KSIDC’) aggregating to Rs. 416.72 lacs(31 March 2016: Rs. 604.48 lacs, 1 April 2015: Rs. 793.27 lacs) carries interest @ 9% per annum. Thebalance loan is repayable in 9 quarteryl installments of Rs 46.87 lacs each starting from June, 2017. The


76

loan is secured by equitable mortgage of land situated at Udma Village, Hosdurg Taluk in the District ofKasaragod and landed property at Kalnad Village, Kasaragod Taluk by way of mortgage of lease deed andpari-passu first charge over all existing and future plant and machinery, fixtures and fittings and othermovable fixed assets of the Bekal hotel.

17 Term loan from Industrial Finance Corporation of India (‘IFCI’) aggregating to Rs. Nil (31 March 2016: Rs.Nil, 1 April 2015: Rs. 19,882.03 lacs) carried interest @ 12.65% per annum. The Company had got theentire loan of Rs 20,000.00 lacs refinanced by taking a loan from Yes Bank of Rs 60,000.00 lacs. The loanis secured by equitable mortgage of land and building of Mumbai and Goa hotels on pari-passu basis andhypothecation of movable assets of Mumbai and Goa hotels on pari-passu basis and collateral security ofAhmedabad hotel.

18 External Commercial Borrowing from ICICI Bank Ltd., Bahrain aggregating to Rs. 8,399.32 lacs (equivalentto USD 129.54 lacs converted at an exchange rate of INR 64.8386 per USD) (31 March 2016: Rs. 9,906.96lacs (equivalent to USD 149.35 lacs converted at an exchange rate on INR 66.3329 per USD), 1 April 2015:Rs. 10,291.64 lacs (equivalent to USD 164.42 lacs converted at an exchange rate on INR 62.5909 perUSD) carries interest at 5% margin on USD 6-months LIBOR. The balance loan is repayable in 19 quarterlyinstallments. The loan is secured by equitable mortgage on the movable and immovable fixed and currentassets and the cash flows, both present and future, of Jaipur and also secured by exclusive charge onmovable and immovable fixed assets of Khajuraho hotel, both present and future.

19 Term loan from HSBC bank aggregating to Rs. Nil (31 March 2016: Rs. Nil, 1 April 2015: Rs. 2,147.45lacs) carried interest @ 10.50% per annum.

20 11.50% Non Convertible Debentures (NCD’s) from J&K Bank aggregating to Rs. Nil (31 March 2016: Rs.Nil; 1 April 2015 Rs. 1,600.00 lacs). Debentures were secured by the land at Mouje Maharajapura, KadiTaluka, Gujarat and mortgage of immovable assets at Mumbai and Goa units and hypothecation of movableassets of Mumbai and Goa units on pari-passu basis. NCD’s were listed on the Bombay Stock Exchange.

21 LLLLLoan covenantsoan covenantsoan covenantsoan covenantsoan covenantsBank loans contain certain debt covenants relating to limit on total borrowings amount, security coverageratio and others. The Company has breached certain loan covenants as at the end of the reporting date.However, the Company has obtained waiver letters from banks for compliance with these covenants till 31March 2018, pursuant to which these loans have been classified as non current.


Note 19 : ONote 19 : ONote 19 : ONote 19 : ONote 19 : OTHER NON CURRENT FINANCIAL LIABILTHER NON CURRENT FINANCIAL LIABILTHER NON CURRENT FINANCIAL LIABILTHER NON CURRENT FINANCIAL LIABILTHER NON CURRENT FINANCIAL LIABILTIESTIESTIESTIESTIES

FFFFFinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised cost Deposits received against assets given under finance lease 108.47 105.66 100.89 Sundry deposits 272.29 238.92 94.34

380.76 380.76 380.76 380.76 380.76 344.58344.58344.58344.58344.58 195.23195.23195.23195.23195.23

Note 20 : PRONote 20 : PRONote 20 : PRONote 20 : PRONote 20 : PROVISIONSVISIONSVISIONSVISIONSVISIONS

PPPPProvision for employee benefitsrovision for employee benefitsrovision for employee benefitsrovision for employee benefitsrovision for employee benefitsGratuity (Refer note 43) 766.65 685.30 692.90

— — —766.65766.65766.65766.65766.65 685.30685.30685.30685.30685.30 692.90692.90692.90692.90692.90

77

Note 21 : DEFERRED TNote 21 : DEFERRED TNote 21 : DEFERRED TNote 21 : DEFERRED TNote 21 : DEFERRED TAX LIABILITIESAX LIABILITIESAX LIABILITIESAX LIABILITIESAX LIABILITIES

Deferred TDeferred TDeferred TDeferred TDeferred Tax Liabilityax Liabilityax Liabilityax Liabilityax LiabilityAccelerated depreciation for tax 22,339.45 19,013.64 19,183.50 Fair value of financial instruments 20.97 50.31 183.67Re-measurement losses on defined benefit plans — 19.16 —

22,360.4222,360.4222,360.4222,360.4222,360.42 19,083.1119,083.1119,083.1119,083.1119,083.11 19,367.1719,367.1719,367.1719,367.1719,367.17Deferred TDeferred TDeferred TDeferred TDeferred Tax Assetax Assetax Assetax Assetax AssetEffect of unabsorbed depreciation andbusiness loss 4,345.66 3,067.60 4,312.12Deferred government grant 26.01 42.56 59.10Re-measurement gains on defined benefit plans 3.75 — —Impact of expenditure charged to statement of profitand loss in current year/earlier years but allowablefor tax purposes on payment basis 645.77 600.76 850.00Provision for doubtful debts & advances 533.95 414.44 395.75MAT credit entitlement 4,073.52 2,813.98 1,585.88

9,628.66 9,628.66 9,628.66 9,628.66 9,628.66 6,939.346,939.346,939.346,939.346,939.34 7,202.857,202.857,202.857,202.857,202.85

Net deferred tax liability reflected in the balance sheetNet deferred tax liability reflected in the balance sheetNet deferred tax liability reflected in the balance sheetNet deferred tax liability reflected in the balance sheetNet deferred tax liability reflected in the balance sheet 12,731.7612,731.7612,731.7612,731.7612,731.76 12,143.7712,143.7712,143.7712,143.7712,143.77 12,164.3212,164.3212,164.3212,164.3212,164.32

Note 22 : ONote 22 : ONote 22 : ONote 22 : ONote 22 : OTHER NON CURRENT LIABILITIESTHER NON CURRENT LIABILITIESTHER NON CURRENT LIABILITIESTHER NON CURRENT LIABILITIESTHER NON CURRENT LIABILITIES

Deferred lease rent 3,291.41 3,376.83 3,367.01Lease rent payable 297.29 301.60 346.62Deferred government grant (Refer note 38) 75.16 122.96 170.76

3,663.86 3,663.86 3,663.86 3,663.86 3,663.86 3,801.393,801.393,801.393,801.393,801.39 3,884.393,884.393,884.393,884.393,884.39

Note 23 : BORROWINGSNote 23 : BORROWINGSNote 23 : BORROWINGSNote 23 : BORROWINGSNote 23 : BORROWINGS

FFFFFrom Related Prom Related Prom Related Prom Related Prom Related Parties (unsecured)arties (unsecured)arties (unsecured)arties (unsecured)arties (unsecured)Loan from a director (Refer note 1 below) 435.00 350.00 —

FFFFFrom banksrom banksrom banksrom banksrom banksSecuredSecuredSecuredSecuredSecuredCash credit facilities (Refer note 2 & 3 below) 8,809.85 3,488.22 3,450.91Loan against fixed deposits (Refer note 4 below) 324.17 295.26 -Short term loan (Refer note 5 below) 2,372.10 2,426.99 2,497.37

UnsecuredUnsecuredUnsecuredUnsecuredUnsecuredCash credit facilities (Refer note 3 below) — 5,777.28 3,481.88Short term loan (Refer note 6 below) 4,927.73 5,041.30 —Buyers credit on account of invoice financingfacilities availed (Refer note 7 below) — — 1,478.10

16,868.8516,868.8516,868.8516,868.8516,868.85 17,379.0517,379.0517,379.0517,379.0517,379.05 10,908.2610,908.2610,908.2610,908.2610,908.26Notes:Notes:Notes:Notes:Notes:1. Loan from Dr. Jyotsna Suri carries interest @ 8% per annum and is repayable as per mutual agreement.



78

2. Cash Credit facilities from Yes Bank amounting to Rs. 3,040.08 lacs (31 March 2016: Rs. 3,488.21 lacs, 1April 2015: Rs 3,450.91 lacs) carries interest @ 12.20 % per annum. The loan is secured by first pari-passucharge on current assets (including receivables) of all the hotels of the Company (both present and future),except those of Jaipur hotel of the Company.

3. Short term facilities from Deutsche Bank aggregating to Rs. 5,769.77 lacs (31 March 2016: Rs. 5,777.28lacs, 1 April 2015: Rs 3,481.88 lacs) carries interest @ 12.45 % per annum. These short term facilities areguaranteed by Premium Holdings Limited (Refer note 46). During the current year, the loan has also beensecured by immovable property of Udaipur hotel of the Company and hence, these are classified as secured.

4. Loan against fixed deposits taken from J&K Bank Limited is secured by fixed deposits. The loan carriesinterst @ 1.49% higher than the interest received by the Company on the fixed deposits made with the bank.

5. Packing Credit Foreign Currency (‘PCFC’) Loan from Yes Bank amounting to Rs. 2,372.10 lacs (equivalentto USD 36.58 lacs at an exchange rate of 64.8386 per USD) ((31 March 2016: Rs. 2,426.98 lacs (equivalentto USD 36.58 lacs at an exchange rate of 66.3329 per USD)), (1 April 2015: Rs 2,497.37 lacs (equivalentto USD 39.90 lacs at an exchange rate of 62.5908 per USD))) carries interest @ LIBOR+400 basis points.The loan is secured by first pari-passu charge on current assets (including receivables) of all the hotels of theCompany (both present and future), except those of Jaipur hotel of the Company.

6. Short term facilities from Barclays Bank aggregating to Rs. 4,927.73 lacs (equivalent to USD 76.00 lacs atan exchange rate of 64.8386 per USD) ((31 March 2016: Rs. 5,041.30 lacs (equivalent to USD 76.00 lacsat an exchange rate of 66.3329 per USD)), (1 April2015: Rs Nil)) carries interest @ 5.02 % per annum.These facilities are guaranteed by Premium Holdings Limited (Refer note 46).

7. Invoice financing facility from Deutsche Bank aggregating to Rs. Nil ((31 March 2016: Rs Nil), (1 April2015: Rs. 1,478.09 lacs)) carried interest @ 12.50 % per annum.These facilities were guaranteed byPremium Holdings Limited (Refer note 46).


Note 24 : TRADE PNote 24 : TRADE PNote 24 : TRADE PNote 24 : TRADE PNote 24 : TRADE PAAAAAYYYYYABLES - SHORT TERMABLES - SHORT TERMABLES - SHORT TERMABLES - SHORT TERMABLES - SHORT TERM

TRADE PTRADE PTRADE PTRADE PTRADE PAAAAAYYYYYABLESABLESABLESABLESABLES- total outstanding dues of micro and small enterprises(Refer note 49) — — —- total outstanding dues of creditors other than microand small enterprises 3,630.67 2,364.51 2,838.80

3,630.67 3,630.67 3,630.67 3,630.67 3,630.67 2,364.512,364.512,364.512,364.512,364.51 2,838.802,838.802,838.802,838.802,838.80

Note 25 : ONote 25 : ONote 25 : ONote 25 : ONote 25 : OTHER CURRENT FINANCIAL LIABILITIESTHER CURRENT FINANCIAL LIABILITIESTHER CURRENT FINANCIAL LIABILITIESTHER CURRENT FINANCIAL LIABILITIESTHER CURRENT FINANCIAL LIABILITIESFFFFFinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costCurrent maturities of long term borrowings(Refer note 18) 4,554.85 3,039.95 14,866.04Interest accrued but not due on borrowings 912.24 749.34 774.87Book overdraft from banks 931.70 1,082.56 678.56Sundry deposits 108.93 95.96 88.32Payables on purchase of fixed assets 839.95 1,070.73 808.07Unpaid dividend 22.92 24.54 26.62Other payables — 7.70 —Employee related liabilities 692.55 422.70 696.14Retention payable 352.86 351.29 382.97Outstanding dues of creditors 1,202.73 1,644.90 1,012.99

9,618.73 9,618.73 9,618.73 9,618.73 9,618.73 8,489.678,489.678,489.678,489.678,489.67 19,334.5819,334.5819,334.5819,334.5819,334.58

79

Note 26 : SHORT TERM PRO Note 26 : SHORT TERM PRO Note 26 : SHORT TERM PRO Note 26 : SHORT TERM PRO Note 26 : SHORT TERM PROVISIONSVISIONSVISIONSVISIONSVISIONS

P P P P Provision for employee benefitsrovision for employee benefitsrovision for employee benefitsrovision for employee benefitsrovision for employee benefits Gratuity (Refer note 43) 310.51 255.39 185.41 Compensated absences 369.29 407.74 600.73Others POthers POthers POthers POthers ProvisionsrovisionsrovisionsrovisionsrovisionsProvision for wealth tax — — 77.97

679.80679.80679.80679.80679.80 663.13663.13663.13663.13663.13 864.11864.11864.11864.11864.11

Note 27 : O Note 27 : O Note 27 : O Note 27 : O Note 27 : OTHER CURRENT LIABILITIESTHER CURRENT LIABILITIESTHER CURRENT LIABILITIESTHER CURRENT LIABILITIESTHER CURRENT LIABILITIES

Advance received against sale of property — 200.00 — Deferred revenue of membership programme(Refer note 47) 340.06 392.17 329.00 Deferred lease rent 85.66 85.17 62.85 Advances from customers 1,489.10 1,243.37 965.59

Statutory dues payable Statutory dues payable Statutory dues payable Statutory dues payable Statutory dues payable TDS payable 193.64 195.38 172.35 VAT payable 269.43 270.40 206.38 Luxury tax payable 319.03 326.50 228.10 Service tax payable 257.63 181.59 32.12 Other statutory dues 163.01 134.97 149.89 Deferred government grant (Refer note 38) 47.80 47.80 47.80

3,165.363,165.363,165.363,165.363,165.36 3,077.353,077.353,077.353,077.353,077.35 2,194.082,194.082,194.082,194.082,194.08

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Note 28 : REVENUE FROM OPERANote 28 : REVENUE FROM OPERANote 28 : REVENUE FROM OPERANote 28 : REVENUE FROM OPERANote 28 : REVENUE FROM OPERATIONSTIONSTIONSTIONSTIONS

Sale of services and products (including excise duty)Sale of services and products (including excise duty)Sale of services and products (including excise duty)Sale of services and products (including excise duty)Sale of services and products (including excise duty) - Room and apartment 24,582.91 22,815.19 - Food and beverage 18,511.00 17,354.00 - Liquor and wine 4,040.84 3,658.66 - Banquet and Equipment rentals 1,718.89 1,238.51 - Other Services 4,890.94 4,306.45 - Membership programme revenue 722.13 745.88 - Traded goods 90.70 91.71

Other operating revenuesOther operating revenuesOther operating revenuesOther operating revenuesOther operating revenues - Rent and maintenance income 1,701.17 1,417.25 - Consultancy/management fee 604.52 606.69 - Aircraft charter hire charges 614.88 471.50

57,477.98 57,477.98 57,477.98 57,477.98 57,477.98 52,705.8452,705.8452,705.8452,705.8452,705.84



80


Note 29 : ONote 29 : ONote 29 : ONote 29 : ONote 29 : OTHER INCOMETHER INCOMETHER INCOMETHER INCOMETHER INCOME

Excess provision/ credit balances written back 424.05 992.30Net gain on disposal of property, plant and equipment — 1,191.24Exchange differences (net) 39.42 —Amortisation of deferred lease rental 37.51 28.46Government grant income (Refer note 38) 47.80 47.80Miscellaneous income 285.84 261.78

834.62 834.62 834.62 834.62 834.62 2,521.582,521.582,521.582,521.582,521.58

Note 30 : CONSUMPTION OF FOOD AND BEVERANote 30 : CONSUMPTION OF FOOD AND BEVERANote 30 : CONSUMPTION OF FOOD AND BEVERANote 30 : CONSUMPTION OF FOOD AND BEVERANote 30 : CONSUMPTION OF FOOD AND BEVERAGESGESGESGESGES

Consumption of food and beverages (excluding liquor & wine)Consumption of food and beverages (excluding liquor & wine)Consumption of food and beverages (excluding liquor & wine)Consumption of food and beverages (excluding liquor & wine)Consumption of food and beverages (excluding liquor & wine)Inventory at the beginning of the year 278.79 244.44Add: Purchases 5,642.59 5,368.82Less: Inventory at the end of the year (253.43) (278.79)

Cost of food and beverage consumed (excluding liquor & wine)Cost of food and beverage consumed (excluding liquor & wine)Cost of food and beverage consumed (excluding liquor & wine)Cost of food and beverage consumed (excluding liquor & wine)Cost of food and beverage consumed (excluding liquor & wine) 5,667.955,667.955,667.955,667.955,667.95 5,334.475,334.475,334.475,334.475,334.47

Consumption of liquor and wineConsumption of liquor and wineConsumption of liquor and wineConsumption of liquor and wineConsumption of liquor and wineInventory at the beginning of the year 688.35 586.13Add: Purchases 956.49 1,040.82Less: Inventory at the end of the year (561.61) (688.35)

Cost of liquor and wine consumedCost of liquor and wine consumedCost of liquor and wine consumedCost of liquor and wine consumedCost of liquor and wine consumed 1,083.231,083.231,083.231,083.231,083.23 938.60938.60938.60938.60938.60

Consumption of food and beverages (including liquor & wine) Consumption of food and beverages (including liquor & wine) Consumption of food and beverages (including liquor & wine) Consumption of food and beverages (including liquor & wine) Consumption of food and beverages (including liquor & wine) 6,751.186,751.186,751.186,751.186,751.18 6,273.076,273.076,273.076,273.076,273.07

NONONONONOTE 31 : CHANGE IN INVENTTE 31 : CHANGE IN INVENTTE 31 : CHANGE IN INVENTTE 31 : CHANGE IN INVENTTE 31 : CHANGE IN INVENTORIES OF TRADED GOODSORIES OF TRADED GOODSORIES OF TRADED GOODSORIES OF TRADED GOODSORIES OF TRADED GOODS

Inventory at the beginning of the year 100.65 99.62 Inventory at the end of the year 124.30 100.65

(23.65)(23.65)(23.65)(23.65)(23.65) (1.03)(1.03)(1.03)(1.03)(1.03)

Note 32 : EMPLNote 32 : EMPLNote 32 : EMPLNote 32 : EMPLNote 32 : EMPLOOOOOYEE BENEFITS EXPENSEYEE BENEFITS EXPENSEYEE BENEFITS EXPENSEYEE BENEFITS EXPENSEYEE BENEFITS EXPENSE

Salaries, wages and allowances (Refer note 48) 9,097.45 8,300.98 Contribution to provident and other funds (Refer note 48) 672.93 592.37 Gratuity expense (Refer note 43 & 48) 120.23 131.10 Leave compensation expenses 64.35 — Staff welfare expenses 159.79 128.60 Staff recruitment and training 82.34 60.70

10,197.09 10,197.09 10,197.09 10,197.09 10,197.09 9,213.759,213.759,213.759,213.759,213.75

81


Note 33 : ONote 33 : ONote 33 : ONote 33 : ONote 33 : OTHER EXPENSESTHER EXPENSESTHER EXPENSESTHER EXPENSESTHER EXPENSESConsumption of stores, cutlery, crockery, linen, provisions and others 2,012.80 1,696.03 Lease rent* 1,839.20 1,799.86 Power and fuel* 6,302.51 6,148.25 Aircraft fuel 69.81 50.84 Banquet and decoration expenses 1,199.18 1,198.94 Membership programme expenses 31.58 305.99 Repair and maintenance - Buildings 709.05 765.45 - Plant and machinery* 1,725.86 1,734.95 - Aircraft 200.48 192.37 - Others* 416.97 387.19 Rates and taxes* 1,112.95 1,097.25 Insurance* 221.98 219.73 Communication costs 444.89 383.28 Printing and stationery* 344.48 315.06 Traveling and conveyance* 1,429.56 1,454.88 Advertisement and business promotion 857.64 903.07 Commission -other than sole selling agent 747.98 679.97 Sub contracting expenses* 1,563.01 1,427.23 Membership and subscriptions 145.30 232.73 Professional fees* 593.97 613.01 Legal charges 129.34 141.19 Provision for diminution in the value of investment — 301.00 Advances written off 10.16 — Freight and cartage* 87.40 85.62 Exchange differences (net) * — 206.73 Loss on sale/ discard of property, plant and equipment (net) 18.15 — Donations 46.59 55.16 Bad Debts written off — 9.38 Provision for doubtful advances 166.71 388.26 Provision for doubtful debts 206.18 476.88 Directors fees and commission 14.37 10.89 Bank charges 399.06 373.63 Payment to auditors (Refer details below) 71.79 63.48 News paper expenses 28.85 26.22 Other balances written off 148.32 227.67 Miscellaneous expenses* 172.34 152.55

TTTTTotalotalotalotalotal 23,468.46 23,468.46 23,468.46 23,468.46 23,468.46 24,124.7424,124.7424,124.7424,124.7424,124.74

*Refer note 48PPPPPayment to Auditorayment to Auditorayment to Auditorayment to Auditorayment to AuditorAs Auditor:As Auditor:As Auditor:As Auditor:As Auditor:- Audit fee 71.04 62.73

In Other Capacity:In Other Capacity:In Other Capacity:In Other Capacity:In Other Capacity: — — - Other services 0.75 0.75

TTTTTotalotalotalotalotal 71.79 71.79 71.79 71.79 71.79 63.4863.4863.4863.4863.48


82


Note 34 : FINANCE INCOMENote 34 : FINANCE INCOMENote 34 : FINANCE INCOMENote 34 : FINANCE INCOMENote 34 : FINANCE INCOME

Interest income onInterest income onInterest income onInterest income onInterest income onLLLLLoans to Related Poans to Related Poans to Related Poans to Related Poans to Related Partiesartiesartiesartiesarties - Subsidiary companies 816.85 2,243.77 - Joint Venture of subsidiary company 2,626.05 2,348.17 - The Lalit Suri Educational and Charitable Trust 285.22 211.17

— —FFFFFinance leaseinance leaseinance leaseinance leaseinance lease 109.26 109.28

— —————OthersOthersOthersOthersOthers — —————- Bank deposits 92.23 71.03- others 259.29 296.25

— —Unwinding of discount on security deposits 24.78 22.07

TTTTTotalotalotalotalotal 4,213.68 4,213.68 4,213.68 4,213.68 4,213.68 5,301.745,301.745,301.745,301.745,301.74

Note 35 : FINANCE COSTSNote 35 : FINANCE COSTSNote 35 : FINANCE COSTSNote 35 : FINANCE COSTSNote 35 : FINANCE COSTS

Interest on:Interest on:Interest on:Interest on:Interest on: -loans from Banks 9,954.78 7,052.36 - loans from financial institutions 46.34 2,311.09 - debentures — 12.60 - credit facilities from banks 1,163.90 1,098.74 - loan from Directors 84.92 29.65 - others — 1.02

— — Bank charges 76.23 257.54 Unwinding of finance cost from financial instruments at amortised cost 28.89 19.33 Interest on defined benefit plans 63.41 63.03

11,418.47 11,418.47 11,418.47 11,418.47 11,418.47 10,845.3610,845.3610,845.3610,845.3610,845.36

Note 36 : DEPRECIANote 36 : DEPRECIANote 36 : DEPRECIANote 36 : DEPRECIANote 36 : DEPRECIATION AND AMORTISATION AND AMORTISATION AND AMORTISATION AND AMORTISATION AND AMORTISATION EXPENSETION EXPENSETION EXPENSETION EXPENSETION EXPENSE

Depreciation of property, plant and equipment 5,031.27 5,386.58Amortisation of intangible assets 82.50 96.66

5,113.77 5,113.77 5,113.77 5,113.77 5,113.77 5,483.245,483.245,483.245,483.245,483.24

Less: transferred to Pre-operative expenditure (Refer note 48) (25.99) (26.31)

5,087.78 5,087.78 5,087.78 5,087.78 5,087.78 5,456.935,456.935,456.935,456.935,456.93

83

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614.8

861

4.88

614.8

847

1.50

471.5

047

1.50

471.5

047

1.50

—1,7

01.17

1,701

.171,7

01.17

1,701

.171,7

01.17

1,417

.251,4

17.25

1,417

.251,4

17.25

1,417

.25—

57,47

7.98

57,47

7.98

57,47

7.98

57,47

7.98

57,47

7.98

52,70

5.84

52,70

5.84

52,70

5.84

52,70

5.84

52,70

5.84

———— —

Other

incom

e 78

5.15

785.1

578

5.15

785.1

578

5.15

2,492

.662,4

92.66

2,492

.662,4

92.66

2,492

.66—

——

—49

.4849

.4849

.4849

.4849

.4828

.91—

834.6

283

4.62

834.6

283

4.62

834.6

22,5

21.58

2,521

.582,5

21.58

2,521

.582,5

21.58

———— —

Finan

ce Inc

ome

——

——

——

109.2

610

9.26

109.2

610

9.26

109.2

610

9.28

—10

9.26

109.2

610

9.26

109.2

610

9.26

109.2

810

9.28

109.2

810

9.28

109.2

8———— —

Unallo

cated

corpo

rate i

ncome

——

——

——

—4,1

04.42

4,104

.424,1

04.42

4,104

.424,1

04.42

5,192

.465,1

92.46

5,192

.465,1

92.46

5,192

.46———— —

TTTT T otalota

lota

lota

lota

l55

,947.0

955

,947.0

955

,947.0

955

,947.0

955

,947.0

953

,309.7

461

4.88

614.8

861

4.88

614.8

861

4.88

471.5

01,8

59.91

1,859

.911,8

59.91

1,859

.911,8

59.91

1,555

.4462

,526.2

862

,526.2

862

,526.2

862

,526.2

862

,526.2

860

,529.1

660

,529.1

660

,529.1

660

,529.1

660

,529.1

6———— —

Segme

nt res

ult15

,789.2

615

,789.2

615

,789.2

615

,789.2

615

,789.2

614

,769.1

414

,769.1

414

,769.1

414

,769.1

414

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4—

(388.3

1)(38

8.31)

(388.3

1)(38

8.31)

(388.3

1)(46

6.71)

(466.7

1)(46

6.71)

(466.7

1)(46

6.71)

—1,0

51.17

1,051

.171,0

51.17

1,051

.171,0

51.17

717.5

471

7.54

717.5

471

7.54

717.5

4—

16,45

2.12

16,45

2.12

16,45

2.12

16,45

2.12

16,45

2.12

15,01

9.97

15,01

9.97

15,01

9.97

15,01

9.97

15,01

9.97

———— —Inte

rest e

xpense

——

——

——

0.34

0.34

0.34

0.34

0.34

0.30

—0.3

40.3

40.3

40.3

40.3

40.3

00.3

00.3

00.3

00.3

0—

Unall

ocated

corpo

rate e

xpense

s —

——

——

——

——

(10,93

1.27)

(10,93

1.27)

(10,93

1.27)

(10,93

1.27)

(10,93

1.27)

(10,49

2.21)

(10,49

2.21)

(10,49

2.21)

(10,49

2.21)

(10,49

2.21)

—Tax

expen

se—

——

——

——

——

1,851

.281,8

51.28

1,851

.281,8

51.28

1,851

.2893

1.63

931.6

393

1.63

931.6

393

1.63

—

PPPP P rofit

for t

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ear

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ear

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e yea

r—

——

——

—3,6

69.23

3,669

.233,6

69.23

3,669

.233,6

69.23

3,595

.833,5

95.83

3,595

.833,5

95.83

3,595

.83———— —

Hotel

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PPPP P artic

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ende

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den

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ende

den

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ende

den

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den

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1st A

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015

1st A

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1st A

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1st A

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ende

den

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1st A

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ende

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den

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den

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1st A

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1st A

pril 2

015

1st A

pril 2

015

1st A

pril 2

015

1st A

pril 2

015

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

March

31,

2017

2017

2017

2017

2017

2016

2016

2016

2016

2016

2017

2017

2017

2017

2017

2016

2016

2016

2016

2016

2017

2017

2017

2017

2017

2016

2016

2016

2016

2016

2017

2017

2017

2017

2017

2016

2016

2016

2016

2016

Segm

ent a

ssets

Segm

ent a

ssets

Segm

ent a

ssets

Segm

ent a

ssets

Segm

ent a

ssets

1

55,28

5.03

1

55,28

5.03

1

55,28

5.03

1

55,28

5.03

1

55,28

5.03

159,2

52.09

159,2

52.09

159,2

52.09

159,2

52.09

159,2

52.09

212,0

01.89

212,0

01.89

212,0

01.89

212,0

01.89

212,0

01.89

4,858

.074,8

58.07

4,858

.074,8

58.07

4,858

.074,9

91.21

4,991

.214,9

91.21

4,991

.214,9

91.21

380.6

638

0.66

380.6

638

0.66

380.6

63,5

67.58

3,567

.583,5

67.58

3,567

.583,5

67.58

3,807

.073,8

07.07

3,807

.073,8

07.07

3,807

.0747

1.00

471.0

047

1.00

471.0

047

1.00

163,7

10.68

163,7

10.68

163,7

10.68

163,7

10.68

163,7

10.68

168,0

50.36

168,0

50.36

168,0

50.36

168,0

50.36

168,0

50.36

212,8

53.55

212,8

53.55

212,8

53.55

212,8

53.55

212,8

53.55

Unallo

cated

corpo

rate a

ssets

91,63

3.96

91,63

3.96

91,63

3.96

91,63

3.96

91,63

3.96

63,66

2.28

63,66

2.28

63,66

2.28

63,66

2.28

63,66

2.28

15,72

3.01

15,72

3.01

15,72

3.01

15,72

3.01

15,72

3.01

TTTT T otal

ota

l ota

l ota

l ota

l —

—

——

——

—25

5,344

.6425

5,344

.6425

5,344

.6425

5,344

.6425

5,344

.6423

1,712

.6423

1,712

.6423

1,712

.6423

1,712

.6423

1,712

.6422

8,576

.5622

8,576

.5622

8,576

.5622

8,576

.5622

8,576

.56

Segm

ent l

iabilit

iesSe

gmen

t liab

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Segm

ent l

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t liab

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Segm

ent l

iabilit

ies25

,344.5

125

,344.5

125

,344.5

125

,344.5

125

,344.5

123

,881.9

323

,881.9

323

,881.9

323

,881.9

323

,881.9

322

,657.8

822

,657.8

822

,657.8

822

,657.8

822

,657.8

838

.0138

.0138

.0138

.0138

.0118

.9418

.9418

.9418

.9418

.9424

.1924

.1924

.1924

.1924

.193,4

28.00

3,428

.003,4

28.00

3,428

.003,4

28.00

3,349

.873,3

49.87

3,349

.873,3

49.87

3,349

.873,2

50.85

3,250

.853,2

50.85

3,250

.853,2

50.85

28,81

0.53

28,81

0.53

28,81

0.53

28,81

0.53

28,81

0.53

27,25

0.73

27,25

0.73

27,25

0.73

27,25

0.73

27,25

0.73

25,93

2.91

25,93

2.91

25,93

2.91

25,93

2.91

25,93

2.91

Unallo

cated

corpo

rate l

iabiliti

es11

8,561

.8111

8,561

.8111

8,561

.8111

8,561

.8111

8,561

.8199

,465.8

099

,465.8

099

,465.8

099

,465.8

099

,465.8

010

0,822

.2510

0,822

.2510

0,822

.2510

0,822

.2510

0,822

.25

TTTT T otalota

lota

lota

lota

l—

——

——

——

147,3

72.34

147,3

72.34

147,3

72.34

147,3

72.34

147,3

72.34

126,7

16.53

126,7

16.53

126,7

16.53

126,7

16.53

126,7

16.53

126,7

55.16

126,7

55.16

126,7

55.16

126,7

55.16

126,7

55.16

Capit

al exp

endit

ure to

wards

Capit

al exp

endit

ure to

wards

Capit

al exp

endit

ure to

wards

Capit

al exp

endit

ure to

wards

Capit

al exp

endit

ure to

wards

acquis

ition o

f fixe

d asse

tsacq

uisitio

n of f

ixed a

ssets

acquis

ition o

f fixe

d asse

tsacq

uisitio

n of f

ixed a

ssets

acquis

ition o

f fixe

d asse

ts5,0

05.46

5,005

.465,0

05.46

5,005

.465,0

05.46

5,618

.265,6

18.26

5,618

.265,6

18.26

5,618

.26—

48.45

48.45

48.45

48.45

48.45

——

——

—5,0

53.91

5,053

.915,0

53.91

5,053

.915,0

53.91

5,618

.265,6

18.26

5,618

.265,6

18.26

5,618

.26

—

Depre

ciatio

n / a

morti

zatio

n De

precia

tion /

amo

rtiza

tion

Depre

ciatio

n / a

morti

zatio

n De

precia

tion /

amo

rtiza

tion

Depre

ciatio

n / a

morti

zatio

n 4,5

30.14

4,530

.144,5

30.14

4,530

.144,5

30.14

4,899

.024,8

99.02

4,899

.024,8

99.02

4,899

.02—

319.1

031

9.10

319.1

031

9.10

319.1

031

6.96

316.9

631

6.96

316.9

631

6.96

—98

.0198

.0198

.0198

.0198

.0153

.5853

.5853

.5853

.5853

.58—

4,947

.254,9

47.25

4,947

.254,9

47.25

4,947

.255,2

69.56

5,269

.565,2

69.56

5,269

.565,2

69.56

—

Non c

ash ex

pense

s othe

r tha

nNo

n cash

expe

nses o

ther t

han

Non c

ash ex

pense

s othe

r tha

nNo

n cash

expe

nses o

ther t

han

Non c

ash ex

pense

s othe

r tha

nde

precia

tion a

nd a

mortiz

ation

depre

ciatio

n and

amo

rtizati

onde

precia

tion a

nd a

mortiz

ation

depre

ciatio

n and

amo

rtizati

onde

precia

tion a

nd a

mortiz

ation

549.5

254

9.52

549.5

254

9.52

549.5

21,3

93.81

1,393

.811,3

93.81

1,393

.811,3

93.81

——

——

0.34

0.34

0.34

0.34

0.34

0.30

0.30

0.30

0.30

0.30

—54

9.86

549.8

654

9.86

549.8

654

9.86

1,394

.111,3

94.11

1,394

.111,3

94.11

1,394

.11

Note

Note

Note

Note

Note:

Cap

ital ex

penditu

re inc

ludes

exchan

ge dif

ferenc

es tha

t have

been

capital

ised.

Geog

raphic

al inf

ormati

onGe

ograp

hical

inform

ation

Geog

raphic

al inf

ormati

onGe

ograp

hical

inform

ation

Geog

raphic

al inf

ormati

onThe

opera

ting in

terest

s of th

e Com

pany

are co

nfined

to Ind

ia sin

ce all

the op

eration

al act

ivities

exists

in In

dia on

ly. Acc

ording

ly, the

figure

s app

earing

in th

ese fin

ancial

statem

ents r

elate

to the

Com

pany’

s sing

le geo

graphi

cal lo

cation

i.e. In

dia.


84

NONONONONOTE 38 : GOTE 38 : GOTE 38 : GOTE 38 : GOTE 38 : GOVERNMENT GRANTSVERNMENT GRANTSVERNMENT GRANTSVERNMENT GRANTSVERNMENT GRANTS

At the beginning of the yearAt the beginning of the yearAt the beginning of the yearAt the beginning of the yearAt the beginning of the year 170.76 218.56Received during the year — —Released to the statement of profit and loss 47.80 47.80

At the end of the yearAt the end of the yearAt the end of the yearAt the end of the yearAt the end of the year 122.96122.96122.96122.96122.96 170.76170.76170.76170.76170.76

Current 47.80 47.80Non-current 75.16 122.96

122.96122.96122.96122.96122.96 170.76170.76170.76170.76170.76

Government grants have been received for the purchase of certain items of property, plant & equipment. TheCompany is required to undertake export of services. There are no unfulfilled conditions or contingencies.

NONONONONOTE 39 : INCOME TAXTE 39 : INCOME TAXTE 39 : INCOME TAXTE 39 : INCOME TAXTE 39 : INCOME TAX

a.a.a.a.a. The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016are:are:are:are:are:

PPPPProfit and loss sectionrofit and loss sectionrofit and loss sectionrofit and loss sectionrofit and loss section

Current income tax:Current income tax:Current income tax:Current income tax:Current income tax:Current income tax charge (MAT payable) 1,259.54 971.34Less: MAT credit entitlement (1,259.54) (1,228.10)Deferred tax:Deferred tax:Deferred tax:Deferred tax:Deferred tax:Relating to origination and reversal of temporary differences 1,851.28 1,188.39

Income tax expense reported in the statement of profit or lossIncome tax expense reported in the statement of profit or lossIncome tax expense reported in the statement of profit or lossIncome tax expense reported in the statement of profit or lossIncome tax expense reported in the statement of profit or loss 1,851.281,851.281,851.281,851.281,851.28 931.63931.63931.63931.63931.63

OCI SectionOCI SectionOCI SectionOCI SectionOCI SectionDeferred tax related to items recognised in OCI during the year:Deferred tax related to items recognised in OCI during the year:Deferred tax related to items recognised in OCI during the year:Deferred tax related to items recognised in OCI during the year:Deferred tax related to items recognised in OCI during the year:Net gain/(loss) on remeasurement of defined benefit plans (10.83) 55.35

Income tax charged to OCIIncome tax charged to OCIIncome tax charged to OCIIncome tax charged to OCIIncome tax charged to OCI (3.75)(3.75)(3.75)(3.75)(3.75) 19.1619.1619.1619.1619.16

b.b.b.b.b. Reconciliation of tax expense and the accounting profit multiplied by IndiaReconciliation of tax expense and the accounting profit multiplied by IndiaReconciliation of tax expense and the accounting profit multiplied by IndiaReconciliation of tax expense and the accounting profit multiplied by IndiaReconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for 31’s domestic tax rate for 31’s domestic tax rate for 31’s domestic tax rate for 31’s domestic tax rate for 31March 2017 and 31 March 2016:March 2017 and 31 March 2016:March 2017 and 31 March 2016:March 2017 and 31 March 2016:March 2017 and 31 March 2016:

Accounting profit before taxAccounting profit before taxAccounting profit before taxAccounting profit before taxAccounting profit before tax 5,520.53 4,527.42At India’s statutory income tax rate of 34.608%(31st March 2016: 34.608%) 1,910.55 1,566.85Adjustment in respect of current income tax of previous years — (256.76)Non deductible expenses for tax purpose:Non deductible expenses for tax purpose:Non deductible expenses for tax purpose:Non deductible expenses for tax purpose:Non deductible expenses for tax purpose:Non-deductible expenses 74.64 100.63Other Adjustments 12.99 (237.38)Reversal of deferred tax asset on temporary differences: (146.90) (241.71)

At the effective income tax rate of 33.53%At the effective income tax rate of 33.53%At the effective income tax rate of 33.53%At the effective income tax rate of 33.53%At the effective income tax rate of 33.53%(31 March 2016: 20.58%)(31 March 2016: 20.58%)(31 March 2016: 20.58%)(31 March 2016: 20.58%)(31 March 2016: 20.58%) 1,851.281,851.281,851.281,851.281,851.28 931.63931.63931.63931.63931.63

Income tax expense reported in the statement of profit and lossIncome tax expense reported in the statement of profit and lossIncome tax expense reported in the statement of profit and lossIncome tax expense reported in the statement of profit and lossIncome tax expense reported in the statement of profit and loss 1,851.281,851.281,851.281,851.281,851.28 931.63931.63931.63931.63931.63


85

c.c.c.c.c. Reconciliation of deferred tax liabilities (net)Reconciliation of deferred tax liabilities (net)Reconciliation of deferred tax liabilities (net)Reconciliation of deferred tax liabilities (net)Reconciliation of deferred tax liabilities (net)

Opening balance as on 1 April 12,143.77 12,164.32Tax expenses recognised in statement of profit and loss (net of MAT credit) 591.74 (39.71)Tax (income)/ expenses recognised in OCI (3.75) 19.16

Closing balance as on 31 MarchClosing balance as on 31 MarchClosing balance as on 31 MarchClosing balance as on 31 MarchClosing balance as on 31 March 12,731.7612,731.7612,731.7612,731.7612,731.76 12,143.7712,143.7712,143.7712,143.7712,143.77

d.d.d.d.d. MAMAMAMAMAT credit entitlementT credit entitlementT credit entitlementT credit entitlementT credit entitlement

Opening balanceOpening balanceOpening balanceOpening balanceOpening balance 2,813.98 1,585.88Add: MAT credit entitlement for the current year 1,259.54 1,228.10

Closing balanceClosing balanceClosing balanceClosing balanceClosing balance 4,073.524,073.524,073.524,073.524,073.52 2,813.982,813.982,813.982,813.982,813.98

The Company has recognised MAT credit since there is convincing evidence that the Company will pay normalincome tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward.

NONONONONOTE 40 : EARNING PER SHARE (EPS)TE 40 : EARNING PER SHARE (EPS)TE 40 : EARNING PER SHARE (EPS)TE 40 : EARNING PER SHARE (EPS)TE 40 : EARNING PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent bythe weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (afteradjusting for interest on the convertible preference shares) by the weighted average number of Equity sharesoutstanding during the year plus the weighted average number of Equity shares that would be issued on conversionof all the dilutive potential Equity shares into Equity shares.

The following reflects the income and share data used in the basic and diluted EPS computations:

Basic and Diluted Earnings per shareBasic and Diluted Earnings per shareBasic and Diluted Earnings per shareBasic and Diluted Earnings per shareBasic and Diluted Earnings per shareProfit attributable to equity share holders ofCompany for basic and diluted earnings 3,669.23 3,595.83

Weighted average number of Equityshares for basic and diluted EPS 75,991,199 75,991,199

NONONONONOTE 41 :SIGNIFICANT ATE 41 :SIGNIFICANT ATE 41 :SIGNIFICANT ATE 41 :SIGNIFICANT ATE 41 :SIGNIFICANT ACCOUNTING JUDGEMENTSCCOUNTING JUDGEMENTSCCOUNTING JUDGEMENTSCCOUNTING JUDGEMENTSCCOUNTING JUDGEMENTS, ESTIMA, ESTIMA, ESTIMA, ESTIMA, ESTIMATES AND ASSUMPTIONSTES AND ASSUMPTIONSTES AND ASSUMPTIONSTES AND ASSUMPTIONSTES AND ASSUMPTIONS

The preparation of the Company’s financial statements requires management to make judgements, estimatesand assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and theaccompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions andestimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilitiesaffected in future periods.

JudgementsJudgementsJudgementsJudgementsJudgementsIn the process of applying the Company’s accounting policies, management has made the following judgements,which have the most significant effect on the amounts recognised in the financial statements:



86

Operating lease commitments – Company as lesseeOperating lease commitments – Company as lesseeOperating lease commitments – Company as lesseeOperating lease commitments – Company as lesseeOperating lease commitments – Company as lesseeThe Company has taken certain land on long term lease basis. The Company has determined, based on anevaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major partof the economic life of the property and the fair value of the asset, that it does not have all the significant risksand rewards of ownership of these properties and accounts for the contracts as operating leases.

Estimates and assumptionsEstimates and assumptionsEstimates and assumptionsEstimates and assumptionsEstimates and assumptionsThe key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilitieswithin the next financial year, are described below. The Company based its assumptions and estimates onparameters available when the financial statements were prepared. Existing circumstances and assumptionsabout future developments, however, may change due to market changes or circumstances arising that arebeyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)Defined benefit plans (gratuity benefits)Defined benefit plans (gratuity benefits)Defined benefit plans (gratuity benefits)Defined benefit plans (gratuity benefits)The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of thegratuity obligation are determined using actuarial valuations. An actuarial valuation involves making variousassumptions that may differ from actual developments in the future. These include the determination of thediscount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation andits long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptionsare reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate forplans operated in India, the management considers the interest rates of government bonds in currencies consistentwith the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tablestend to change only at interval in response to demographic changes. Future salary increases and gratuity increasesare based on expected future inflation rates. Further details about gratuity obligations are given in Note 43.

FFFFFair value measurement of financial instrumentsair value measurement of financial instrumentsair value measurement of financial instrumentsair value measurement of financial instrumentsair value measurement of financial instrumentsWhen the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measuredbased on quoted prices in active markets, their fair value is measured using other valuation techniques. Theinputs to these models are taken from observable markets where possible, but where this is not feasible, adegree of judgement is required in establishing fair values. Judgements include considerations of inputs such asliquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fairvalue of financial instruments.

Revenue recognition – LRevenue recognition – LRevenue recognition – LRevenue recognition – LRevenue recognition – Lalit loyalty programmealit loyalty programmealit loyalty programmealit loyalty programmealit loyalty programmeThe Company estimates the fair value of points awarded under the Lalit loyalty programme by applying statisticaltechniques. Inputs to the model include making assumptions about expected redemption rates, the mix ofproducts that will be available for redemption in the future and customer preferences. As at 31 March 2017, theestimated liability towards unredeemed points amounted to Rs. 36.20 lacs (31 March 2016: Rs. 41.53 lacs, 1April 2015: Rs. 26.34 lacs)

Impairment of non-financial assetsImpairment of non-financial assetsImpairment of non-financial assetsImpairment of non-financial assetsImpairment of non-financial assetsImpairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposalcalculation is based on available data from binding sales transactions, conducted at arm’s length, for similarassets or observable market prices less incremental costs for disposing of the asset. The value in use calculationis based on a DCF model. The cash flows are derived from the budget for the next five years and do not includerestructuring activities that the Company is not yet committed to or significant future investments that will enhancethe asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate usedfor the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolationpurposes.

87

NONONONONOTE 42 : COMMITMENTS & CONTINGENT LIABILITIESTE 42 : COMMITMENTS & CONTINGENT LIABILITIESTE 42 : COMMITMENTS & CONTINGENT LIABILITIESTE 42 : COMMITMENTS & CONTINGENT LIABILITIESTE 42 : COMMITMENTS & CONTINGENT LIABILITIES

(a)(a)(a)(a)(a) Capital CommitmentsCapital CommitmentsCapital CommitmentsCapital CommitmentsCapital CommitmentsEstimated amount of contracts remaining to be executed on capital account and not provided for:Commitments relating to estimated amount of completion of Property, Plant & Equipment are as follows:

DescriptionsDescriptionsDescriptionsDescriptionsDescriptionsEstimated amount of contracts remaining tobe executed and not provided for 6,304.16 6,960.82 7,131.57

(b)(b)(b)(b)(b) LLLLLeaseseaseseaseseaseseasesOperating lease commitments - Company as lesseeOperating lease commitments - Company as lesseeOperating lease commitments - Company as lesseeOperating lease commitments - Company as lesseeOperating lease commitments - Company as lesseeThe Company has entered into operating leases on certain Land and Building properties with lease termsbetween 30 to 99 years. The Company has the option, under some of its leases, to lease the assets foradditional terms of 30 years.

The Company has paid Rs. 1,757.71 lacs (31 March 2016: Rs. 1,725.39 lacs) during the year towardsminimum lease payment.

Future minimum rentals payables under non-cancellable operating leases are as follows:

Within one year 1,236.76 1,148.92 1,126.28After one year but not more than five years 4,780.55 4,798.61 4,682.09More than five years 33,351.12 34,539.43 35,727.75

39,368.4339,368.4339,368.4339,368.4339,368.43 40,486.9640,486.9640,486.9640,486.9640,486.96 41,536.1241,536.1241,536.1241,536.1241,536.12

Operating lease commitments - Company as lessorOperating lease commitments - Company as lessorOperating lease commitments - Company as lessorOperating lease commitments - Company as lessorOperating lease commitments - Company as lessorThe Company has entered into operating leases consisting of certain offices. These lease terms is for 3years. There is no escalation clause in the lease agreements. There are no restrictions imposed by leasearrangements.

Future minimum rentals receivables under non-cancellable operating leases are as follows:

Within one year 588.37 585.64 346.13After one year but not more than five years 226.20 754.20 28.73More than five years 153.20 155.31 157.42

967.77967.77967.77967.77967.77 1,495.151,495.151,495.151,495.151,495.15 532.28532.28532.28532.28532.28

FFFFFinance lease commitments - Company as lessorinance lease commitments - Company as lessorinance lease commitments - Company as lessorinance lease commitments - Company as lessorinance lease commitments - Company as lessorThe Company has given certain portion of land and buildings on finance lease. The lease terms is for 93-99 years. Refer note 54.Future gross rentals receivables under non-cancellable finance leases are as follows:

Within one year 109.44 109.44 109.44After one year but not more than five years 437.76 437.76 437.76More than five years 6,346.27 6,455.71 6,565.15

6,893.476,893.476,893.476,893.476,893.47 7,002.917,002.917,002.917,002.917,002.91 7,112.357,112.357,112.357,112.357,112.35



88

Future minimum rentals receivables under non-cancellable finance leases are as follows:


954.69954.69954.69954.69954.69 954.87954.87954.87954.87954.87 955.04955.04955.04955.04955.04

NONONONONOTE 43 : GRATE 43 : GRATE 43 : GRATE 43 : GRATE 43 : GRATUITY AND OTUITY AND OTUITY AND OTUITY AND OTUITY AND OTHER POSTTHER POSTTHER POSTTHER POSTTHER POST-EMPL-EMPL-EMPL-EMPL-EMPLOOOOOYMENT BENEFIT PLANSYMENT BENEFIT PLANSYMENT BENEFIT PLANSYMENT BENEFIT PLANSYMENT BENEFIT PLANS

Gratuity Plan 1,077.16 940.69 878.31

TTTTTotalotalotalotalotal 1,077.161,077.161,077.161,077.161,077.16 940.69940.69940.69940.69940.69 878.31878.31878.31878.31878.31

The Company has an unfunded defined benefit gratuity plan. Every employee who has completed five years ormore or service gets a gratuity on separation equal to 15 days salary (last drawn salary) for each completed yearof continuous service or part thereof in excess of six months.

Changes in the defined benefit obligation as at 31 March 2017:Changes in the defined benefit obligation as at 31 March 2017:Changes in the defined benefit obligation as at 31 March 2017:Changes in the defined benefit obligation as at 31 March 2017:Changes in the defined benefit obligation as at 31 March 2017: Defined benefitDefined benefitDefined benefitDefined benefitDefined benefit Defined benefitDefined benefitDefined benefitDefined benefitDefined benefitobligationobligationobligationobligationobligation obligationobligationobligationobligationobligation

(31 March 2017)(31 March 2017)(31 March 2017)(31 March 2017)(31 March 2017) (31 March 2016)(31 March 2016)(31 March 2016)(31 March 2016)(31 March 2016)

Opening Defined benefit obligationsOpening Defined benefit obligationsOpening Defined benefit obligationsOpening Defined benefit obligationsOpening Defined benefit obligations 940.69 878.31

Service Cost 120.23 131.10Net interest expense 63.41 63.03

Gratuity cost charged to P&LGratuity cost charged to P&LGratuity cost charged to P&LGratuity cost charged to P&LGratuity cost charged to P&L 183.64183.64183.64183.64183.64 194.13194.13194.13194.13194.13

Return on plan assets (excluding amounts included in net interest expense)Actuarial changes arising from changes in demographic assumptions (0.88) (2.91)

Actuarial changes arising from changes in financial assumptions 37.20 4.18Experience adjustments (25.49) (56.62)

Remeasurement gain/(loss) in other comprehensive incomeRemeasurement gain/(loss) in other comprehensive incomeRemeasurement gain/(loss) in other comprehensive incomeRemeasurement gain/(loss) in other comprehensive incomeRemeasurement gain/(loss) in other comprehensive income 10.8310.8310.8310.8310.83 (55.35)(55.35)(55.35)(55.35)(55.35)

Contribution by employerBenefits paid (62.46) (76.40)

Closing Defined benefit obligations*Closing Defined benefit obligations*Closing Defined benefit obligations*Closing Defined benefit obligations*Closing Defined benefit obligations* 1,072.701,072.701,072.701,072.701,072.70 940.69940.69940.69940.69940.69

*excluding liability amounts for employees transferred from group companies amounting to Rs. 4.46 lacs (31March 2016: Nil)

Amount recognised in the statement of profit or loss is as under:Amount recognised in the statement of profit or loss is as under:Amount recognised in the statement of profit or loss is as under:Amount recognised in the statement of profit or loss is as under:Amount recognised in the statement of profit or loss is as under:

DescriptionDescriptionDescriptionDescriptionDescription 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

Current service cost 120.23 131.10Net interest expense 63.41 63.03

Amount recognised in the statement of profit or lossAmount recognised in the statement of profit or lossAmount recognised in the statement of profit or lossAmount recognised in the statement of profit or lossAmount recognised in the statement of profit or loss 183.64183.64183.64183.64183.64 194.13194.13194.13194.13194.13


89

Amount recognised in Other comprehensive income is as under:Amount recognised in Other comprehensive income is as under:Amount recognised in Other comprehensive income is as under:Amount recognised in Other comprehensive income is as under:Amount recognised in Other comprehensive income is as under:

DescriptionDescriptionDescriptionDescriptionDescription

Actuarial gain/(loss) arising from changes in demographic assumption (0.88) (2.91)

Actuarial gain/(loss) arising from changes in financial assumption 37.20 4.18Experience adjustments (25.49) (56.62)

Amount recognised in Other comprehensive incomeAmount recognised in Other comprehensive incomeAmount recognised in Other comprehensive incomeAmount recognised in Other comprehensive incomeAmount recognised in Other comprehensive income 10.8310.8310.8310.8310.83 (55.35)(55.35)(55.35)(55.35)(55.35)

The principal assumptions used in determining gratuity for the CompanyThe principal assumptions used in determining gratuity for the CompanyThe principal assumptions used in determining gratuity for the CompanyThe principal assumptions used in determining gratuity for the CompanyThe principal assumptions used in determining gratuity for the Company’s plans are shown below:’s plans are shown below:’s plans are shown below:’s plans are shown below:’s plans are shown below:

Discount rate 6.90% 7.80%

Future salary increase 7.50% 7.50%

Sensitivity analysis for gratuity liability:Sensitivity analysis for gratuity liability:Sensitivity analysis for gratuity liability:Sensitivity analysis for gratuity liability:Sensitivity analysis for gratuity liability:

Impact of the change in Discount rateImpact of the change in Discount rateImpact of the change in Discount rateImpact of the change in Discount rateImpact of the change in Discount rate

(a) Impact due to increase of 0.5% 1,012.25 839.70

(b) Impact due to decrease of 0.5% 1,058.00 880.09

Impact of the change in Salary increaseImpact of the change in Salary increaseImpact of the change in Salary increaseImpact of the change in Salary increaseImpact of the change in Salary increase

(a) Impact due to increase of 0.5% 1,057.75 880.05

(b) Impact due to decrease of 0.5% 1,012.27 839.56

The sensitivity analysis above have been determined based on a method that extrapolates the impact on definedbenefit obligation as a result of reasonable changes in key assumptions occurring at the reporting period.

The following payments are expected contributions to the defined benefit plan in future years:The following payments are expected contributions to the defined benefit plan in future years:The following payments are expected contributions to the defined benefit plan in future years:The following payments are expected contributions to the defined benefit plan in future years:The following payments are expected contributions to the defined benefit plan in future years:

DescriptionDescriptionDescriptionDescriptionDescription

Within the next 12 months (next annual reporting period) 34.54 32.71

TTTTTotal expected paymentsotal expected paymentsotal expected paymentsotal expected paymentsotal expected payments 34.5434.5434.5434.5434.54 32.7132.7132.7132.7132.71

The average duration of the defined benefit plan obligation at the end of the reporting period is 4.44 years.



90

NONONONONOTE 44 : FAIR VTE 44 : FAIR VTE 44 : FAIR VTE 44 : FAIR VTE 44 : FAIR VALALALALALUE MEASUREMENTUE MEASUREMENTUE MEASUREMENTUE MEASUREMENTUE MEASUREMENT

a.a.a.a.a. FFFFFinancial instruments by categoryinancial instruments by categoryinancial instruments by categoryinancial instruments by categoryinancial instruments by category

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015

FVTPLFVTPLFVTPLFVTPLFVTPL AmortisedAmortisedAmortisedAmortisedAmortised FVTPLFVTPLFVTPLFVTPLFVTPL AmortisedAmortisedAmortisedAmortisedAmortised FVTPLFVTPLFVTPLFVTPLFVTPL AmortisedAmortisedAmortisedAmortisedAmortisedCostCostCostCostCost CostCostCostCostCost CostCostCostCostCost

FFFFFinancial Assetsinancial Assetsinancial Assetsinancial Assetsinancial AssetsInvestments in equity instruments 3.60 — 3.60 — 3.60 —Trade Receivables — 4,371.58 — 3,948.96 — 3,924.83Loans — 35,910.69 — 43,042.43 — 36,876.04Security Deposits — 609.56 — 685.41 — 692.04Margin money deposits — 991.66 — 232.10 — 487.40Interest Accrued — 60.81 — 112.66 — 106.74Finance lease receivable — 954.69 — 954.87 — 955.03Cash and Cash Equivalents — 6,597.89 — 1,829.61 — 6,556.44Subsidy receivable — 93.89 — 133.16 — 125.85Recoverable from related parties — 11,033.55 — 15,476.26 — 10,993.20Others — 530.56 — 608.40 — 439.81

TTTTTotal Fotal Fotal Fotal Fotal Financial Assetsinancial Assetsinancial Assetsinancial Assetsinancial Assets 3.603.603.603.603.60 61,154.8861,154.8861,154.8861,154.8861,154.88 3.603.603.603.603.60 67,023.8667,023.8667,023.8667,023.8667,023.86 3.603.603.603.603.60 61,157.3861,157.3861,157.3861,157.3861,157.38

FFFFFinancial Liabilitiesinancial Liabilitiesinancial Liabilitiesinancial Liabilitiesinancial LiabilitiesBorrowings — 117,289.60 — 98,186.78 — 99,452.80Sundry Deposits — 272.29 — 238.92 — 94.34Trade Payables — 3,630.67 — 2,364.51 — 2,838.80Other Current Financial Liabilities — 5,063.88 — 5,449.73 — 4,468.54Other non current Financial Liabilities — 108.47 — 105.65 — 100.89

TTTTTotal Fotal Fotal Fotal Fotal Financial Liabilitiesinancial Liabilitiesinancial Liabilitiesinancial Liabilitiesinancial Liabilities — 126,364.91126,364.91126,364.91126,364.91126,364.91 — 106,345.59106,345.59106,345.59106,345.59106,345.59 — 106,955.37 106,955.37 106,955.37 106,955.37 106,955.37

Note: The financial assets above do not include investments in subsidiaries and joint venture of a subsidiarywhich are measured at cost in accordance with Ind AS 101, Ind AS 27 and Ind AS 28.

b.b.b.b.b. FFFFFair value measurement hierarchy for assets and liabilitiesair value measurement hierarchy for assets and liabilitiesair value measurement hierarchy for assets and liabilitiesair value measurement hierarchy for assets and liabilitiesair value measurement hierarchy for assets and liabilities

FFFFFair value measurementair value measurementair value measurementair value measurementair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date under current market conditionsThe Company categorizes assets and liabilities measured at fair value into one of three levels depending onthe ability to observe inputs employed in their measurement which are described as follows:

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

ii) Lii) Lii) Lii) Lii) Level 2evel 2evel 2evel 2evel 2Inputs are inputs that are observable, either directly or indirectly, other than quoted prices included withinlevel 1 for the asset or liability.

iii) Liii) Liii) Liii) Liii) Level 3evel 3evel 3evel 3evel 3Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observablerelated market data or Company’s assumptions about pricing by market participants.

91

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities:

FFFFFinancial assets and liabilities measured at fair valueinancial assets and liabilities measured at fair valueinancial assets and liabilities measured at fair valueinancial assets and liabilities measured at fair valueinancial assets and liabilities measured at fair value31 March 201731 March 201731 March 201731 March 201731 March 2017

LLLLLevel 1evel 1evel 1evel 1evel 1 LLLLLevel 2evel 2evel 2evel 2evel 2 LLLLLevel 3evel 3evel 3evel 3evel 3 TTTTTotalotalotalotalotalFFFFFinancial assetsinancial assetsinancial assetsinancial assetsinancial assetsFFFFFinancial investments as FVTPLinancial investments as FVTPLinancial investments as FVTPLinancial investments as FVTPLinancial investments as FVTPLUnquoted equity instruments — 3.60 — 3.60

31 March 201631 March 201631 March 201631 March 201631 March 2016


1 April 20151 April 20151 April 20151 April 20151 April 2015


FFFFFinancial assets and liabilities measured at amortised cost for which fair values are disclosedinancial assets and liabilities measured at amortised cost for which fair values are disclosedinancial assets and liabilities measured at amortised cost for which fair values are disclosedinancial assets and liabilities measured at amortised cost for which fair values are disclosedinancial assets and liabilities measured at amortised cost for which fair values are disclosed


LLLLLevel 1evel 1evel 1evel 1evel 1 LLLLLevel 2evel 2evel 2evel 2evel 2 LLLLLevel 3evel 3evel 3evel 3evel 3 TTTTTotalotalotalotalotalFFFFFinancial assetsinancial assetsinancial assetsinancial assetsinancial assetsLoans — — 35,910.69 35,910.69Security Deposits — — 609.56 609.57Finance lease receivable — — 954.69 954.69Recoverable from related parties — — 11,033.55 11,033.54

— — 48,508.4948,508.4948,508.4948,508.4948,508.49 48,508.4948,508.4948,508.4948,508.4948,508.49

FFFFFinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesLong Term Borrowings — — 117,289.60 117,289.61Sundry Deposits — — 272.29 272.29

— — 117,561.89117,561.89117,561.89117,561.89117,561.89 117,561.89117,561.89117,561.89117,561.89117,561.89



— — 60,158.9760,158.9760,158.9760,158.9760,158.97 60,158.9660,158.9660,158.9660,158.9660,158.96


92

FFFFFinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesLong Term Borrowings — — 98,186.78 98,186.78Security Deposits — — 238.92 238.92

— — — — — ————— 98,425.7098,425.7098,425.7098,425.7098,425.70 98,425.7098,425.7098,425.7098,425.7098,425.70



————— ————— 49,516.3149,516.3149,516.3149,516.3149,516.31 49,516.3149,516.3149,516.3149,516.3149,516.31

FFFFFinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesLong Term Borrowings — — 99,452.80 99,452.80Security Deposits — — 94.34 94.34

— — — — — ————— 99,547.1499,547.1499,547.1499,547.1499,547.14 99,547.1499,547.1499,547.1499,547.1499,547.14

c.c.c.c.c. FFFFFair value of financial assets and liabilities measured at amortised costair value of financial assets and liabilities measured at amortised costair value of financial assets and liabilities measured at amortised costair value of financial assets and liabilities measured at amortised costair value of financial assets and liabilities measured at amortised cost

i.i.i.i.i. The management assessed that fair values of cash and cash equivalents, trade receivables, trade payables,bank overdrafts, Interest accrued on bank deposits with banks, other current financial assets and othercurrent financial liabilities approximates their carrying amounts largely due to the short-term maturities ofthese instruments.

ii.ii.ii.ii.ii. The fair values of loans, security deposits, borrowings and other financial assets and liabilities are consideredto be the same as their fair values, as there is an immaterial change in the lending rates.

NONONONONOTE 45 :FINANCIAL RISK MANATE 45 :FINANCIAL RISK MANATE 45 :FINANCIAL RISK MANATE 45 :FINANCIAL RISK MANATE 45 :FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIESGEMENT OBJECTIVES AND POLICIESGEMENT OBJECTIVES AND POLICIESGEMENT OBJECTIVES AND POLICIESGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. Themain purpose of these financial liabilities is to finance the Company’s operations and to support its operations.The Company’s financial assets include loans, trade and other receivables, and cash & cash equivalents thatderive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior managementoversees the management of these risks. The Company’s senior management is supported by a financial riskcommittee that advises on financial risks and the appropriate financial risk governance framework for the Company.This financial risk committee provides assurance to the Company’s senior management that the Company’sfinancial risk activities are governed by appropriate policies and procedure and that financial risks are identified,measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directorsreviews and agrees policies for managing each risk, which are summarised as below:

Market riskMarket riskMarket riskMarket riskMarket risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because ofchanges in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and otherprice risks. Financial instruments affected by market risk include loans and borrowings, deposits and payables/receivables in foreign currencies.

Interest rate riskInterest rate riskInterest rate riskInterest rate riskInterest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because

93

of changes in market interest rates. The Company’s exposure to the risk of changes in market interest ratesrelates primarily to the Company’s long term debt obligations with floating interest rates. The Company iscarrying its borrowings primarily at variable rate. The Company expects the variable rate to decline, accordinglythe Company is currently carrying its loans at variable interest rates.


Variable rate borrowings 116,854.60 97,836.78 99,452.80

Fixed rate borrowings 435.00 350.00 —

Interest rate sensitivityInterest rate sensitivityInterest rate sensitivityInterest rate sensitivityInterest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portionof loans and borrowings affected. With all other variable held constant, the Company’s profit before tax isaffected through the impact on floating rate borrowings, as follows:

Effect on PEffect on PEffect on PEffect on PEffect on Profit before taxrofit before taxrofit before taxrofit before taxrofit before tax

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016

Increase by 50 basis points (31 March 2016: 50 bps) 584.27 489.18Decrease by 50 basis points (31 March 2016: 50 bps) (584.27) (489.18)

FFFFForeign currency risksoreign currency risksoreign currency risksoreign currency risksoreign currency risks

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because ofchanges in foreign exchange rates. The Company’s exposure in foreign currency is in loans, debtors and advancesdenominated in foreign currency. The Company is not restricting its exposure of risk in change in exchange rates.The Company expects the Indian Rupee to strengthen and accordingly the Company is carrying the risk ofchange in exchange rates.

31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 01 April 2015 01 April 2015 01 April 2015 01 April 2015 01 April 2015TTTTTrade creditorsrade creditorsrade creditorsrade creditorsrade creditors-USD 0.13 0.14 0.12AdvancesAdvancesAdvancesAdvancesAdvances-USD 0.10 0.57 0.90-CAD — 0.09 0.80-EUR — — 0.09TTTTTrade receivablesrade receivablesrade receivablesrade receivablesrade receivables-GBP 0.90 1.80 0.45-USD 2.74 2.74 2.74EEFC Bank BalanceEEFC Bank BalanceEEFC Bank BalanceEEFC Bank BalanceEEFC Bank Balance-USD 1.07 0.34 1.04Unsecured loansUnsecured loansUnsecured loansUnsecured loansUnsecured loans-USD 76.00 76.00 —Secured loansSecured loansSecured loansSecured loansSecured loans-USD 166.13 185.94 204.33

FFFFForeign currency sensitivityoreign currency sensitivityoreign currency sensitivityoreign currency sensitivityoreign currency sensitivity

The following table demonstrate the sensitivity to a reasonably possible change in USD-INR exchange rates, withall other variables held constant. The impact on the Company’s profit before tax is due to changes in the fairvalue of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all othercurrencies is not material.


94

Effect on profit before tax*Effect on profit before tax*Effect on profit before tax*Effect on profit before tax*Effect on profit before tax*

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 01 April 201501 April 201501 April 201501 April 201501 April 2015USD SensitivityUSD SensitivityUSD SensitivityUSD SensitivityUSD Sensitivity

Increase by 5% (31 March 2016 - 5%) (772.71) (857.12) (625.19)Decrease by 5% (31 March 2016 - 5%) 772.71 857.12 625.19

EUR SensitivityEUR SensitivityEUR SensitivityEUR SensitivityEUR Sensitivity 69.25 75.10 67.51Increase by 5% (31 March 2016 - 5%) — — 0Decrease by 5% (31 March 2016 - 5%) — — (0)

GBP SensitivityGBP SensitivityGBP SensitivityGBP SensitivityGBP Sensitivity 80.88 95.09 92.46Increase by 5% (31 March 2016 - 5%) 3.64 8.56 2.08Decrease by 5% (31 March 2016 - 5%) (3.64) (8.56) (2.08)

*In accordance with exemption allowed under Ind AS 101, the Company capitalises exchange differences arisingon long term foreign currency monetary items. Accordingly, the profit before tax will not be impacted to thatextent.

Credit riskCredit riskCredit riskCredit riskCredit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customercontract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarilytrade receivables) and from its financing activities, including loans to related parties, deposits with banks andfinancial institutions, foreign exchange transactions and other financial instruments.

(a) T(a) T(a) T(a) T(a) Trade receivablesrade receivablesrade receivablesrade receivablesrade receivables

Customer credit risk is managed by each business location subject to the Company’s established policy, proceduresand control relating to customer credit risk management. Credit quality of a customer is assessed and individualcredit limits are defined in accordance with the assessment both in terms of number of days and amount.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition,a large number of minor receivables are grouped into homogenous groups and assessed for impairmentcollectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class offinancial assets disclosed in Note 9. The Company does not hold collateral as security.

(b) F(b) F(b) F(b) F(b) Financial instruments and cash depositsinancial instruments and cash depositsinancial instruments and cash depositsinancial instruments and cash depositsinancial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury departmentin accordance with the Company’s policy. Investment of surplus funds are made only with approved counterpartiesand within credit limits assigned to each counterparty. The Company’s maximum exposure to credit risk for thecomponents of the balance sheet at 31 March 2017 and 31 March 2016 is the carrying amount as illustrated inNote 9.

Gross carrying amount of trade receivablesGross carrying amount of trade receivablesGross carrying amount of trade receivablesGross carrying amount of trade receivablesGross carrying amount of trade receivables

AgeingAgeingAgeingAgeingAgeing 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 01 April 2015 01 April 2015 01 April 2015 01 April 2015 01 April 2015

Not due 694.60 584.98 488.570-60 days past due 2,805.85 2,205.32 2,114.3161-120 days past due 441.57 355.44 304.58121-180 days past due 181.48 232.50 148.91180-365 days past due 165.38 318.80 264.62365-730 days past due 563.52 584.14 517.33more than 730 days 386.92 332.15 285.15

95

PPPPProvision for doubtful debtsrovision for doubtful debtsrovision for doubtful debtsrovision for doubtful debtsrovision for doubtful debts


121-180 days past due — — 0.49180-365 days past due 13.49 40.84 33.36more than 365 days 854.25 623.53 164.79

Reconciliation of provision for doubtful debts - TReconciliation of provision for doubtful debts - TReconciliation of provision for doubtful debts - TReconciliation of provision for doubtful debts - TReconciliation of provision for doubtful debts - Trade receivablesrade receivablesrade receivablesrade receivablesrade receivables


PPPPProvision at beginningrovision at beginningrovision at beginningrovision at beginningrovision at beginning 664.37664.37664.37664.37664.37 198.64198.64198.64198.64198.64Addition during the year 206.18 474.49Reversal during the year (2.81) (8.76)

PPPPProvision at closingrovision at closingrovision at closingrovision at closingrovision at closing 867.74867.74867.74867.74867.74 664.37664.37664.37664.37664.37

Reconciliation of provision for doubtful debts - LReconciliation of provision for doubtful debts - LReconciliation of provision for doubtful debts - LReconciliation of provision for doubtful debts - LReconciliation of provision for doubtful debts - Loans and depositsoans and depositsoans and depositsoans and depositsoans and deposits

31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

PPPPProvision at beginningrovision at beginningrovision at beginningrovision at beginningrovision at beginning 533.08533.08533.08533.08533.08 944.82944.82944.82944.82944.82

Addition during the year 166.71 388.26Reversal during the year — (800.00)

PPPPProvision at closingrovision at closingrovision at closingrovision at closingrovision at closing 699.79699.79699.79699.79699.79 533.08533.08533.08533.08533.08

Liquidity riskLiquidity riskLiquidity riskLiquidity riskLiquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company’sobjective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,cash credit facilities and bank loans. The Company assessed the concentration of risk with respect to refinancingits debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding anddebt maturity within 12 months can be rolled over with existing lenders. The Company had access to the followingundrawn borrowing facilities at the end of the reporting periods -

31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 01 April 2015 01 April 2015 01 April 2015 01 April 2015 01 April 2015Floating rateFloating rateFloating rateFloating rateFloating rate(a) Expiring within one year(a) Expiring within one year(a) Expiring within one year(a) Expiring within one year(a) Expiring within one year(Bank overdraft and other facilities)(Bank overdraft and other facilities)(Bank overdraft and other facilities)(Bank overdraft and other facilities)(Bank overdraft and other facilities)

SecuredSecuredSecuredSecuredSecured-Cash credit facilities 1,590.15 11.78 49.09-Short term loans 127.90 73.01 2.63

UnsecuredUnsecuredUnsecuredUnsecuredUnsecured-Cash credit facilities — 22.71 18.12-Short term loans 259.35 265.33 —-Buyer’s credit — — 21.90

(b) Expiring beyond one year (Bank loans)(b) Expiring beyond one year (Bank loans)(b) Expiring beyond one year (Bank loans)(b) Expiring beyond one year (Bank loans)(b) Expiring beyond one year (Bank loans)

SecuredSecuredSecuredSecuredSecured-Rupees term loan from banks 6,250.00 4,275.00 35,065.25


96

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97

Note 46: Related PNote 46: Related PNote 46: Related PNote 46: Related PNote 46: Related Party Disclosuresarty Disclosuresarty Disclosuresarty Disclosuresarty Disclosures

a)a)a)a)a) Name of related parties and their relationship:Name of related parties and their relationship:Name of related parties and their relationship:Name of related parties and their relationship:Name of related parties and their relationship:

Subsidiaries Jyoti LimitedApollo Zipper India LimitedPrime Cellular LimitedPrima Buildwell Private LimitedThe Lalit Suri Educational and Charitable Trust

Key managerial personnel Dr. Jyotsna Suri, Chairperson & Managing DirectorMs. Deeksha Suri, Executive DirectorMs. Divya Suri Singh, Executive DirectorMr. Keshav Suri, Executive DirectorMr. Ramesh Suri (Non-Executive Director)Mr. Hanuwant Singh (Non-Executive Director)Mr. M.Y. Khan (Non-Executive Director)Mr. Lalit Bhasin (Non-Executive Director)Mr. D V Batra (Non-Executive Director)Mr. Vinod Khanna (Non-Executive Director)Mr. Abhay N. Firodia ( Non-Executive Director)Mr. Chakor Lalchand Doshi ( Non-Executive Director)

Joint venture of Subsidiaries Kujjal Builders Private LimitedCavern Hotel and Resort FZCO

Enterprises owned or significantly Deeksha Holding Limited (DHL)influenced by key management Deeksha Human Resource Initiatives Limited (DHRIL)personnel or their relatives. Jyotsna Holding Private Limited

Mercantile Capital & Financial Services Private LimitedPrima Telecom LimitedPrima Realtors Private LimitedPremium Farm Fresh Produce LimitedPremium Exports LimitedResponsible Builders Private LimitedRohan Motors LimitedSpecial Protection Services Private LimitedSubros LimitedPremium Holdings LimitedFIBCOM India LimitedGlobal Autotech LimitedGrand Hotel & Investments LimitedL P Hospitality Private LimitedPrima Telecom LimitedCargo Hospitality Private LimitedIT Sounds Chics Pvt LtdKronokare Cosmetics Pvt LtdCargo Motors Delhi Private LimitedCargo Motors Private LimitedCargo Motors Rajasthan Private LimitedBhasin & CompanyMr. Jayant Nanda


98

b) Loans made to the subsidiaries/ joint venture of subsidiaries are on mutually agreed terms.c) The sales and purchase from related parties are made on terms equivalent to those that prevail in arm’s

length transactions. Outstanding balance at the year-end are unsecured and interest free and settlementoccurs in cash.

d) The short term loans facilities (as discussed in note 23) from bank availed by the Company have beensecured by way of guarantee given by Premium Holding Limited.

e) The guarantees amounting to Rs. 24,721.85 lacs (31 March 2016: Rs. 32,871.85 lacs, 1 April 2015: Rs.32,871.85 lacs ) given by the Company for the related parties are given in the ordinary course of businessand related parties have provided counter guarantees for such guarantees.

(f) T(f) T(f) T(f) T(f) Transactions with the related partiesransactions with the related partiesransactions with the related partiesransactions with the related partiesransactions with the related parties

SubsidiariesSubsidiariesSubsidiariesSubsidiariesSubsidiaries KKKKKey Managementey Managementey Managementey Managementey Management Joint VJoint VJoint VJoint VJoint Venture ofenture ofenture ofenture ofenture of Enterprises owned orEnterprises owned orEnterprises owned orEnterprises owned orEnterprises owned or(including trust)(including trust)(including trust)(including trust)(including trust) P P P P Personnelersonnelersonnelersonnelersonnel SubsidiariesSubsidiariesSubsidiariesSubsidiariesSubsidiaries significantly influencedsignificantly influencedsignificantly influencedsignificantly influencedsignificantly influenced

by key managementby key managementby key managementby key managementby key managementpersonnel or theirpersonnel or theirpersonnel or theirpersonnel or theirpersonnel or their

key relativeskey relativeskey relativeskey relativeskey relatives

forforforforfor forforforforfor forforforforfor forforforforfor forforforforfor forforforforfor forforforforfor forforforforfor31-03-1731-03-1731-03-1731-03-1731-03-17 31-03-1631-03-1631-03-1631-03-1631-03-16 31-03-1731-03-1731-03-1731-03-1731-03-17 31-03-1631-03-1631-03-1631-03-1631-03-16 31-03-1731-03-1731-03-1731-03-1731-03-17 31-03-1631-03-1631-03-1631-03-1631-03-16 31-03-1731-03-1731-03-1731-03-1731-03-17 31-03-1631-03-1631-03-1631-03-1631-03-16

Sales of goods/ services — 12.54 23.63 13.88 — 14.90 224.30 408.82

Post employee benefits — — 15.83 (7.65) — — — —

Purchase of goods — — — — — — 857.51 149.48

Sales of fixed assets — — — — — 1.27 — 4,700.00

Lease rent paid 50.00 50.00 68.48 58.17 — — 165.69 162.19

Maintenance charges received — — — — — — 39.39 42.23

Loan provided 8,937.62 3,514.53 — — 7,071.39 3,573.59 — —

Interest received 1,102.07 2,454.94 — — 2,626.05 2,348.17 — —

Loan repaid (903.48) (984.83) 1,200.00 7,170.00 (316.27) (331.00) — 220.00

Remuneration — — 300.00 300.00 — — — —

Corporate Guarantees Given/ received — — (538.47) (3,705.10) — — (11,387.09) (11,083.92)

Reimbursement of expenditure paid 1.33 46.69 — — 290.53 37.93 134.26 53.65

Loan received — — (1,285.00) (7,520.00) — — — (220.00)

Interest paid — — 84.92 29.65 — — — 1.01

Consultancy services provided 301.33 277.88 — — 204.15 200.76 157.20 186.80

Consultancy services received — — — — — — 4.20 4.20

Services Received — — — — — — 1.12 6.09

Security Deposit Received (1.00) (2.00) — — — — — 0.08

Security Deposit Refund 1.00 2.00 — — — — 3.36 —

Expenditure incurred and reimbursed by BHL — — — — — — 15.53 —

Other balances written off 148.32 227.67 — — — — — —

99

(g) The following tables provides the total amount of transactions that have been entered into with relatedparties for the relevant financial year.

(i) Subsidiaries(i) Subsidiaries(i) Subsidiaries(i) Subsidiaries(i) Subsidiaries

Jyoti LimitedJyoti LimitedJyoti LimitedJyoti LimitedJyoti Limited 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

-Sale of goods / services — 12.54-Loan provided 21.45 35.34-Lease rent paid 50.00 50.00-Interest received 44.42 39.55

Apollo Zipper India LimitedApollo Zipper India LimitedApollo Zipper India LimitedApollo Zipper India LimitedApollo Zipper India Limited-Loan provided 8,317.50 2,788.58-Loan (received) (371.98) (925.83)-Interest received 498.63 1,883.07-Consultancy services provided 301.33 277.88-Reimbursement of expenses 1.28 46.69-Security deposit (received) (1.00) (1.00)-Security deposit refund 1.00 1.00

PPPPPrima Cellular Limitedrima Cellular Limitedrima Cellular Limitedrima Cellular Limitedrima Cellular Limited-Loan provided 52.20 39.80-Loan (received) (51.50) (54.00)-Interest received 234.77 256.75-Reimbursement of expenses 0.05 —

-Security deposit (received) — (1.00)-Security deposit refund — 1.00

PPPPPrima Buildwell Prima Buildwell Prima Buildwell Prima Buildwell Prima Buildwell Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Loan provided 8.00 6.00-Loan (received) (480.00) (5.00)-Interest received 39.03 64.40

The LThe LThe LThe LThe Lalit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Trustrustrustrustrust-Loan provided 538.47 644.81-Interest received 285.22 211.17-Other balances written off 148.32 227.67

(ii)(ii)(ii)(ii)(ii) KKKKKey management personneley management personneley management personneley management personneley management personnelDrDrDrDrDr. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri-Short term employee benefits 84.00 84.00-Post employee benefits 3.14 (2.30)-Lease rent paid 34.48 34.17-Interest paid on deposits 84.92 29.65-Corporate Guarantees Given/ (received) (538.47) (3,705.10)-Director’s sitting fees-Loan (received) (1,285.00) (7,520.00)-Loan repaid 1,200.00 7,170.00-Sale of goods/ services 23.63 13.88

Ms. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha Suri-Short term employee benefits 72.00 72.00-Post employee benefits 4.48 (1.53)-Lease rent paid 17.00 12.00


100

Ms. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri Singh-Short term employee benefits 72.00 72.00-Post employee benefits 4.27 (2.00)-Lease rent paid 17.00 12.00

MrMrMrMrMr. K. K. K. K. Keshav Surieshav Surieshav Surieshav Surieshav Suri-Short term employee benefits 72.00 72.00-Post employee benefits 3.94 (1.82)

MrMrMrMrMr. Hanuwant Singh (Non-Executive Director). Hanuwant Singh (Non-Executive Director). Hanuwant Singh (Non-Executive Director). Hanuwant Singh (Non-Executive Director). Hanuwant Singh (Non-Executive Director)-Sitting fee 4.20 3.00

MrMrMrMrMr. M.Y Khan (Non-Executive Director). M.Y Khan (Non-Executive Director). M.Y Khan (Non-Executive Director). M.Y Khan (Non-Executive Director). M.Y Khan (Non-Executive Director)-Sitting fee 2.10 1.60

MrMrMrMrMr. L. L. L. L. Lalit Bhasin (Non-Executive Director)alit Bhasin (Non-Executive Director)alit Bhasin (Non-Executive Director)alit Bhasin (Non-Executive Director)alit Bhasin (Non-Executive Director)-Sitting fee 2.50 1.80

MrMrMrMrMr. D V Batra (Non-Executive Director). D V Batra (Non-Executive Director). D V Batra (Non-Executive Director). D V Batra (Non-Executive Director). D V Batra (Non-Executive Director)-Sitting fee 1.10 1.20

MrMrMrMrMr. Vinod Khanna (Non-Executive Director). Vinod Khanna (Non-Executive Director). Vinod Khanna (Non-Executive Director). Vinod Khanna (Non-Executive Director). Vinod Khanna (Non-Executive Director)-Sitting fee 0.40 0.60

MrMrMrMrMr. Abhay N. Abhay N. Abhay N. Abhay N. Abhay N. F. F. F. F. Firodia ( Non-Executive Director)irodia ( Non-Executive Director)irodia ( Non-Executive Director)irodia ( Non-Executive Director)irodia ( Non-Executive Director)-Sitting fee — 0.20

MrMrMrMrMr. Chakor L. Chakor L. Chakor L. Chakor L. Chakor Lalchand Doshi ( Non-Executive Director)alchand Doshi ( Non-Executive Director)alchand Doshi ( Non-Executive Director)alchand Doshi ( Non-Executive Director)alchand Doshi ( Non-Executive Director)-Sitting fee 0.20 0.20

The amounts disclosed in the table are the amounts recognised as an expense during the reporting periodrelated to key management personnel. The non-executive directors do not receive gratuity entitlements from theCompany.

(iii)(iii)(iii)(iii)(iii) Relatives to KRelatives to KRelatives to KRelatives to KRelatives to Key management personneley management personneley management personneley management personneley management personnelMrMrMrMrMr. Ramesh Suri. Ramesh Suri. Ramesh Suri. Ramesh Suri. Ramesh Suri-Director’s sitting fees 3.60 3.40

(iv)(iv)(iv)(iv)(iv) Joint ventures of subsidiariesJoint ventures of subsidiariesJoint ventures of subsidiariesJoint ventures of subsidiariesJoint ventures of subsidiaries31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016

KKKKKujjal Builders Pujjal Builders Pujjal Builders Pujjal Builders Pujjal Builders Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Services provided — 14.90-Loan provided/(received) (316.27) (331.00)-Loan provided 7,071.39 3,573.59-Interest received 2,626.05 2,348.17-Sale of Fixed Asset — 1.27Consultancy services provided 204.15 200.76-Reimbursement of expenses 290.53 37.93

101

(v) T(v) T(v) T(v) T(v) Transaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:ransaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:ransaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:ransaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:ransaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:

Deeksha Holding LimitedDeeksha Holding LimitedDeeksha Holding LimitedDeeksha Holding LimitedDeeksha Holding Limited-Sale of goods / services 57.74 52.28 -Purchase of goods 2.99 2.93 -Lease rent paid 154.13 150.22 -Maintenance charges received 8.48 8.37-Expenditure incurred by DHL and reimbursed 15.53 —

-Loan (received) — (220.00)-Loan repaid — 220.00-Interest paid on loans — 1.01

Deeksha Human Resource Initiatives LimitedDeeksha Human Resource Initiatives LimitedDeeksha Human Resource Initiatives LimitedDeeksha Human Resource Initiatives LimitedDeeksha Human Resource Initiatives Limited-Sale of goods / services — 166.28-Expenditure incurred by DHRIL and reimbursed by BHL 0.09 155.02-Maintenance charges received — 7.91

Jyotsna Holding PJyotsna Holding PJyotsna Holding PJyotsna Holding PJyotsna Holding Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Lease rent paid 8.86 9.27-Security deposit refund received 3.36 —

Mercantile Capital & FMercantile Capital & FMercantile Capital & FMercantile Capital & FMercantile Capital & Financial Services Pinancial Services Pinancial Services Pinancial Services Pinancial Services Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited — —

-Maintenance charges received 1.05 0.99

Grand Hotels & Investments LimitedGrand Hotels & Investments LimitedGrand Hotels & Investments LimitedGrand Hotels & Investments LimitedGrand Hotels & Investments Limited-Consultancy Services provided 157.20 177.64-Re-imbursement of expenses paid 134.26 53.65

PPPPPrima Trima Trima Trima Trima Telecom Limitedelecom Limitedelecom Limitedelecom Limitedelecom Limited-Sale of goods / services 1.01 0.71

Responsible Builders PResponsible Builders PResponsible Builders PResponsible Builders PResponsible Builders Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Maintenance charges received 4.80 4.73

PPPPPremium Exports Limitedremium Exports Limitedremium Exports Limitedremium Exports Limitedremium Exports Limited-Lease rent paid 2.70 2.70-Security deposit paid — 0.08

Rohan Motors LimitedRohan Motors LimitedRohan Motors LimitedRohan Motors LimitedRohan Motors Limited-Sale of goods / services 5.35 6.39-Services received 1.12 6.09-Maintenance charges received 1.85 1.83

Subros LimitedSubros LimitedSubros LimitedSubros LimitedSubros Limited-Sale of goods / services 90.84 123.51-Maintenance charges received 21.86 17.67

FIBCOM India LimitedFIBCOM India LimitedFIBCOM India LimitedFIBCOM India LimitedFIBCOM India Limited-Maintenance charges received 1.35 0.73

PPPPPremium Holdings Limitedremium Holdings Limitedremium Holdings Limitedremium Holdings Limitedremium Holdings Limited-Guarantee (received) — (11,083.92)



102

L P Hospitality PL P Hospitality PL P Hospitality PL P Hospitality PL P Hospitality Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Consultancy Services — 9.16

Cargo Hospitality PCargo Hospitality PCargo Hospitality PCargo Hospitality PCargo Hospitality Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Sale of fixed asset — 4,700.00

IT Sounds Chics Pvt LtdIT Sounds Chics Pvt LtdIT Sounds Chics Pvt LtdIT Sounds Chics Pvt LtdIT Sounds Chics Pvt Ltd-Purchase of goods 19.25 29.85

Kronokare Cosmetics Pvt LtdKronokare Cosmetics Pvt LtdKronokare Cosmetics Pvt LtdKronokare Cosmetics Pvt LtdKronokare Cosmetics Pvt Ltd-Purchase of goods 835.27 116.70-Sale of Goods 64.22 47.61

Cargo Motors PCargo Motors PCargo Motors PCargo Motors PCargo Motors Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Sale of Goods 1.76 1.77

Bhasin & CoBhasin & CoBhasin & CoBhasin & CoBhasin & Co-Consultancy services received 4.20 4.20-Sale of Goods 3.38 10.27

(vi) Balance outstanding with Subsidiaries and Joint V(vi) Balance outstanding with Subsidiaries and Joint V(vi) Balance outstanding with Subsidiaries and Joint V(vi) Balance outstanding with Subsidiaries and Joint V(vi) Balance outstanding with Subsidiaries and Joint Venturesenturesenturesenturesentures

Subsidiaries - ReceivablesSubsidiaries - ReceivablesSubsidiaries - ReceivablesSubsidiaries - ReceivablesSubsidiaries - Receivables(including deemed investment)(including deemed investment)(including deemed investment)(including deemed investment)(including deemed investment) 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015

-Jyoti Limited 823.52 802.65 760.44-Apollo Zipper India Limited 32,578.86 24,080.90 20,297.17-Prime Cellular Limited 3,311.28 3,099.23 2,891.43-Prima Buildwell Private Limited 782.40 1,219.27 1,161.48-The Lalit Suri Educational & Charitable Trust 3,016.67 2,341.30 1,712.99

Joint ventures of Subsidiaries - ReceivablesJoint ventures of Subsidiaries - ReceivablesJoint ventures of Subsidiaries - ReceivablesJoint ventures of Subsidiaries - ReceivablesJoint ventures of Subsidiaries - Receivables-Kujjal Builders Private Limited 37,561.76 27,971.09 22,453.21

Enterprises owned or significantly influenced byEnterprises owned or significantly influenced byEnterprises owned or significantly influenced byEnterprises owned or significantly influenced byEnterprises owned or significantly influenced bykey management personnel or their relativeskey management personnel or their relativeskey management personnel or their relativeskey management personnel or their relativeskey management personnel or their relatives- Receivables- Receivables- Receivables- Receivables- Receivables

-Deeksha Holding Limited 37.51 27.97 15.56-Deeksha Human Resource Initiatives Limited 0.93 1.61 0.92-Mercantile Capital & Financial Services Private Limited 0.11 0.09 0.06-Premium Farm Fresh Produce Limited — — 19.51-Prima Telecom Limited 0.41 0.12 —

-Responsible Builders Private Limited 0.70 0.64 —

-Rohan Motors Limited 2.76 1.90 1.65-Subros Limited 43.22 37.47 21.44-FIBCOM India Limited 12.08 10.73 10.40-Grand Hotels & Investments Limited 222.62 224.81 102.13-LP Hospitality Pvt Ltd 19.72 19.72 —

-Cargo Motors Delhi Private Limited 103.97 103.97 103.97-Cargo Motors Private Limited 36.02 34.90 45.14-Cargo Motors Rajasthan Private Limited 3.15 3.15 3.15-Mr. Jayant Nanda 10.66 — —

-Kronokare Cosmetics Pvt Ltd 8.26 7.64 —

-Bhasin & Company 16.48 15.03 13.70

103

31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 1 April 2015 1 April 2015 1 April 2015 1 April 2015 1 April 2015KKKKKey management personnel - Pey management personnel - Pey management personnel - Pey management personnel - Pey management personnel - Payablesayablesayablesayablesayables-Dr. Jyotsna Suri 476.64 343.22 —

-Ms. Divya Suri Singh 23.54 0.90 —-Ms. Deeksha Suri 29.99 0.90 —

-Mr. Keshav Suri 6.44 — —

Enterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relatives- P- P- P- P- Payablesayablesayablesayablesayables-Deeksha Holding Limited 0.82 50.39 0.89-Deeksha Human Resource Initiatives Limited 130.92 127.39 49.28-Jyotsna Holding Private Limited 0.07 0.79 0.07-Responsible Builders Private Limited — — 0.23-Rohan Motors Limited — 4.99 —

-Premium Exports Limited 2.63 0.20 —

-Bhasin & Company 5.70 — 5.07-Kronokare Cosmetics Pvt Ltd 9.99 3.42 2.23

(vii) Corporate Guarantee/undertaking outstanding:(vii) Corporate Guarantee/undertaking outstanding:(vii) Corporate Guarantee/undertaking outstanding:(vii) Corporate Guarantee/undertaking outstanding:(vii) Corporate Guarantee/undertaking outstanding:Subsidiaries - ReceivableSubsidiaries - ReceivableSubsidiaries - ReceivableSubsidiaries - ReceivableSubsidiaries - Receivable-Apollo Zipper India Limited 13,071.85 17,371.85 17,371.85

Joint venture of Subsidiaries - ReceivableJoint venture of Subsidiaries - ReceivableJoint venture of Subsidiaries - ReceivableJoint venture of Subsidiaries - ReceivableJoint venture of Subsidiaries - Receivable-Kujjal Builders Private Limited 11,650.00 15,500.00 15,500.00

KKKKKey management personnel - Pey management personnel - Pey management personnel - Pey management personnel - Pey management personnel - Payableayableayableayableayable-Dr. Jyotsna Suri (4,243.58) (3,705.10) —

Enterprises owned or significantly influenced byEnterprises owned or significantly influenced byEnterprises owned or significantly influenced byEnterprises owned or significantly influenced byEnterprises owned or significantly influenced bykey management personnel or their relativeskey management personnel or their relativeskey management personnel or their relativeskey management personnel or their relativeskey management personnel or their relatives- P- P- P- P- Payableayableayableayableayable

-Premium Holdings Limited (11,387.09) (11,083.92) —

NONONONONOTE 47 : LALIT LOTE 47 : LALIT LOTE 47 : LALIT LOTE 47 : LALIT LOTE 47 : LALIT LOYYYYYALALALALALTY AND MEMBERSHIP PROGRAMMETY AND MEMBERSHIP PROGRAMMETY AND MEMBERSHIP PROGRAMMETY AND MEMBERSHIP PROGRAMMETY AND MEMBERSHIP PROGRAMME

(a) P(a) P(a) P(a) P(a) Points for Loints for Loints for Loints for Loints for Lalit Connectalit Connectalit Connectalit Connectalit Connect

31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016

Accrued points 2.32 5.61Redeemed points 1.50 3.30Redemption percentage 64.36% 58.81%Unexpired points 0.83 2.31

(b) P(b) P(b) P(b) P(b) Points for Loints for Loints for Loints for Loints for Lalit Plusalit Plusalit Plusalit Plusalit Plus



104

(c) P(c) P(c) P(c) P(c) Points for Loints for Loints for Loints for Loints for Lalit Engagealit Engagealit Engagealit Engagealit Engage31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016


(d) Movement in provision(d) Movement in provision(d) Movement in provision(d) Movement in provision(d) Movement in provision

At the beginning of the year 41.53 26.34Arising during the year 87.36 192.14Utilised during the year 92.69 176.95At the end of the year 36.20 41.53

(e) Movement in membership programme(e) Movement in membership programme(e) Movement in membership programme(e) Movement in membership programme(e) Movement in membership programme


NONONONONOTE 48 : PREOPERATE 48 : PREOPERATE 48 : PREOPERATE 48 : PREOPERATE 48 : PREOPERATIVE EXPENDITURE PENDING ALLTIVE EXPENDITURE PENDING ALLTIVE EXPENDITURE PENDING ALLTIVE EXPENDITURE PENDING ALLTIVE EXPENDITURE PENDING ALLOCAOCAOCAOCAOCATIONTIONTIONTIONTION

31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 01 April 2015 01 April 2015 01 April 2015 01 April 2015 01 April 2015

Balance as per last accountBalance as per last accountBalance as per last accountBalance as per last accountBalance as per last account 11,522.48 9,344.82 6,859.25Additions during the year:Additions during the year:Additions during the year:Additions during the year:Additions during the year:PPPPPersonnel expensesersonnel expensesersonnel expensesersonnel expensesersonnel expensesSalaries, wages and bonus 241.73 244.24 294.48Contribution to provident and other funds 14.66 13.70 15.73Workmen and staff welfare expenses 7.73 — —

Depreciation/ amortizationDepreciation/ amortizationDepreciation/ amortizationDepreciation/ amortizationDepreciation/ amortization 25.99 26.31 26.57Operating and other expensesOperating and other expensesOperating and other expensesOperating and other expensesOperating and other expensesConsultancy charges 6.75 50.32 —

Consumption of stores, cutlery, crockery, linen 65.48 — —

Lease rent 7.59 20.79 12.91Power and fuel 108.41 5.81 13.37Repair and maintenance- Buildings 0.73 — —

- Plant and machinery — — 1.60Rates and taxes 217.03 — 5.47Insurance 8.06 8.17 32.47Communication costs 1.77 — —

Printing and stationery 4.27 — —

Traveling and conveyance 13.46 4.81 7.38Advertisement and business promotion 7.01 — —

Sub contracting expenses 59.66 34.78 23.46Membership and subscriptions 0.78 — —

Professional fees 19.05 30.73 4.09Freight and cartage 6.96 3.72 8.60

105

Exchange difference ( net) (39.36) 142.49 101.63Bank Charges 0.18 — —

Miscellaneous expenses 42.40 17.07 5.51

FFFFFinancial expensesinancial expensesinancial expensesinancial expensesinancial expensesInterest on term loan 1,418.62 1,665.55 1,983.79Bank charges 0.30 0.15 5.20

13,761.7413,761.7413,761.7413,761.7413,761.74 11,613.4611,613.4611,613.4611,613.4611,613.46 9,401.519,401.519,401.519,401.519,401.51

LLLLLess: expensed off during the yearess: expensed off during the yearess: expensed off during the yearess: expensed off during the yearess: expensed off during the yearLess : Interest earned 5.34 9.79 56.69Less : Expenditure transferred to fixed assets 5,587.10 81.19 —

Closing balanceClosing balanceClosing balanceClosing balanceClosing balance 8,169.308,169.308,169.308,169.308,169.30 11,522.4811,522.4811,522.4811,522.4811,522.48 9,344.829,344.829,344.829,344.829,344.82

NONONONONOTE 49 : DETTE 49 : DETTE 49 : DETTE 49 : DETTE 49 : DETAILS OF DUES TAILS OF DUES TAILS OF DUES TAILS OF DUES TAILS OF DUES TO MICROO MICROO MICROO MICROO MICRO, SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT, SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT, SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT, SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT, SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT, 2006 T, 2006 T, 2006 T, 2006 T, 2006 TOOOOOTHE EXTENT OF CONFIRMATHE EXTENT OF CONFIRMATHE EXTENT OF CONFIRMATHE EXTENT OF CONFIRMATHE EXTENT OF CONFIRMATION RECEIVED:TION RECEIVED:TION RECEIVED:TION RECEIVED:TION RECEIVED:

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 01 April 2015 01 April 2015 01 April 2015 01 April 2015 01 April 2015

The principal amount and the interest due thereon — — —(to be shown separately) remaining unpaid to anysupplier as at the end of each accounting year

The amount of interest paid by the buyer in terms — — —of section 16, of the Micro Small and MediumEnterprise Development Act, 2006 along with theamounts of the payment made to the supplierbeyond the appointed day during eachaccounting year

The amount of interest due and payable for the — — —period of delay in making payment (which havebeen paid but beyond the appointed day duringthe year) but without adding the interestspecified under Micro Small and Medium EnterpriseDevelopment Act, 2006.

The amount of interest accrued and remaining — — —unpaid at the end of each accounting year; and

The amount of further interest remaining due and — — —payable even in the succeeding years, until suchdate when the interest dues as above are actuallypaid to the small enterprise for the purpose ofdisallowance as a deductible expenditure undersection 23 of the Micro Small and Medium EnterpriseDevelopment Act, 2006


106

NONONONONOTE 50 : DISTRIBUTION MADE AND PROPOSEDTE 50 : DISTRIBUTION MADE AND PROPOSEDTE 50 : DISTRIBUTION MADE AND PROPOSEDTE 50 : DISTRIBUTION MADE AND PROPOSEDTE 50 : DISTRIBUTION MADE AND PROPOSED

Cash dividends on equity shares declared and paid:Cash dividends on equity shares declared and paid:Cash dividends on equity shares declared and paid:Cash dividends on equity shares declared and paid:Cash dividends on equity shares declared and paid: 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016

Final dividend for the year ended on 31 March 2016:

Rs. 0.75 per share (31 March 2015: Rs. 0.50 per share) 569.93 379.96DDT on final dividend 116.03 77.35

685.96685.96685.96685.96685.96 457.31457.31457.31457.31457.31

PPPPProposed dividends on Equity shares:roposed dividends on Equity shares:roposed dividends on Equity shares:roposed dividends on Equity shares:roposed dividends on Equity shares:Final cash dividend for the year ended on 31 March 2017:Rs. 1.00 per share (31 March 2016: Rs. 0.75 per share) 759.91 569.93DDT on proposed dividend 154.70 116.03

914.61914.61914.61914.61914.61 685.96685.96685.96685.96685.96

Proposed dividends (including DDT thereon) on equity shares are subject to approval at the annual generalmeeting and are not recognised as a liability as at 31 March 2017.

NONONONONOTE 51 : CAPITTE 51 : CAPITTE 51 : CAPITTE 51 : CAPITTE 51 : CAPITAL MANAAL MANAAL MANAAL MANAAL MANAGEMENTGEMENTGEMENTGEMENTGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, share premiumand all other equity reserves attributable to the equity holders of the Company. The primary objective of theCompany’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditionsand the requirements of the financial covenants. To maintain or adjust the capital structure, the Company mayadjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Companymonitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company’spolicy is to keep the gearing ratio between 30% and 50%. The Company includes within net debt, interestbearing loans and borrowings, trade payables, less cash and cash equivalents.


Borrowings (Note 18, 23 & 25) 117,289.60 98,186.78 99,452.80Trade payables (Note 24) 3,630.67 2,364.51 2,838.80Less: Cash and cash equivalents (Note 10) (6,597.89) (1,829.61) (6,556.44)

Net debtNet debtNet debtNet debtNet debt 114,322.38114,322.38114,322.38114,322.38114,322.38 98,721.6898,721.6898,721.6898,721.6898,721.68 95,735.1695,735.1695,735.1695,735.1695,735.16

Equity 107,972.30 104,996.11 101,821.40

Capital and net debtCapital and net debtCapital and net debtCapital and net debtCapital and net debt 222,294.68222,294.68222,294.68222,294.68222,294.68 203,717.79203,717.79203,717.79203,717.79203,717.79 197,556.56197,556.56197,556.56197,556.56197,556.56

Gearing ratio 51.43% 48.46% 48.46%

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims toensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capitalstructure requirements.

Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in thecurrent period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31March 2017 and 31 March 2016.

107

53.53.53.53.53. CONTINGENT LIABILITIES NOCONTINGENT LIABILITIES NOCONTINGENT LIABILITIES NOCONTINGENT LIABILITIES NOCONTINGENT LIABILITIES NOT PROT PROT PROT PROT PROVIDED FOR:VIDED FOR:VIDED FOR:VIDED FOR:VIDED FOR:

a)a)a)a)a) Income TIncome TIncome TIncome TIncome Tax Mattersax Mattersax Mattersax Mattersax Matters

Assessment yearAssessment yearAssessment yearAssessment yearAssessment year Amount disputed (Rupees in lacs)Amount disputed (Rupees in lacs)Amount disputed (Rupees in lacs)Amount disputed (Rupees in lacs)Amount disputed (Rupees in lacs)


1988 - 89 to 2009-10 8,254.08 8,254.08 8,254.08

2011 - 12 to 2014-15 634.02 438.27 31.09

TTTTTotalotalotalotalotal 8,888.09 8,888.09 8,888.09 8,888.09 8,888.09 8,692.34 8,692.34 8,692.34 8,692.34 8,692.34 8,285.16 8,285.16 8,285.16 8,285.16 8,285.16

The above income tax matters include certain disallowances of expenses claimed by the Company and certainother additions made by the assessing officers in respective years. These matters are pending with variousjudicial/appellate authorities including CIT(A), ITAT and High court. For some of the matters, judicial/appellateauthorities have decided the cases in favor of the Company. However, these are being contested again by theDepartment of Income tax. Company believes that it has merit in these cases and it is only possible, but notprobable, that these cases may be decided against the Company. Hence, these have been disclosed as contingentliability and no provision for any liability has been deemed necessary in the financial statements.

b)b)b)b)b) GuaranteesGuaranteesGuaranteesGuaranteesGuarantees

As atAs atAs atAs atAs at As atAs atAs atAs atAs at As atAs atAs atAs atAs at31 March 201731 March 201731 March 201731 March 201731 March 2017 3131313131 March 2016March 2016March 2016March 2016March 2016 0101010101 April 15April 15April 15April 15April 15(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs) (Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs) (Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)

i. Corporate guarantee given on behalf ofa subsidiary to Customs for obtainingEPCG licenses 796.85 796.85 796.85

ii. Corporate guarantee given on behalf ofa subsidiary to bank for obtaining loanfor construction of fixed assets 12,275.00 16,575.00 16,575.00

iii.Corporate guarantee given on behalf ofa Joint venture of a subsidiary to bankfor obtaining loan for construction offixed assets. 11,650.00 15,500.00 15,500.00

NONONONONOTE 52 : DETTE 52 : DETTE 52 : DETTE 52 : DETTE 52 : DETAILS OF CSR EXPENDITUREAILS OF CSR EXPENDITUREAILS OF CSR EXPENDITUREAILS OF CSR EXPENDITUREAILS OF CSR EXPENDITURE:::::31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

a) Gross amount required to be spent by theCompany during the year 4.09 —

(b) Amount spent during the year ending YYYYYet to beet to beet to beet to beet to beon 31 March 2017: In cashIn cashIn cashIn cashIn cash paid in cashpaid in cashpaid in cashpaid in cashpaid in cash TTTTTotalotalotalotalotali) Construction/acquisition of any asset — — —ii) On purposes other than (i) above 33.40 — 33.40

b) Amount spent during the year ending YYYYYet to beet to beet to beet to beet to beon 31 March 2016: In cashIn cashIn cashIn cashIn cash paid in cashpaid in cashpaid in cashpaid in cashpaid in cash TTTTTotalotalotalotalotal

i) Construction/acquisition of any asse — — —ii) On purposes other than (i) above — — —


108

c) Certain employees have filed cases in the courts/ legal forums against termination/ suspension andhave sought relief. The liability, if any, with respect to these claims is not currently ascertainable and inthe opinion of the management, would not have material effect on these financial statements.

d) Interest on delayed payment of lease management fees for one of the properties taken on lease, undera lease cum management contract, amounting to Rs. 72.28 lacs (31 March 2016: Rs. 182.63 lacs; 01April 2015: Rs.182.63 lacs) is contingent in nature.

e) Interest on delayed payment of license fees under license arrangement amounting to Rs. 1,181.81lacs (31 March 2016: Rs. 1,181.81 lacs; 01 April 2015: Rs. 1,181.81 lacs) is contingent in nature.

f) Demand by Custom Authorities against import of aircraft for Rs. 968.05 lacs (31 March 2016: Rs.968.05 lacs; 01 April 2015: Rs. 968.05 lacs).

g) Demand of Service Tax, Service Tax amounting to Rs. 350.39 lacs (31 March 2016: Rs. 313.65 lacs;01 April 2015: Rs. 313.65 lacs).

h) A show cause notice has been issued by the Collector of Stamps, Udaipur in respect of stamp duty ontransfer of Laxmi Vilas Palace Hotel, the erstwhile unit of India Tourism Development CorporationLimited, based on valuation of Rs. 15,138.24 lacs which is being contested by the Company in theHigh Court of Jodhpur. Management believes, based on expert analysis, that no provision is requiredat this stage.

i) Municipal Council of Udaipur has raised a demand of Urban Development tax of Rs. 190.59 lacs forthe financial years 2007-08 to 2016-2017. The demand has been challenged in the High Court ofJodhpur and as per the interim order passed by the court, the Company has paid Rs. 25.00 lacs for thesaid period. Management has based upon expert analysis, believes that no further provision is necessaryat this stage.

j) The Payment of Bonus (amendment) Act, 2015 enhanced the eligibility limit for payment of bonus ofemployees from Rs. 0.10 lacs per month to Rs. 0.21 lacs per month from the Financial Year 2014-15.The Company has estimated liability of Rs. 195.28 lacs for the financial year 2014-15. The aboveamendment has been stayed by various High Courts and the management, based on this, has notprovided for enhanced bonus for Financial Year 2014-15 in the books of accounts.

k) Claim received from a contractor not accepted by the Company amounting to Rs. 1,700.00 lacs (31March 2016: Rs. 1,700.00 lacs; 01 April 2015: NIL) against which the Company has given an advanceof Rs. 662.00 lacs.

l) Other Claims not acknowledged as debts – Rs. 195.95 lacs (31 March 2016: Rs. 278.08 lacs; 01 April2015: 277.79 lacs).

5454545454 The Company has taken land on license of 99 years from New Delhi Municipal Corporation (NDMC) witheffect from 11 March 1981. The Company has constructed a Hotel and Commercial Towers on the abovementioned land. The Company is paying an annual license fee of Rs.145.00 lacs to the NDMC which issubject to revision after every 33 years provided that increase in license fees at each such time shall notexceed 100% of immediate previous license fees before the enhancement. During the current year, theCompany received a provisional demand of Rs. 19,877.74 lacs from NDMC which has been quashed andset aside by the Delhi High Court. The Delhi High Court further directed NDMC to raise the fresh ‘FinalBills’.

The Company has further sub-licensed the Commercial Towers and taken interest free security deposits(shown as deferred payment liabilities) from the occupants of space in World Trade Centre and World Trade

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Tower at New Delhi. These deposits amounting to Rs. 4,750.56 lacs (31 March 2016: Rs. 4,748.08 lacs; 01April 2015: 4,743.61 lacs) are refundable at the end of the license period which coincides with the end ofthe License period of Company’s agreement with New Delhi Municipal Corporation and are due to be paidon 10 March 2080.

These deposits have been recorded at the amortised cost as per the relevant measurement principles of IndAS and carried at Rs. 108.47 lacs (31 March 2016: Rs. 105.66 lacs; 01 April 2015: 100.89 lacs) under thehead “Other Non - Current Financial Liability.”

55.55.55.55.55. In accordance with the provisions of section 197(3) and Schedule V of the Companies Act 2013, the Companyhad sought necessary approval from the Central Government for the payment of managerial remunerationto Directors of Rs. 474.64 lacs. However, during the year, Company has paid an amount of Rs. 300.00 lacs(including reimbursements for LTA & Medical) against the above as managerial remuneration and no furtheramount is payable to Directors on account of Managerial Remuneration.

56.56.56.56.56. As per the terms of the land allocation agreement of Ahmedabad property, the Company was required tocomplete the construction within two years from the date of allotment i.e. by 23 March 2010. During theprevious year, the Company had applied to the State Government of Gujarat for an extension of theconstruction period up to 19 June 2018. The management does not anticipate any problem in obtainingextension of the completion deadline for the project.

5757575757. The Company has given an interest free loan of Rs. 3,016.67 lacs (31 March 2016: Rs. 2,341.30 lacs; 1April 2015: 1,712.99 lacs) to The Lalit Suri Educational and Charitable Trust (Trust) for construction of theHospitality Management Institute for a period of 15 years. The Hospitality Management Institute is of strategicimportance to the Company as the Company will get a pool of resources trained in hospitality industry. Also,the students passing out of the Institute are expected to work for the Company for a period of one year. TheCompany has, during the year, obtained an undertaking from one of the Trustees of the Trust agreeing torepay the loan in case the Trust is not able to repay the outstanding loan to the Company. Basis the above,the management believes that the amount is recoverable in due course and accordingly, no adjustment isrequired there against.

58.58.58.58.58. (a) The Company has an investment of Rs. 3,107.89 lacs (31 March 2016: Rs. 3,107.89 lacs; 1 April 2015:3,107.89 lacs) in the share capital of its wholly owned subsidiary, Jyoti Limited and also has a deemedinvestment of Rs. 466.73 lacs (31 March 2016: Rs. 466.73 lacs; 1 April 2015: 466.73 lacs) in the form ofinterest free loan to Jyoti Limited. The audited financial statements of Jyoti Limited show an accumulatedloss of Rs. 768.27 lacs as on March 31, 2017 (31 March 2016: Rs. 747.74 lacs; 1 April 2015: Rs. 718.45lacs), which is more than the paid-up share capital of Rs. 63.00 lacs (31 March 2016: Rs. 63.00 lacs, 1 April2015: 63.00 lacs), resulting in complete erosion of net worth. The Company also has an outstanding loanrecoverable of Rs. 356.79 lacs (31 March 2016: Rs. 335.92 lacs; 1 April 2015: 293.71 lacs) from thesubsidiary. Considering the long term nature of the investment of Rs. 3,107.89 lacs (31 March 2016: Rs.3,107.89 lacs; 1 April 2015: 3,107.89 lacs), and the value of assets held by Jyoti Limited (Hotel at Srinagar),the Board of Directors of the Company are of the view that there is no diminution, other than temporary, inthe value of investment and loan is recoverable from the subsidiary. Accordingly, no provision has beenmade there against in these financial statements.

(b) The Company holds 90% of the equity capital of Apollo Zipper India Ltd (‘AZIL’) at Rs. 5,213.08 lacs (31March 2016: Rs. 5,213.08 lacs; 1 April 2015: 5,213.08 lacs). The Company had also provided a loan toAZIL which has been converted into an interest free loan for a period of 25 years w.e.f 1 June, 2016. As aresult, the Company has recognized a deemed investment of Rs. 30,134.49 lacs in the form of interest freeloan to AZIL and the carring balance of loan to AZIL amounts to Rs. 2,444.37 lacs (31 March 2016: Rs.24,080.90 lacs, 1 April 2015: Rs. 20,297.17 lacs). The Company has further provided a loan of Rs. 782.40lacs (31 March 2016: Rs. 1,219.27 lacs; 1 April 2015: Rs. 1,161.48 lacs) to Prima Buildwell Private Limited,a 99.9% subsidiary, who in turn has given a loan of Rs. 177.40 lacs (31 March 2016 Rs. 628.24 lacs; 1


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April 2015: Rs. 566.85 lacs) to AZIL. AZIL has been vested with the assets of The Lalit Great Eastern Hotelin Kolkata. As at March 31, 2017, AZIL has accumulated losses of Rs. 5,838.90 lacs (31 March 2016: Rs.3,555.52 lacs; 1 April 2015: Rs. 644.95 lacs) which is more than the paid-up share capital of Rs. 80.87 lacs(31 March 2016: Rs. 80.87 lacs, 1 April 2015: 80.87 lacs).

AZIL had commenced its operations from February, 2014 and is currently engaged in the process of completerenovation / re-construction of Heritage block of the property in Kolkata. Considering the long term prospectsand value of assets held by the Subsidiary, the Board of Directors of the Company are of the view that thereis no diminution, other than temporary, in the value of investment. Based on future projections, themanagement believes that the loan amount is fully recoverable. Further, the management may consider toconvert the loan amount into equity share capital after taking necessary approvals from the relevant authorities.Accordingly, no provision has been made there against in these financial statements.

(c) The Company has an investment of Rs. 3,984 lacs (31 March 2016: Rs. 3,984 lacs; 1 April 2015: Rs.3,984 lacs) and has also provided a loan of Rs. 3,311.28 lacs (31 March 2016: Rs. 3,099.23 lacs; 1 April2015: Rs. 2,891.43 lacs) to Prime Cellular Limited (PCL) a 99.60% subsidiary as at March 31, 2017. TheCompany has also provided loan of Rs. 37,561.76 lacs to Kujjal Builders Private Limited (KBPL) which is aJoint Venture of PCL with 50% shareholding. PCL has entered in to a Joint Venture for the hotel property atChandigarh. The audited financial statements of PCL and KBPL show accumulated losses of Rs. 387.61 lacs(31 March 2016: Rs. 341.47 lacs; 1 April 2015: Rs. 297.40) and Rs. 16,910.30 lacs (31 March 2016: Rs.10,669.99 lacs; 1 April 2015: Rs. 4,365.20 lacs) respectively as at 31st March 2017.

Considering the long term prospects and value of assets held by the Subsidiary, the Board of Directors of theCompany are of the view that there is no diminution, other than temporary, in the value of investment. Also,based on future projections, the management believes that the loan amount is fully recoverable. Further, themanagement may consider to convert the loan given to KBPL into equity share capital after taking necessaryapprovals from the relevant authorities. Accordingly, no provision has been made there against in thesefinancial statements.

59.59.59.59.59. Management has decided to sell a piece of land and initiated the process of identifying a potential buyer.Further, based on market survey, the management expects to sell it at a value more than its carrying value.Hence, the same has been accordingly disclosed as an asset held for sale at its carrying amount of Rs.1,618.77 lacs (31 March 2016: Rs. 1,618.77 lacs, 1 April 2015: Rs. Nil). Currently, the management isdiscussing with few potential buyers for the same and expects to materialize the sale.

60.60.60.60.60. Specified Bank NotesSpecified Bank NotesSpecified Bank NotesSpecified Bank NotesSpecified Bank Notes PPPPParticularsarticularsarticularsarticularsarticulars SpecifiedSpecifiedSpecifiedSpecifiedSpecified OtherOtherOtherOtherOther TTTTTotalotalotalotalotal

Bank NotesBank NotesBank NotesBank NotesBank Notes denominationdenominationdenominationdenominationdenominationNotesNotesNotesNotesNotes

Closing cash in hand as on 8 November 2016Closing cash in hand as on 8 November 2016Closing cash in hand as on 8 November 2016Closing cash in hand as on 8 November 2016Closing cash in hand as on 8 November 2016 192.5 11.67 204.17

(+) Permitted receipts — 528.66 528.66

(-) Permitted payments — 188.79 188.79

(-) Amount deposited in banks 192.5 307.22 499.72

Closing cash in hand as on 30 December 2016Closing cash in hand as on 30 December 2016Closing cash in hand as on 30 December 2016Closing cash in hand as on 30 December 2016Closing cash in hand as on 30 December 2016 ————— 44.3244.3244.3244.3244.32 44.3244.3244.3244.3244.32

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NONONONONOTE 61 : FIRST TIME ADOPTION OF IND ASTE 61 : FIRST TIME ADOPTION OF IND ASTE 61 : FIRST TIME ADOPTION OF IND ASTE 61 : FIRST TIME ADOPTION OF IND ASTE 61 : FIRST TIME ADOPTION OF IND AS

These financial statements, for the year ended 31 March 2017, are the first the Company has prepared inaccordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company preparedits financial statements in accordance with accounting standards notified under section 133 of the CompaniesAct 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Accordingly,the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31March 2017, together with the comparative period data as at and for the year ended 31 March 2016, asdescribed in the summary of significant accounting policies. In preparing these financial statements, the Company’sopening balance sheet was prepared as at 1 April 2015, the Company’s date of transition to Ind AS. Anexplanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position,financial performance and cash flows is set out in the following tables and notes.

Exemptions and exceptions availedExemptions and exceptions availedExemptions and exceptions availedExemptions and exceptions availedExemptions and exceptions availedSet out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in thetransition from previous GAAP to Ind AS.

a) Ind AS Optional exemptionsa) Ind AS Optional exemptionsa) Ind AS Optional exemptionsa) Ind AS Optional exemptionsa) Ind AS Optional exemptions

Deemed CostDeemed CostDeemed CostDeemed CostDeemed CostInd AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plantand equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as perthe previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustmentsfor de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38Intangible Assets.

Accordingly, the Company has elected to measures all of its property, plant and equipment and intangible assetsat their previous GAAP carrying values.

Composite LComposite LComposite LComposite LComposite LeaseseaseseaseseaseseasesWhen a lease includes both land and building elements, a first time adopter may assess the classification of eachelement as finance or an operating lease at the date of transition to Ind AS on the basis of the facts andcircumstances existing at that date. Accordingly, the Company has fair valued land and building components ofleased property at Bangalore as at 31 March 2015 to assess the classification as finance or operating for boththe components.

Investment in subsidiaries and joint venturesInvestment in subsidiaries and joint venturesInvestment in subsidiaries and joint venturesInvestment in subsidiaries and joint venturesInvestment in subsidiaries and joint venturesInd AS 101 permits a first-time adopter to choose the previous GAAP carrying amount at the entity’s date oftransition to Ind AS to measure the investment in the subsidiary and joint ventures as the deemed cost. Accordingly,the Company has opted to measure its investment in subsidiary and joint ventures at deemed cost i.e., previousGAAP carrying amount.

LLLLLong term foreign currency monetary itemsong term foreign currency monetary itemsong term foreign currency monetary itemsong term foreign currency monetary itemsong term foreign currency monetary itemsInd AS 101 allows a first-time adopter to continue the policy adopted for the accounting for exchange differencesarising on translation of the long-term foreign currency monetary items recognised in the financial statements forthe period ending immediately before the beginning of the first Ind AS financial reporting period as per previousGAAP. Accordingly for exchange differences, arising on translation/ settlement of long-term foreign currencymonetary items acquired before 1 April 2016, pertaining to the acquisition of a depreciable asset, are adjustedto the cost of the asset.

b) Ind AS mandatory exceptionsb) Ind AS mandatory exceptionsb) Ind AS mandatory exceptionsb) Ind AS mandatory exceptionsb) Ind AS mandatory exceptions

EstimatesEstimatesEstimatesEstimatesEstimatesAn entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent withestimates made for the same date in accordance with previous GAAP (after adjustments to reflect any differencein accounting policies), unless there is objective evidence that those estimates were in error.


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Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity withprevious GAAP. The Company made estimates for following items in accordance with Ind AS at the date oftransition as these were not required under previous GAAP: -

Impairment of financial assets based on expected credit loss model.

Classification and measurement of financial assetsClassification and measurement of financial assetsClassification and measurement of financial assetsClassification and measurement of financial assetsClassification and measurement of financial assetsInd AS 101 requires an entity to assess classification and measurement of financial assets on the basis of thefacts and circumstances that exist at the date of transition to Ind AS.

c) Reconciliations between previous GAAP and Ind ASc) Reconciliations between previous GAAP and Ind ASc) Reconciliations between previous GAAP and Ind ASc) Reconciliations between previous GAAP and Ind ASc) Reconciliations between previous GAAP and Ind ASInd AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods.The following tables represent the reconciliations from previous GAAP to Ind AS.

Reconciliation of total equity as reported previously (referred to as ‘PReconciliation of total equity as reported previously (referred to as ‘PReconciliation of total equity as reported previously (referred to as ‘PReconciliation of total equity as reported previously (referred to as ‘PReconciliation of total equity as reported previously (referred to as ‘Previous GAAPrevious GAAPrevious GAAPrevious GAAPrevious GAAP’) and as per Ind AS’) and as per Ind AS’) and as per Ind AS’) and as per Ind AS’) and as per Ind AS

PPPPParticularsarticularsarticularsarticularsarticulars Notes to firstNotes to firstNotes to firstNotes to firstNotes to first 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015time adoptiontime adoptiontime adoptiontime adoptiontime adoption

TTTTTotal equity (shareholderotal equity (shareholderotal equity (shareholderotal equity (shareholderotal equity (shareholder’s funds) as per P’s funds) as per P’s funds) as per P’s funds) as per P’s funds) as per Previous GAAPrevious GAAPrevious GAAPrevious GAAPrevious GAAP 110,666.13110,666.13110,666.13110,666.13110,666.13 108,207.46108,207.46108,207.46108,207.46108,207.46Finance lease income and its related impact 1 1,836.22 1,773.31Interest income on Interest free loans advanced toa subsidiary and trust2 834.11 583.39Proposed dividend including DDT thereon 3 685.96 457.31Deemed investment in the Lalit Suri Educational andCharitable trust not considered recoverable 2 (1,881.81) (1,654.18)Fair valuation of financial instruments - interestfree security 4 (366.56) (356.08)Ancillary cost of borrowing as interestexpense on borrowings 5 16.76 (248.07)Prior period items 6 (31.68) (167.92)Lease equalisation reserve 9 (12.95) —Deferred tax adjustments 7 (6,750.07) (6,773.82)

TTTTTotal adjustmentsotal adjustmentsotal adjustmentsotal adjustmentsotal adjustments (5,670.02)(5,670.02)(5,670.02)(5,670.02)(5,670.02) (6,386.06)(6,386.06)(6,386.06)(6,386.06)(6,386.06)

Total equity as per Ind AS 104,996.11104,996.11104,996.11104,996.11104,996.11 101,821.40101,821.40101,821.40101,821.40101,821.40

Reconciliation of net profit as reported previously (referred to as ‘PReconciliation of net profit as reported previously (referred to as ‘PReconciliation of net profit as reported previously (referred to as ‘PReconciliation of net profit as reported previously (referred to as ‘PReconciliation of net profit as reported previously (referred to as ‘Previous GAAPrevious GAAPrevious GAAPrevious GAAPrevious GAAP’) and the total comprehensive’) and the total comprehensive’) and the total comprehensive’) and the total comprehensive’) and the total comprehensiveincome as per Ind ASincome as per Ind ASincome as per Ind ASincome as per Ind ASincome as per Ind AS

PPPPParticularsarticularsarticularsarticularsarticularsNotes for firstNotes for firstNotes for firstNotes for firstNotes for first 31 March 201631 March 201631 March 201631 March 201631 March 2016time adoptiontime adoptiontime adoptiontime adoptiontime adoption

PPPPProfit after tax as per Profit after tax as per Profit after tax as per Profit after tax as per Profit after tax as per Previous GAAPrevious GAAPrevious GAAPrevious GAAPrevious GAAP 3,144.63 3,144.63 3,144.63 3,144.63 3,144.63Ancillary cost of borrowing as interest expense on borrowings 5 264.83Interest income on interest free loans 2 250.72Prior period items 6 136.24Finance income recognised on Finance lease 1 62.94Deemed investment in the Lalit Suri Educational andCharitable trust not considered recoverable 2 (227.67)Employee benefits- remeasurements (gain)/loss 8 (55.35)Lease equalisation reserve 9 (12.95)Fair valuation of interest free security deposits paid/received 4 (10.45)

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Deferred tax adjustments 7 42.87

TTTTTotal adjustmentsotal adjustmentsotal adjustmentsotal adjustmentsotal adjustments 451.18451.18451.18451.18451.18

TTTTTotal profit after tax as per Ind ASotal profit after tax as per Ind ASotal profit after tax as per Ind ASotal profit after tax as per Ind ASotal profit after tax as per Ind AS 3,595.813,595.813,595.813,595.813,595.81

Other comprehensive income (net of tax) 36.20

TTTTTotal Comprehensive income for the yearotal Comprehensive income for the yearotal Comprehensive income for the yearotal Comprehensive income for the yearotal Comprehensive income for the year 3,632.01 3,632.01 3,632.01 3,632.01 3,632.01

d)d)d)d)d) Notes to firstNotes to firstNotes to firstNotes to firstNotes to first-time adoption:-time adoption:-time adoption:-time adoption:-time adoption:

Note : 1Note : 1Note : 1Note : 1Note : 1AS 19 excluded lease agreements to use land from its scope. However, lease agreements to use land are withinthe scope of Ind AS 17. Accordingly, in accordance with principles set out in Ind AS 17, shops in World tradecenter and World trade tower given under lease have been determined to be a finance lease arrangement.

Accordingly, finance income on such leases has been recognised and rent income which was earlier recognisedunder previous GAAP has been derecognised having a net impact of Rs. 1,335 lacs on 1 April 2015 and of Rs.49 lacs for the FY 2015 -16. Further, leasehold building which was earlier capitalised under previous GAAPamounting to Rs. 956 lacs has been decapitalised and recognised as finance lease receivable. Accordingly,depreciation on leasehold buildings has also been reversed amounting to Rs. 438 lacs as on 1 April 2015 andRs. 14 lacs in the FY 2015 -16.

The above has resulted in a net impact of Rs. 1,773 lacs as on 1 April 2015 and Rs. 1,836 lacs as on 31 March2016 in equity. Further, this has resulted an impact of Rs. 63 lacs in the net profit for the FY 2015 -16.

Note : 2Note : 2Note : 2Note : 2Note : 2Interest free loans to subsidiary company and trust are measured in accordance with Ind AS 109, FinancialInstruments i.e at amortized cost using the effective interest rate method. The loan amount is trued up every yearwith a corresponding credit to statement of profit and loss on account of finance income. The benefit of theinterest free loan is measured as the difference between initial carrying value of the loan at fair value in accordancewith Ind AS 109 and the loan amount advanced. The same is classified as a deemed investment in the subsidiarycompany and the trust. Hence, deemed investment of Rs. 467 lacs on interest free loan to a subsidiary has beenrecognised on 1 April 2015. Further, deemed investments of Rs. 1,654 lacs on 1 April 2015 and of Rs. 228 lacsin the FY 2015-16 on loans given to trust have also been recognised. The recognition of deemed investment hasno direct impact on equity. However, deemed investment in trust has been written off in the respective periods onaccount of non recoverability of such amount from a charitable trust which has resulted in a impact of Rs. 1,654lacs on 1 April 2015 and Rs. 228 lacs in the FY 2015-16 accumulating to Rs. 1,882 lacs as on 31 March 2016.

Further, finance (interest) income Rs. 583 lacs on 1 April 2015 and Rs. 251 lacs for the FY 2015 -16 (accumulatingto Rs. 834 lacs on 31 March 2016) on the fair value of such loans have been recognised.

Note : 3Note : 3Note : 3Note : 3Note : 3Under Indian GAAP, proposed dividends including DDT are recognised as a liability in the period to which theyrelate, irrespective of when they are declared/paid. Under Ind AS, a proposed dividend is recognised as aliability in the period in which it is declared by the company (usually when approved by shareholders in a generalmeeting) or paid which happens after year end.

Therefore, the liability of Rs. 457 lacs for the year ended on 31 March 2015 recorded for proposed dividend hasbeen derecognised on 1 April 2015 and the same has been recognised as an appropriation of profit in the FY2015-16. Similarly, the proposed dividend for the year ended on 31 March 2016 of Rs. 686 lacs recognizedunder Indian GAAP has been reversed in the FY 2015-16.


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Note : 4Note : 4Note : 4Note : 4Note : 4Interest free security deposits paid/received were carried at nominal cost under previous GAAP. On applicationof Ind AS 109, all such financial assets are now being measured at amortised cost using effective rate of interest.At the date of transition to Ind AS, difference between the amortised cost and Indian GAAP carrying amountthese security deposits lacs has been recognised as prepaid rent. Correspondingly, interest income/expense onsecurity deposits and amortisation of prepaid rent have also been accounted for.

The above recognition has a net impact of Rs. 356 lacs on 1 April 2015 and Rs. 11 lacs in the FY 2015 -16accumulating to Rs. 367 lacs on 31 March 2016.

Note : 5Note : 5Note : 5Note : 5Note : 5Under previous GAAP, ancillary costs associated with raising of funds are amortised on a straight line basis overthe period of borrowings. Ind AS 109 requires transaction costs incurred towards origination of borrowings to bededucted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profitor loss over the tenure of the borrowing as part of the interest expense by applying the effective interest ratemethod. Also, under Ind AS borrowings are presented net of any ancillary costs associated with raising of debt,while under previous GAAP such ancillary costs were shown as prepayments.

The above has a net impact of Rs. 248 lacs on 1 April 2015 and of an income being recognised in the FY 2015-16 of Rs. 265 lacs accumulating to a net increase of Rs. 17 lacs to equity on 31 March 2016.

Note : 6Note : 6Note : 6Note : 6Note : 6Under Indian GAAP, Prior period items are shown separately on the face of statement of profit and loss in theyear in which these are identified. However, Ind AS requires the recognition of such items in the period to whichthey relate.

Prior period items of Rs. 168 lacs which were earlier recognised in FY 2015-16, has now been adjusted againstretained earnings on 1 April 2015. Further, period items of Rs. 136 lacs relating to FY 2015-16 identified in thecurrent year has been recongised in FY 2015 -16 having a cumulative impact of Rs. 32 lacs on 31 March 2016.

Note : 7Note : 7Note : 7Note : 7Note : 7Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differencesbetween taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferredtaxes using the balance sheet approach, which focuses on temporary differences between the carrying amountof an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resultedin recognition of deferred tax on new temporary differences which was not required under Indian GAAP. Inaddition, the various transitional adjustments lead to temporary differences. According to the accounting policies,the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to theunderlying transaction either in retained earnings or a separate component of equity. The net impact on deferredtax liabilities is of Rs. 6,774 lacs on 1 April 2015 and Rs. 6,750 lacs on 31 March 2016.

Note : 8Note : 8Note : 8Note : 8Note : 8Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment definedbenefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, arecharged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect ofthe asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return onplan assets excluding amounts included in net interest on the net defined benefit liability] are recognised toretained earnings through OCI. Thus, remeasurements gains of Rs. 55 lacs has been reduced from the net profitof the FY 2015-16 and has been recognised in OCI at Rs. 36 lacs (net of tax). This has no resulting impact onequity.

Note : 9Note : 9Note : 9Note : 9Note : 9As per the provisions of AS 19, lease rentals were accounted for on a straight line basis for certain premisesobtained on lease having an escalation clause in the lease agreement. However, as per Ind AS 17, straight lining

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of lease rental is not required in case lese rent escalation reflects expected inflation cost. The Company hasdetermined that escalation rates in the existing agreements of leased premises are broadly in line with theinflation rates. Hence, lease equalisation charge of Rs. 13 lacs recognised under previous GAAP in the FY 2015-16, has now been reversed.

Note : 10Note : 10Note : 10Note : 10Note : 10As per the provisions of AS 20, grants received against fixed assets were accounted as a deduction form thegross value of the related asset. However, as per Ind AS 20, grant received against fixed assets is required to berecognised in the profit and loss on a systematic basis over the useful life of the assets. Accordingly, net bookvalue fixed assets has been increased by Rs. 219 lacs (i.e. value of grant net of depreciation till date) on 1 April2015 with a corresponding increase in the deferred government grant. Further, depreciation expense andgovernment grant income have also been recognised of Rs. 142 lacs 1 April 2015 and Rs. 190 lacs on 31 March2016. This has also resulted in an increase in the depreciation charge as well grant income recognised by Rs. 48lacs in the FY 2015-16.

The above has no resulting impact on equity and net profit.

Note : 11Note : 11Note : 11Note : 11Note : 11AS 19 excluded lease agreements to use land from its scope. However, lease agreements to use land are withinthe scope of Ind AS 17. Basis lease assessment, land taken on lease at Jaipur has been determined to be anoperating lease. Consequently, leasehold land having net book value of Rs. 2,323 lacs as at 1 April 2015amounting to which earlier capitalised as fixed assets has now been reclassified as prepaid lease rent under thehead other non current assets.

Further, as a result, depreciation charge of Rs. 26 lacs has been reduced and lease rent expenses have beenincrease with an equal amount. This has no resulting impact on equity and net profit.

Note : 12Note : 12Note : 12Note : 12Note : 12Ind AS 12 requires classification of MAT credit as Deferred tax asset. Accordingly, the Company has reclassifiedMAT credit amounting to Rs. 1,585.88 lacs to Deferred tax asset as at the transition date. Further, MAT credit asat 31 March 2016 amounting to Rs. 2,813.98 lacs has been reclassified as Deferred tax asset. This has noresulting impact on equity or net profit.

Note : 13Note : 13Note : 13Note : 13Note : 13In earlier years, the Company carried out a revaluation of a part of its fixed assets which resulted in an upwardvaluation of fixed assets amount. As per the requirements of IGAAP, a revaluation reserve amounting to Rs.3,141 lacs was lying under the head ‘reserves and surplus’ as on the date of the transition. Under Ind AS, theCompany has adopted cost model approach for the measurement of the cost of the fixed assets. Accordingly,revaluation reserve of Rs. 3,141 lacs has been transferred to retained earnings as on the date of the transition.This transfer of reserve has no resulting impact on the equity or net profit. Further, deferred tax related impacthas been explained at note 7 above.

Note : 14Note : 14Note : 14Note : 14Note : 14The Company operates a customer reward points programme in its Hotel business. The programme allowscustomers to accumulate points on bookings. The points can be redeemed by the customers for future bookings.Under Indian GAAP, the group created a provision towards its liability under the programme.

Under Ind AS, sales consideration received has been allocated between the booking revenue and the rewardpoints issued. The consideration allocated to the customer reward points has been deferred and will be recognisedas revenue when the reward points are redeemed or lapsed. Accordingly, an amount of Rs. 26 lacs and Rs. 42lacs which were earlier recognised as provisions, have now been disclosed as deferred revenue on 1 April 2015and 31 March 2016 respectively. This has no resulting impact on equity and net profit.


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Note : 15Note : 15Note : 15Note : 15Note : 15The Company has reclassified certain items of assets and liabilities to comply with the requirements of Ind AS.This has no resulting impact on equity and net profit.

Note : 16Note : 16Note : 16Note : 16Note : 16Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goodsincludes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit andloss. Thus sale of goods under Ind AS has increased by Rs. 29 lacs with a corresponding increase in otherexpense. This has no impact on equity and net profit.

Note : 17Note : 17Note : 17Note : 17Note : 17The transition from previous GAAP to Ind AS has not made a material impact on the statement of cash flows.

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INDEPENDENT AINDEPENDENT AINDEPENDENT AINDEPENDENT AINDEPENDENT AUDITUDITUDITUDITUDITOROROROROR’S REPORT’S REPORT’S REPORT’S REPORT’S REPORT

To the Members of Bharat Hotels Limited

Report on the Consolidated Ind AS FReport on the Consolidated Ind AS FReport on the Consolidated Ind AS FReport on the Consolidated Ind AS FReport on the Consolidated Ind AS Financial Statementsinancial Statementsinancial Statementsinancial Statementsinancial Statements

We have audited the accompanying consolidated Ind AS financial statements of Bharat Hotels Limited (hereinafterreferred to as “the Holding Company”), its subsidiaries (including an entity registered as trust under Indian TrustsAct, 1882 (Trust)) (the Holding Company and its subsidiaries together referred to as “the Group”) and its jointventures, comprising of the consolidated Balance Sheet as at March 31, 2017, the consolidated Statement ofProfit and Loss including other comprehensive income, the consolidated Cash Flow Statement, the consolidatedStatement of Changes in Equity for the year then ended, and a summary of significant accounting policies andother explanatory information (hereinafter referred to as “the consolidated Ind AS financial statements”).

ManagementManagementManagementManagementManagement’s Responsibility for the Consolidated F’s Responsibility for the Consolidated F’s Responsibility for the Consolidated F’s Responsibility for the Consolidated F’s Responsibility for the Consolidated Financial Statementsinancial Statementsinancial Statementsinancial Statementsinancial Statements

The Holding Company’s Board of Directors is responsible for the preparation of these consolidated Ind ASfinancial statements in terms of the requirement of the Companies Act, 2013 (“the Act”) that give a true and fairview of the consolidated financial position, consolidated financial performance including other comprehensiveincome, consolidated cash flows and consolidated statement of changes in equity of the Group including its jointventures in accordance with accounting principles generally accepted in India, including the Accounting Standardsspecified under Section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015, asamended. The respective Board of Directors of the companies included in the Group and of its joint ventures andtrustees of the Trust are responsible for maintenance of adequate accounting records in accordance with theprovisions of the relevant statutes for safeguarding of the assets of the Group and its joint ventures and forpreventing and detecting frauds and other irregularities; the selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the design, implementationand maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracyand completeness of the accounting records, relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement, whether due to fraud or error, which havebeen used for the purpose of preparation of the consolidated Ind AS financial statements by the Directors of theHolding Company, as aforesaid.


Our responsibility is to express an opinion on these consolidated Ind AS financial statements based on our audit.While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditingstandards and matters which are required to be included in the audit report under the provisions of the Act andthe Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing, issued by theInstitute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theconsolidated financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the consolidated financial statements, whether due to fraudor error. In making those risk assessments, the auditor considers internal financial control relevant to the HoldingCompany’s preparation of the consolidated Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accounting estimates made by theHolding Company’s Board of Directors, as well as evaluating the overall presentation of the consolidated financialstatements. We believe that the audit evidence obtained by us and the audit evidence obtained by the otherauditors in terms of their reports referred to in sub-paragraph (a) of the Other Matters paragraph below, issufficient and appropriate to provide a basis for our audit opinion on the consolidated Ind AS financial statements.


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In our opinion and to the best of our information and according to the explanations given to us and based on theconsideration of reports of other auditors on separate financial statements and on the other financial informationof the subsidiaries and joint ventures, the aforesaid consolidated Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the consolidated state of affairs of the Group and its joint ventures as atMarch 31, 2017, their consolidated loss including other comprehensive income, their consolidated cash flowsand consolidated statement of changes in equity for the year ended on that date.

Report on Other LReport on Other LReport on Other LReport on Other LReport on Other Legal and Regulatory Requirementsegal and Regulatory Requirementsegal and Regulatory Requirementsegal and Regulatory Requirementsegal and Regulatory Requirements

As required by section 143 (3) of the Act, based on our audit and on the consideration of report of the otherauditors on separate financial statements and the other financial information of subsidiary companies and jointventure, as noted in the ‘other matters’ paragraph, we report, to the extent applicable, that:

(a) We / the other auditors whose reports we have relied upon have sought and obtained all the informationand explanations which to the best of our knowledge and belief were necessary for the purpose of our auditof the aforesaid consolidated Ind AS financial statements;

(b) In our opinion proper books of account as required by law relating to preparation of the aforesaidconsolidation of the financial statements have been kept so far as it appears from our examination of thosebooks and reports of the other auditors;

(c) The consolidated Balance Sheet, consolidated Statement of Profit and Loss including the Statement ofOther Comprehensive Income, the consolidated Cash Flow Statement and consolidated Statement of Changesin Equity dealt with by this Report are in agreement with the books of account maintained for the purposeof preparation of the consolidated Ind AS financial statements;

(d) In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Accounting Standardsspecified under section 133 of the Act, read with Companies (Indian Accounting Standard) Rules, 2015, asamended;

(e) On the basis of the written representations received from the directors of the Holding Company as onMarch 31, 2017 and taken on record by the Board of Directors of the Holding Company and the reports ofthe statutory auditors who are appointed under Section 139 of the Act, of its subsidiary companies and jointventure incorporated in India, none of the directors of the Group’s companies and joint venture incorporatedin India is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy and the operating effectiveness of the internal financial controls over financialreporting of the Holding Company and its subsidiary companies and joint venture incorporated in India,refer to our separate report in “Annexure 1” to this report;

(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and accordingto the explanations given to us and based on the consideration of the report of the other auditors onseparate financial statements as also the other financial information of the subsidiary companies and jointventure incorporated in India, as noted in the ‘Other matter’ paragraph:

i. The consolidated Ind AS financial statements disclose the impact of pending litigations on its consolidatedfinancial position– Refer Note 53 to the consolidated Ind AS financial statements;

ii. The Group’s companies and joint venture did not have any material foreseeable losses in long-termcontracts including derivative contracts during the year ended March 31, 2017.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education

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and Protection Fund by the Group’s companies and joint venture incorporated in India during the yearended March 31, 2017.

iv. The Group’s companies have provided requisite disclosures in Note 52 to these consolidated Ind ASfinancial statements as to the holding of Specified Bank Notes on November 8, 2016 and December30, 2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 toDecember 30, 2016. Based on our audit procedures and relying on the management representationof the Holding Company regarding the holding and nature of cash transactions, including SpecifiedBank Notes, we report that these disclosures are in accordance with the books of accounts maintainedby the Group companies and as produced to us by the management of the Holding Company.

Other MattersOther MattersOther MattersOther MattersOther Matters

We did not audit the financial statements and other financial information in respect of four subsidiaries, whoseInd AS financial statements include total assets of Rs. 12,564.68 lacs and net assets of Rs. 4,219.11 lacs as atMarch 31, 2017, and total revenues of Rs. 119.58 lacs and net cash inflows of Rs. 404.41 lacs for the yearended on that date. These financial statements and other financial information have been audited by otherauditors, whose financial statements, other financial information and auditor’s reports have been furnished to usby the management. The consolidated Ind AS financial statements also include the Group’s share of net loss ofRs. 3,122.28 lacs for the year ended March 31, 2017, as considered in the consolidated financial statements, inrespect of one joint venture, whose financial statements and other financial information have been audited byother auditors and whose reports have been furnished to us by the Management. Our opinion on the consolidatedInd AS financial statements, in so far as it relates to the amounts and disclosures included in respect of thesesubsidiaries and joint venture, and our report in terms of sub-sections (3) of Section 143 of the Act, in so far asit relates to the aforesaid subsidiaries and joint venture, is based solely on the reports of such other auditors.

Our opinion above on the consolidated Ind AS financial statements, and our report on Other Legal and RegulatoryRequirements above, is not modified in respect of the above matters with respect to our reliance on the workdone and the reports of the other auditors and the financial statements and other financial information certifiedby the Management.

For SSSSS.R. Batliboi & Co. LLP.R. Batliboi & Co. LLP.R. Batliboi & Co. LLP.R. Batliboi & Co. LLP.R. Batliboi & Co. LLPChartered AccountantsICAI FICAI FICAI FICAI FICAI Firm Registration Number:irm Registration Number:irm Registration Number:irm Registration Number:irm Registration Number: 301003E/E300005

Sd/-Sd/-Sd/-Sd/-Sd/-per Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj AgrawalPartnerMembership Number: 82028Place of Signature: GurugramDate: July 21, 2017


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ANNEXURE I TANNEXURE I TANNEXURE I TANNEXURE I TANNEXURE I TO THE INDEPENDENT AO THE INDEPENDENT AO THE INDEPENDENT AO THE INDEPENDENT AO THE INDEPENDENT AUDITUDITUDITUDITUDITOROROROROR’S REPORT OF EVEN D’S REPORT OF EVEN D’S REPORT OF EVEN D’S REPORT OF EVEN D’S REPORT OF EVEN DAAAAATE ON THE CONSOLIDTE ON THE CONSOLIDTE ON THE CONSOLIDTE ON THE CONSOLIDTE ON THE CONSOLIDAAAAATED FINANCIALTED FINANCIALTED FINANCIALTED FINANCIALTED FINANCIALSTSTSTSTSTAAAAATEMENTS OF BHARATEMENTS OF BHARATEMENTS OF BHARATEMENTS OF BHARATEMENTS OF BHARAT HOT HOT HOT HOT HOTELS LIMITEDTELS LIMITEDTELS LIMITEDTELS LIMITEDTELS LIMITED

Report on the Internal FReport on the Internal FReport on the Internal FReport on the Internal FReport on the Internal Financial Controls under Clause (i) of Subinancial Controls under Clause (i) of Subinancial Controls under Clause (i) of Subinancial Controls under Clause (i) of Subinancial Controls under Clause (i) of Sub-----section 3 of Section 143 of the Companiessection 3 of Section 143 of the Companiessection 3 of Section 143 of the Companiessection 3 of Section 143 of the Companiessection 3 of Section 143 of the CompaniesAct, 2013 (“the ActAct, 2013 (“the ActAct, 2013 (“the ActAct, 2013 (“the ActAct, 2013 (“the Act”)”)”)”)”)

In conjunction with our audit of the consolidated financial statements of Bharat Hotels Limited as of and for theyear ended March 31, 2017, we have audited the internal financial controls over financial reporting of BharatHotels Limited (hereinafter referred to as the “Holding Company”) and its subsidiary companies and its jointventure, which are companies incorporated in India, as of that date.

ManagementManagementManagementManagementManagement’s Responsibility for Internal F’s Responsibility for Internal F’s Responsibility for Internal F’s Responsibility for Internal F’s Responsibility for Internal Financial Controlsinancial Controlsinancial Controlsinancial Controlsinancial Controls

The respective Board of Directors of the of the Holding Company, its subsidiary companies and joint venture,which are companies incorporated in India, are responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established by the Holding Companyconsidering the essential components of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilitiesinclude the design, implementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business, including adherence to the respectivecompany’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracyand completeness of the accounting records, and the timely preparation of reliable financial information, asrequired under the Act.


Our responsibility is to express an opinion on the company’s internal financial controls over financial reportingbased on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, both, issued by Instituteof Chartered Accountants of India, and deemed to be prescribed under section 143(10) of the Act, to the extentapplicable to an audit of internal financial controls. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financialcontrols system over financial reporting and their operating effectiveness. Our audit of internal financial controlsover financial reporting included obtaining an understanding of internal financial controls over financial reporting,assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectivenessof internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement,including the assessment of the risks of material misstatement of the financial statements, whether due to fraudor error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors interms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls system over financial reporting.

Meaning of Internal FMeaning of Internal FMeaning of Internal FMeaning of Internal FMeaning of Internal Financial Controls Over Financial Controls Over Financial Controls Over Financial Controls Over Financial Controls Over Financial Reportinginancial Reportinginancial Reportinginancial Reportinginancial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that (1) pertain to the maintenance of recordsthat, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the

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company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparationof financial statements in accordance with generally accepted accounting principles, and that receipts andexpenditures of the company are being made only in accordance with authorisations of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal FInherent Limitations of Internal FInherent Limitations of Internal FInherent Limitations of Internal FInherent Limitations of Internal Financial Controls Over Financial Controls Over Financial Controls Over Financial Controls Over Financial Controls Over Financial Reportinginancial Reportinginancial Reportinginancial Reportinginancial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibilityof collusion or improper management override of controls, material misstatements due to error or fraud mayoccur and not be detected. Also, projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial control over financial reporting maybecome inadequate because of changes in conditions, or that the degree of compliance with the policies orprocedures may deteriorate.


In our opinion, the Holding Company, its subsidiary companies and joint venture, which are companiesincorporated in India, have, maintained in all material respects, an adequate internal financial controls systemover financial reporting and such internal financial controls over financial reporting were operating effectively asat March 31, 2017, based on the internal control over financial reporting criteria established by the HoldingCompany considering the essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other MattersOther MattersOther MattersOther MattersOther Matters

Our report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financialcontrols over financial reporting of the Holding Company, insofar as it relates to these three subsidiary companiesand one joint venture, which are companies incorporated in India, is based on the corresponding reports of theauditors of such subsidiary companies and joint venture company incorporated in India.


Sd/-per Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj Agrawalper Raj AgrawalPartnerMembership Number: 82028Place of Signature: GurugramDate: July 21, 2017


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CONSOLIDCONSOLIDCONSOLIDCONSOLIDCONSOLIDAAAAATED BALANCE SHEET AS ATED BALANCE SHEET AS ATED BALANCE SHEET AS ATED BALANCE SHEET AS ATED BALANCE SHEET AS AT 31 MARCH 2017T 31 MARCH 2017T 31 MARCH 2017T 31 MARCH 2017T 31 MARCH 2017

PPPPParticularsarticularsarticularsarticularsarticulars NotesNotesNotesNotesNotes As atAs atAs atAs atAs at As atAs atAs atAs atAs at As atAs atAs atAs atAs at31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs) (Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs) (Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)

ASSETSASSETSASSETSASSETSASSETSNon-Non-Non-Non-Non-Current AssetsCurrent AssetsCurrent AssetsCurrent AssetsCurrent Assetsa) Property, plant and equipment 2 155,006.56 149,695.42 157,612.71b) Capital work-in-progress 2 24,979.20 29,690.28 25,046.87c) Goodwill 3 8,425.48 8,425.48 8,425.48d) Other intangible assets 3 83.75 153.70 219.76e) Investments in joint ventures 51 — — 1,817.41f) Financial assets

(i) Investments 4 3.60 3.60 3.60(ii) Loans 5 25,860.13 22,304.92 20,693.55(iii) Other non currenttttt financial assets 6 1,926.35 1,964.11 2,074.35

g) Other non-current assets 7 9,818.40 9,991.77 10,139.53

TTTTTotal non current assetsotal non current assetsotal non current assetsotal non current assetsotal non current assets 226,103.47226,103.47226,103.47226,103.47226,103.47 222,229.28222,229.28222,229.28222,229.28222,229.28 226,033.26226,033.26226,033.26226,033.26226,033.26

Current AssetsCurrent AssetsCurrent AssetsCurrent AssetsCurrent Assets a) Inventories 8 1,835.55 1,887.97 1,656.21 b) Financial assets

(i) Trade receivables 9 4,677.22 4,164.00 4,110.52(ii) Cash and cash equivalents 10 6,762.39 1,951.64 6,633.28(iii) Other bank balances 11 1,056.59 548.14 536.50 (iv) Loans 12 112.86 110.05 144.48 (v) Other current financial assets 13 10,938.97 8,016.09 5,468.20

c) Other current assets 14 2,599.48 2,839.68 2,595.80

Assets classified as held for saleAssets classified as held for saleAssets classified as held for saleAssets classified as held for saleAssets classified as held for sale 15 1,638.77 1,648.77 30.00

TTTTTotal current assetsotal current assetsotal current assetsotal current assetsotal current assets 29,621.8329,621.8329,621.8329,621.8329,621.83 21,166.3421,166.3421,166.3421,166.3421,166.34 21,174.9921,174.9921,174.9921,174.9921,174.99

TTTTTotal assetsotal assetsotal assetsotal assetsotal assets 255,725.30255,725.30255,725.30255,725.30255,725.30 243,395.62243,395.62243,395.62243,395.62243,395.62 247,208.25247,208.25247,208.25247,208.25247,208.25

EQUITY AND LIABILITIESEQUITY AND LIABILITIESEQUITY AND LIABILITIESEQUITY AND LIABILITIESEQUITY AND LIABILITIES Equity Equity Equity Equity Equitya) Equity share capital 16 7,599.12 7,599.12 7,599.12b) Other Equity 17 85,828.22 88,152.71 92,645.13

Equity attributable to owners ofEquity attributable to owners ofEquity attributable to owners ofEquity attributable to owners ofEquity attributable to owners ofBharat Hotels LimitedBharat Hotels LimitedBharat Hotels LimitedBharat Hotels LimitedBharat Hotels Limited 93,427.3493,427.3493,427.3493,427.3493,427.34 95,751.8395,751.8395,751.8395,751.8395,751.83 100,244.25100,244.25100,244.25100,244.25100,244.25

Non-Non-Non-Non-Non-controlling interestscontrolling interestscontrolling interestscontrolling interestscontrolling interests 62 611.77 611.98 612.13

TTTTTotal Equityotal Equityotal Equityotal Equityotal Equity 94,039.1194,039.1194,039.1194,039.1194,039.11 96,363.8196,363.8196,363.8196,363.8196,363.81 100,856.38100,856.38100,856.38100,856.38100,856.38

Non-Non-Non-Non-Non-current liabilitiescurrent liabilitiescurrent liabilitiescurrent liabilitiescurrent liabilitiesa) Financial liabilities

(i) Borrowings 18 106,732.35 93,809.33 89,776.57(ii) Other non current financial liabilities 19 380.76 344.58 195.23

b) Provisions 20 790.36 714.39 722.64c) Deferred tax liabilities (net) 21 12,209.66 11,623.28 11,635.85d) Other non-current liablities 22 3,802.08 3,997.42 4,138.22

TTTTTotal non current liabilitiesotal non current liabilitiesotal non current liabilitiesotal non current liabilitiesotal non current liabilities 123,915.21123,915.21123,915.21123,915.21123,915.21 110,489.00110,489.00110,489.00110,489.00110,489.00 106,468.51106,468.51106,468.51106,468.51106,468.51

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Current liabilitiesCurrent liabilitiesCurrent liabilitiesCurrent liabilitiesCurrent liabilitiesa) Financial liabilities

(i) Borrowings 23 18,056.06 17,873.26 11,372.88(ii) Trade payables 24 4,051.07 2,683.14 3,166.72(iii) Other current financial liabilities 25 11,091.87 11,489.42 21,742.59

b) Provisions 26 731.64 702.66 919.17c) Other current liabilities 27 3,840.34 3,794.33 2,682.00

TTTTTotal current liabilitiesotal current liabilitiesotal current liabilitiesotal current liabilitiesotal current liabilities 37,770.9837,770.9837,770.9837,770.9837,770.98 36,542.8136,542.8136,542.8136,542.8136,542.81 39,883.3639,883.3639,883.3639,883.3639,883.36

TTTTTotal equity and liabilitiesotal equity and liabilitiesotal equity and liabilitiesotal equity and liabilitiesotal equity and liabilities 255,725.30255,725.30255,725.30255,725.30255,725.30 243,395.62243,395.62243,395.62243,395.62243,395.62 247,208.25247,208.25247,208.25247,208.25247,208.25

Summary of significant accounting policies 1








Place : New DelhiDate : 21 July, 2017

PPPPParticularsarticularsarticularsarticularsarticulars NotesNotesNotesNotesNotes As atAs atAs atAs atAs at As atAs atAs atAs atAs at As atAs atAs atAs atAs at31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs) (Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs) (Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)


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CONSOLIDCONSOLIDCONSOLIDCONSOLIDCONSOLIDAAAAATED STTED STTED STTED STTED STAAAAATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017TEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017TEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017TEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017TEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2017

PPPPParticularsarticularsarticularsarticularsarticulars NotesNotesNotesNotesNotes As at As at As at As at As at As at As at As at As at As at31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs) (Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)

RevenueRevenueRevenueRevenueRevenueRevenue from operations 28 62,001.81 56,636.47Other income 29 922.57 1,977.54

TTTTTotal incomeotal incomeotal incomeotal incomeotal income 62,924.3862,924.3862,924.3862,924.3862,924.38 58,614.0158,614.0158,614.0158,614.0158,614.01

ExpensesExpensesExpensesExpensesExpensesCost of food and beverages consumed 30 7,372.84 6,779.34Purchase of traded goods 76.04 61.43Change in inventories of traded goods 31 (28.49) 14.73Excise duty on sale of food 49.07 38.32Employee benefits expense 32 11,177.86 10,031.57Other expenses 33 25,167.70 25,328.25

TTTTTotal expensesotal expensesotal expensesotal expensesotal expenses 43,815.0243,815.0243,815.0243,815.0243,815.02 42,253.6442,253.6442,253.6442,253.6442,253.64

Earnings before interest, tax, depreciation and amortisationEarnings before interest, tax, depreciation and amortisationEarnings before interest, tax, depreciation and amortisationEarnings before interest, tax, depreciation and amortisationEarnings before interest, tax, depreciation and amortisation 19,109.3619,109.3619,109.3619,109.3619,109.36 16,360.3716,360.3716,360.3716,360.3716,360.37Finance income 34 3,381.23 3,143.11Finance costs 35 12,647.98 12,596.12Depreciation and amortisation expense 36 6,493.83 6,876.53PPPPProfit/(Lrofit/(Lrofit/(Lrofit/(Lrofit/(Loss) before exceptional items,oss) before exceptional items,oss) before exceptional items,oss) before exceptional items,oss) before exceptional items,share of loss of joint ventures and taxshare of loss of joint ventures and taxshare of loss of joint ventures and taxshare of loss of joint ventures and taxshare of loss of joint ventures and tax 3,348.783,348.783,348.783,348.783,348.78 30.8330.8330.8330.8330.83

Share of net loss of joint ventures 51 (3,122.28) (3,155.27)

PPPPProfit/(Lrofit/(Lrofit/(Lrofit/(Lrofit/(Loss) before exceptional itemsoss) before exceptional itemsoss) before exceptional itemsoss) before exceptional itemsoss) before exceptional items 226.50226.50226.50226.50226.50 (3,124.44)(3,124.44)(3,124.44)(3,124.44)(3,124.44)TTTTTax expense:ax expense:ax expense:ax expense:ax expense: 39Current tax 1,270.52 987.90Deferred tax charge/(credit) 1,849.68 1,196.37MAT Credit (1,259.54) (1,228.10)

TTTTTotal Total Total Total Total Tax Expenseax Expenseax Expenseax Expenseax Expense 1,860.661,860.661,860.661,860.661,860.66 956.17956.17956.17956.17956.17

LLLLLoss for the yeaross for the yeaross for the yeaross for the yeaross for the year (1,634.16)(1,634.16)(1,634.16)(1,634.16)(1,634.16) (4,080.61)(4,080.61)(4,080.61)(4,080.61)(4,080.61)

Other comprehensive incomeOther comprehensive incomeOther comprehensive incomeOther comprehensive incomeOther comprehensive incomeItems that will not be reclassified to profit or loss in subsequent yearsItems that will not be reclassified to profit or loss in subsequent yearsItems that will not be reclassified to profit or loss in subsequent yearsItems that will not be reclassified to profit or loss in subsequent yearsItems that will not be reclassified to profit or loss in subsequent years(i) Remeasurements of the net defined benefit plans - Actuarial Gain or Loss (9.14) 61.79

Income tax effect 3.75 (19.16)

(5.39)(5.39)(5.39)(5.39)(5.39) 42.6342.6342.6342.6342.63

ii) Share of Other Comprehensive Income of joint ventures 1.02 2.87

1.021.021.021.021.02 2.872.872.872.872.87

Net other comprehensive income that will not be reclassified toNet other comprehensive income that will not be reclassified toNet other comprehensive income that will not be reclassified toNet other comprehensive income that will not be reclassified toNet other comprehensive income that will not be reclassified toprofit or loss in subsequent yearsprofit or loss in subsequent yearsprofit or loss in subsequent yearsprofit or loss in subsequent yearsprofit or loss in subsequent years

(4.37)(4.37)(4.37)(4.37)(4.37) 45.5045.5045.5045.5045.50

TTTTTotal comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the year, net of tax, net of tax, net of tax, net of tax, net of tax (1,638.53)(1,638.53)(1,638.53)(1,638.53)(1,638.53) (4,035.11)(4,035.11)(4,035.11)(4,035.11)(4,035.11)

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LLLLLoss for the yeaross for the yeaross for the yeaross for the yeaross for the yearAttributable to:- Equity holders of the parent (1,633.98) (4,080.43)- Non-controlling interests (0.18) (0.18)

T T T T Total comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the year Attributable to:- Equity holders of the parent (1,638.35) (4,034.93)- Non-controlling interests (0.18) (0.18)

Earnings per equity shareEarnings per equity shareEarnings per equity shareEarnings per equity shareEarnings per equity share1) Basic, attributable to equity holders of the parent 40 (2.15) (5.37)

2) Diluted, attributable to equity holders of the parent 40 (2.15) (5.37)Summary of significant accounting policies 1









PPPPParticularsarticularsarticularsarticularsarticulars NotesNotesNotesNotesNotes As at As at As at As at As at As at As at As at As at As at31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs) (Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)(Rupees in lacs)


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CONSOLIDCONSOLIDCONSOLIDCONSOLIDCONSOLIDAAAAATED STTED STTED STTED STTED STAAAAATEMENT OF CASH FLTEMENT OF CASH FLTEMENT OF CASH FLTEMENT OF CASH FLTEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2017OWS FOR THE YEAR ENDED 31 MARCH 2017OWS FOR THE YEAR ENDED 31 MARCH 2017OWS FOR THE YEAR ENDED 31 MARCH 2017OWS FOR THE YEAR ENDED 31 MARCH 2017

PPPPParticularsarticularsarticularsarticularsarticulars FOR THE YEARFOR THE YEARFOR THE YEARFOR THE YEARFOR THE YEAR FOR THE YEARFOR THE YEARFOR THE YEARFOR THE YEARFOR THE YEARENDEDENDEDENDEDENDEDENDED ENDEDENDEDENDEDENDEDENDED

31 March, 201731 March, 201731 March, 201731 March, 201731 March, 2017 31 March, 201631 March, 201631 March, 201631 March, 201631 March, 2016 (Rs. in lacs) (Rs. in lacs) (Rs. in lacs) (Rs. in lacs) (Rs. in lacs) (Rs. in lacs)(Rs. in lacs)(Rs. in lacs)(Rs. in lacs)(Rs. in lacs)

AAAAA CASH FLCASH FLCASH FLCASH FLCASH FLOW FROM OPERAOW FROM OPERAOW FROM OPERAOW FROM OPERAOW FROM OPERATING ATING ATING ATING ATING ACTIVITIESCTIVITIESCTIVITIESCTIVITIESCTIVITIES

PPPPProfit before taxrofit before taxrofit before taxrofit before taxrofit before tax 226.50 (3,124.44)Non-cash adjustments to reconcile profit before tax to net cash flows:Depreciation and amortisation expenses 6,493.83 6,876.53Provison for diminution in the value of investment — 10.85Bad debts written off 0.45 9.38Provision for doubtful debts 212.04 476.88Provision for doubtful advances 166.71 313.29Excess provision/ credit balances written back (425.20) (208.93)Loss/ (profit) on sale of property, plant and equipment (net) 18.84 (1,191.24)Advances written off 10.16 —Unwinding of discount on security deposits (24.78) (22.07)Share of loss of joint venture 3,122.28 3,155.27Amortisation of deferred lease rent 103.10 104.62Interest Income (3,356.45) (3,121.03)Interest expense 12,647.98 12,596.12Assets held for sale reduced to net realisable value 10.00 —Government Grant Income (105.61) (105.61)Unrealized foreign exchange gain (230.38) (136.83)

Operating profit before working capital changes:Operating profit before working capital changes:Operating profit before working capital changes:Operating profit before working capital changes:Operating profit before working capital changes: 18,869.4718,869.4718,869.4718,869.4718,869.47 15,632.7915,632.7915,632.7915,632.7915,632.79

Movements in working capital:(Increase) in other financial and other assets 676.47 (143.36)(Increase) in trade receivable (725.23) (523.13)Decrease/(Increase) in inventories 52.42 (231.76)Increase in trade payable 1,792.61 (291.28)(Decrease)/Increase in other current and non-current liabilities (565.00) 730.84

Cash Generated from OperationsCash Generated from OperationsCash Generated from OperationsCash Generated from OperationsCash Generated from Operations 20,100.7420,100.7420,100.7420,100.7420,100.74 15,174.1015,174.1015,174.1015,174.1015,174.10

TTTTTax Pax Pax Pax Pax Paid (net)aid (net)aid (net)aid (net)aid (net) (1,229.64) (1,145.16)

Net cash flow from operating activities (a)Net cash flow from operating activities (a)Net cash flow from operating activities (a)Net cash flow from operating activities (a)Net cash flow from operating activities (a) 18,871.1018,871.1018,871.1018,871.1018,871.10 14,028.9414,028.9414,028.9414,028.9414,028.94

BBBBB CASH FLCASH FLCASH FLCASH FLCASH FLOWS FROM INVESTING AOWS FROM INVESTING AOWS FROM INVESTING AOWS FROM INVESTING AOWS FROM INVESTING ACTIVITIESCTIVITIESCTIVITIESCTIVITIESCTIVITIESPurchase of property, plant and equipment (7244.47) (6,092.71)Proceeds from sale of property, plant and equipment 115.31 4,105.38Loan to joint venture of subsidiaries (6,755.13) (3,235.57)Interest received and finance lease income 701.34 527.48(Investment in)/proceeds from bank deposits (961.43) 31.61

Net Cash flow from used in investing activities (b)Net Cash flow from used in investing activities (b)Net Cash flow from used in investing activities (b)Net Cash flow from used in investing activities (b)Net Cash flow from used in investing activities (b) (14144.38)(14144.38)(14144.38)(14144.38)(14144.38) (4,663.81)(4,663.81)(4,663.81)(4,663.81)(4,663.81)

CCCCC CASH FLCASH FLCASH FLCASH FLCASH FLOWS FROM FINANCING AOWS FROM FINANCING AOWS FROM FINANCING AOWS FROM FINANCING AOWS FROM FINANCING ACTIVITIESCTIVITIESCTIVITIESCTIVITIESCTIVITIESProceeds from long term borrowings 23,024.27 34,577.60Repayment of long term borrowings (9926.16) (42,420.45)Proceeds from short term borrowings 436.07 8,110.25Repayment of short term borrowings (624.11) (1,548.48)Interest paid (13,024.24) (13,345.34)

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Deferred payment liabilities (47.55) (45.60)Dividend paid (569.93) (379.96)Tax on dividend paid (116.03) (77.35)

Net Cash flow from used in financing activities (c)Net Cash flow from used in financing activities (c)Net Cash flow from used in financing activities (c)Net Cash flow from used in financing activities (c)Net Cash flow from used in financing activities (c) (847.68)(847.68)(847.68)(847.68)(847.68) (15,129.33)(15,129.33)(15,129.33)(15,129.33)(15,129.33)

NET (DECREASE)/ INCREASE IN CASH &NET (DECREASE)/ INCREASE IN CASH &NET (DECREASE)/ INCREASE IN CASH &NET (DECREASE)/ INCREASE IN CASH &NET (DECREASE)/ INCREASE IN CASH &CASH EQUIVCASH EQUIVCASH EQUIVCASH EQUIVCASH EQUIVALENTS (a+b+c)ALENTS (a+b+c)ALENTS (a+b+c)ALENTS (a+b+c)ALENTS (a+b+c) 3,879.043,879.043,879.043,879.043,879.04 (5,764.20)(5,764.20)(5,764.20)(5,764.20)(5,764.20)

CASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVALENTS AALENTS AALENTS AALENTS AALENTS ATTTTTTHE BEGINNING OF THE YEARTHE BEGINNING OF THE YEARTHE BEGINNING OF THE YEARTHE BEGINNING OF THE YEARTHE BEGINNING OF THE YEAR 1,951.65 6,633.28

CASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVCASH AND CASH EQUIVALENTS AALENTS AALENTS AALENTS AALENTS AT THE END OF THE YEART THE END OF THE YEART THE END OF THE YEART THE END OF THE YEART THE END OF THE YEAR 5,830.695,830.695,830.695,830.695,830.69 869.08869.08869.08869.08869.08

COMPONENTS OF CASH AND CASH EQUIVCOMPONENTS OF CASH AND CASH EQUIVCOMPONENTS OF CASH AND CASH EQUIVCOMPONENTS OF CASH AND CASH EQUIVCOMPONENTS OF CASH AND CASH EQUIVALENTSALENTSALENTSALENTSALENTSCash on Hand 63.93 80.60Cheques on hand 100.87 66.58- Current accounts 6,516.67 635.56- EEFC accounts 69.67 22.76- Deposit with maturity of more than three monthsbut less than twelve months 11.25 1,146.14Less: Book Overdraft (931.70) (1,082.56)

5,830.695,830.695,830.695,830.695,830.69 869.08869.08869.08869.08869.08Notes:1. The figures in bracket indicates outflows.2. The cash flow has been prepared under the “Indirect method” as set out in Indian Accounting Standard

(Ind AS) 7 - Statement of Cash Flows

See accompanying notes to the financial statements.








PPPPParticularsarticularsarticularsarticularsarticulars FOR THE YEARFOR THE YEARFOR THE YEARFOR THE YEARFOR THE YEAR FOR THE YEARFOR THE YEARFOR THE YEARFOR THE YEARFOR THE YEARENDEDENDEDENDEDENDEDENDED ENDEDENDEDENDEDENDEDENDED

31 March, 201731 March, 201731 March, 201731 March, 201731 March, 2017 31 March, 201631 March, 201631 March, 201631 March, 201631 March, 2016 (Rs. in lacs) (Rs. in lacs) (Rs. in lacs) (Rs. in lacs) (Rs. in lacs) (Rs. in lacs)(Rs. in lacs)(Rs. in lacs)(Rs. in lacs)(Rs. in lacs)


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NONONONONOTES FORMING PTES FORMING PTES FORMING PTES FORMING PTES FORMING PART OF CONSOLIDART OF CONSOLIDART OF CONSOLIDART OF CONSOLIDART OF CONSOLIDAAAAATED FINANCIAL STTED FINANCIAL STTED FINANCIAL STTED FINANCIAL STTED FINANCIAL STAAAAATEMENTSTEMENTSTEMENTSTEMENTSTEMENTSFOR THE YEAR ENDED 31 MARCH 2017FOR THE YEAR ENDED 31 MARCH 2017FOR THE YEAR ENDED 31 MARCH 2017FOR THE YEAR ENDED 31 MARCH 2017FOR THE YEAR ENDED 31 MARCH 2017

1.1.1.1.1. Corporate InformationCorporate InformationCorporate InformationCorporate InformationCorporate Information

The consolidated financial statements comprise financial statements of Bharat Hotels Limited (hereinafter referredas the “Holding Company” or “Parent” or “Company”) and its subsidiaries (including an entity registered as trustunder Indian Trusts Act, 1882 (Trust)) (collectively, the Group) and its joint ventures for the year ended 31 March2017. The Group entities are engaged in the business of operating hotels other than the Trust which is engagedin promoting education, training and operating schools, colleges, universities, research and development centre,e-learning centres for hospitality industry development. The Holding Company has its principal place of businesslocated at Barakhamba Lane, New Delhi -110001.

The consolidated financial statements were authorised for issue in accordance with a resolution of the directorson 21 July 2017.

Description of Group and its interest in Joint VDescription of Group and its interest in Joint VDescription of Group and its interest in Joint VDescription of Group and its interest in Joint VDescription of Group and its interest in Joint Venturesenturesenturesenturesentures

NameNameNameNameName Country ofCountry ofCountry ofCountry ofCountry of Shareholding/ Control (%age)Shareholding/ Control (%age)Shareholding/ Control (%age)Shareholding/ Control (%age)Shareholding/ Control (%age)incorporationincorporationincorporationincorporationincorporation

March 31,March 31,March 31,March 31,March 31, March 31,March 31,March 31,March 31,March 31, April 1,April 1,April 1,April 1,April 1,20172017201720172017 20162016201620162016 20152015201520152015

Subsidiaries:Subsidiaries:Subsidiaries:Subsidiaries:Subsidiaries:

Jyoti Limited India 99.99% 99.99% 99.99%

Apollo Zipper India Limited India 90.00% 90.00% 90.00%

Prime Cellular Limited India 99.60% 99.60% 99.60%

Prima Buildwell Private Limited India 99.99% 99.99% 99.99%

The Lalit Suri Educational & Charitable Trust India 100% 100% 100%

Joint VJoint VJoint VJoint VJoint Ventures:entures:entures:entures:entures:

Kujjal Builders Private Limited India 50.00% 50.00% 50.00%

Cavern Hotel & Resorts FZ Co United Arab Emirates 16.67% 16.67% 16.67%

1.1.1.1.1.1.1.1.1.1. Basis of PBasis of PBasis of PBasis of PBasis of Preparationreparationreparationreparationreparation

The consolidated financial statements have been prepared in accordance with Indian Accounting Standards(Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended.

For all periods up to and including the year ended 31 March 2016, the Group prepared its consolidatedfinancial statements in accordance accounting standards notified under the section 133 of the CompaniesAct 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Theseconsolidated financial statements for the year ended 31 March 2017 are the first the Group has preparedin accordance with Ind AS. Refer to note 63 for information on how the Group adopted Ind AS.

The consolidated financial statements have been prepared on a historical cost basis, except for the followingassets and liabilities which have been measured at fair value :

• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financialinstruments),

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• Property, plant and equipment and intangible assets have been carried at deemed cost (which includesrevalued amount of land and building at certain locations) on the date of transition using the optionalexemption allowed under Ind AS 101

The consolidated financial statements are presented in INR and all values are rounded to the nearest lacs(INR 00,000), except when otherwise indicated.

a)a)a)a)a) Basis of consolidation:Basis of consolidation:Basis of consolidation:Basis of consolidation:Basis of consolidation:

The consolidated financial statements comprise the financial statements of the Group and its joint venturesas at 31 March 2017. Control is achieved when the Group is exposed, or has rights, to variable returnsfrom its involvement with the investee and has the ability to affect those returns through its power over theinvestee. Specifically, the Group controls an investee if and only if the Group has:

• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activitiesof the investee)

• Exposure, or rights, to variable returns from its involvement with the investee, and• The ability to use its power over the investee to affect its returns

Generally, there is a presumption that a majority of voting rights result in control. To support this presumptionand when the Group has less than a majority of the voting or similar rights of an investee, the Groupconsiders all relevant facts and circumstances in assessing whether it has power over an investee, including:

• The contractual arrangement with the other vote holders of the investee

• Rights arising from other contractual arrangements

• The Group voting rights and potential voting rights

• The size of the group’s holding of voting rights relative to the size and dispersion of the holdings of theother voting rights holders

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that thereare changes to one or more of the three elements of control. Consolidation of a subsidiary begins when theGroup obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.

Consolidated financial statements are prepared using uniform accounting policies for like transactions andother events in similar circumstances. If a member of the group uses accounting policies other than thoseadopted in the consolidated financial statements for like transactions and events in similar circumstances,appropriate adjustments are made to that group member’s financial statements in preparing the consolidatedfinancial statements to ensure conformity with the group accounting policies.

The financial statements of all entities used for the purpose of consolidation are drawn up to same reportingdate as that of the parent company, i.e., year ended on 31 March.

Consolidation procedure:Consolidation procedure:Consolidation procedure:Consolidation procedure:Consolidation procedure:

(a) Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent withthose of its subsidiaries.

(b) Offset (eliminate) the carrying amount of the parent’s investment in each subsidiary and the parent’sportion of equity of each subsidiary. Policy of goodwill on consolidation explains how to account forany related goodwill.

(c) Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating totransactions between entities of the group (profits or losses resulting from intragroup transactions that


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are recognised in assets, such as inventory and fixed assets, are eliminated in full). Intragroup lossesmay indicate an impairment that requires recognition in the consolidated financial statements. IndAS12 Income Taxes applies to temporary differences that arise from the elimination of profits andlosses resulting from intragroup transactions.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holdersof the parent of the Group and to the non-controlling interests, even if this results in the non-controllinginterests having a deficit balance. When necessary, adjustments are made to the financial statements ofsubsidiaries to bring their accounting policies into line with the Group’s accounting policies.

1.2.1.2.1.2.1.2.1.2. Significant Accounting PSignificant Accounting PSignificant Accounting PSignificant Accounting PSignificant Accounting Policiesoliciesoliciesoliciesolicies

a)a)a)a)a) Investment in joint ventures:Investment in joint ventures:Investment in joint ventures:Investment in joint ventures:Investment in joint ventures:

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangementhave rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of controlof an arrangement, which exists only when decisions about the relevant activities require unanimous consentof the parties sharing control.

The considerations made in determining whether the Company has significant influence or joint control,are similar to those necessary to determine control over the subsidiaries.

The Group’s investments in its joint ventures are accounted for using the equity method. Under the equitymethod, the investment in a joint venture is initially recognised at cost. The carrying amount of the investmentis adjusted to recognise changes in the Group’s share of net assets of the joint venture since the acquisitiondate. Goodwill, if any, relating to joint venture is included in the carrying amount of the investment and isnot tested for impairment individually.

The consolidated statement of profit and loss reflects the Group’s share of the results of operations of jointventure. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, whenthere has been a change recognised directly in the equity of the joint venture, the Group recognises itsshare of any changes, when applicable, in the statement of changes in equity.

If Group’s share of losses of a joint venture equals or exceeds its interest in the joint venture (which includesany long-term interest that, in substance, forms part of the Group’s net investment in the joint venture), theGroup discontinues recognising its share of further losses. Additional losses are recognised only to theextent that the Group has incurred legal or constructive obligations or made payments on behalf of the jointventure. If the joint venture subsequently reports profits, the entity resumes recognising its share of thoseprofits only after its share of the profits equals the share of losses not recognised.

The aggregate of the Group’s share of profit or loss of a joint venture is shown on the face of the statementof profit and loss.

The financial statements of the joint venture are prepared for the same reporting period as the Group.When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognise animpairment loss on its investment in its joint venture. At each reporting date, the Group determines whetherthere is objective evidence that the investment in the joint venture is impaired. If there is such evidence, theGroup calculates the amount of impairment as the difference between the recoverable amount of the jointventure and its carrying value, and then recognises the loss as ‘Share of profit or loss of a joint venture’ inthe statement of profit or loss.

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b)b)b)b)b) Current versus non-Current versus non-Current versus non-Current versus non-Current versus non-current classificationcurrent classificationcurrent classificationcurrent classificationcurrent classification

The Group presents assets and liabilities in the balance sheet based on current/ non-current classification.An asset is treated as current when it is:

· Expected to be realised or intended to be sold or consumed in normal operating cycle

· Held primarily for the purpose of trading

· Expected to be realised within twelve months after the reporting period, or

· Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at leasttwelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

· It is expected to be settled in normal operating cycle

· It is held primarily for the purpose of trading

· It is due to be settled within twelve months after the reporting period, or

· There is no unconditional right to defer the settlement of the liability for at least twelve months after thereporting period

The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cashand cash equivalents. The group has identified twelve months as its operating cycle.

c)c)c)c)c) PPPPPropertyropertyropertyropertyroperty, Plant and Equipment, Plant and Equipment, Plant and Equipment, Plant and Equipment, Plant and EquipmentRecognition and initial measurement

Under the previous GAAP (Indian GAAP), property plant and equipment were carried in the balance sheetat their cost of purchase except for land and building at certain locations which were carried at revaluedamount. Using the deemed cost exemption available as per Ind AS 101, the Group has elected to carryforward the carrying value of PPE under Indian GAAP as on 31 March 2015 as book value of such assetsunder Ind AS as at the transition date i.e. 1 April 2015.

Capital work in progress, plant and equipment is stated at cost, net of accumulated depreciation andaccumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant andequipment and borrowing costs for long-term construction projects if the recognition criteria are met. Whensignificant parts of plant and equipment are required to be replaced at intervals, the Group depreciatesthem separately based on their specific useful lives. Likewise, when a major inspection is performed, its costis recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteriaare satisfied. All other repair and maintenance costs are recognised in consolidated statement of profit orloss as incurred. The present value of the expected cost for the decommissioning of an asset after its use isincluded in the cost of the respective asset if the recognition criteria for a provision are met.

Subsequent measurement (depreciation and useful lives)Depreciation on property, plant and equipment is provided on the straight-line method using the ratesarrived on the basis of the useful life which coincides with the useful life prescribed under Schedule II of theCompanies Act, 2013. The identified components are depreciated over their useful lives; the remainingasset is depreciated over the life of the principal asset.


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Leasehold buildings are amortized on a straight line basis over the unexpired period of lease or useful life,whichever is lower.

Non RCC structures for conference halls are depreciated over the period of eight years or their estimateduseful life, whichever is lower.

The residual values, useful lives and method of depreciation of are reviewed at each financial year end andadjusted prospectively, if appropriate.

De-recognitionAn item of property, plant and equipment and any significant part initially recognised is derecognized upondisposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arisingon de-recognition of the asset (calculated as the difference between the net disposal proceeds and thecarrying amount of the asset) is included in the income statement when the asset is derecognized.

d)d)d)d)d) Intangible AssetsIntangible AssetsIntangible AssetsIntangible AssetsIntangible AssetsRecognition and initial measurement

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses,if any.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairmentwhenever there is an indication that the intangible asset may be impaired. The amortisation period and theamortisation method for an intangible asset with a finite useful life are reviewed at least at the end of eachreporting period. Changes in the expected useful life or the expected pattern of consumption of futureeconomic benefits embodied in the asset are considered to modify the amortisation period or method, asappropriate, and are treated as changes in accounting estimates. The amortisation expense on intangibleassets with finite lives is recognised in the consolidated statement of profit and loss unless such expenditureforms part of carrying value of another asset.

Using the deemed cost exemption available as per Ind AS 101, the Group has elected to carry forward thecarrying value of intangible assets under Indian GAAP as on 31 March 2015 as book value of such assetsunder Ind AS as at the transition date i.e. 1 April 2015.

Subsequent measurementThe Group has capitalised computer software in the nature of software licenses as intangible assets and thecost of software is amortized over the license period or three years, being their expected useful economiclife, whichever is lower.

Gains or losses arising from derecognition of an intangible asset are measured as the difference betweenthe net disposal proceeds and the carrying amount of the asset and are recognised in the statement ofprofit or loss when the asset is derecognised.

e)e)e)e)e) Goodwill on ConsolidationGoodwill on ConsolidationGoodwill on ConsolidationGoodwill on ConsolidationGoodwill on Consolidation

Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill is not amortised but it istested for impairment annually, or more frequently if events or changes in circumstances indicate that itmight be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on thedisposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation ismade to those cash-generating units or groups of cash-generating units that are expected to benefit from

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the business combination in which the goodwill arose. The units or groups of units are identified at thelowest level at which goodwill is monitored for internal management purposes, which in our case are theoperating segments.

f)f)f)f)f) Impairment of non-financial AssetsImpairment of non-financial AssetsImpairment of non-financial AssetsImpairment of non-financial AssetsImpairment of non-financial Assets

The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired.If any indication exists, or when annual impairment testing for an asset is required, the group estimates theasset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generatingunit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for anindividual asset, unless the asset does not generate cash inflows that are largely independent of those fromother assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverableamount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specificto the asset. In determining fair value less costs of disposal, recent market transactions are taken intoaccount. If no such transactions can be identified, an appropriate valuation model is used. These calculationsare corroborated by valuation multiples, quoted share prices for publicly traded companies or other availablefair value indicators.

The Group bases its impairment calculation on detailed budgets and forecast calculations, which areprepared separately for each of the Group’s CGUs to which the individual assets are allocated. Thesebudgets and forecast calculations generally cover a period of five years. For longer periods, a long-termgrowth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flowprojections beyond periods covered by the most recent budgets/forecasts, the Group extrapolates cashflow projections in the budget using a steady or declining growth rate for subsequent years, unless anincreasing rate can be justified. In any case, this growth rate does not exceed the long-term average growthrate for the market in which the asset is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in theconsolidated statement of Profit and Loss, except for properties previously revalued with the revaluationsurplus taken to OCI. For such properties, the impairment is recognised in OCI up to the amount of anyprevious revaluation surplus.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaininguseful life.

The impairment assessment for all assets is made at each reporting date to determine whether there is anindication that previously recognised impairment losses no longer exist or have decreased. If such indicationexists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairmentloss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverableamount since the last impairment loss was recognised. The reversal is limited so that the carrying amountof the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have beendetermined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Suchreversal is recognised in the statement of profit or loss.

g)g)g)g)g) FFFFForeign Currenciesoreign Currenciesoreign Currenciesoreign Currenciesoreign Currencies

Items included in the consolidated financial statements of the Group are measured using the currency ofthe primary economic environment in which the Group operates (‘the functional currency’). The consolidatedfinancial statements are presented in Indian Rupee (INR), which is the Group’s functional and presentationcurrency.


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TTTTTransactions and balancesransactions and balancesransactions and balancesransactions and balancesransactions and balancesTransactions in foreign currencies are initially recorded by the Group at its functional currency spot rates atthe date the transaction first qualifies for recognition. However, for practical reasons, the Group uses anaverage rate if the average approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currencyspot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.

Under previous GAAP, from accounting periods commencing on or after 1 April 2011, exchange differencesarising on translation/ settlement of long term foreign currency monetary items pertaining to the acquisitionof a depreciable asset were adjusted to the cost of the asset. In accordance with MCA circular dated 09August 2012, exchange differences adjusted to the cost of fixed assets are total differences, arising onlong-term foreign currency monetary items pertaining to the acquisition of a depreciable asset, for theperiod. In other words, the Group does not differentiate between exchange differences arising from foreigncurrency borrowings to the extent they are regarded as an adjustment to the interest cost and other exchangedifference. Such exchange differences arising on translation/ settlement of longterm foreign currency monetaryitems and pertaining to the acquisition of a depreciable asset were amortised over the remaining usefullives of the assets. The Group has elected to continue with the said policy on exchange differences arisingon long term foreign currency monetary items existing on 31 March 2016 as allowed under Ind AS 101.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated usingthe exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in aforeign currency are translated using the exchange rates at the date when the fair value is determined. Thegain or loss arising on translation of non-monetary items measured at fair value is treated in line with therecognition of the gain or loss on the change in fair value of the item (i.e., translation differences on itemswhose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit orloss, respectively).

h)h)h)h)h) FFFFFair Vair Vair Vair Vair Value Measurementalue Measurementalue Measurementalue Measurementalue Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. The fair value measurement is based onthe presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants woulduse when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability togenerate economic benefits by using the asset in its highest and best use or by selling it to another marketparticipant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficientdata are available to measure fair value, maximizing the use of relevant observable inputs and minimizingthe use of unobservable inputs.

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All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statementsare categorized within the fair value hierarchy, described as follows, based on the lowest level input that issignificant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilitiesLevel 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurementis directly or indirectly observableLevel 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurementis Unobservable

For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis,the Group determines whether transfers have occurred between levels in the hierarchy by re-assessingcategorization (based on the lowest level input that is significant to the fair value measurement as a whole)at the end of each reporting period or each case.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on thebasis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchyas explained above.

This note summarizes accounting policy for fair value. Other fair value related disclosures are given in therelevant notes.

o Disclosures for valuation methods, significant estimates and assumptionso Quantitative disclosures of fair value measurement hierarchyo Investment in unquoted equity shareso Financial instruments

i)i)i)i)i) Revenue RecognitionRevenue RecognitionRevenue RecognitionRevenue RecognitionRevenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group andthe revenue can be reliably measured, regardless of when the payment is being made. Revenue is measuredat the fair value of the consideration received or receivable, taking into account contractually defined termsof payment and excluding taxes or duties collected on behalf of the government. The Group has concludedthat it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenuearrangements as it has pricing latitude and is also exposed to inventory and credit risks.

The Group applies the revenue recognition criteria to each separately identifiable component of the salestransaction as set out below:

Revenue from hotel operations:Revenue from hotel operations:Revenue from hotel operations:Revenue from hotel operations:Revenue from hotel operations:Revenue from hotel operations comprise sale of rooms and apartments, food and beverages, liquor andwine, banquet rentals and other services relating to hotel operations including telecommunication, laundry,business centre, health centre etc. Revenue is recognized as and when the services are rendered and isdisclosed net of allowances.

Aircraft charter:Aircraft charter:Aircraft charter:Aircraft charter:Aircraft charter:Revenue from hiring of the aircraft is recognized as and when services are rendered.

Rent:Rent:Rent:Rent:Rent:Income from rent is recognized over the period of the contract on straight line basis. Initial direct cost isexpensed off when incurred.

Maintenance charges:Maintenance charges:Maintenance charges:Maintenance charges:Maintenance charges:Amounts collectible as maintenance charges are recognized over the period of the contract, on an accrualbasis. Corresponding costs are recorded as incurred.


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Membership programme:Membership programme:Membership programme:Membership programme:Membership programme:Membership revenue is recognized pro rata over the period of the membership term. Joining fee is recordedas income on sale of membership card.

TTTTTuition and application fees:uition and application fees:uition and application fees:uition and application fees:uition and application fees:Tuition and application fees received by the Trust is recognized on accrual basis.

LLLLLoyalty points programme:oyalty points programme:oyalty points programme:oyalty points programme:oyalty points programme:The Group operates a Lalit loyalty points programme, Lalit Connect, Lalit Plus, Lalit Engage, which allowscustomers to accumulate points when they stay in the hotels of the Group. The points can be redeemed forfree stay, subject to a minimum number of points being obtained. The fair value of the points issued isdeferred and recognized as revenue when the points are redeemed.

Sale of goods (TSale of goods (TSale of goods (TSale of goods (TSale of goods (Trading goods)rading goods)rading goods)rading goods)rading goods)Revenue is recognized when all significant risks and rewards of ownership of the goods have passed to thebuyer.

Interest Income:Interest Income:Interest Income:Interest Income:Interest Income:For all debt instruments measured either at amortised cost or at fair value through other comprehensiveincome, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discountsthe estimated future cash payments or receipts over the expected life of the financial instrument or a shorterperiod, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of afinancial liability. When calculating the effective interest rate, the Group estimates the expected cash flowsby considering all the contractual terms of the financial instrument (for example, prepayment, extension,call and similar options) but does not consider the expected credit losses. Interest income is included infinance income in the statement of profit and loss.

Interest income on fixed deposits is recognised on a time proportion basis taking into account the amountoutstanding and the applicable interest rate.

Commission Income:Commission Income:Commission Income:Commission Income:Commission Income:Income is recognized when right to receive payment is established by the terms of the contract.

Consultancy / Management fee:Consultancy / Management fee:Consultancy / Management fee:Consultancy / Management fee:Consultancy / Management fee:Consultancy / Management fee is recognized on accrual basis when right to receive payment is establishedby the terms of the contract.

Dividend incomeDividend incomeDividend incomeDividend incomeDividend incomeDividend income is recognised at the time when right to receive the payment is established, which isgenerally when the shareholders approve the dividend.

j)j)j)j)j) Borrowing CostsBorrowing CostsBorrowing CostsBorrowing CostsBorrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarilytakes a substantial period of time to get ready for its intended use or sale are capitalized as part of the costof the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costsconsist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowingcost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

k)k)k)k)k) FFFFFinancial Instrumentsinancial Instrumentsinancial Instrumentsinancial Instrumentsinancial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liabilityor equity instrument of another entity.

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FFFFFinancial assetsinancial assetsinancial assetsinancial assetsinancial assetsInitial recognition and measurementAll financial assets are recognised initially at fair value plus, in the case of financial assets not recorded atfair value through profit or loss, transaction costs that are attributable to the acquisition of the financialasset. Purchases or sales of financial assets that require delivery of assets within a time frame established byregulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., thedate that the Group commits to purchase or sell the asset.

For purposes of subsequent measurement, financial assets are classified in four categories:

• Debt instruments at amortised cost

• Equity instruments at fair value through profit or loss (FVTPL)

Debt instruments at amortised costDebt instruments at amortised costDebt instruments at amortised costDebt instruments at amortised costDebt instruments at amortised costA ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractualcash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using theeffective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount orpremium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation isincluded in finance income in the profit or loss. The losses arising from impairment are recognised in theprofit or loss. This category generally applies to trade, security deposits and other receivables.

Equity investmentsEquity investmentsEquity investmentsEquity investmentsEquity investmentsAll equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are heldfor trading and contingent consideration recognised by an acquirer in a business combination to which IndAS 103 applies are classified as at FVTPL. For all other equity instruments, the Group may make anirrevocable election to present in other comprehensive income subsequent changes in the fair value. TheGroup makes such election on an instrument-by-instrument basis. The classification is made on initialrecognition and is irrevocable.

If the Group decides to classify an equity instrument as at FVTOCI, then all fair value changes on theinstrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCIto P&L, even on sale of investment. However, the Group may transfer the cumulative gain or loss withinequity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognizedin the P&L.

DerecognitionDerecognitionDerecognitionDerecognitionDerecognitionA financial asset (or, where applicable, a part of a financial asset or part of a group of similar financialassets) is primarily derecognised (i.e. removed from the Group’s consolidated balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligationto pay the received cash flows in full without material delay to a third party under a ‘pass-through’arrangement~ and either (a) the Group has transferred substantially all the risks and rewards of theasset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards ofthe asset, but has transferred control of the asset.


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When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nortransferred control of the asset, the Group continues to recognise the transferred asset to the extent of theGroup’s continuing involvement. In that case, the Group also recognises an associated liability. The transferredasset and the associated liability are measured on a basis that reflects the rights and obligations that theGroup has retained.Continuing involvement that takes the form of a guarantee over the transferred asset is measured at thelower of the original carrying amount of the asset and the maximum amount of consideration that theGroup could be required to repay.

Impairment of financial assetsImpairment of financial assetsImpairment of financial assetsImpairment of financial assetsImpairment of financial assetsIn accordance with Ind AS 109, the Group applies expected credit loss (ECL) model for measurement andrecognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debtsecurities, deposits, trade receivables and bank balance

b) Lease receivables under Ind AS 17

c) Trade receivables or any contractual right to receive cash or another financial asset that result fromtransactions that are within the scope of Ind AS 11 and Ind AS 18

d) Financial guarantee contracts which are not measured as at FVTPL

The Group follows ‘simplified approach’ for recognition of impairment loss allowance on:

• Trade receivables; and

• All lease receivables resulting from transactions within the scope of Ind AS 17

The application of simplified approach does not require the Group to track changes in credit risk. Rather, itrecognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initialrecognition.

For recognition of impairment loss on other financial assets and risk exposure, the Group determines thatwhether there has been a significant increase in the credit risk since initial recognition. If credit risk has notincreased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk hasincreased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrumentimproves such that there is no longer a significant increase in credit risk since initial recognition, then theentity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected lifeof a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from defaultevents that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Group in accordance with thecontract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at theoriginal EIR. When estimating the cash flows, an entity is required to consider:

• All contractual terms of the financial instrument (including prepayment, extension, call and similaroptions) over the expected life of the financial instrument. However, in rare cases when the expectedlife of the financial instrument cannot be estimated reliably, then the entity is required to use theremaining contractual term of the financial instrument

• Cash flows from the sale of collateral held or other credit enhancements that are integral to thecontractual terms

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As a practical expedient, the Group uses a provision matrix to determine impairment loss allowance onportfolio of its trade receivables. The provision matrix is based on its historically observed default rates overthe expected life of the trade receivables and is adjusted for forward-looking estimates. At every reportingdate, the historical observed default rates are updated and changes in the forward-looking estimates areanalysed. On that basis, the Group estimates the following provision matrix at the reporting date, except tothe individual cases where recoverability is certain:

LLLLLess than or equal to 365 daysess than or equal to 365 daysess than or equal to 365 daysess than or equal to 365 daysess than or equal to 365 days More than 365 daysMore than 365 daysMore than 365 daysMore than 365 daysMore than 365 days

Default rate 0% 100%

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expensein the statement of profit and loss. This amount is reflected under the head ‘other expenses’ in the statementof profit and loss. The balance sheet presentation for financial instruments is described below:

• Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integralpart of the measurement of those assets in the balance sheet. The allowance reduces the net carryingamount. Until the asset meets write-off criteria, the Group does not reduce impairment allowancefrom the gross carrying amount.

For assessing increase in credit risk and impairment loss, the Group combines financial instruments on thebasis of shared credit risk characteristics with the objective of facilitating an analysis that is designed toenable significant increases in credit risk to be identified on a timely basis.

FFFFFinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilities

Initial recognition and measurementInitial recognition and measurementInitial recognition and measurementInitial recognition and measurementInitial recognition and measurementFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit orloss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effectivehedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings andpayables, net of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables, loans and borrowings including bankoverdrafts and financial guarantee contracts.

Subsequent measurementSubsequent measurementSubsequent measurementSubsequent measurementSubsequent measurementThe measurement of financial liabilities depends on their classification, as described below:

LLLLLoans and borrowingsoans and borrowingsoans and borrowingsoans and borrowingsoans and borrowingsThis is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowingsare subsequently measured at amortised cost using the EIR method. Gains and losses are recognised inprofit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees orcosts that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statementof profit and loss. This category generally applies to borrowings.

FFFFFinancial guarantee contractsinancial guarantee contractsinancial guarantee contractsinancial guarantee contractsinancial guarantee contractsFinancial guarantee contracts issued by the Group are those contracts that require a payment to be madeto reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when duein accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially asa liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the


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guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determinedas per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

DerecognitionDerecognitionDerecognitionDerecognitionDerecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled orexpires. When an existing financial liability is replaced by another from the same lender on substantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange or modificationis treated as the derecognition of the original liability and the recognition of a new liability. The differencein the respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assetsReclassification of financial assetsReclassification of financial assetsReclassification of financial assetsReclassification of financial assetsThe Group determines classification of financial assets and liabilities on initial recognition. After initialrecognition, no reclassification is made for financial assets which are equity instruments and financialliabilities. For financial assets which are debt instruments, a reclassification is made only if there is a changein the business model for managing those assets. Changes to the business model are expected to beinfrequent. The Group’s senior management determines change in the business model as a result ofexternal or internal changes which are significant to the Group’s operations. Such changes are evident toexternal parties. A change in the business model occurs when the Group either begins or ceases to performan activity that is significant to its operations. If the Group reclassifies financial assets, it applies thereclassification prospectively from the reclassification date which is the first day of the immediately nextreporting period following the change in business model. The Group does not restate any previouslyrecognised gains, losses (including impairment gains or losses) or interest.

The following table shows various reclassification and how they are accounted for:

OriginalOriginalOriginalOriginalOriginal RevisedRevisedRevisedRevisedRevised AccountingAccountingAccountingAccountingAccountingclassificationclassificationclassificationclassificationclassification classificationclassificationclassificationclassificationclassification treatmenttreatmenttreatmenttreatmenttreatment

Amortised cost FVTPL Fair value is measured at reclassification date. Difference betweenprevious amortized cost and fair value is recognised in P&L

FVTPL Amortised Cost Fair value at reclassification date becomes its new gross carryingamount. EIR is calculated based on the new gross carrying amount

Amortised cost FVTOCI Fair value is measured at reclassification date. Difference betweenprevious amortised cost and fair value is recognised in OCI. Nochange in EIR due to reclassification

FVTOCI Amortised cost Fair value at reclassification date becomes its new amortised costcarrying amount. However, cumulative gain or loss in OCI is adjustedagainst fair value. Consequently, the asset is measured as if it hadalways been measured at amortised cost

FVTPL FVTOCI Fair value at reclassification date becomes its new carrying amount.No other adjustment is required

FVTOCI FVTPL Assets continue to be measured at fair value. Cumulative gain orloss previously recognised in OCI is reclassified to P&L at thereclassification date

Offsetting of financial instrumentsOffsetting of financial instrumentsOffsetting of financial instrumentsOffsetting of financial instrumentsOffsetting of financial instrumentsFinancial assets and financial liabilities are offset and the net amount is reported in the balance sheet ifthere is a currently enforceable legal right to offset the recognised amounts and there is an intention to

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settle on a net basis, to realize the assets and settle the liabilities simultaneously.

l)l)l)l)l) Retirement and other employee benefitsRetirement and other employee benefitsRetirement and other employee benefitsRetirement and other employee benefitsRetirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Group has noobligation, other than the contribution payable to the provident fund. The Group recognizes contributionpayable to the provident fund scheme as an expense, when an employee renders the related service. TheGroup has no obligation other than the contribution payable to the Provided Fund.

The Group operates a defined benefit gratuity plan in India. The cost of providing benefits under thedefined benefit plan is determined using the projected unit credit method.

Re-measurements, comprising of actuarial gains and losses, excluding amounts included in net interest onthe net defined benefit liability are recognized immediately in the balance sheet with a corresponding debitor credit to retained earnings through OCI in the period in which they occur. Re-measurements are notreclassified to profit or loss in subsequent periods.

Other Employee BenefitsOther Employee BenefitsOther Employee BenefitsOther Employee BenefitsOther Employee Benefits

Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed within one year fromthe balance sheet date is recognised on the basis of undiscounted value of estimated amount required tobe paid or estimated value of benefit expected to be availed by the employees. Liability in respect ofcompensated absences becoming due or expected to be availed more than one year after the balancesheet date is estimated on the basis of an actuarial valuation performed by an independent actuary usingthe projected unit credit method. The Group presents the entire leave as a current liability in the balancesheet, since it does not have an unconditional right to defer its settlement for 12 months after the reportingdate.

m)m)m)m)m) PPPPProvisionsrovisionsrovisionsrovisionsrovisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of apast event, it is probable that an outflow of resources embodying economic benefits will be required tosettle the obligation and a reliable estimate can be made of the amount of the obligation. When the Groupexpects some or all of a provision to be reimbursed, for example, under an insurance contract, thereimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. Theexpense relating to a provision is presented in the statement of Profit and Loss net of any reimbursement.

n)n)n)n)n) Earnings per shareEarnings per shareEarnings per shareEarnings per shareEarnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equityshareholders (after deducting attributable taxes) by the weighted average number of equity shares outstandingduring the period. The weighted average number of equity shares outstanding during the period is adjustedfor events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable toequity shareholders and the weighted average number of shares outstanding during the period are adjustedfor the effects of all dilutive potential equity shares.

o)o)o)o)o) LLLLLeaseseaseseaseseaseseases

The determination of whether an arrangement is (or contains) a lease is based on the substance of thearrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the


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arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right touse the asset or assets, even if that right is not explicitly specified in an arrangement.

For arrangements entered into prior to 1 April 2015, the Group has determined whether the arrangementcontain lease on the basis of facts and circumstances existing on the date of transition.

Where the Group is the lesseeWhere the Group is the lesseeWhere the Group is the lesseeWhere the Group is the lesseeWhere the Group is the lesseeA lease is classified at the inception date as a finance lease or an operating lease. A lease that transferssubstantially all the risks and rewards incidental to ownership to the Group is classified as a finance lease.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of theleased property or, if lower, at the present value of the minimum lease payments. Lease payments areapportioned between finance charges and reduction of the lease liability so as to achieve a constant rate ofinterest on the remaining balance of the liability. Finance charges are recognised in finance costs in thestatement of profit and loss. Contingent rentals are recognised as expenses in the periods in which they areincurred. Lease management fees, legal charges and other initial direct costs are capitalized.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certaintythat the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorterof the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term, except in case where lease rentals are structured to increase in line withexpected general inflation to compensate for the lessor’s expected inflationary cost.

Where the Group is the lessorWhere the Group is the lessorWhere the Group is the lessorWhere the Group is the lessorWhere the Group is the lessorLeases in which the Group does not transfer substantially all the risks and rewards of ownership of an assetare classified as operating leases. Rental income from operating lease is recognised on a straight-line basisover the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operatinglease are added to the carrying amount of the leased asset and recognised over the lease term on the samebasis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transferfrom the Group to the lessee. Amounts due from lessees under finance leases are recorded as receivablesat the Group’s net investment in the leases. Finance lease income is allocated to accounting periods so asto reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

p)p)p)p)p) TTTTTaxesaxesaxesaxesaxes

Current income taxCurrent income taxCurrent income taxCurrent income taxCurrent income taxCurrent income tax assets and liabilities are measured at the amount expected to be recovered from orpaid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that areenacted or substantively enacted, at the reporting date in the countries where the Group operates andgenerates taxable income.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss(either in other comprehensive income or in equity). Current tax items are recognised in correlation to theunderlying transaction either in OCI or directly in equity. Management periodically evaluates positionstaken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretationand establishes provisions where appropriate.

Deferred taxDeferred taxDeferred taxDeferred taxDeferred taxDeferred tax is provided using the liability method on temporary differences between the tax bases of assets

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and liabilities and their carrying amounts for financial reporting purposes at the reporting date.Deferred tax liabilities are recognised for all taxable temporary differences, except:

• When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in atransaction that is not a business combination and, at the time of the transaction, affects neither theaccounting profit nor taxable profit or loss

• In respect of taxable temporary differences associated with investments in subsidiaries and interests injoint ventures, when the timing of the reversal of the temporary differences can be controlled and it isprobable that the temporary differences will not reverse in the foreseeable future

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused taxcredits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable thattaxable profit will be available against which the deductible temporary differences, and the carry forward ofunused tax credits and unused tax losses can be utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises from the initialrecognition of an asset or liability in a transaction that is not a business combination and, at the timeof the transaction, affects neither the accounting profit nor taxable profit or loss

• In respect of deductible temporary differences associated with investments in subsidiaries and interestsin joint ventures, deferred tax assets are recognised only to the extent that it is probable that thetemporary differences will reverse in the foreseeable future and taxable profit will be available againstwhich the temporary differences can be utilized

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extentthat it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferredtax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and arerecognised to the extent that it has become probable that future taxable profits will allow the deferred taxasset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year whenthe asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted orsubstantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either inother comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlyingtransaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off currenttax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and thesame taxation authority.

q)q)q)q)q) Non-Non-Non-Non-Non-current assets held for salecurrent assets held for salecurrent assets held for salecurrent assets held for salecurrent assets held for sale

The Group classifies non-current assets and disposal groups as held for sale/ distribution to owners if theircarrying amounts will be recovered principally through a sale/ distribution rather than through continuinguse. Actions required to complete the sale should indicate that it is unlikely that significant changes to thesale will be made or that the decision to sell will be withdrawn. Management must be committed to the saleexpected within one year from the date of classification.

For these purposes, sale transactions include exchanges of non-current assets for other non-current assetswhen the exchange has commercial substance. The criteria for held for sale classification is regarded metonly when the assets or disposal group is available for immediate sale in its present condition, subject only


144

to terms that are usual and customary for sales/ distribution of such assets (or disposal groups), its sale ishighly probable; and it will genuinely be sold, not abandoned. The Group treats sale of the asset highlyprobable when:

o The appropriate level of management is committed to a plan to sell the asset (or disposal group),o An active programme to locate a buyer and complete the plan has been initiated (if applicable),o The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation

to its current fair value,o The sale is expected to qualify for recognition as a completed sale within one year from the date of

classification, ando Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will

be made or that the plan will be withdrawn.

r)r)r)r)r) InventoriesInventoriesInventoriesInventoriesInventories

Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing each productto its present location and condition are accounted for as follows:

Stores and spares inventory comprises cutlery, crockery, linen, other store items food and beverage, liquorand wine items in hand: Cost is determined on first in first out basis. Circulating stock of crockery andcutlery issued for more than two months is charged to the profit and loss account as consumption.

Trading goods: Cost includes cost of purchase and other costs incurred in bringing the inventories to theirpresent location and condition. Cost is determined on a first in first out basis.

Net realizable value is the estimated selling price in the ordinary course of the business, less estimated costsnecessary to make the sale.

Inventory of food and beverage items in hand includes items used for staff cafeteria and is charged toconsumption, net of recoveries, when issued.

s)s)s)s)s) Government grants and subsidiesGovernment grants and subsidiesGovernment grants and subsidiesGovernment grants and subsidiesGovernment grants and subsidies

Government grants are recognised where there is reasonable assurance that the grant will be received andall attached conditions will be complied with. When the grant relates to an expense item, it is recognised asincome on a systematic basis over the periods that the related costs, for which it is intended to compensate,are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over theexpected useful life of the related asset.

When the Group receives grants of non-monetary assets, the asset and the grant are recorded at fair valueamounts and released to profit or loss over the expected useful life in a pattern of consumption of thebenefit of the underlying asset i.e. by equal annual instalments. When loans or similar assistance areprovided by governments or related institutions, with an interest rate below the current applicable marketrate, the effect of this favourable interest is regarded as a government grant. The loan or assistance isinitially recognised and measured at fair value and the government grant is measured as the differencebetween the initial carrying value of the loan and the proceeds received. The loan is subsequently measuredas per the accounting policy applicable to financial liabilities.

t)t)t)t)t) Use of estimatesUse of estimatesUse of estimatesUse of estimatesUse of estimates

The preparation of the consolidated financial statements in conformity with Ind AS requires management tomake estimates, judgments and assumptions. These estimates, judgments and assumptions affect theapplication of accounting policies and the reported amounts of assets and liabilities, the disclosures of

145

contingent assets and liabilities at the date of the consolidated financial statements and reported amountsof revenues and expenses during the period. Application of accounting policies that require critical accountingestimates involving complex and subjective judgments and the use of assumptions in these financial statementshave been disclosed in note 41. Accounting estimates could change from period to period. Actual resultscould differ from those estimates. Appropriate changes in estimates are made as management becomesaware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in thefinancial statements in the period in which changes are made and, if material, their effects are disclosed inthe notes to the financial statements.

u)u)u)u)u) Segment reportingSegment reportingSegment reportingSegment reportingSegment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chiefoperating decision maker.

Identification of segments:Identification of segments:Identification of segments:Identification of segments:Identification of segments:

In accordance with Ind AS 108– Operating Segment, the operating segments used to present segmentinformation are identified on the basis of information reviewed by the Company’s management to allocateresources to the segments and assess their performance. An operating segment is a component of theGroup that engages in business activities from which it earns revenues and incurs expenses, includingrevenues and expenses that relate to transactions with any of the Group’s other components. Results of theoperating segments are reviewed regularly by the management team (chairman and chief financial officer)which has been identified as the chief operating decision maker (CODM), to make decisions about resourcesto be allocated to the segment and assess its performance and for which discrete financial information isavailable.

Allocation of common costs:Allocation of common costs:Allocation of common costs:Allocation of common costs:Allocation of common costs:

Common allocable costs are allocated to each segment accordingly to the relative contribution of eachsegment to the total common costs.

Unallocated items:Unallocated items:Unallocated items:Unallocated items:Unallocated items:

Unallocated items include general corporate income and expense items which are not allocated to anybusiness segment.

Segment accounting policiesSegment accounting policiesSegment accounting policiesSegment accounting policiesSegment accounting policies

The Group prepares its segment information in conformity with the accounting policies adopted for preparingand presenting the financial statements of the Group as a whole

v)v)v)v)v) Cash and cash equivalentsCash and cash equivalentsCash and cash equivalentsCash and cash equivalentsCash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-termdeposits with an original maturity of three months or less, which are subject to an insignificant risk ofchanges in value.

w)w)w)w)w) Cash dividend distribution to equity holdersCash dividend distribution to equity holdersCash dividend distribution to equity holdersCash dividend distribution to equity holdersCash dividend distribution to equity holders

The Group recognises a liability to make cash distributions to equity holders when the distribution is authorisedand the distribution is no longer at the discretion of the Group. As per the corporate laws in India, adistribution is authorised when it is approved by the shareholders. A corresponding amount is recogniseddirectly in equity.


146

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esTTTT T o

tal

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otal

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land

land

land

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build

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build

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build

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build

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build

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build

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build

ing

build

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and

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and

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and

fixtu

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and

fixtu

res

and

fixtu

res

For t

he ye

ar e

nded

31

March

201

6Fo

r the

year

end

ed 3

1 Ma

rch 2

016

For t

he ye

ar e

nded

31

March

201

6Fo

r the

year

end

ed 3

1 Ma

rch 2

016

For t

he ye

ar e

nded

31

March

201

6Gr

oss c

arry

ing

amou

ntGr

oss c

arry

ing

amou

ntGr

oss c

arry

ing

amou

ntGr

oss c

arry

ing

amou

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oss c

arry

ing

amou

ntDe

emed

cost

as at

1 Ap

ril 20

15

46,

680.

4139

,206

.34

40,0

66.9

322

,624

.57

342.

602,

860.

9337

8.73

4,89

6.44

555.

7615

7,612

.71

Addi

tions

/adj

ustm

ents

—

809.

5928

8.59

1,16

0.06

66.3

133

2.65

92.1

0—

97.0

22,

846.

32Ex

chan

ge D

iffer

ence

s

—79

.24

473.

02—

——

——

—55

2.26

Disp

osal

s

(4,4

27.9

7)—

—(7

3.64

)(1

3.26

)(0

.94)

(0.3

6)—

(16.

74)

(4,5

32.9

1)

At 3

1 Ma

rch 2

016

At 3

1 Ma

rch 2

016

At 3

1 Ma

rch 2

016

At 3

1 Ma

rch 2

016

At 3

1 Ma

rch 2

016

4

2,25

2.44

4

2,25

2.44

4

2,25

2.44

4

2,25

2.44

4

2,25

2.44

40,0

95.1

740

,095

.17

40,0

95.1

740

,095

.17

40,0

95.1

740

,828

.54

40,8

28.5

440

,828

.54

40,8

28.5

440

,828

.54

23,7

10.9

923

,710

.99

23,7

10.9

923

,710

.99

23,7

10.9

939

5.65

395.

6539

5.65

395.

6539

5.65

3,19

2.64

3,19

2.64

3,19

2.64

3,19

2.64

3,19

2.64

470.

4747

0.47

470.

4747

0.47

470.

474,

896.

444,

896.

444,

896.

444,

896.

444,

896.

4463

6.04

636.

0463

6.04

636.

0463

6.04

156,

478.

3815

6,47

8.38

156,

478.

3815

6,47

8.38

156,

478.

38

Accu

mul

ated

dep

recia

tion

Accu

mul

ated

dep

recia

tion

Accu

mul

ated

dep

recia

tion

Accu

mul

ated

dep

recia

tion

Accu

mul

ated

dep

recia

tion

Depr

ecia

tion

char

ge fo

r the

year

(Ref

er n

ote 3

6)—

694.

5675

2.66

3,86

7.71

114.

1573

7.89

194.

6431

6.96

104.

416,

782.

96

At 3

1 Ma

rch 2

016

At 3

1 Ma

rch 2

016

At 3

1 Ma

rch 2

016

At 3

1 Ma

rch 2

016

At 3

1 Ma

rch 2

016

—

—

—

—

—69

4.56

694.

5669

4.56

694.

5669

4.56

752.

6675

2.66

752.

6675

2.66

752.

663,

867.

713,

867.

713,

867.

713,

867.

713,

867.

7111

4.15

114.

1511

4.15

114.

1511

4.15

737.

8973

7.89

737.

8973

7.89

737.

8919

4.64

194.

6419

4.64

194.

6419

4.64

316.

9631

6.96

316.

9631

6.96

316.

9610

4.41

104.

4110

4.41

104.

4110

4.41

6,78

2.96

6,78

2.96

6,78

2.96

6,78

2.96

6,78

2.96

Net b

ook

valu

e at

31

March

201

6Ne

t boo

k va

lue

at 3

1 Ma

rch 2

016

Net b

ook

valu

e at

31

March

201

6Ne

t boo

k va

lue

at 3

1 Ma

rch 2

016

Net b

ook

valu

e at

31

March

201

642

,252

.44

42,2

52.4

442

,252

.44

42,2

52.4

442

,252

.44

39,4

00.6

139

,400

.61

39,4

00.6

139

,400

.61

39,4

00.6

140

,075

.88

40,0

75.8

840

,075

.88

40,0

75.8

840

,075

.88

19,8

43.2

819

,843

.28

19,8

43.2

819

,843

.28

19,8

43.2

828

1.50

281.

5028

1.50

281.

5028

1.50

2,45

4.75

2,45

4.75

2,45

4.75

2,45

4.75

2,45

4.75

275.

8327

5.83

275.

8327

5.83

275.

834,

579.

484,

579.

484,

579.

484,

579.

484,

579.

4853

1.63

531.

6353

1.63

531.

6353

1.63

149,

695.

4214

9,69

5.42

149,

695.

4214

9,69

5.42

149,

695.

42

For t

he ye

ar e

nded

31

March

201

7Fo

r the

year

end

ed 3

1 Ma

rch 2

017

For t

he ye

ar e

nded

31

March

201

7Fo

r the

year

end

ed 3

1 Ma

rch 2

017

For t

he ye

ar e

nded

31

March

201

7Gr

oss c

arry

ing

amou

ntGr

oss c

arry

ing

amou

ntGr

oss c

arry

ing

amou

ntGr

oss c

arry

ing

amou

ntGr

oss c

arry

ing

amou

ntAt

31

March

201

6At

31

March

201

6At

31

March

201

6At

31

March

201

6At

31

March

201

642

,252

.44

40,0

95.1

740

,828

.54

23,7

10.9

939

5.65

3,19

2.64

470.

474,

896.

4463

6.04

156,

478.

38 A

dditi

ons/a

djus

tmen

ts (R

efer

note

f be

low)

—6,

903.

6324

4.30

3,88

9.14

57.7

850

0.19

329.

1448

.45

43.1

812

,015

.81

Exch

ange

Diff

eren

ces

—(2

3.07)

(131

.05)

——

——

——

(154

.12)

Disp

osal

s

—(7

5.72

)—

(36.

02)

(0.4

4)(1

8.96

)(0

.91)

—(2

.07)

(134

.12)

At 3

1 Ma

rch 2

017

At 3

1 Ma

rch 2

017

At 3

1 Ma

rch 2

017

At 3

1 Ma

rch 2

017

At 3

1 Ma

rch 2

017

4

2,25

2.44

4

2,25

2.44

4

2,25

2.44

4

2,25

2.44

4

2,25

2.44

46,9

00.0

146

,900

.01

46,9

00.0

146

,900

.01

46,9

00.0

140

,941

.79

40,9

41.7

940

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40,9

41.7

940

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27,5

64.1

127

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27,5

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127

,564

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27,5

64.1

145

2.99

452.

9945

2.99

452.

9945

2.99

3,67

3.88

3,67

3.88

3,67

3.88

3,67

3.88

3,67

3.88

798.

6979

8.69

798.

6979

8.69

798.

694,

944.

894,

944.

894,

944.

894,

944.

894,

944.

8967

7.15

677.

1567

7.15

677.

1567

7.15

168,

205.

9516

8,20

5.95

168,

205.

9516

8,20

5.95

168,

205.

95

Accu

mul

ated

dep

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Accu

mul

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dep

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mul

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dep

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mul

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dep

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Accu

mul

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dep

recia

tion

At 3

1 Ma

rch 2

016

—

694.

5675

2.66

3,86

7.71

114.

1573

7.89

194.

6431

6.96

104.

416,

782.

96 D

epre

ciatio

n ch

arge

for t

he ye

ar (R

efer

not

e 36)

—

695.

3978

1.59

3,67

1.63

86.4

661

2.15

164.

5931

9.10

86.5

46,

417.

43

At 3

1 Ma

rch 2

017

At 3

1 Ma

rch 2

017

At 3

1 Ma

rch 2

017

At 3

1 Ma

rch 2

017

At 3

1 Ma

rch 2

017

—

—

—

—

—

1,38

9.95

1,38

9.95

1,38

9.95

1,38

9.95

1,38

9.95

1,53

4.25

1,53

4.25

1,53

4.25

1,53

4.25

1,53

4.25

7,53

9.34

7,53

9.34

7,53

9.34

7,53

9.34

7,53

9.34

200.

6020

0.60

200.

6020

0.60

200.

601,

349.

031,

349.

031,

349.

031,

349.

031,

349.

0335

9.23

359.

2335

9.23

359.

2335

9.23

636.

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6.06

636.

0663

6.06

636.

0619

0.94

190.

9419

0.94

190.

9419

0.94

13,1

99.3

913

,199

.39

13,1

99.3

913

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.39

13,1

99.3

9

Net b

ook

valu

e at

31

March

201

7Ne

t boo

k va

lue

at 3

1 Ma

rch 2

017

Net b

ook

valu

e at

31

March

201

7Ne

t boo

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at 3

1 Ma

rch 2

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Net b

ook

valu

e at

31

March

201

7

42,

252.

44

42,

252.

44

42,

252.

44

42,

252.

44

42,

252.

4445

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45,5

10.0

645

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45,5

10.0

645

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39,4

07.5

439

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39,4

07.5

439

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39,4

07.5

420

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20,0

24.7

720

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20,0

24.7

720

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252.

3825

2.38

252.

3825

2.38

252.

382,

324.

852,

324.

852,

324.

852,

324.

852,

324.

8543

9.46

439.

4643

9.46

439.

4643

9.46

4,30

8.83

4,30

8.83

4,30

8.83

4,30

8.83

4,30

8.83

486.

2148

6.21

486.

2148

6.21

486.

2115

5,00

6.56

155,

006.

5615

5,00

6.56

155,

006.

5615

5,00

6.56

a.a.a.a. a.Ca

pita

lised

bor

rowi

ng co

stsCa

pita

lised

bor

rowi

ng co

stsCa

pita

lised

bor

rowi

ng co

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pita

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bor

rowi

ng co

stsCa

pita

lised

bor

rowi

ng co

stsTh

e bor

rowi

ng co

st ca

pita

lized

durin

g the

year

ende

d 31 M

arch

2017

was

Rs.

1,70

9.10

lacs

(net

of in

tere

st ea

rned

Rs.

5.34

lacs)

(31 M

arch

2016

: Rs.

2,14

2.19

lacs

(net

of in

tere

st ea

rned

Rs.

9.79

lacs)

, 01 A

pril

2015

: Rs.

2,91

8.55

lacs

(net

of in

tere

stea

rned

Rs.

56.6

9 lac

s). Th

e Gro

up ca

pita

lized

this

borro

wing

cost

to th

e cap

ital w

ork-

in-p

rogr

ess (

CWIP

). (R

efer

not

e 48)

.

b.b.b.b. b.As

sets

unde

r con

struc

tion

Asse

ts un

der c

onstr

uctio

nAs

sets

unde

r con

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ts un

der c

onstr

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nAs

sets

unde

r con

struc

tion

Capi

tal w

ork i

n pro

gres

s as a

t 31 M

arch

2017

com

prise

s exp

endi

ture

for t

he ho

tels

and e

duca

tiona

l ins

titut

ion i

n the

cour

se of

cons

tructi

on. T

otal

amou

nt of

CWIP

is R

s. 24

,979

.20 l

acs (

31 M

arch

2016

: Rs.

29,6

90.2

8 lac

s, 01

Apr

il 20

15: R

s. 25

,046

.87

lacs)

.

c.c.c.c. c.Bu

ildin

g in

clude

thos

e co

nstru

cted

on le

aseh

old

land

:Bu

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on le

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thos

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on le

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land

:

PPPP P arti

cula

rsar

ticul

ars

artic

ular

sar

ticul

ars

artic

ular

s31

Mar

ch, 2

017

31 M

arch

, 201

731

Mar

ch, 2

017

31 M

arch

, 201

731

Mar

ch, 2

017

31 M

arch

, 201

631

Mar

ch, 2

016

31 M

arch

, 201

631

Mar

ch, 2

016

31 M

arch

, 201

601

Apr

il, 2

015

01 A

pril,

201

501

Apr

il, 2

015

01 A

pril,

201

501

Apr

il, 2

015

Gros

s blo

ck/D

eem

ed co

st

3

9,31

4.28

40,

066.

93Ac

cum

ulat

ed de

prec

iatio

n

1,53

4.25

7

52.6

6De

prec

iatio

n fo

r the

year

781.

59

752

.66

Net b

ook v

alue

37,

780.

03

3

9,31

4.28

4

0,06

6.93

d.d.d.d. d.Bu

ildin

g in

clude

thos

e gi

ven

on o

pera

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lease

:Bu

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g in

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thos

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ven

on o

pera

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lease

:Bu

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g in

clude

thos

e gi

ven

on o

pera

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lease

:Bu

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thos

e gi

ven

on o

pera

ting

lease

:Bu

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g in

clude

thos

e gi

ven

on o

pera

ting

lease

:

PPPP P arti

cula

rsar

ticul

ars

artic

ular

sar

ticul

ars

artic

ular

s31

Mar

ch, 2

017

31 M

arch

, 201

731

Mar

ch, 2

017

31 M

arch

, 201

731

Mar

ch, 2

017

31 M

arch

, 201

631

Mar

ch, 2

016

31 M

arch

, 201

631

Mar

ch, 2

016

31 M

arch

, 201

601

Apr

il, 2

015

01 A

pril,

201

501

Apr

il, 2

015

01 A

pril,

201

501

Apr

il, 2

015

Gros

s blo

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5.59

2,2

30.2

3Ac

cum

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prec

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8

9.04

44.6

4De

prec

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n fo

r the

year

44.

40

44

.64

Net b

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alue

2,

096.

55

2

,185

.59

2

,230

.23

e.e.e.e. e.De

prec

iatio

n cha

rge f

or th

e yea

r inc

lude

s Rs.

25.9

9 lac

s(pre

vious

year

Rs.

26.3

1 lac

s) tra

nsfe

rred t

o Pre

oper

ative

expe

nditu

re pe

ndin

g allo

catio

n und

er no

te 48

.

ffff f .... .Ad

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clude

s inv

estm

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in pr

ojec

ts un

der d

evelo

pem

ent/d

evelo

ped d

urin

g the

year

Rs.

2,95

6.89

lacs

(31 M

arch

, 201

6: R

s. 1,

472.

79 la

cs)


148

Note 3 : INTNote 3 : INTNote 3 : INTNote 3 : INTNote 3 : INTANGIBLE ASSETSANGIBLE ASSETSANGIBLE ASSETSANGIBLE ASSETSANGIBLE ASSETS (All amounts in Rs. in lacs) (All amounts in Rs. in lacs) (All amounts in Rs. in lacs) (All amounts in Rs. in lacs) (All amounts in Rs. in lacs)

P P P P Particularsarticularsarticularsarticularsarticulars SOFTW SOFTW SOFTW SOFTW SOFTWAREAREAREAREARE GOOD GOOD GOOD GOOD GOODWILLWILLWILLWILLWILL(refer note 61)(refer note 61)(refer note 61)(refer note 61)(refer note 61)

FFFFFor the year ended 31 March 2016or the year ended 31 March 2016or the year ended 31 March 2016or the year ended 31 March 2016or the year ended 31 March 2016Gross carrying amountGross carrying amountGross carrying amountGross carrying amountGross carrying amountDeemed cost as at 1 April 2015 219.76 8,425.48Additions 53.86 —Disposals (0.81) —

As at 31 March 2016 As at 31 March 2016 As at 31 March 2016 As at 31 March 2016 As at 31 March 2016 272.81272.81272.81272.81272.81 8,425.488,425.488,425.488,425.488,425.48

Accumulated amortisationAccumulated amortisationAccumulated amortisationAccumulated amortisationAccumulated amortisation — —Amortisation for the year (Refer note 36) 119.88 —Disposals (0.77) —

As at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016 119.11119.11119.11119.11119.11 —————

Net book value as at 31 March 2016Net book value as at 31 March 2016Net book value as at 31 March 2016Net book value as at 31 March 2016Net book value as at 31 March 2016 153.70153.70153.70153.70153.70 8,425.488,425.488,425.488,425.488,425.48

Gross carrying amountGross carrying amountGross carrying amountGross carrying amountGross carrying amountAs at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016 272.81 8,425.48Additions 32.49 —Disposals (0.99) —

As at 31 March 2017As at 31 March 2017As at 31 March 2017As at 31 March 2017As at 31 March 2017 304.31304.31304.31304.31304.31 8,425.488,425.488,425.488,425.488,425.48

Accumulated amortisationAccumulated amortisationAccumulated amortisationAccumulated amortisationAccumulated amortisationAs at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016As at 31 March 2016 119.11 —Amortisation for the year (Refer note 36) 102.39 — Disposals (0.94) —

As at 31 March 2017As at 31 March 2017As at 31 March 2017As at 31 March 2017As at 31 March 2017 220.56220.56220.56220.56220.56 —————Net book value as at 31 March 2017Net book value as at 31 March 2017Net book value as at 31 March 2017Net book value as at 31 March 2017Net book value as at 31 March 2017 83.7583.7583.7583.7583.75 8,425.488,425.488,425.488,425.488,425.48

Note 4 : INVESTMENTSNote 4 : INVESTMENTSNote 4 : INVESTMENTSNote 4 : INVESTMENTSNote 4 : INVESTMENTS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

36,000 (31 March 2016: 36,000, 01 April 2015:36,000) equity shares of Rs. 10 each fully paid upin Green Infra Wind Power Generation Limited 3.60 3.60 3.60

T T T T Totalotalotalotalotal 3.603.603.603.603.60 3.603.603.603.603.60 3.603.603.603.603.60

Aggregate value of unquoted investments Aggregate value of unquoted investments Aggregate value of unquoted investments Aggregate value of unquoted investments Aggregate value of unquoted investments 3.603.603.603.603.60 3.603.603.603.603.60 3.603.603.603.603.60

149

Note 5 : LNote 5 : LNote 5 : LNote 5 : LNote 5 : LOOOOOANSANSANSANSANS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

(Unsecured, considered good unless otherwise stated)LLLLLoans to Related Poans to Related Poans to Related Poans to Related Poans to Related PartiesartiesartiesartiesartiesJoint venture companies of subsidiariesJoint venture companies of subsidiariesJoint venture companies of subsidiariesJoint venture companies of subsidiariesJoint venture companies of subsidiaries—Loans to Joint Venture of subsidiaries(Refer note 46 & 51) 25,356.33 21,722.47 20,141.39

—Considered Doubtful 678.03 678.03 140.76

26,034.3626,034.3626,034.3626,034.3626,034.36 22,400.5022,400.5022,400.5022,400.5022,400.50 20,282.1520,282.1520,282.1520,282.1520,282.15


TTTTTotalotalotalotalotal 25,356.3325,356.3325,356.3325,356.3325,356.33 21,722.4721,722.4721,722.4721,722.4721,722.47 20,141.3920,141.3920,141.3920,141.3920,141.39

Security depositsSecurity depositsSecurity depositsSecurity depositsSecurity deposits 503.80 582.45 552.16

25,860.1325,860.1325,860.1325,860.1325,860.13 22,304.9222,304.9222,304.9222,304.9222,304.92 20,693.5520,693.5520,693.5520,693.5520,693.55

Note 6 : ONote 6 : ONote 6 : ONote 6 : ONote 6 : OTHER NON CURRENTTHER NON CURRENTTHER NON CURRENTTHER NON CURRENTTHER NON CURRENT 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015FINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETSFINANCIAL ASSETS (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

(Unsecured, considered good unless otherwise stated)Balances with Banks:Balances with Banks:Balances with Banks:Balances with Banks:Balances with Banks:- Deposits with original maturity of more than 12 months 156.38 556.38 609.35- Margin money deposited (held as security) 707.38 254.39 297.63Interest accrued on deposits with banks 108.09 198.65 212.50Finance Lease Receivable 954.50 954.69 954.87

1,926.35 1,926.35 1,926.35 1,926.35 1,926.35 1,964.111,964.111,964.111,964.111,964.11 2,074.352,074.352,074.352,074.352,074.35

Margin money deposits with a carrying amount of Rs. 45.37 lacs (31 March 2016: Rs. 44.75 lacs; 1 April2015: Rs. 99.81 lacs) held as bank guarantee, Rs. 457.09 lacs (31 March 2016: Rs. Nil, 1 April 2015: RsNil) held by Yes bank against term loan and Rs. 204.92 lacs (31 March 2016: Rs. 209.64 lacs; 1 April 2015:Rs. 197.82 lacs) held by ICICI Bank Ltd against external commercial borrowings.


150

Note 7 : ONote 7 : ONote 7 : ONote 7 : ONote 7 : OTHER NON CURRENT ASSETSTHER NON CURRENT ASSETSTHER NON CURRENT ASSETSTHER NON CURRENT ASSETSTHER NON CURRENT ASSETS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

(Unsecured, considered good unless otherwise stated)Capital advances 2,004.60 1,989.54 2,028.53

Income tax paid under protest — — 107.39

Prepaid expenses 5.29 1.88 2.81

Prepaid rent (including prepayments of leasehold land) 4,038.35 4,188.92 4,346.48

Advance income tax (net of provision amounting toRs. 2,667.83 lacs (31 March 2016: Rs. 1,363.65 lacs,01 April 2015: Rs. 344.02 lacs) 3,770.16 3,811.43 3,654.32

9,818.40 9,818.40 9,818.40 9,818.40 9,818.40 9,991.779,991.779,991.779,991.779,991.77 10,139.5310,139.5310,139.5310,139.5310,139.53

Note 8 : INVENTNote 8 : INVENTNote 8 : INVENTNote 8 : INVENTNote 8 : INVENTORIESORIESORIESORIESORIES 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Traded goods 124.30 100.65 99.62

Food and Beverage (excluding liquor and wine) 286.30 309.85 288.46

Liquor and wine 608.56 732.25 634.64

Stores, cutlery, crockery, linen, provisions and others 816.39 745.22 633.49(including stock in transit Rs. Nil, 31 March 2016:Rs. Nil, 1 April 2015: Rs. 18.31 lacs)

1,835.551,835.551,835.551,835.551,835.55 1,887.971,887.971,887.971,887.971,887.97 1,656.211,656.211,656.211,656.211,656.21

Note 9 : TRADE RECEIVNote 9 : TRADE RECEIVNote 9 : TRADE RECEIVNote 9 : TRADE RECEIVNote 9 : TRADE RECEIVABLESABLESABLESABLESABLES 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Secured, considered good 61.73 36.85 32.42

Unsecured, considered good 4,615.49 4,127.15 4,078.10

Unsecured, considered doubtful 873.60 664.37 198.64

5,550.825,550.825,550.825,550.825,550.82 4,828.374,828.374,828.374,828.374,828.37 4,309.164,309.164,309.164,309.164,309.16

Less : Provision for doubtful debts (873.60) (664.37) (198.64)

4,677.224,677.224,677.224,677.224,677.22 4,164.004,164.004,164.004,164.004,164.00 4,110.524,110.524,110.524,110.524,110.52

Trade receivables are non-interest bearing and are generally on terms of 0 to 60 days (Refer note 45).

Trade receivable includes dues from directors or other officers of the Company or from private companiesand firms in which Company’s any director is a partner or director (Refer note 46).

151

Note 10 : CASH AND CASH EQUIVNote 10 : CASH AND CASH EQUIVNote 10 : CASH AND CASH EQUIVNote 10 : CASH AND CASH EQUIVNote 10 : CASH AND CASH EQUIVALENTSALENTSALENTSALENTSALENTS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Balances with banks:-On current accounts 6,516.67 635.56 3,226.26On EEFC Accounts 69.67 22.76 65.30Deposits with original maturity of less than three months 11.25 1,146.14 3,213.95Cheques/drafts on hand 100.87 66.58 60.24Cash on hand 63.93 80.60 67.53

6,762.39 6,762.39 6,762.39 6,762.39 6,762.39 1,951.641,951.641,951.641,951.641,951.64 6,633.286,633.286,633.286,633.286,633.28

(i) Available undrawn committed borrowings facilities 8,313.37 4,701.46 35,195.37

(ii) The Company has pledged a part of its short-term deposits to fulfill collateral requirements. Refer Note 23 fordetails.

Note 11 : ONote 11 : ONote 11 : ONote 11 : ONote 11 : OTHER BANK BALANCESTHER BANK BALANCESTHER BANK BALANCESTHER BANK BALANCESTHER BANK BALANCES 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Balances with banks:-Balances with banks:-Balances with banks:-Balances with banks:-Balances with banks:-Margin money deposited (held as security) 627.15 41.05 251.54Deposits with original maturity of more than three monthsbut less than twelve months 406.52 482.55 258.34Unpaid dividend account 22.92 24.54 26.62

1,056.591,056.591,056.591,056.591,056.59 548.14548.14548.14548.14548.14 536.50536.50536.50536.50536.50

Note 12 : LNote 12 : LNote 12 : LNote 12 : LNote 12 : LOOOOOANSANSANSANSANS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

(Unsecured, considered good unless otherwise stated)Security deposits 112.86 110.05 144.48

112.86 112.86 112.86 112.86 112.86 110.05110.05110.05110.05110.05 144.48144.48144.48144.48144.48

Note 13 : ONote 13 : ONote 13 : ONote 13 : ONote 13 : OTHER CURRENT FINANCIAL ASSETSTHER CURRENT FINANCIAL ASSETSTHER CURRENT FINANCIAL ASSETSTHER CURRENT FINANCIAL ASSETSTHER CURRENT FINANCIAL ASSETS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

(Unsecured, considered good unless otherwise stated)Recoverable from related partiesRecoverable from related partiesRecoverable from related partiesRecoverable from related partiesRecoverable from related partiesJoint venture companies (Refer note 46 and 51) 10,715.45 7,691.23 5,215.90

10,715.45 10,715.45 10,715.45 10,715.45 10,715.45 7,691.237,691.237,691.237,691.237,691.23 5,215.905,215.905,215.905,215.905,215.90

Interest accrued on deposits with banks 28.33 90.21 24.41

Subsidy receivable 93.89 133.16 125.85

Other advance recoverable 101.11 101.31 101.88

Finance Lease Receivable 0.19 0.18 0.16

10,938.97 10,938.97 10,938.97 10,938.97 10,938.97 8,016.098,016.098,016.098,016.098,016.09 5,468.205,468.205,468.205,468.205,468.20


152

Note 14 : ONote 14 : ONote 14 : ONote 14 : ONote 14 : OTHER CURRENT ASSETSTHER CURRENT ASSETSTHER CURRENT ASSETSTHER CURRENT ASSETSTHER CURRENT ASSETS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

(Unsecured, considered good unless otherwise stated)Unbilled revenue 321.85 426.37 225.62

Prepaid expenses 778.97 793.39 755.92

Balances with stautory authorities 839.77 783.51 858.64

Prepaid rent (including prepayments of leasehold land) 214.02 206.68 185.39Advances recoverable in cash or in kind- considered good 444.87 629.73 570.23

- considered doubtful 170.77 4.06 4.06

615.64 615.64 615.64 615.64 615.64 633.79633.79633.79633.79633.79 574.29574.29574.29574.29574.29


444.87 444.87 444.87 444.87 444.87 629.73629.73629.73629.73629.73 570.23570.23570.23570.23570.23

2,599.48 2,599.48 2,599.48 2,599.48 2,599.48 2,839.682,839.682,839.682,839.682,839.68 2,595.802,595.802,595.802,595.802,595.80

Note 15 : ASSETS CLASSIFIED AS HELD FOR SALENote 15 : ASSETS CLASSIFIED AS HELD FOR SALENote 15 : ASSETS CLASSIFIED AS HELD FOR SALENote 15 : ASSETS CLASSIFIED AS HELD FOR SALENote 15 : ASSETS CLASSIFIED AS HELD FOR SALE 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Land (Refer note 58) 1,618.77 1,618.77 —

Plant and machinery 20.00 30.00 30.00

1,638.771,638.771,638.771,638.771,638.77 1,648.771,648.771,648.771,648.771,648.77 30.0030.0030.0030.0030.00

153

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154

Note 17 : ONote 17 : ONote 17 : ONote 17 : ONote 17 : OTHER EQUITYTHER EQUITYTHER EQUITYTHER EQUITYTHER EQUITY 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Securities PSecurities PSecurities PSecurities PSecurities Premium Accountremium Accountremium Accountremium Accountremium AccountAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April 29,034.73 29,034.73Change during the year — —As at 31 MarchAs at 31 MarchAs at 31 MarchAs at 31 MarchAs at 31 March 29,034.7329,034.7329,034.7329,034.7329,034.73 29,034.7329,034.7329,034.7329,034.7329,034.73

Retained EarningsRetained EarningsRetained EarningsRetained EarningsRetained EarningsAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April 39,369.66 43,862.08Add: Loss for the year (1,634.16) (4,080.61)Add: Other Comprehensive income for the year (4.37) 45.50Less: Cash dividend (569.93) (379.96)Less: Tax on distribution of equity dividend (116.03) (77.35)

As at 31 MarchAs at 31 MarchAs at 31 MarchAs at 31 MarchAs at 31 March 37,045.17 37,045.17 37,045.17 37,045.17 37,045.17 39,369.6639,369.6639,369.6639,369.6639,369.66

General ReserveGeneral ReserveGeneral ReserveGeneral ReserveGeneral ReserveAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April 8,503.61 8,103.61Add: Amount transferred from Debenture Redemptionreserve on account of redemption of debentures — 400.00


Capital ReserveCapital ReserveCapital ReserveCapital ReserveCapital ReserveAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April 11,285.05 11,285.05Change during the year — —

As at 31 MarchAs at 31 MarchAs at 31 MarchAs at 31 MarchAs at 31 March 11,285.05 11,285.05 11,285.05 11,285.05 11,285.05 11,285.0511,285.0511,285.0511,285.0511,285.05

Debenture Redemption ReserveDebenture Redemption ReserveDebenture Redemption ReserveDebenture Redemption ReserveDebenture Redemption ReserveAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April — 400.00Add: Amount transferred to general reserve onaccount of redemption of debentures — (400.00)

Other ReservesOther ReservesOther ReservesOther ReservesOther ReservesFFFFForeign Currency Toreign Currency Toreign Currency Toreign Currency Toreign Currency Translation Reserveranslation Reserveranslation Reserveranslation Reserveranslation ReserveAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 AprilAs at 1 April (40.34) (40.34)Add: Current Year Transfer — — As at 31 March As at 31 March As at 31 March As at 31 March As at 31 March (40.34) (40.34)

85,828.2285,828.2285,828.2285,828.2285,828.22 88,152.7188,152.7188,152.7188,152.7188,152.71

155

Note 18 : BORROWINGSNote 18 : BORROWINGSNote 18 : BORROWINGSNote 18 : BORROWINGSNote 18 : BORROWINGS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015Non current borrowings (Refer note 26 below)Non current borrowings (Refer note 26 below)Non current borrowings (Refer note 26 below)Non current borrowings (Refer note 26 below)Non current borrowings (Refer note 26 below) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

TTTTTerm loanserm loanserm loanserm loanserm loansSecuredSecuredSecuredSecuredSecuredRupee loans from banks(Refer note 1 to 18 below) 100,358.96 85,021.15 69,222.74

Rupee loans from financial institutions(Refer note 19 & 20 below) 416.73 604.48 20,675.31

Foreign currency loan from a bank(Refer note 21 & 22 below) 9,791.32 11,510.23 11,911.02

UnsecuredUnsecuredUnsecuredUnsecuredUnsecuredRupee loan from a bank(Refer note 23 below) — — 2,147.45

Loan from related party 1,000.00 1,210.00 —

Debentures(Refer note 25 below) — — 1,600.00

111,567.01111,567.01111,567.01111,567.01111,567.01 98,345.8698,345.8698,345.8698,345.8698,345.86 105,556.52105,556.52105,556.52105,556.52105,556.52Less: Current maturities(Refer note 25) 4,834.66 4,536.53 15,779.95

106,732.35106,732.35106,732.35106,732.35106,732.35 93,809.3393,809.3393,809.3393,809.3393,809.33 89,776.5789,776.5789,776.5789,776.5789,776.57

Notes:Notes:Notes:Notes:Notes:1 Term Loan from Yes Bank aggregating to Rs. 53,715.73 lacs (31 March 2016: Rs. 54,202.23 lacs, 01 April

2015: Rs. 24,373.25 lacs) carries interest @ 11.75% per annum. The loan is repayable in 44 structuredquarterly installments starting from February 2016 after a moratorium of 1 year from the date of firstdisbursement. The loan is secured by first pari-passu charge on land and building of Mumbai and Ahmedabadhotels and first pari-passu charge on movable fixed assets of Mumbai, Goa, Ahmedabad, Bangalore, Delhiand Udaipur hotels owned by the Company.

2 Term Loan from Axis Bank aggregating to Rs. 13,908.07 lacs (31 March 2016: Rs 12,326.02 lacs; 1 April2015: Rs. 12,164.81 lacs) carries interest @ 11.75% per annum. The loan is repayable in 44 structuredquarterly installments starting from November 2015 after a moratorium of 1 year from the date of firstdisbursement. The loan is secured by first pari-passu charge by way of hypothecation of movable fixedassets of Mumbai, Goa, Ahmedabad, Bangalore, Delhi and Udaipur hotels owned by Company (bothpresent and future) and first pari-passu charge by way of mortgage over immovable fixed assets of Mumbaiand Ahmedabad hotels.

3 Term Loan from Tamilnadu Mercantile Bank (TMB) aggregating to Rs. 2,435.02 lacs (31 March 2016: Rs.2,474.48 lacs, 1 April 2015: Rs. Nil), (sanctioned amount Rs. 2,500.00 lacs) carries interest @ 12.00 % perannum. The loan is repayable in 44 structured quarterly installments starting from February 2016 after amoratorium of 1 year from the date of first disbursement. The loan is secured by first pari-passu charge onland and building of Mumbai and Ahmedabad hotels and first pari-passu charge on movable fixed assetsof Mumbai, Goa, Ahmedabad, Bangalore, Delhi and Udaipur hotels owned by the Company.

4 Term Loan from ICICI Bank aggregating to Rs. 2,237.07 lacs (31 March 2016: Rs. 1,079.50, 1 April 2015:Rs. Nil), (sanctioned amount Rs. 3600.00 lacs) carries interest @ 13.35% per annum. The loan is repayablein 40 quarterly installments after a moratorium of 8 quarters from the date of first disbursement. The loanis secured by first pari-passu charge on Jaipur and Khajuraho property and routing of cash flows of Jaipur,Srinagar and Khajuraho property through the designated accounts.


156

5 Term Loan from The Jammu & Kashmir Bank aggregating to Rs. 9,965.62 lacs (March 2016: Rs. Nil, 1 April2015: Rs. Nil) carries interest @ 10.70% per annum. The loan is repayable in 32 structured quarterlyinstallments starting from June 2019 after a moratorium of 2 years from the date of first disbursement. Theloan is secured by way of equitable mortgage on exclusively first charge over land and building of Srinagarhotel of the Company.

6 Term Loan from Yes Bank aggregating to Rs. 5,523.90 lacs (31 March 2016: Rs. Nil, 1 April 2015: Rs. Nil)carries interest @ 11.70% per annum. The loan is repayable in 52 structured quarterly installments startingfrom February 2017. The loan is secured by extension of first pari-passu charge on land and building ofMumbai and Ahmedabad hotels and extension of first pari-passu charge on movable fixed assets of Mumbai,Goa, Ahmedabad, Bangalore, Delhi and Udaipur hotels owned by the Company.

7 Term Loan from Axis Bank aggregating to Rs. 3,805.30 lacs (31 March 2016: Rs. Nil, 1 April 2015: Rs. Nil)carries interest @ 11.95% per annum. The loan is repayable in 42 structured quarterly installments startingfrom October 2017 after a moratorium of 1 year from the date of first disbursement. The loan is securedby extension of first pari-passu charge by way of hypothecation of movable fixed assets of Mumbai, Goa,Ahmedabad, Bangalore, Delhi and Udaipur hotels owned by Company (both present and future) andextension of first pari-passu charge by way of mortgage over immovable fixed assets of Mumbai andAhmedabad hotels.

8 Term Loan from Yes Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 696.83 lacs)carried interest @ 13.50% per annum. The Company had prepaid 2 installments of Rs. 120.19 lacs eachwhich were due in FY 2016-17. The loan was secured by exclusive charge on 109S Grand Helicopter.

9 Term Loan from Yes Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 855.18 lacs)carried interest @ 13.75% per annum. The Company had got the entire amount of Rs. 857.15 lacsrefinanced by taking a loan from Yes Bank of Rs. 60,000.00 lacs. The loan is secured by equitable mortgageof land and building of Mumbai and Goa Hotels and hypothecation of plant and machinery and all othermovable fixed assets of Mumbai and Goa hotels on pari-passu basis.


11 Term Loan from Yes Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 2,350.00 lacs)carried interest @ 12.50% per annum. The Company had got the entire amount of Rs. 2,350.00 lacs,refinanced by taking a loan from Yes Bank of Rs. 60,000.00 lacs. The loan was secured by equitablemortgage on movable fixed assets of Mumbai and Goa Hotels both present and future and charge on land& building of Mumbai & Goa Hotels on pari-passu basis.

12 Term Loan from J&K Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 4,995.60 lacs)carried interest @ 13.25% per annum. The Company had got the entire loan of Rs. 5000.00 lacs refinancedby taking a loan from Yes Bank of Rs. 60,000.00 lacs. The loan was secured by extension of exclusivecharge over Ahmedabad Hotel (under construction) and by charge over movable and immovable fixedassets of Mumbai & Goa Hotels on pari-passu basis.


14 Term Loan from IDBI Bank aggregating to Rs. Nil (31 March 2016: Rs Nil; 1 April 2015: Rs. 2,500.00 lacs)carried interest @ 13.25%. The Company had got the entire amount of Rs. 2,500.00 lacs refinanced bytaking a loan from Yes Bank of Rs. 60,000 lacs. The loan was secured by hypothecation of all movable fixedassets of the hotel at New Delhi and exclusive charge on movable and immovable fixed assets of theCompany lying and situated at hotel, The Lalit Grand Palace, Srinagar and exclusive charge/mortgage onthe ownership rights of Sh. NK Batra on the land.

15 Term Loan from State Bank of India aggregating to Rs. 13.98 lacs (31 March 2016: Rs 214.06 lacs; 1 April2015: Rs. 435.97 lacs) carries interest @ 14.00% per annum. The loan is secured by equitable mortgage of

157

land situated at Udma Village, Hosdurg Taluk in the District of Kasaragod and property landed at KalnadVillage, Hosdurg Taluk in District of Kasaragod by way of mortgage of lease deed and pari-passu 1stcharge over all existing and future plant and machinery, fixtures and fittings and other movable fixed assetsof the Bekal Hotel.Apollo Zipper India Limited, a subsidiary of the Group (Notes 16 to 18)Apollo Zipper India Limited, a subsidiary of the Group (Notes 16 to 18)Apollo Zipper India Limited, a subsidiary of the Group (Notes 16 to 18)Apollo Zipper India Limited, a subsidiary of the Group (Notes 16 to 18)Apollo Zipper India Limited, a subsidiary of the Group (Notes 16 to 18)

16 Term Loan from Yes Bank aggregating Rs. 8,754.28 lacs (31 March 2016 Rs. Nil, 1 April 2015 Rs.Nil)carries interest @ MCLR plus 2.45% . The loan was taken during the F.Y. 16-17 amounting to Rs 9,499.81lacs . The balance loan is repayable in 51 quarterly installments. The loan is secured by first pari-passucharge on land and building of the hotel by way of mortgage, first pari-passu charge on moveable fixedassets (Present & Future) of the hotel, second pari-passu charge on current assets (including receivable) ofthe hotel and corporate guarantee given by the Company

17 Term Loan from Axis Bank aggregating to Rs. Nil (31 March 2016 Rs. 2,406.59 lacs, 1 April 2015 Rs.2,425.87 lacs) carried interest @ base rate plus 2.5%. The loan was taken during the F.Y. 13-14. The loanhas been refinanced from Yes Bank and payable balance as at year end amounts to Rs. 8,754.28 lacs. Thisloan is secured by first pari-passu charge by way of mortgage over Kolkata Hotel land and constructionthereon, present and future, first pari-passu charge by way of hypothecation of all the company’s movableassets, including movable machinery, machinery spares, tools and accessories, both present and future,first pari passu charge on company’s current assets, cash flow, receivables, book debts, both present andfuture, and bank guarantee given by the Company.

18 Term Loan from Axis Bank aggregating to Rs.Nil (31 March 2016 Rs. 12,318.27 lacs, 1 April 2015 Rs.12,966.73 lacs) carried interest @ base rate plus 2.5% . The loan was taken during the F.Y. 12-13. Duringthe year 2016-17, the company has repaid the entire loan amount by taking a loan partly from Yes Bankamounting to Rs. 6,330.81 lacs and partly from the Company amounting to Rs.5,445.00 lacs. The loan issecured by first pari-passu charge by way of mortgage over Kolkata Hotel land and construction thereon,present and future, first pari-passu charge on company’s current assets, cash flow, receivables, book debts,both present and future, first pari-passu charge by way of hypothecation of all the company’s movableassets, including movable machinery, machinery spares, tools and accessories, both present and future,and corporate guarantee given by the Company.

19 Term loan from Kerala State Industrial Development Corporation (‘KSIDC’) aggregating to Rs. 416.73 lacs(31 March 2016: Rs. 604.48 lacs, 1 April 2015: Rs. 793.27 lacs) carries interest @ 9% per annum. Thebalance loan is repayable in 9 quarteryl installments of Rs. 46.87 lacs each starting from June, 2017. Theloan is secured by equitable mortgage of land situated at Udma Village, Hosdurg Taluk in the District ofKasaragod and landed property at Kalnad Village, Kasaragod Taluk by way of mortgage of lease deed andpari-passu first charge over all existing and future plant and machinery, fixtures and fittings and othermovable fixed assets of the Bekal hotel.

20 Term loan from Industrial Finance Corporation of India (‘IFCI’) aggregating to Rs. Nil (31 March 2016: Rs.Nil, 1 April 2015: Rs. 19,882.03 lacs) carried interest @ 12.65% per annum. The Company had got theentire loan of Rs 2,000.00 lacs refinanced by taking a loan from Yes Bank of Rs 60,000.00 lacs. The loanis secured by equitable mortgage of land and building of Mumbai and Goa hotels on par-passu basis andhypothecation ofmovable assets of Mumbai and Goahotels on pari-passu basis and collateral security ofAhmedabad hotel.

21 External Commercial Borrowing from ICICI Bank Ltd., Bahrain aggregating to Rs. 8,399.33 lacs (equivalentto USD 129.54 lacs converted at an exchange rate of INR 64.8386 per USD) (31 March 2016: Rs. 9,906.96lacs (equivalent to USD 149.35 lacs converted at an exchange rate on INR 66.3329 per USD), 1 April 2015:Rs. 10,291.65 lacs (equivalent to USD 164.43 lacs converted at an exchange rate on INR 62.5909 perUSD) carries interest at 5% margin on USD 6-months LIBOR. The balance loan is repayable in 19 quarterlyinstallments. The loan is secured by equitable mortgage on the movable and immovable fixed and currentassets and the cash flows, both present and future, of Jaipur and also secured by exclusive charge onmovable and immovable fixed assets of Khajuraho hotel, both present and future.Apollo Zipper India Limited, a subsidiary of the Group (Note 22)Apollo Zipper India Limited, a subsidiary of the Group (Note 22)Apollo Zipper India Limited, a subsidiary of the Group (Note 22)Apollo Zipper India Limited, a subsidiary of the Group (Note 22)Apollo Zipper India Limited, a subsidiary of the Group (Note 22)

22 Foreign Currency Loan from ICICI Bank Ltd, Bahrain, aggregating to Rs. 1,391.99 lacs (equivalent to USD21.47 lacs converted at an exchange rate of 64.8386) (31 March 2016 Rs. 1,603.27 lacs (equivalent toUSD 24.17 lacs converted at an exchange rate of 66.3329 per USD), 1 April 2015 Rs. 1,619.37 lacs


158

(equivalent to USD 25.87 lacs converted at an exchange rate of 62.5908 per USD) carries interest @ 5%margin on USD 6-months LIBOR. The balance loan is repayable in 21 quarterly installments (F.Y. 2017-2022). The loan is secured by first pari-passu charge on Kolkata property and corporate guarantee givenby the Company.

23 Term loan from HSBC bank aggregating to Rs. Nil (March 2016: Rs. Nil, 1 April 2015: Rs. 2,147.45 lacs)carried interest @ 10.50% per annum.Apollo Zipper India Limited, a subsidiary of the Group (Note 24)Apollo Zipper India Limited, a subsidiary of the Group (Note 24)Apollo Zipper India Limited, a subsidiary of the Group (Note 24)Apollo Zipper India Limited, a subsidiary of the Group (Note 24)Apollo Zipper India Limited, a subsidiary of the Group (Note 24)

24 Unsecured Loan taken from Deeksha Holding Limited carries interest @ 8.00 % per year (31 March 2016:@8.00%, 1 April 2015 : @ 8.00%) and is repayable as per mutual agreement.

25 11.50% Non Convertible Debentures (NCD’s) from J&K Bank aggregating to Rs. Nil (31 March 2016: Rs.Nil; 1 April 2015 Rs. 1600 lacs). Debentures were secured by the land at Mouje Maharajapura, KadiTaluka, Gujarat and mortgage of immovable assets at Mumbai and Goa units and hypothecation of movableassets of Mumbai and Goa units on pari-passu basis. NCD’s were listed on the Bombay Stock Exchange.

26 LLLLLoan covenantsoan covenantsoan covenantsoan covenantsoan covenantsBank loans contain certain debt covenants relating to limit on total borrowings amount, securiity coverageratio and others. The Company has breached certain loan covenants as at the end of the reporting date.However, the Company has obtained covenants letters from banks for compliance with these waiver till 31March 2018, pursuant to which these loans have been classified as non current.

Note 19 : ONote 19 : ONote 19 : ONote 19 : ONote 19 : OTHER NON CURRENT FINANCIALTHER NON CURRENT FINANCIALTHER NON CURRENT FINANCIALTHER NON CURRENT FINANCIALTHER NON CURRENT FINANCIAL 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015LIABILITIESLIABILITIESLIABILITIESLIABILITIESLIABILITIES (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

FFFFFinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costDeposits received against assets givenunder finance lease 108.47 105.66 100.89

Sundry deposits 272.29 238.92 94.34

380.76380.76380.76380.76380.76 344.58344.58344.58344.58344.58 195.23195.23195.23195.23195.23

Note 20 : LNote 20 : LNote 20 : LNote 20 : LNote 20 : LONG TERM PROONG TERM PROONG TERM PROONG TERM PROONG TERM PROVISIONSVISIONSVISIONSVISIONSVISIONS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

PPPPProvision for employee benefitsrovision for employee benefitsrovision for employee benefitsrovision for employee benefitsrovision for employee benefitsGratuity (Refer note 43) 790.36 714.39 722.64

790.36 790.36 790.36 790.36 790.36 714.39714.39714.39714.39714.39 722.64722.64722.64722.64722.64

Note 21 : DEFERRED TNote 21 : DEFERRED TNote 21 : DEFERRED TNote 21 : DEFERRED TNote 21 : DEFERRED TAX LIABILITIESAX LIABILITIESAX LIABILITIESAX LIABILITIESAX LIABILITIES 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Deferred TDeferred TDeferred TDeferred TDeferred Tax Liabilityax Liabilityax Liabilityax Liabilityax LiabilityAccelerated depreciation for tax 22,343.11 19,017.31 19,187.17

Re-measurement gains on defined benefit plans — 19.16 —

22,343.11 22,343.11 22,343.11 22,343.11 22,343.11 19,036.4719,036.4719,036.4719,036.4719,036.47 19,187.1719,187.1719,187.1719,187.1719,187.17

Deferred TDeferred TDeferred TDeferred TDeferred Tax Assetax Assetax Assetax Assetax Asset

Effect of unabsorbed depreciation and business loss 4,345.66 3,067.60 4,312.12

Fair valuation of financial instruments 504.80 473.85 348.47

Deferred government grant 26.01 42.56 59.10

159

Re-measurement gains on defined benefit plans 3.75 — —Effect of expenditure debited to profit and loss accountin the current year but allowed for tax purposes infollowing years 645.77 600.76 850.00

Provision for doubtful debts & advances 533.94 414.44 395.75

MAT credit entitlement 4,073.52 2,813.98 1,585.88

10,133.45 10,133.45 10,133.45 10,133.45 10,133.45 7,413.197,413.197,413.197,413.197,413.19 7,551.327,551.327,551.327,551.327,551.32

Net deferred tax liability reflected in theNet deferred tax liability reflected in theNet deferred tax liability reflected in theNet deferred tax liability reflected in theNet deferred tax liability reflected in thebalance sheetbalance sheetbalance sheetbalance sheetbalance sheet 12,209.6612,209.6612,209.6612,209.6612,209.66 11,623.2811,623.2811,623.2811,623.2811,623.28 11,635.8511,635.8511,635.8511,635.8511,635.85

Note 22 : ONote 22 : ONote 22 : ONote 22 : ONote 22 : OTHER NON CURRENT LIABILITIESTHER NON CURRENT LIABILITIESTHER NON CURRENT LIABILITIESTHER NON CURRENT LIABILITIESTHER NON CURRENT LIABILITIES 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Deferred lease rent 3,291.41 3,376.83 3,367.01

Lease rent payable 297.29 301.60 346.62

Deferred government grant (Refer note 38) 213.38 318.99 424.59

3,802.083,802.083,802.083,802.083,802.08 3,997.423,997.423,997.423,997.423,997.42 4,138.224,138.224,138.224,138.224,138.22

Note 23 : BORROWINGSNote 23 : BORROWINGSNote 23 : BORROWINGSNote 23 : BORROWINGSNote 23 : BORROWINGS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

FFFFFrom Related Prom Related Prom Related Prom Related Prom Related Parties (unsecured)arties (unsecured)arties (unsecured)arties (unsecured)arties (unsecured)Loans from companies (Refer note 1 & 2 below) 434.29 43.12 —Loan from a director (Refer note 3, 4, 5 & 6 below) 573.88 354.71 3.00

FFFFFrom banksrom banksrom banksrom banksrom banksSecuredSecuredSecuredSecuredSecured

Cash credit facilities (Refer note 7, 8, 9 & 10 below) 9,423.89 3,934.60 3,912.53Loan against fixed deposits (Refer note 11 below) 324.17 295.26 —Short term loan (Refer note 12 below) 2,372.10 2,426.99 2,497.37

UnsecuredUnsecuredUnsecuredUnsecuredUnsecuredCash credit facilities (Refer note 8 below) — 5,777.28 3,481.88

Short term loan (Refer note 13 below) 4,927.73 5,041.30 —Buyers credit on account of invoice financingfacilities availed (Refer note 14 below) — — 1,478.10

18,056.0618,056.0618,056.0618,056.0618,056.06 17,873.2617,873.2617,873.2617,873.2617,873.26 11,372.8811,372.8811,372.8811,372.8811,372.88

Apollo Zipper India Limited, a subsidiary of the Group (Note 1)Apollo Zipper India Limited, a subsidiary of the Group (Note 1)Apollo Zipper India Limited, a subsidiary of the Group (Note 1)Apollo Zipper India Limited, a subsidiary of the Group (Note 1)Apollo Zipper India Limited, a subsidiary of the Group (Note 1)1. Unsecured Loan taken from Deeksha Holding Limited amounting to Rs. 134.29 lacs (31 March 2016: Rs.

43.12 lacs, 1 April 2015: Rs Nil) carries interest @ 8% per annum and is repayable as per mutual agreement.The LThe LThe LThe LThe Lalit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Trust, a trust of the Group (Note 2)rust, a trust of the Group (Note 2)rust, a trust of the Group (Note 2)rust, a trust of the Group (Note 2)rust, a trust of the Group (Note 2)2. Unsecured interest free loan taken from Cargo Hospitality Private Limited amounting to Rs. 300.00 lacs (31

March 2016: Rs. Nil, 1 April 2015: Rs Nil) is repayable as per mutual agreement.


160

3. Loan from Dr. Jyotsna Suri amounting Rs. 435.00 lacs (31 March 2016: Rs. 350.00 lacs, 1 April 2015: RsNil) carries interest @ 8% per annum and is repayable as per mutual agreement.

Apollo Zipper India Limited, a subsidiary of the Group (Note 4)Apollo Zipper India Limited, a subsidiary of the Group (Note 4)Apollo Zipper India Limited, a subsidiary of the Group (Note 4)Apollo Zipper India Limited, a subsidiary of the Group (Note 4)Apollo Zipper India Limited, a subsidiary of the Group (Note 4)4. Unsecured Loan taken from Dr. Jyotsna Suri amounting to Rs. 35.88 lacs (31 March 2016: Rs. 1.71 lacs, 1

April 2015: Rs Nil) carries interest @ 8% per annum and is repayable as per mutual agreement.The LThe LThe LThe LThe Lalit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Talit Suri Educational and Charitable Trust, a trust of the Group (Note 5)rust, a trust of the Group (Note 5)rust, a trust of the Group (Note 5)rust, a trust of the Group (Note 5)rust, a trust of the Group (Note 5)5. Unsecured Loan taken from Dr. Jyotsna Suri amounting to Rs. 100.00 lacs (31 March 2016: Rs. Nil, 1 April

2015: Rs Nil) carries interest @ 8% per annum and is repayable as per mutual agreement.Jyoti Limited, a subsidiary of the Group (Note 6)Jyoti Limited, a subsidiary of the Group (Note 6)Jyoti Limited, a subsidiary of the Group (Note 6)Jyoti Limited, a subsidiary of the Group (Note 6)Jyoti Limited, a subsidiary of the Group (Note 6)6. Unsecured interest free loan taken from Dr. Jyotsna Suri amounting to Rs. 3.00 lacs (31 March 2016: Rs.

3.00 lacs; 1 April 2015: Rs. 3.00 lacs) is repayable as per mutual agreement.7. Cash Credit facilities from Yes Bank amounting to Rs. 3,040.08 lacs (31 March 2016: Rs. 3,488.22 lacs, 1

April 2015: Rs 3,450.91 lacs) carries interest @ 12.20 % per annum. The loan is secured by first pari-passucharge on current assets (including receivables) of all the hotels of the Company (both present and future),except those of Jaipur hotel of the Company.

8. Short term facilities from Deutsche Bank aggregating to Rs. 5,769.77 lacs (31 March 2016: Rs. 5,777.29lacs, 1 April 2015: Rs 3,481.88 lacs) carries interest @ 12.45 % per annum. These short term facilities areguaranteed by Premium Holdings Limited (Refer note 46). During the current year, the loan has also beensecured by immovable property of Udaipur hotel of the Company and hence, these are classified as secured.

Apollo Zipper India Limited, a subsidiary of the Group (Notes 9 & 10)Apollo Zipper India Limited, a subsidiary of the Group (Notes 9 & 10)Apollo Zipper India Limited, a subsidiary of the Group (Notes 9 & 10)Apollo Zipper India Limited, a subsidiary of the Group (Notes 9 & 10)Apollo Zipper India Limited, a subsidiary of the Group (Notes 9 & 10)9. Cash Credit facilities from Axis Bank amounting to Rs. Nil, (31 March 2016 Rs. 446.38 lacs, 1 April 2015

Rs. 461.62 lacs) taken during the F.Y. 12-13 carries interest @ 13% per annum. The company has repaidthe entire amount during the year 2016-17 by taking a loan from Yes Bank. The loan was secured by firstpari-passu charge on land and building of the company by way of mortgage and movable fixed assets ofthe company (both present and future) and second pari-passu charge on current assets (including receivables)of the company and corporate guarantee given by the Company

10. Cash Credit facilities from Yes Bank amounting to Rs. 614.03 lacs (31 March 2016 Rs. Nil, 1 April 2015 Rs.Nil) carries interest @ 11.80% per annum. The loan is secured by first pari-passu charge on current assets(including receivables) of the company and second pari-passu charge on land and building of the companyby way of mortgage and movable fixed assets of the company (both present and future) and corporateguarantee given by the Company

11. Loan against fixed deposits taken from J&K Bank Limited is secured by fixed deposits. The loan carriesinterest @ 1.49% higher than the interest received by the Company on the fixed deposits made with thebank.

12. Packing Credit Foreign Currency (‘PCFC’) Loan from Yes Bank amounting to Rs. 2,372.10 lacs (equivalentto USD 36.58 lacs at an exchange rate of 64.8386 per USD) ((31 March 2016: Rs. 2,426.99 lacs (equivalentto USD 36.59 lacs at an exchange rate of 66.3329 per USD)), (1 April 2015: Rs 2,497.37 lacs (equivalentto USD 39.90 lacs at an exchange rate of 62.5908 per USD))) carries interest @ LIBOR+400 basis points.The loan is secured by first pari-passu charge on current assets (including receivables) of all the hotels of theCompany (both present and future), except those of Jaipur hotel of the Company.

13. Short term facilities from Barclays Bank aggregating to Rs. 4,927.73 lacs (equivalent to USD 76.00 lacs atan exchange rate of 64.8386 per USD) ((31 March 2016: Rs. 5,041.30 lacs (equivalent to USD 76.00 lacsat an exchange rate of 66.3329 per USD)), (1 April2015: Rs Nil)) carries interest @ 5.02 % per annum.These facilities are guaranteed by Premium Holdings Limited (Refer note 46).

14. Invoice financing facility from Deutsche Bank aggregating to Rs. Nil ((31 March 2016: Rs Nil), (1 April2015: Rs. 1478.00 lacs)) carried interest @ 12.50 % per annum.These facilities were guaranteed by PremiumHoldings Limited (Refer note 46).

161

Note 24 : TRADE PNote 24 : TRADE PNote 24 : TRADE PNote 24 : TRADE PNote 24 : TRADE PAAAAAYYYYYABLES - SHORT TERMABLES - SHORT TERMABLES - SHORT TERMABLES - SHORT TERMABLES - SHORT TERM 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

TRADE PTRADE PTRADE PTRADE PTRADE PAAAAAYYYYYABLESABLESABLESABLESABLES- total outstanding dues of micro and small enterprises — — —- total outstanding dues of creditors other than microand small enterprises 4,051.07 2,683.14 3,166.72

4,051.074,051.074,051.074,051.074,051.07 2,683.142,683.142,683.142,683.142,683.14 3,166.723,166.723,166.723,166.723,166.72

Note 25 : ONote 25 : ONote 25 : ONote 25 : ONote 25 : OTHER CURRENT FINANCIALTHER CURRENT FINANCIALTHER CURRENT FINANCIALTHER CURRENT FINANCIALTHER CURRENT FINANCIAL 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015LIABILITIESLIABILITIESLIABILITIESLIABILITIESLIABILITIES (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

FFFFFinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costinancial liabilities at amortised costCurrent maturities of long term borrowings (Refer note 18) 4,834.66 4,536.53 15,779.95Interest accrued but not due on borrowings 1,010.37 903.57 945.97Book overdraft from banks 931.70 1,082.56 678.56Sundry deposits 116.99 99.70 91.10Payables on purchase of fixed assets 1,429.41 1,894.24 1,499.64Unpaid dividend 22.92 24.54 26.62Other payables 9.35 8.17 0.47Employee related liabilities 793.51 434.10 763.61Retention payable 620.44 746.15 776.47Outstanding dues of creditors 1,322.52 1,759.86 1,180.20

11,091.8711,091.8711,091.8711,091.8711,091.87 11,489.4211,489.4211,489.4211,489.4211,489.42 21,742.5921,742.5921,742.5921,742.5921,742.59

Note 26 : SHORT TERM PRO Note 26 : SHORT TERM PRO Note 26 : SHORT TERM PRO Note 26 : SHORT TERM PRO Note 26 : SHORT TERM PROVISIONSVISIONSVISIONSVISIONSVISIONS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

PPPPProvision for employee benefitsrovision for employee benefitsrovision for employee benefitsrovision for employee benefitsrovision for employee benefitsGratuity (Refer note 43) 331.38 262.63 191.02Compensated absences 400.26 440.03 650.18

Others POthers POthers POthers POthers ProvisionsrovisionsrovisionsrovisionsrovisionsProvision for wealth tax — — 77.97

731.64731.64731.64731.64731.64 702.66702.66702.66702.66702.66 919.17919.17919.17919.17919.17

Note 27 : O Note 27 : O Note 27 : O Note 27 : O Note 27 : OTHER CURRENT LIABILITIESTHER CURRENT LIABILITIESTHER CURRENT LIABILITIESTHER CURRENT LIABILITIESTHER CURRENT LIABILITIES 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Advance received against sale of property — 200.00 —————Deferred revenue of membership programme 369.77 420.47 329.00Deferred lease rent 85.66 85.17 62.85Advances from customers 1,592.49 1,373.69 1,021.85

Statutory dues payableStatutory dues payableStatutory dues payableStatutory dues payableStatutory dues payableTDS payable 499.74 543.74 397.75VAT payable 289.59 275.46 224.61Luxury tax payable 339.81 348.12 238.38Service tax payable 263.44 189.68 34.09Other statutory dues 294.23 252.39 267.86Deferred government grant (Refer note 38) 105.61 105.61 105.61

3,840.343,840.343,840.343,840.343,840.34 3,794.333,794.333,794.333,794.333,794.33 2,682.002,682.002,682.002,682.002,682.00


162

Note 28 : REVENUE FROM OPERANote 28 : REVENUE FROM OPERANote 28 : REVENUE FROM OPERANote 28 : REVENUE FROM OPERANote 28 : REVENUE FROM OPERATIONSTIONSTIONSTIONSTIONS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Sale of services and products (including excise duty)Sale of services and products (including excise duty)Sale of services and products (including excise duty)Sale of services and products (including excise duty)Sale of services and products (including excise duty)- Room and apartment 26,782.69 24,763.10- Food and beverage 20,194.61 18,888.04- Liquor and wine 4,284.85 3,835.06- Banquet and Equipment rentals 1,758.47 1,301.28- Other Services 5,386.67 4,675.71- Membership programme revenue 767.92 767.25- Traded goods 92.44 93.50

Other operating revenuesOther operating revenuesOther operating revenuesOther operating revenuesOther operating revenues- Rent and maintenance income 1,707.24 1,423.15- Consultancy/management fee 342.46 362.37- Aircraft charter hire charges 614.88 460.50- Tution and application fees 69.58 66.51

62,001.81 62,001.81 62,001.81 62,001.81 62,001.81 56,636.4756,636.4756,636.4756,636.4756,636.47

Note 29 : ONote 29 : ONote 29 : ONote 29 : ONote 29 : OTHER INCOMETHER INCOMETHER INCOMETHER INCOMETHER INCOME 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Excess provision/ credit balances written back 425.20 208.93Net gain on disposal of property, plant and equipment — 1,191.24Exchange differences (net) 38.55 —Amortisation of deferred lease rental 37.51 28.46Government grant income (Refer note 38) 105.61 105.61Donation Income — 165.00Miscellaneous income 315.70 278.30

922.57922.57922.57922.57922.57 1,977.541,977.541,977.541,977.541,977.54

Note 30 : CONSUMPTION OF FOOD AND BEVERANote 30 : CONSUMPTION OF FOOD AND BEVERANote 30 : CONSUMPTION OF FOOD AND BEVERANote 30 : CONSUMPTION OF FOOD AND BEVERANote 30 : CONSUMPTION OF FOOD AND BEVERAGESGESGESGESGES 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Consumption of food and beveragesConsumption of food and beveragesConsumption of food and beveragesConsumption of food and beveragesConsumption of food and beverages(excluding liquor & wine)(excluding liquor & wine)(excluding liquor & wine)(excluding liquor & wine)(excluding liquor & wine)Inventory at the beginning of the year 309.85 288.46Add: Purchases 6,217.22 5,827.20Less: Inventory at the end of the year (286.30) (309.85)

Cost of food and beverage consumedCost of food and beverage consumedCost of food and beverage consumedCost of food and beverage consumedCost of food and beverage consumed(excluding liquor & wine)(excluding liquor & wine)(excluding liquor & wine)(excluding liquor & wine)(excluding liquor & wine) 6,240.776,240.776,240.776,240.776,240.77 5,805.815,805.815,805.815,805.815,805.81

Consumption of liquor and wineConsumption of liquor and wineConsumption of liquor and wineConsumption of liquor and wineConsumption of liquor and wineInventory at the beginning of the year 732.25 634.64Add: Purchases 1,008.38 1,071.14Less: Inventory at the end of the year (608.56) (732.25)

Cost of liquor and wine consumedCost of liquor and wine consumedCost of liquor and wine consumedCost of liquor and wine consumedCost of liquor and wine consumed 1,132.07 1,132.07 1,132.07 1,132.07 1,132.07 973.53973.53973.53973.53973.53

Consumption of food and beveragesConsumption of food and beveragesConsumption of food and beveragesConsumption of food and beveragesConsumption of food and beverages(including liquor & wine)(including liquor & wine)(including liquor & wine)(including liquor & wine)(including liquor & wine) 7,372.847,372.847,372.847,372.847,372.84 6,779.346,779.346,779.346,779.346,779.34

163

NONONONONOTE 31 : CHANGE IN INVENTTE 31 : CHANGE IN INVENTTE 31 : CHANGE IN INVENTTE 31 : CHANGE IN INVENTTE 31 : CHANGE IN INVENTORIES OF TRADED GOODSORIES OF TRADED GOODSORIES OF TRADED GOODSORIES OF TRADED GOODSORIES OF TRADED GOODS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Inventory at the beginning of the year 177.43 192.15Inventory at the close of the year 205.92 177.42

(28.49)(28.49)(28.49)(28.49)(28.49) 14.7314.7314.7314.7314.73

Note 32 : EMPLNote 32 : EMPLNote 32 : EMPLNote 32 : EMPLNote 32 : EMPLOOOOOYEE BENEFITS EXPENSEYEE BENEFITS EXPENSEYEE BENEFITS EXPENSEYEE BENEFITS EXPENSEYEE BENEFITS EXPENSE 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Salaries, wages and allowances (Refer note 48) 9,965.07 9,021.39Contribution to provident and other funds (Refer note 48) 732.50 648.15Gratuity expense (Refer note 43) 128.39 140.45Leave compensation expenses 65.26 0.03Staff welfare expenses (Refer note 48) 197.77 155.55Staff recruitment and training 88.87 66.00

11,177.8611,177.8611,177.8611,177.8611,177.86 10,031.5710,031.5710,031.5710,031.5710,031.57

Note 33 : ONote 33 : ONote 33 : ONote 33 : ONote 33 : OTHER EXPENSESTHER EXPENSESTHER EXPENSESTHER EXPENSESTHER EXPENSES 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Consumption of stores, cutlery, crockery,linen, provisions and others* 2,203.58 1,863.63Lease rent* 1,790.46 1,755.48Power and fuel* 6,862.84 6,665.76Aircraft fuel 69.81 50.84Banquet and decoration expenses 1,248.38 1,258.28Membership programme expenses 47.65 345.98Repair and maintenance- Buildings* 716.43 771.04- Plant and machinery* 1,761.17 1,759.08- Aircraft 200.48 192.37- Others* 489.30 434.06Rates and taxes* 1,249.91 1,344.95Insurance* 237.50 233.28Communication costs* 479.90 415.50Printing and stationery* 406.18 364.91Travelling and conveyance* 1,557.69 1,563.90Advertisement and business promotion 927.08 978.24Commission - other than sole selling agent 818.38 744.92Sub contracting expenses* 1,791.37 1,631.58Membership and subscriptions* 158.31 243.02Professional fees* 687.77 710.41Legal charges* 142.41 149.20Provision for diminution in the value of investment — 10.85Advances written off 10.16 —Freight and cartage* 100.17 93.11Exchange differences (net) * — 205.64Loss on sale/ discard of property, plant and equipment (net) 18.84 —Donations 46.59 55.16Bad Debts written off 0.45 9.38


164

Provision for doubtful advances 166.71 313.29Provision for doubtful debts 212.04 476.88Directors fees and commission 19.67 14.14Bank charges* 458.46 416.39Payment to auditors 81.54 71.22News paper expenses 30.45 27.72Miscellaneous expenses* 176.02 158.04

TTTTTotalotalotalotalotal 25,167.7025,167.7025,167.7025,167.7025,167.70 25,328.2525,328.2525,328.2525,328.2525,328.25*Refer note 48

Note 34 : FINANCE INCOMENote 34 : FINANCE INCOMENote 34 : FINANCE INCOMENote 34 : FINANCE INCOMENote 34 : FINANCE INCOME 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

LLLLLoans to Related Poans to Related Poans to Related Poans to Related Poans to Related Partiesartiesartiesartiesarties- Joint Venture of subsidiary company 2,835.68 2,576.87FFFFFinance leaseinance leaseinance leaseinance leaseinance lease 109.26 109.28OthersOthersOthersOthersOthers- bank deposits 149.21 132.77- others 262.30 302.12Unwinding of discount on security deposits 24.78 22.07

TTTTTotalotalotalotalotal 3,381.233,381.233,381.233,381.233,381.23 3,143.113,143.113,143.113,143.113,143.11

Note 35 : FINANCE COSTSNote 35 : FINANCE COSTSNote 35 : FINANCE COSTSNote 35 : FINANCE COSTSNote 35 : FINANCE COSTS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Interest on:Interest on:Interest on:Interest on:Interest on:- on loan from companies 86.36 42.39 -loans from banks 11,094.33 8,757.45- loans from financial institutions 46.34 2,311.09- debentures — 12.60- credit facilities from banks 1,163.90 1,098.74- loan from Directors 84.92 29.65- others 1.11 1.02

Bank charges 76.23 257.54Unwinding of finance cost from financial instruments at amortised cos t 28.89 19.33Interest on defined benefit plans 65.90 66.31

12,647.9812,647.9812,647.9812,647.9812,647.98 12,596.1212,596.1212,596.1212,596.1212,596.12

Note 36 : DEPRECIANote 36 : DEPRECIANote 36 : DEPRECIANote 36 : DEPRECIANote 36 : DEPRECIATION AND AMORTISATION AND AMORTISATION AND AMORTISATION AND AMORTISATION AND AMORTISATION EXPENSETION EXPENSETION EXPENSETION EXPENSETION EXPENSE 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016(Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs) (Rupees in L(Rupees in L(Rupees in L(Rupees in L(Rupees in Lacs)acs)acs)acs)acs)

Depreciation of property, plant and equipment 6,417.43 6,782.96Amortisation of intangible assets 102.39 119.88

6,519.826,519.826,519.826,519.826,519.82 6,902.846,902.846,902.846,902.846,902.84

Less: transferred to Pre-operative expenditure (Refer note 48) (25.99) (26.31)

6,493.836,493.836,493.836,493.836,493.83 6,876.536,876.536,876.536,876.536,876.53

165

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8———— —

(388

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(388

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(388

.31)

(388

.31)

(477

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(477

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———— —(7

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1)(7

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(7.5

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140.

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1

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pens

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340.

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———— —Ta

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———— ————— —

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———— ————— —

———— ————— —

7,14

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———— —De

prec

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Depr

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96,

312.

976,

312.

976,

312.

976,

312.

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312.

97———— —

319.

1031

9.10

319.

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9.10

319.

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6.96

316.

9631

6.96

316.

9631

6.96

———— —5.

495.

495.

495.

495.

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665.

665.

665.

665.

66— ——— —

98.0

198

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98.0

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53.5

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———— —6,

353.

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296,

689.

176,

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176,

689.

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17———— —

Non

cash

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ense

s oth

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n ca

sh e

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ses o

ther

than

Non

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exp

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s oth

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7.75

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407.

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7.75

1,00

6.66

1,00

6.66

1,00

6.66

1,00

6.66

1,00

6.66

———— ————— —

———— ————— —

———— ————— —

———— —0.

340.

340.

340.

340.

340.

300.

300.

300.

300.

30———— —

408.

0940

8.09

408.

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408.

091,

006.

961,

006.

961,

006.

961,

006.

961,

006.

96———— —

Note

Note

Note

Note

Note

: Cap

ital e

xpen

ditu

re in

clude

s exc

hang

e diff

eren

ces t

hat h

ave b

een

capi

talis

ed.

Geog

raph

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nfor

mat

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Geog

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Geog

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nfor

mat

ion

Geog

raph

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nfor

mat

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Geog

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mat

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The o

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of th

e Gro

up a

re co

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ed to

Indi

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ce a

ll th

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ratio

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n In

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Acco

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in th

ese f

inan

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l loc

atio

n i.e

. Ind

ia.


166

NONONONONOTE 38 : GOTE 38 : GOTE 38 : GOTE 38 : GOTE 38 : GOVERNMENT GRANTSVERNMENT GRANTSVERNMENT GRANTSVERNMENT GRANTSVERNMENT GRANTS 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

At the beginning of the yearAt the beginning of the yearAt the beginning of the yearAt the beginning of the yearAt the beginning of the year 424.60 530.21Released to the statement of profit and loss 105.61 105.61

At the end of the yearAt the end of the yearAt the end of the yearAt the end of the yearAt the end of the year 318.99318.99318.99318.99318.99 424.60424.60424.60424.60424.60

Current 105.61 105.61Non-current 213.38 318.99

318.99318.99318.99318.99318.99 424.60424.60424.60424.60424.60

Government grants have been received for the purchase of certain items of property, plant & equipment. TheGroup is required to undertake export of services. There are no unfulfilled conditions or contingencies attachedto these grants.

NONONONONOTE 39 : CURRENT TAX ASSETSTE 39 : CURRENT TAX ASSETSTE 39 : CURRENT TAX ASSETSTE 39 : CURRENT TAX ASSETSTE 39 : CURRENT TAX ASSETS

a.a.a.a.a. The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016The major components of income tax expense for the years ended 31 March 2017 and 31 March 2016are:are:are:are:are:

PPPPProfit and loss sectionrofit and loss sectionrofit and loss sectionrofit and loss sectionrofit and loss section 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

Current income tax:Current income tax:Current income tax:Current income tax:Current income tax:Current income tax charge (MAT payable) 1,270.52 987.90Less: MAT credit entitlement (1,259.54) (1,228.10)Deferred tax:Deferred tax:Deferred tax:Deferred tax:Deferred tax:Relating to origination and reversal of temporary differences 1,849.68 1,196.37

Income tax expense reported in the statement of profit or lossIncome tax expense reported in the statement of profit or lossIncome tax expense reported in the statement of profit or lossIncome tax expense reported in the statement of profit or lossIncome tax expense reported in the statement of profit or loss 1,860.661,860.661,860.661,860.661,860.66 956.17956.17956.17956.17956.17

OCI SectionOCI SectionOCI SectionOCI SectionOCI Section 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

Deferred tax related to items recognised in OCI during in the year:Deferred tax related to items recognised in OCI during in the year:Deferred tax related to items recognised in OCI during in the year:Deferred tax related to items recognised in OCI during in the year:Deferred tax related to items recognised in OCI during in the year:

Net gain/(loss) on remeasurement of defined benefit plans (9.14) 61.79

Income tax charged to OCIIncome tax charged to OCIIncome tax charged to OCIIncome tax charged to OCIIncome tax charged to OCI (3.75)(3.75)(3.75)(3.75)(3.75) 19.1619.1619.1619.1619.16

b.b.b.b.b. Reconciliation of tax expense and the accounting profit multiplied by IndiaReconciliation of tax expense and the accounting profit multiplied by IndiaReconciliation of tax expense and the accounting profit multiplied by IndiaReconciliation of tax expense and the accounting profit multiplied by IndiaReconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for 31’s domestic tax rate for 31’s domestic tax rate for 31’s domestic tax rate for 31’s domestic tax rate for 31March 2017 and 31 March 2016:March 2017 and 31 March 2016:March 2017 and 31 March 2016:March 2017 and 31 March 2016:March 2017 and 31 March 2016:

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

Accounting profit before taxAccounting profit before taxAccounting profit before taxAccounting profit before taxAccounting profit before tax 226.50 (3,124.44)At India’ statutory income tax rate of 34.608% (31 March 2016: 34.608%) 78.39 (1,081.31)Adjustment in respect of current income tax of previous years — (256.62)Non deductible expenses for tax purpose:Non deductible expenses for tax purpose:Non deductible expenses for tax purpose:Non deductible expenses for tax purpose:Non deductible expenses for tax purpose:Non-deductible expenses 74.64 100.63Other Adjustments (137.49) (352.31)Reversal of deferred tax asset on temporary differences (148.50) (233.74)

167

At the effective income tax rate of -58.70% (31 March 2016: 58.36%)At the effective income tax rate of -58.70% (31 March 2016: 58.36%)At the effective income tax rate of -58.70% (31 March 2016: 58.36%)At the effective income tax rate of -58.70% (31 March 2016: 58.36%)At the effective income tax rate of -58.70% (31 March 2016: 58.36%)before losses of joint venture and subsidiaries for which no DTbefore losses of joint venture and subsidiaries for which no DTbefore losses of joint venture and subsidiaries for which no DTbefore losses of joint venture and subsidiaries for which no DTbefore losses of joint venture and subsidiaries for which no DTAAAAAhas been recognisedhas been recognisedhas been recognisedhas been recognisedhas been recognised (132.96)(132.96)(132.96)(132.96)(132.96) (1,823.35)(1,823.35)(1,823.35)(1,823.35)(1,823.35)

Losses of joint venture for which no DTA has been recognised 1,080.56 1,091.98Losses of subsidiaries for which no DTA has been recognised 913.06 1,687.54

At the effective income tax rate of 821.48%At the effective income tax rate of 821.48%At the effective income tax rate of 821.48%At the effective income tax rate of 821.48%At the effective income tax rate of 821.48%(31 March 2016: -30.60%)(31 March 2016: -30.60%)(31 March 2016: -30.60%)(31 March 2016: -30.60%)(31 March 2016: -30.60%) 1,860.661,860.661,860.661,860.661,860.66 956.17956.17956.17956.17956.17

Income tax expense reported in the statement of profit and lossIncome tax expense reported in the statement of profit and lossIncome tax expense reported in the statement of profit and lossIncome tax expense reported in the statement of profit and lossIncome tax expense reported in the statement of profit and loss 1,860.661,860.661,860.661,860.661,860.66 956.17956.17956.17956.17956.17

c.c.c.c.c. Reconciliation of deferred tax liabilities (net)Reconciliation of deferred tax liabilities (net)Reconciliation of deferred tax liabilities (net)Reconciliation of deferred tax liabilities (net)Reconciliation of deferred tax liabilities (net) 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

Opening balance as on 1 April 11,623.28 11,635.85Tax expenses recognised in statement of profit and loss (net of MAT credit) 590.13 (31.73)Tax (income)/ expenses recognised in OCI (3.75) 19.16

Closing balance as on 31 MarchClosing balance as on 31 MarchClosing balance as on 31 MarchClosing balance as on 31 MarchClosing balance as on 31 March 12,209.6612,209.6612,209.6612,209.6612,209.66 11,623.2811,623.2811,623.2811,623.2811,623.28

d.d.d.d.d. MAMAMAMAMAT credit entitlementT credit entitlementT credit entitlementT credit entitlementT credit entitlement 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

Opening balanceOpening balanceOpening balanceOpening balanceOpening balance 2,813.98 1,585.88Add: MAT credit entitlement for the current year 1,259.54 1,228.10

Closing balanceClosing balanceClosing balanceClosing balanceClosing balance 4,073.524,073.524,073.524,073.524,073.52 2,813.982,813.982,813.982,813.982,813.98

The Group has recognised MAT credit since there is convincing evidence that the Group will pay normal incometax during the specified period i.e. the period for which MAT credit is allowed to be carried forward.

NONONONONOTE 40 :TE 40 :TE 40 :TE 40 :TE 40 : EARNING PER SHARE (EPS)EARNING PER SHARE (EPS)EARNING PER SHARE (EPS)EARNING PER SHARE (EPS)EARNING PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent bythe weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (afteradjusting for interest on the convertible preference shares) by the weighted average number of Equity sharesoutstanding during the year plus the weighted average number of Equity shares that would be issued on conversionof all the dilutive potential Equity shares into Equity shares.

The following reflects the income and share data used in the basic and diluted EPS computations:

Basic and Diluted Earnings per shareBasic and Diluted Earnings per shareBasic and Diluted Earnings per shareBasic and Diluted Earnings per shareBasic and Diluted Earnings per share 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

Loss attributable to equity share holders ofGroup for basic and diluted earnings (1,633.98) (4,080.43)

Weighted average number of Equity sharesfor basic and diluted EPS 75,991,199 75,991,199

NONONONONOTE 41 :TE 41 :TE 41 :TE 41 :TE 41 : SIGNIFICANT ASIGNIFICANT ASIGNIFICANT ASIGNIFICANT ASIGNIFICANT ACCOUNTING JUDGEMENTSCCOUNTING JUDGEMENTSCCOUNTING JUDGEMENTSCCOUNTING JUDGEMENTSCCOUNTING JUDGEMENTS, ESTIMA, ESTIMA, ESTIMA, ESTIMA, ESTIMATES AND ASSUMPTIONSTES AND ASSUMPTIONSTES AND ASSUMPTIONSTES AND ASSUMPTIONSTES AND ASSUMPTIONS

The preparation of the Group’s financial statements requires management to make judgements, estimates andassumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosures,and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result inoutcomes that require a material adjustment to the carrying amount of assets or liabilities affected in futureperiods.


168

JudgementsJudgementsJudgementsJudgementsJudgementsIn the process of applying the Group’s accounting policies, management has made the following judgements,which have the most significant effect on the amounts recognised in the financial statements:

Operating lease commitments – The Group as lesseeOperating lease commitments – The Group as lesseeOperating lease commitments – The Group as lesseeOperating lease commitments – The Group as lesseeOperating lease commitments – The Group as lesseeThe Group has taken certain land on long term lease basis. The Group has determined, based on an evaluationof the terms and conditions of the arrangements, such as the lease term not constituting a major part of theeconomic life of the property and the fair value of the asset, that it does not have all the significant risks andrewards of ownership of these properties and accounts for the contracts as operating leases.

Estimates and assumptionsEstimates and assumptionsEstimates and assumptionsEstimates and assumptionsEstimates and assumptionsThe key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilitieswithin the next financial year, are described below. The Group based its assumptions and estimates on parametersavailable when the financial statements were prepared. Existing circumstances and assumptions about futuredevelopments, however, may change due to market changes or circumstances arising that are beyond thecontrol of the Group. Such changes are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)Defined benefit plans (gratuity benefits)Defined benefit plans (gratuity benefits)Defined benefit plans (gratuity benefits)Defined benefit plans (gratuity benefits)The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of thegratuity obligation are determined using actuarial valuations. An actuarial valuation involves making variousassumptions that may differ from actual developments in the future. These include the determination of thediscount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation andits long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptionsare reviewed at each reporting date.The parameter most subject to change is the discount rate. In determiningthe appropriate discount rate for plans operated in India, the management considers the interest rates ofgovernment bonds in currencies consistent with the currencies of the post-employment benefit obligation. Themortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tendto change only at interval in response to demographic changes. Future salary increases and gratuity increasesare based on expected future inflation rates. Further details about gratuity obligations are given in Note 43.

FFFFFair value measurement of financial instrumentsair value measurement of financial instrumentsair value measurement of financial instrumentsair value measurement of financial instrumentsair value measurement of financial instrumentsWhen the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measuredbased on quoted prices in active markets, their fair value is measured using other valuation techniques. Theinputs to these models are taken from observable markets where possible, but where this is not feasible, adegree of judgement is required in establishing fair values. Judgements include considerations of inputs such asliquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fairvalue of financial instruments.

Revenue recognition – LRevenue recognition – LRevenue recognition – LRevenue recognition – LRevenue recognition – Lalit loyalty programmealit loyalty programmealit loyalty programmealit loyalty programmealit loyalty programmeThe Group estimates the fair value of points awarded under the Lalit loyalty programme by applying statisticaltechniques. Inputs to the model include making assumptions about expected redemption rates, the mix ofproducts that will be available for redemption in the future and customer preferences. As at 31 March 2017, theestimated liability towards unredeemed points amounted to Rs. 36.20 lacs (31 March 2016: Rs. 41.53 lacs, 1April 2015: Rs. 26.34 lacs)

Impairment of non-financial assetsImpairment of non-financial assetsImpairment of non-financial assetsImpairment of non-financial assetsImpairment of non-financial assetsImpairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposalcalculation is based on available data from binding sales transactions, conducted at arm’s length, for similarassets or observable market prices less incremental costs for disposing of the asset. The value in use calculationis based on a DCF model. The cash flows are derived from the budget for the next five years and do not includerestructuring activities that the Group is not yet committed to or significant future investments that will enhancethe asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate usedfor the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolationpurposes.

169

NONONONONOTE 42 : COMMITMENTS & CONTINGENT LIABILITIESTE 42 : COMMITMENTS & CONTINGENT LIABILITIESTE 42 : COMMITMENTS & CONTINGENT LIABILITIESTE 42 : COMMITMENTS & CONTINGENT LIABILITIESTE 42 : COMMITMENTS & CONTINGENT LIABILITIES

(a) Capital Commitments(a) Capital Commitments(a) Capital Commitments(a) Capital Commitments(a) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account and not provided for:Commitments relating to estimated amount of completion of Property, Plant & Equipment are as follows:

DescriptionsDescriptionsDescriptionsDescriptionsDescriptions 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 01 April 201501 April 201501 April 201501 April 201501 April 2015Estimated amount of contracts remaining to beexecuted and not provided for 10,371.04 11,895.18 8,844.41

(b) L(b) L(b) L(b) L(b) LeaseseaseseaseseaseseasesOperating lease commitments - Group as lesseeOperating lease commitments - Group as lesseeOperating lease commitments - Group as lesseeOperating lease commitments - Group as lesseeOperating lease commitments - Group as lesseeThe Group has entered into operating leases on certain Land and Building properties with lease terms between30 to 99 years. The Group has the option, under some of its leases, to lease the assets for additional terms of30 years.

The Group has paid Rs. 1,718.56 lacs (31 March 2016: Rs. 1,688.88 lacs) during the year towards minimumlease payment.

Future minimum rentals payables under non-cancellable operating leases are as follows:


Within one year 1,186.88 1,099.04 1,076.40After one year but not more than five years 4,581.03 4,599.09 4,482.57More than five years 29,676.79 30,815.22 31,953.65

35,444.70 35,444.70 35,444.70 35,444.70 35,444.70 36,513.3536,513.3536,513.3536,513.3536,513.35 37,512.6237,512.6237,512.6237,512.6237,512.62

Operating lease commitments - Group as lessorOperating lease commitments - Group as lessorOperating lease commitments - Group as lessorOperating lease commitments - Group as lessorOperating lease commitments - Group as lessorThe Group has entered into operating leases consisting of certain offices. These lease terms is for 3 years.There is no escalation clause in the lease agreements. There are no restrictions imposed by lease arrangements.

Future minimum rentals receivables under non-cancellable operating leases are as follows:



967.77 967.77 967.77 967.77 967.77 1,495.151,495.151,495.151,495.151,495.15 532.28532.28532.28532.28532.28

FFFFFinance lease commitments - Group as lessorinance lease commitments - Group as lessorinance lease commitments - Group as lessorinance lease commitments - Group as lessorinance lease commitments - Group as lessorThe Group has given certain portion of land and buildings on finance lease. The lease terms is for 93-99 years.Refer note 54Future gross rentals receivables under non-cancellable finance leases are as follows


Within one year 109.44 109.44 109.44After one year but not more than five years 437.76 437.76 437.76More than five years 6,346.27 6,455.71 6,565.15

6,893.47 6,893.47 6,893.47 6,893.47 6,893.47 7,002.917,002.917,002.917,002.917,002.91 7,112.357,112.357,112.357,112.357,112.35


170

Future minimum rentals receivables under non-cancellable finance leases are as follows:



954.69 954.69 954.69 954.69 954.69 954.87954.87954.87954.87954.87 955.04955.04955.04955.04955.04

NONONONONOTE 43 : GRATE 43 : GRATE 43 : GRATE 43 : GRATE 43 : GRATUITY AND OTUITY AND OTUITY AND OTUITY AND OTUITY AND OTHER POSTTHER POSTTHER POSTTHER POSTTHER POST-EMPL-EMPL-EMPL-EMPL-EMPLOOOOOYMENT BENEFIT PLANSYMENT BENEFIT PLANSYMENT BENEFIT PLANSYMENT BENEFIT PLANSYMENT BENEFIT PLANS


Gratuity Plan 1,121.74 977.02 913.66

TTTTTotalotalotalotalotal 1,121.741,121.741,121.741,121.741,121.74 977.02977.02977.02977.02977.02 913.66913.66913.66913.66913.66

The Group has an unfunded defined benefit gratuity plan. Every employee who has completed five years ormore or service gets a gratuity on separation equal to 15 days salary (last drawn salary) for each completed yearof continuous service or part thereof in excess of six months.

Changes in the defined benefit obligation as at 31 March 2017:Changes in the defined benefit obligation as at 31 March 2017:Changes in the defined benefit obligation as at 31 March 2017:Changes in the defined benefit obligation as at 31 March 2017:Changes in the defined benefit obligation as at 31 March 2017:

Defined benefitDefined benefitDefined benefitDefined benefitDefined benefit Defined benefitDefined benefitDefined benefitDefined benefitDefined benefitobligationsobligationsobligationsobligationsobligations obligationsobligationsobligationsobligationsobligations

(31 March 2017)(31 March 2017)(31 March 2017)(31 March 2017)(31 March 2017) (31 March 2016)(31 March 2016)(31 March 2016)(31 March 2016)(31 March 2016)

Opening Defined benefit obligationsOpening Defined benefit obligationsOpening Defined benefit obligationsOpening Defined benefit obligationsOpening Defined benefit obligations 977.02 913.66Service Cost 128.39 140.45Net interest expense 65.90 66.31

Gratuity cost charged to consolidated statement of profit and lossGratuity cost charged to consolidated statement of profit and lossGratuity cost charged to consolidated statement of profit and lossGratuity cost charged to consolidated statement of profit and lossGratuity cost charged to consolidated statement of profit and loss 194.29194.29194.29194.29194.29 206.76206.76206.76206.76206.76

Return on plan assets (excluding amounts included in net interest expense)Actuarial changes arising from changes in demographic assumptions (1.82) (4.43)

Actuarial changes arising from changes in financial assumptions 39.26 4.59

Experience adjustments (28.30) (61.95)

Remeasurement gain/(loss) in other comprehensive incomeRemeasurement gain/(loss) in other comprehensive incomeRemeasurement gain/(loss) in other comprehensive incomeRemeasurement gain/(loss) in other comprehensive incomeRemeasurement gain/(loss) in other comprehensive income 9.149.149.149.149.14 (61.79)(61.79)(61.79)(61.79)(61.79)Contribution by employerBenefits paid (63.16) (81.61)

Closing Defined benefit obligations*Closing Defined benefit obligations*Closing Defined benefit obligations*Closing Defined benefit obligations*Closing Defined benefit obligations* 1,117.291,117.291,117.291,117.291,117.29 977.02977.02977.02977.02977.02

*excluding liability amounts for employees transferred from group companies amounting to Rs. 4.45 lacs

171

Amount recognised in the consolidated statement of profit or loss is as under:Amount recognised in the consolidated statement of profit or loss is as under:Amount recognised in the consolidated statement of profit or loss is as under:Amount recognised in the consolidated statement of profit or loss is as under:Amount recognised in the consolidated statement of profit or loss is as under:


Current service cost 128.39 140.45Net interest expense 65.90 66.31

Amount recognised in the statement of profit or lossAmount recognised in the statement of profit or lossAmount recognised in the statement of profit or lossAmount recognised in the statement of profit or lossAmount recognised in the statement of profit or loss 194.29194.29194.29194.29194.29 206.76206.76206.76206.76206.76

Amount recognised in Other comprehensive income is as under:Amount recognised in Other comprehensive income is as under:Amount recognised in Other comprehensive income is as under:Amount recognised in Other comprehensive income is as under:Amount recognised in Other comprehensive income is as under:


Actuarial gain/(loss) arising from changes in demographic assumption (1.82) (4.43)Actuarial gain/(loss) arising from changes in financial assumption 39.26 4.59Experience adjustments (28.30) (61.95)

Amount recognised in Other comprehensive incomeAmount recognised in Other comprehensive incomeAmount recognised in Other comprehensive incomeAmount recognised in Other comprehensive incomeAmount recognised in Other comprehensive income 9.14 9.14 9.14 9.14 9.14 (61.79)(61.79)(61.79)(61.79)(61.79)

The principal assumptions used in determining gratuity for the GroupThe principal assumptions used in determining gratuity for the GroupThe principal assumptions used in determining gratuity for the GroupThe principal assumptions used in determining gratuity for the GroupThe principal assumptions used in determining gratuity for the Group’s plans are shown below:’s plans are shown below:’s plans are shown below:’s plans are shown below:’s plans are shown below:


Discount rate 6.90% 7.80%Future salary increase 7.50% 7.50%

Sensitivity analysis for gratuity liability:Sensitivity analysis for gratuity liability:Sensitivity analysis for gratuity liability:Sensitivity analysis for gratuity liability:Sensitivity analysis for gratuity liability:


Impact of the change in Discount rateImpact of the change in Discount rateImpact of the change in Discount rateImpact of the change in Discount rateImpact of the change in Discount rate(a) Impact due to increase of 0.5% 1,052.86 873.37(b) Impact due to decrease of 0.5% 1,100.88 915.85

Impact of the change in Salary increaseImpact of the change in Salary increaseImpact of the change in Salary increaseImpact of the change in Salary increaseImpact of the change in Salary increase(a) Impact due to increase of 0.5% 1,100.63 915.80(b) Impact due to decrease of 0.5% 1,052.88 873.22

The sensitivity analysis above have been determined based on a method that extrapolates the impact on definedbenefit obligation as a result of reasonable changes in key assumptions occurring at the reporting period.

The following payments are expected contributions to the defined benefit plan in future years:The following payments are expected contributions to the defined benefit plan in future years:The following payments are expected contributions to the defined benefit plan in future years:The following payments are expected contributions to the defined benefit plan in future years:The following payments are expected contributions to the defined benefit plan in future years:


Within the next 12 months (next annual reporting period) 34.54 32.71

TTTTTotal expected paymentsotal expected paymentsotal expected paymentsotal expected paymentsotal expected payments 34.5434.5434.5434.5434.54 32.7132.7132.7132.7132.71

The average duration of the defined benefit plan obligation at the end of the reporting period is 4.44 years.


172

NONONONONOTE 44 : FAIR VTE 44 : FAIR VTE 44 : FAIR VTE 44 : FAIR VTE 44 : FAIR VALALALALALUE MEASUREMENTUE MEASUREMENTUE MEASUREMENTUE MEASUREMENTUE MEASUREMENT

a.a.a.a.a. FFFFFinancial instruments by categoryinancial instruments by categoryinancial instruments by categoryinancial instruments by categoryinancial instruments by category


FVTPLFVTPLFVTPLFVTPLFVTPL AmortisedAmortisedAmortisedAmortisedAmortised FVTPLFVTPLFVTPLFVTPLFVTPL AmortisedAmortisedAmortisedAmortisedAmortised FVTPLFVTPLFVTPLFVTPLFVTPL AmortisedAmortisedAmortisedAmortisedAmortisedCostCostCostCostCost CostCostCostCostCost CostCostCostCostCost

FFFFFinancial Assetsinancial Assetsinancial Assetsinancial Assetsinancial AssetsInvestments in equity instruments 3.60 3.60 3.60Trade Receivables — 4,677.22 — 4,164.00 — 4,110.52Loans — 25,356.33 — 21,722.47 — 20,141.39Security Deposits — 616.66 — 692.50 — 696.64Margin money deposits — 1,334.53 — 295.44 — 549.17Interest Accrued — 136.42 — 288.86 — 236.90Finance lease receivable — 954.69 — 954.87 — 955.03Cash and Cash Equivalents — 6,762.39 — 1,951.65 — 6,633.28Subsidy receivable — 93.89 — 133.16 — 125.85Recoverable from related parties — 10,715.45 — 7,691.23 — 5,215.90Others 686.93 — 1,164.77 — 996.20

TTTTTotal Fotal Fotal Fotal Fotal Financial Assetsinancial Assetsinancial Assetsinancial Assetsinancial Assets 3.603.603.603.603.60 51,334.5151,334.5151,334.5151,334.5151,334.51 3.603.603.603.603.60 39,058.9539,058.9539,058.9539,058.9539,058.95 3.603.603.603.603.60 39,660.88 39,660.88 39,660.88 39,660.88 39,660.88

FFFFFinancial Liabilitiesinancial Liabilitiesinancial Liabilitiesinancial Liabilitiesinancial LiabilitiesBorrowings — 129,623.07 — 116,219.13 — 116,929.39Security Deposits — 272.29 — 238.92 — 96.86Trade Payables — 4,051.07 — 2,683.14 — 3,166.72Other Current Financial Liabilities — 6,257.21 — 6,952.89 — 5,960.12Other non current Financial Liabilities — 108.47 — 105.65 — 100.90

TTTTTotal Fotal Fotal Fotal Fotal Financial Liabilitiesinancial Liabilitiesinancial Liabilitiesinancial Liabilitiesinancial Liabilities — 140,312.11140,312.11140,312.11140,312.11140,312.11 — 126,199.73126,199.73126,199.73126,199.73126,199.73 — 126,253.99126,253.99126,253.99126,253.99126,253.99

Note: The financial assets above do not include investments in joint ventures which are measured at cost inaccordance with Ind AS 101, Ind AS 27 and Ind AS 28.

b.b.b.b.b. FFFFFair value measurement hierarchy for assets and liabilitiesair value measurement hierarchy for assets and liabilitiesair value measurement hierarchy for assets and liabilitiesair value measurement hierarchy for assets and liabilitiesair value measurement hierarchy for assets and liabilities

FFFFFair value measurementair value measurementair value measurementair value measurementair value measurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date under current market conditionsThe Group categorizes assets and liabilities measured at fair value into one of three levels depending on theability to observe inputs employed in their measurement which are described as follows:

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

ii) Lii) Lii) Lii) Lii) Level 2evel 2evel 2evel 2evel 2Inputs are inputs that are observable, either directly or indirectly, other than quoted prices included withinlevel 1 for the asset or liability.

iii) Liii) Liii) Liii) Liii) Level 3evel 3evel 3evel 3evel 3Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observablerelated market data or Group’s assumptions about pricing by market participants.The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities:

173

FFFFFinancial assets and liabilities measured at fair valueinancial assets and liabilities measured at fair valueinancial assets and liabilities measured at fair valueinancial assets and liabilities measured at fair valueinancial assets and liabilities measured at fair value


LLLLLevel 1evel 1evel 1evel 1evel 1 LLLLLevel 2evel 2evel 2evel 2evel 2 LLLLLevel 3evel 3evel 3evel 3evel 3 TTTTTotalotalotalotalotal

FFFFFinancial assetsinancial assetsinancial assetsinancial assetsinancial assetsFFFFFinancial investments as FVTPLinancial investments as FVTPLinancial investments as FVTPLinancial investments as FVTPLinancial investments as FVTPLUnquoted equity instruments — 3.60 — 3.60





FFFFFinancial assets and liabilities measured at amortised cost for which fair values are disclosedinancial assets and liabilities measured at amortised cost for which fair values are disclosedinancial assets and liabilities measured at amortised cost for which fair values are disclosedinancial assets and liabilities measured at amortised cost for which fair values are disclosedinancial assets and liabilities measured at amortised cost for which fair values are disclosed



— — 37,643.1337,643.1337,643.1337,643.1337,643.13 37,643.1337,643.1337,643.1337,643.1337,643.13FFFFFinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesLong Term Borrowings — — 129,623.07 129,623.07Security Deposits — — 272.29 272.29

— — 129,895.36129,895.36129,895.36129,895.36129,895.36 129,895.36129,895.36129,895.36129,895.36129,895.36



————— ————— 31,061.0731,061.0731,061.0731,061.0731,061.07 31,061.0731,061.0731,061.0731,061.0731,061.07FFFFFinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesLong Term Borrowings — — 116,219.13 116,219.13Security Deposits — — 238.92 238.92

— — 116,458.05116,458.05116,458.05116,458.05116,458.05 116,458.05 116,458.05 116,458.05 116,458.05 116,458.05


174



————— ————— 27,008.96 27,008.96 27,008.96 27,008.96 27,008.96 27,008.9627,008.9627,008.9627,008.9627,008.96FFFFFinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesinancial liabilitiesLong Term Borrowings — — 116,929.39 116,929.39Security Deposits — — 96.86 96.86

— — 117,026.25117,026.25117,026.25117,026.25117,026.25 117,026.25117,026.25117,026.25117,026.25117,026.25

c.c.c.c.c. FFFFFair value of financial assets and liabilities measured at amortised costair value of financial assets and liabilities measured at amortised costair value of financial assets and liabilities measured at amortised costair value of financial assets and liabilities measured at amortised costair value of financial assets and liabilities measured at amortised costi . The management assessed that fair values of cash and cash equivalents, trade receivables, trade payables,

bank overdrafts, Interest accrued on bank deposits with banks, other current financial assets and othercurrent financial liabilities approximates their carrying amounts largely due to the short-term maturities ofthese instruments.

ii The fair values of loans, security deposits, borrowings and other financial assets and liabilities are consideredto be the same as their fair values, as there is an immaterial change in the lending rates.

NONONONONOTE 45 : FINANCIAL RISK MANATE 45 : FINANCIAL RISK MANATE 45 : FINANCIAL RISK MANATE 45 : FINANCIAL RISK MANATE 45 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIESGEMENT OBJECTIVES AND POLICIESGEMENT OBJECTIVES AND POLICIESGEMENT OBJECTIVES AND POLICIESGEMENT OBJECTIVES AND POLICIES

The Group’s principal financial liabilities comprise loans and borrowings, trade and other payables. The mainpurpose of these financial liabilities is to finance the Group’s operations and to support its operations. TheGroup’s financial assets include loans, trade and other receivables, and cash & cash equivalents that derivedirectly from its operations.

The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees themanagement of these risks. The Group’s senior management is supported by a financial risk committee thatadvises on financial risks and the appropriate financial risk governance framework for the Group. This financialrisk committee provides assurance to the Group’s senior management that the Group’s financial risk activitiesare governed by appropriate policies and procedure and that financial risks are identified, measured andmanaged in accordance with the Group’s policies and risk objectives. The Board of Directors reviews and agreespolicies for managing each risk, which are summarised as below:

Market riskMarket riskMarket riskMarket riskMarket riskMarket risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because ofchanges in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and otherprice risks. Financial instruments affected by market risk include loans and borrowings, deposits and payables/receivables in foreign currencies.

Interest rate riskInterest rate riskInterest rate riskInterest rate riskInterest rate riskInterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate becauseof changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relatesprimarily to the Group’s long term debt obligations with floating interest rates. The Group is carrying its borrowingsprimarily at variable rate. The Group expects the variable rate to decline, accordingly the Group is currentlycarrying its loans at variable interest rates.

175

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 01 April 201501 April 201501 April 201501 April 201501 April 2015

Variable rate borrowings 129,188.07 115,869.13 116,929.39Fixed rate borrowings 435.00 350.00 —

Interest rate sensitivityInterest rate sensitivityInterest rate sensitivityInterest rate sensitivityInterest rate sensitivityThe following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion ofloans and borrowings affected. With all other variable held constant, the Group’s profit before tax is affected throughthe impact on floating rate borrowings, as follows:

Effect on P Effect on P Effect on P Effect on P Effect on Profit before taxrofit before taxrofit before taxrofit before taxrofit before tax


Increase by 50 basis points (31 March 2016: 50 bps) 645.94 579.35Decrease by 50 basis points (31 March 2016: 50 bps) (645.94) (579.35)

FFFFForeign currency risksoreign currency risksoreign currency risksoreign currency risksoreign currency risksForeign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changesin foreign exchange rates. The Group’s exposure in foreign currency is in loans, debtors and advances denominatedin foreign currency. The Group is not restricting its exposure of risk in change in exchange rates. The Group expectsthe Indian Rupee to strengthen and accordingly the Group is carrying the risk of change in exchange rates.


TTTTTrade creditorsrade creditorsrade creditorsrade creditorsrade creditors-USD 0.13 0.14 0.15AdvancesAdvancesAdvancesAdvancesAdvances-USD 0.10 0.57 0.90

31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 01 April 2015 01 April 2015 01 April 2015 01 April 2015 01 April 2015

FDRFDRFDRFDRFDR-USD 3.16 3.16 3.16EEFC Bank BalanceEEFC Bank BalanceEEFC Bank BalanceEEFC Bank BalanceEEFC Bank Balance-USD 1.07 0.34 1.04Unsecured loansUnsecured loansUnsecured loansUnsecured loansUnsecured loans-USD 76.00 76.00 —Secured loansSecured loansSecured loansSecured loansSecured loans-USD 187.60 211.56 230.81

FFFFForeign currency sensitivityoreign currency sensitivityoreign currency sensitivityoreign currency sensitivityoreign currency sensitivityThe following table demonstrate the sensitivity to a reasonably possible change in USD-INR exchange rates, with allother variables held constant. The impact on the Group’s profit before tax is due to changes in the fair value ofmonetary assets and liabilities. The Group’s exposure to foreign currency changes for all other currencies is notmaterial.

Effect on profit before tax*Effect on profit before tax*Effect on profit before tax*Effect on profit before tax*Effect on profit before tax*

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 01 April 2015 01 April 2015 01 April 2015 01 April 2015 01 April 2015USD SensitivityUSD SensitivityUSD SensitivityUSD SensitivityUSD SensitivityIncrease by 5% (31 March 2016 - 5%) (840.96) (940.70) (706.84)Decrease by 5% (31 March 2016 - 5%) 840.96 940.70 706.84

*In accordance with exemption allowed under Ind AS 101, the Group capitalises exchange differences arising on longterm foreign currency monetary items. Accordingly, the profit before tax will not be impacted to that extent.


176

Credit riskCredit riskCredit riskCredit riskCredit riskCredit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables)and from its financing activities, including loans to related parties, deposits with banks and financial institutions,foreign exchange transactions and other financial instruments.

(a) T(a) T(a) T(a) T(a) Trade receivablesrade receivablesrade receivablesrade receivablesrade receivablesCustomer credit risk is managed by each business location subject to the Group’s established policy, procedures andcontrol relating to customer credit risk management. Credit quality of a customer is assessed and individual creditlimits are defined in accordance with the assessment both in terms of number of days and amount.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, alarge number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assetsdisclosed in Note 9. The Group does not hold collateral as security.

(b) F(b) F(b) F(b) F(b) Financial instruments and cash depositsinancial instruments and cash depositsinancial instruments and cash depositsinancial instruments and cash depositsinancial instruments and cash depositsCredit risk from balances with banks and financial institutions is managed by the Group’s treasury department inaccordance with the Group’s policy. Investment of surplus funds are made only with approved counterparties andwithin credit limits assigned to each counterparty. The Group’s maximum exposure to credit risk for the componentsof the balance sheet at 31 March 2017 and 31 March 2016 is the carrying amount as illustrated in Note 9.

Gross carrying amount of trade receivablesGross carrying amount of trade receivablesGross carrying amount of trade receivablesGross carrying amount of trade receivablesGross carrying amount of trade receivables

AgeingAgeingAgeingAgeingAgeing 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 01 April 201501 April 201501 April 201501 April 201501 April 2015

Not due 694.60 584.98 488.570-60 days past due 2,832.78 2,216.98 2,131.1861-120 days past due 625.86 500.67 441.07121-180 days past due 240.74 272.82 167.96180-365 days past due 182.02 326.08 275.75365-730 days past due 581.23 593.16 519.48more than 730 days 393.59 333.68 285.15

PPPPProvision for doubtful debtsrovision for doubtful debtsrovision for doubtful debtsrovision for doubtful debtsrovision for doubtful debts


Not due — — —0-60 days past due — — —61-120 days past due — — —121-180 days past due — — 0.49180-365 days past due 13.49 40.84 33.36more than 365 days 860.11 623.52 164.78

Reconciliation of provision for doubtful debts - TReconciliation of provision for doubtful debts - TReconciliation of provision for doubtful debts - TReconciliation of provision for doubtful debts - TReconciliation of provision for doubtful debts - Trade receivablesrade receivablesrade receivablesrade receivablesrade receivables


PPPPProvision at beginningrovision at beginningrovision at beginningrovision at beginningrovision at beginning 664.37 198.64Addition during the year 212.03 474.50Reversal during the year (2.80) (8.77)Utilised during the year — —PPPPProvision at closingrovision at closingrovision at closingrovision at closingrovision at closing 873.60873.60873.60873.60873.60 664.37664.37664.37664.37664.37

177

Reconciliation of provision for doubtful debts - LReconciliation of provision for doubtful debts - LReconciliation of provision for doubtful debts - LReconciliation of provision for doubtful debts - LReconciliation of provision for doubtful debts - Loans and depositsoans and depositsoans and depositsoans and depositsoans and deposits 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

PPPPProvision at beginningrovision at beginningrovision at beginningrovision at beginningrovision at beginning 682.09 144.82Addition during the year* 166.71 537.27Reversal during the year — —Utilised during the year — —PPPPProvision at closingrovision at closingrovision at closingrovision at closingrovision at closing 848.80848.80848.80848.80848.80 682.09 682.09 682.09 682.09 682.09

*Includes amount of Rs. 223.97 lacs representinf share of loss of joint venture which has been adjusted from theprovision amount

Liquidity riskLiquidity riskLiquidity riskLiquidity riskLiquidity riskThe Group monitors its risk of a shortage of funds by estimating the future cash flows. The Group’s objective is tomaintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash creditfacilities and bank loans. The Group assessed the concentration of risk with respect to refinancing its debt andconcluded it to be low. The Group has access to a sufficient variety of sources of funding and debt maturity within 12months can be rolled over with existing lenders. The Group had access to the following undrawn borrowing facilitiesat the end of the reporting periods -


Floating rateFloating rateFloating rateFloating rateFloating rate

(a)(a)(a)(a)(a) Expiring within one yearExpiring within one yearExpiring within one yearExpiring within one yearExpiring within one year(Bank overdraft and other facilities)(Bank overdraft and other facilities)(Bank overdraft and other facilities)(Bank overdraft and other facilities)(Bank overdraft and other facilities)SecuredSecuredSecuredSecuredSecured-Cash credit facilities 1,676.11 65.40 87.47-Short term loans 127.90 73.01 2.63UnsecuredUnsecuredUnsecuredUnsecuredUnsecured-Cash credit facilities — 22.71 18.12-Short term loans 259.35 265.33 —-Buyer’s credit — — 21.90

(b)(b)(b)(b)(b) Expiring beyond one year (Bank loans)Expiring beyond one year (Bank loans)Expiring beyond one year (Bank loans)Expiring beyond one year (Bank loans)Expiring beyond one year (Bank loans)SecuredSecuredSecuredSecuredSecured-Rupees term loan from banks 6,250.00 4,275.00 35,065.25


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NONONONONOTE 46: RELATE 46: RELATE 46: RELATE 46: RELATE 46: RELATED PARTY DISCLTED PARTY DISCLTED PARTY DISCLTED PARTY DISCLTED PARTY DISCLOSURESOSURESOSURESOSURESOSURES

a)a)a)a)a) Name of related parties and their relationship:Name of related parties and their relationship:Name of related parties and their relationship:Name of related parties and their relationship:Name of related parties and their relationship:

Key managerial personnel Dr. Jyotsna Suri, Chairperson & Managing DirectorMs. Deeksha Suri, Executive DirectorMs. Divya Suri Singh, Executive DirectorMr. Keshav Suri, Executive DirectorMr. Ramesh Suri (Non-Executive Director)Mr. Hanuwant Singh (Non-Executive Director)Mr. M.Y. Khan (Non-Executive Director)Mr. Lalit Bhasin (Non-Executive Director)Mr. D V Batra (Non-Executive Director)Mr. Vinod Khanna (Non-Executive Director)Mr. Abhay N. Firodia ( Non-Executive Director)Mr. Chakor Lal Doshi ( Non-Executive Director)Mr. Narindra Batra( Non-Executive Director)

Joint ventures Kujjal Builders Private LimitedCavern Hotel and Resort FZCO

Enterprises owned or significantly Deeksha Holding Limited (DHL)influenced by key management Deeksha Human Resource Initiatives Limited (DHRIL)personnel or their relatives and Jyotsna Holding Private Limitedwith whom transactions have Mercantile Capital & Financial Services Private Limitedtaken place during the year: Prima Telecom Limited

Prima Realtors Private LimitedPremium Farm Fresh Produce LimitedPremium Exports LimitedResponsible Builders Private LimitedRohan Motors LimitedSpecial Protection Services Private LimitedSubros LimitedPremium Holdings LimitedFIBCOM India LimitedGlobal Autotech LimitedGrand Hotel & Investments LimitedPrima Telecom LimitedL P Hospitality Private LimitedCargo Hospitality Private LimitedIT Sounds Chics Pvt LtdKronokare Cosmetics Pvt LtdCargo Motors Delhi Private LimitedCargo Motors Private LimitedCargo Motors Rajasthan Private LimitedBhasin & CompanyMr. Jayant Nanda

b) Loans made to the joint venture of subsidiaries are on mutually agreed terms.c) The sales and purchase from related parties are made on terms equivalent to those that prevail in arm’s

length transactions. Outstanding balance at the year-end are unsecured and interest free and settlementoccurs in cash.

d) The short term loans facilities (as discussed in note 23) from bank availed by the Company have beensecured by way of guarantee given by Premium Holding Limited.

e) The guarantees amounting to Rs. 11,650.00 lacs (31 March 2016: Rs. 15,500.00 lacs, 1 April 2015: Rs.15,500.00 lacs) given by the Company for the related parties are given in the ordinary course of businessand related parties have provided counter guarantees for such guarantees.


180

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181

g)g)g)g)g) Related party transactions Related party transactions Related party transactions Related party transactions Related party transactions

The following tables provides the total amount of transactions that have been entered into with related parties for therelevant financial year.

(i) K(i) K(i) K(i) K(i) Key management personneley management personneley management personneley management personneley management personnel31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

DrDrDrDrDr. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri- Short term employee benefits 84.00 84.00- Post employee benefits 3.14 (2.30)-Lease rent paid 34.48 34.17-Interest paid on deposits 92.09 29.65-Corporate Guarantees Given/ (received) (538.47) (3,705.10)-Director’s sitting fees 0.95 0.40-Loan (received) (1,252.00) (7,520.00)-Loan repaid 1,200.00 7,170.00-Sale of goods/ services 23.63 13.88

Ms. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha Suri- Short term employee benefits 72.00 72.00- Post employee benefits 4.48 (1.53)-Lease rent paid 17.00 12.00

Ms. Divya SuriMs. Divya SuriMs. Divya SuriMs. Divya SuriMs. Divya Suri- Short term employee benefits 72.00 72.00- Post employee benefits 4.27 (2.00)-Lease rent paid 17.00 12.00

MrMrMrMrMr. K. K. K. K. Keshav Surieshav Surieshav Surieshav Surieshav Suri- Short term employee benefits 72.00 72.00- Post employee benefits 3.94 (1.82)-Director’s sitting fees 1.15 0.60

MrMrMrMrMr. Hanuwant Singh (Non-Executive Director). Hanuwant Singh (Non-Executive Director). Hanuwant Singh (Non-Executive Director). Hanuwant Singh (Non-Executive Director). Hanuwant Singh (Non-Executive Director)-Sitting fee 5.20 3.70

MrMrMrMrMr. M. Y. M. Y. M. Y. M. Y. M. Y. Khan (Non-Executive Director). Khan (Non-Executive Director). Khan (Non-Executive Director). Khan (Non-Executive Director). Khan (Non-Executive Director)-Sitting fee 2.10 1.60

MrMrMrMrMr. L. L. L. L. Lalit Bhasin (Non-Executive Director)alit Bhasin (Non-Executive Director)alit Bhasin (Non-Executive Director)alit Bhasin (Non-Executive Director)alit Bhasin (Non-Executive Director)-Sitting fee 3.75 2.56

MrMrMrMrMr. D V Batra (Non-Executive Director). D V Batra (Non-Executive Director). D V Batra (Non-Executive Director). D V Batra (Non-Executive Director). D V Batra (Non-Executive Director)-Sitting fee 1.10 1.20

MrMrMrMrMr. Vinod Khanna (Non-Executive Director). Vinod Khanna (Non-Executive Director). Vinod Khanna (Non-Executive Director). Vinod Khanna (Non-Executive Director). Vinod Khanna (Non-Executive Director)-Sitting fee 0.40 0.60

MrMrMrMrMr. Abhay N. Abhay N. Abhay N. Abhay N. Abhay N. F. F. F. F. Firodia ( Non-Executive Director)irodia ( Non-Executive Director)irodia ( Non-Executive Director)irodia ( Non-Executive Director)irodia ( Non-Executive Director)-Sitting fee — 0.20


182

MrMrMrMrMr. Chakor L. Chakor L. Chakor L. Chakor L. Chakor Lal Chand Doshi ( Non-Executive Director)al Chand Doshi ( Non-Executive Director)al Chand Doshi ( Non-Executive Director)al Chand Doshi ( Non-Executive Director)al Chand Doshi ( Non-Executive Director)-Sitting fee 0.20 0.20

MrMrMrMrMr. Narinder Dhruv Batra ( Non-Executive Director). Narinder Dhruv Batra ( Non-Executive Director). Narinder Dhruv Batra ( Non-Executive Director). Narinder Dhruv Batra ( Non-Executive Director). Narinder Dhruv Batra ( Non-Executive Director)-Sitting fee 0.25 0.40

The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related tokey management personnel. The non-executive directors do not receive gratuity entitlements from the Group.

(ii)(ii)(ii)(ii)(ii) Relatives to KRelatives to KRelatives to KRelatives to KRelatives to Key management personneley management personneley management personneley management personneley management personnel

MrMrMrMrMr. Ramesh Suri. Ramesh Suri. Ramesh Suri. Ramesh Suri. Ramesh Suri-Director’s sitting fees 4.30 3.70

(iii) Joint ventures of subsidiaries(iii) Joint ventures of subsidiaries(iii) Joint ventures of subsidiaries(iii) Joint ventures of subsidiaries(iii) Joint ventures of subsidiaries 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016

KKKKKujjal Builders Pujjal Builders Pujjal Builders Pujjal Builders Pujjal Builders Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Services provided — 14.90-Loan provided/(received) (316.27) (331.00)-Loan provided 7,071.39 3,573.59-Sale of Fixed Asset — 1.27-Interest received 2,835.68 2,576.87-Sale of Fixed Asset — 1.27-Consultancy services provided 204.15 200.76-Reimbursement of expenses 290.53 37.93

(iv)(iv)(iv)(iv)(iv) T T T T Transaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:ransaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:ransaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:ransaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:ransaction with Enterprises owned or significantly influenced by key manageiral personnel or their relatives:

Deeksha Holding Limited (DHL)Deeksha Holding Limited (DHL)Deeksha Holding Limited (DHL)Deeksha Holding Limited (DHL)Deeksha Holding Limited (DHL)-Sale of goods / services 57.74 52.28-Purchase of goods 2.99 2.93-Lease rent paid 154.13 150.22-Interest paid 101.30 48.92-Maintenance charges received 8.48 8.37-Expenditure incurred by DHL and reimbursed by parent company 15.53 100.00-Loan (received) 80.00 990.00-Loan repaid — 220.00

Deeksha Human Resource Initiatives Limited (DHRIL)Deeksha Human Resource Initiatives Limited (DHRIL)Deeksha Human Resource Initiatives Limited (DHRIL)Deeksha Human Resource Initiatives Limited (DHRIL)Deeksha Human Resource Initiatives Limited (DHRIL)-Services received — 166.28-Expenditure incurred by DHRIL and reimbursed by parent company 0.09 155.02-Maintenance charges received — 7.91

Jyotsna Holding PJyotsna Holding PJyotsna Holding PJyotsna Holding PJyotsna Holding Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Lease rent paid 8.86 9.27-Security deposit refund received 3.36 —

Mercantile Capital & FMercantile Capital & FMercantile Capital & FMercantile Capital & FMercantile Capital & Financial Services Pinancial Services Pinancial Services Pinancial Services Pinancial Services Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Maintenance charges received 1.05 0.99

Grand Hotels & Investments LimitedGrand Hotels & Investments LimitedGrand Hotels & Investments LimitedGrand Hotels & Investments LimitedGrand Hotels & Investments Limited-Consultancy Services provided 157.20 177.64-Re-imbursement of expenses paid 134.26 53.65

183

PPPPPrima Trima Trima Trima Trima Telecom Limitedelecom Limitedelecom Limitedelecom Limitedelecom Limited-Sale of goods / services 1.01 0.71

Responsible Builders PResponsible Builders PResponsible Builders PResponsible Builders PResponsible Builders Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Maintenance charges received 4.80 4.73

PPPPPremium Exports Limitedremium Exports Limitedremium Exports Limitedremium Exports Limitedremium Exports Limited-Lease rent paid 2.70 2.70-Security deposit paid — 0.08

Rohan Motors LimitedRohan Motors LimitedRohan Motors LimitedRohan Motors LimitedRohan Motors Limited-Sale of goods / services 5.35 6.39-Services received 1.12 6.09-Maintenance charges received 1.85 1.83Subros LimitedSubros LimitedSubros LimitedSubros LimitedSubros Limited-Sale of goods / services 90.84 123.51Maintenance charges received 21.86 17.67

FIBCOM India LimitedFIBCOM India LimitedFIBCOM India LimitedFIBCOM India LimitedFIBCOM India Limited-Maintenance charges received 1.35 0.73PPPPPremium Holdings Limitedremium Holdings Limitedremium Holdings Limitedremium Holdings Limitedremium Holdings Limited-Guarantee (received) — (11,083.92)

L P Hospitality PL P Hospitality PL P Hospitality PL P Hospitality PL P Hospitality Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Consultancy Services — 9.16

Cargo Hospitality PCargo Hospitality PCargo Hospitality PCargo Hospitality PCargo Hospitality Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Sale of fixed asset — 4,700.00-Loan (received) 300.00 —

IT Sounds Chics Pvt LtdIT Sounds Chics Pvt LtdIT Sounds Chics Pvt LtdIT Sounds Chics Pvt LtdIT Sounds Chics Pvt Ltd-Purchase of goods 19.25 29.85

Kronokare Cosmetics Pvt LtdKronokare Cosmetics Pvt LtdKronokare Cosmetics Pvt LtdKronokare Cosmetics Pvt LtdKronokare Cosmetics Pvt Ltd-Purchase of goods 857.89 125.65-Sale of Goods 64.22 47.61

Cargo Motors PCargo Motors PCargo Motors PCargo Motors PCargo Motors Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited-Sale of Goods 1.76 1.77

Bhasin & CoBhasin & CoBhasin & CoBhasin & CoBhasin & Co-Consultancy services received 4.20 4.20-Sale of Goods 3.38 10.27


184

(v) Balance outstanding at year end(v) Balance outstanding at year end(v) Balance outstanding at year end(v) Balance outstanding at year end(v) Balance outstanding at year end 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015

Joint ventures of Subsidiaries - ReceivablesJoint ventures of Subsidiaries - ReceivablesJoint ventures of Subsidiaries - ReceivablesJoint ventures of Subsidiaries - ReceivablesJoint ventures of Subsidiaries - ReceivablesKujjal Builders Private Limited 40,528.74 30,749.06 25,033.16

Enterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relatives- Receivables- Receivables- Receivables- Receivables- Receivables

Deeksha Holding Limited 37.51 27.97 15.56Deeksha Human Resource Initiatives Limited 0.93 1.61 0.92Mercantile Capital & Financial Services Private Limited 0.11 0.09 0.06Premium Farm Fresh Produce Limited — — 19.51Prima Telecom Limited 0.41 0.12 —Responsible Builders Private Limited 0.70 0.64 —Rohan Motors Limited 2.76 1.90 1.65Subros Limited 43.22 37.47 21.44FIBCOM India Limited 12.08 10.73 10.40Grand Hotels & Investments Limited 222.62 224.81 102.13LP Hospitality Pvt Ltd 19.72 19.72 —Cargo Motors Delhi Private Limited 103.97 103.97 103.97Cargo Motors Private Limited 36.02 34.90 45.14Cargo Motors Rajasthan Private Limited 3.15 3.15 3.15Jayant Nanda 10.66 — —Kronokare Cosmetics Pvt Ltd 8.26 7.64 —Bhasin & Company 16.48 15.03 13.70

KKKKKey management personnel - Pey management personnel - Pey management personnel - Pey management personnel - Pey management personnel - PayablesayablesayablesayablesayablesMs. Jyotsna Suri 621.28 348.40 3.47Ms. Divya Suri 23.54 0.90 —Ms. Deeksha Suri 29.99 0.90 —Mr. Keshav Suri 6.44 — —

Enterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relatives- P- P- P- P- Payablesayablesayablesayablesayables

Deeksha Holding Limited 1,138.70 1,303.51 0.89Deeksha Human Resource Initiatives Limited 157.01 153.63 49.28Jyotsna Holding Private Limited 0.07 0.79 0.07Responsible Builders Private Limited — — 0.23Rohan Motors Limited — 4.99 —FIBCOM India Limited — — —Premium Exports Limited 2.63 0.20 —Bhasin & Company 5.70 — 5.07Kronokare Cosmetics Pvt Ltd 11.44 5.72 2.23

185


(vi)(vi)(vi)(vi)(vi) Corporate Guarantee/undertaking outstanding:Corporate Guarantee/undertaking outstanding:Corporate Guarantee/undertaking outstanding:Corporate Guarantee/undertaking outstanding:Corporate Guarantee/undertaking outstanding:

Joint venture of SubsidiariesJoint venture of SubsidiariesJoint venture of SubsidiariesJoint venture of SubsidiariesJoint venture of Subsidiaries- Receivables- Receivables- Receivables- Receivables- ReceivablesKujjal Builders Private Limited 11,650.00 15,500.00 15,500.00

KKKKKey management personnel- Pey management personnel- Pey management personnel- Pey management personnel- Pey management personnel- PayablesayablesayablesayablesayablesDr. Jyotsna Suri (4,243.58) (3,705.10) —

Enterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relativesEnterprises owned or significantly influenced by key management personnel or their relatives- P- P- P- P- Payablesayablesayablesayablesayables

Premium Holdings Limited (11,387.09) (11,083.92) —

NONONONONOTE 47 :LALIT LOTE 47 :LALIT LOTE 47 :LALIT LOTE 47 :LALIT LOTE 47 :LALIT LOYYYYYALALALALALTY AND MEMBERSHIP PROGRAMMETY AND MEMBERSHIP PROGRAMMETY AND MEMBERSHIP PROGRAMMETY AND MEMBERSHIP PROGRAMMETY AND MEMBERSHIP PROGRAMME

(a) P(a) P(a) P(a) P(a) Points for Loints for Loints for Loints for Loints for Lalit Connectalit Connectalit Connectalit Connectalit Connect31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016


(b) P(b) P(b) P(b) P(b) Points for Loints for Loints for Loints for Loints for Lalit Plusalit Plusalit Plusalit Plusalit Plus 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016


(c) P(c) P(c) P(c) P(c) Points for Loints for Loints for Loints for Loints for Lalit Engagealit Engagealit Engagealit Engagealit Engage31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016


(d) Movement in provision(d) Movement in provision(d) Movement in provision(d) Movement in provision(d) Movement in provision 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016


(e) Movement in membership programme(e) Movement in membership programme(e) Movement in membership programme(e) Movement in membership programme(e) Movement in membership programme31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016



186

NONONONONOTE 48 : PREOPERATE 48 : PREOPERATE 48 : PREOPERATE 48 : PREOPERATE 48 : PREOPERATIVE EXPENDITURE PENDING ALLTIVE EXPENDITURE PENDING ALLTIVE EXPENDITURE PENDING ALLTIVE EXPENDITURE PENDING ALLTIVE EXPENDITURE PENDING ALLOCAOCAOCAOCAOCATIONTIONTIONTIONTION

31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016 01 April 2015 01 April 2015 01 April 2015 01 April 2015 01 April 2015

Balance as per last accountBalance as per last accountBalance as per last accountBalance as per last accountBalance as per last account 14,945.39 12,026.10 14,425.59Additions during the year:Additions during the year:Additions during the year:Additions during the year:Additions during the year:PPPPPersonnel expensesersonnel expensesersonnel expensesersonnel expensesersonnel expensesSalaries, wages and bonus 328.65 309.60 338.29Contribution to provident and other funds 14.66 13.70 15.73Staff welfare expenses 7.84 0.88 —

Depreciation/ amortizationDepreciation/ amortizationDepreciation/ amortizationDepreciation/ amortizationDepreciation/ amortization 25.99 26.31 26.57

Operating and other expensesOperating and other expensesOperating and other expensesOperating and other expensesOperating and other expensesConsultancy charges 6.75 50.32 24.91Consumption of stores, cutlery, crockery,linen, provisions and others 65.48 — —Lease rent 58.33 66.46 64.23Power and fuel 144.41 41.97 49.38Repair and maintenance- Buildings 0.73 0.50 0.15- Plant and machinery — — 1.60Rates and taxes 216.69 — 13.91Insurance 10.20 8.66 32.59Communication costs 1.77 — —Printing and stationery 4.73 0.39 1.48Traveling and conveyance 13.51 5.29 19.15Advertisement and business promotion 7.01 — 0.29Security and cleaning expenses (Sub contracting expenses) 78.67 46.18 39.69Membership and subscriptions 0.78 — —Professional fees 23.21 80.44 107.79Legal charges 23.02 18.65 11.40Freight and cartage 7.67 4.27 13.01Exchange difference (net) — 142.49 101.63Bank Charges 0.18 — —Miscellaneous expenses 42.91 27.32 62.31

FFFFFinancial expensesinancial expensesinancial expensesinancial expensesinancial expenses

Interest on term loan 1,714.44 2,151.98 2,975.24Bank charges 76.37 14.86 24.25

17,819.3917,819.3917,819.3917,819.3917,819.39 15,036.3715,036.3715,036.3715,036.3715,036.37 18,349.1918,349.1918,349.1918,349.1918,349.19

Less : Interest earned 5.34 9.79 56.69Less : Exchange difference (net) 39.36 — —Less : Expenditure transferred to fixed assets 5,587.10 81.19 6,266.40

Closing balanceClosing balanceClosing balanceClosing balanceClosing balance 12,187.59 12,187.59 12,187.59 12,187.59 12,187.59 14,945.3914,945.3914,945.3914,945.3914,945.39 12,026.1012,026.1012,026.1012,026.1012,026.10

187

NONONONONOTE 49 : DISTRIBUTION MADE AND PROPOSEDTE 49 : DISTRIBUTION MADE AND PROPOSEDTE 49 : DISTRIBUTION MADE AND PROPOSEDTE 49 : DISTRIBUTION MADE AND PROPOSEDTE 49 : DISTRIBUTION MADE AND PROPOSED

Cash dividends on equity shares declared and paid:Cash dividends on equity shares declared and paid:Cash dividends on equity shares declared and paid:Cash dividends on equity shares declared and paid:Cash dividends on equity shares declared and paid: 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2017 31 March 2016 31 March 2016 31 March 2016 31 March 2016 31 March 2016

Final dividend for the year ended on 31 March 2016:Rs. 0.75 per share (31 March 2015: Rs. 0.50 per share) 569.93 379.96

DDT on final dividend 116.03 77.35

685.96685.96685.96685.96685.96 457.31 457.31 457.31 457.31 457.31PPPPProposed dividends on Equity shares:roposed dividends on Equity shares:roposed dividends on Equity shares:roposed dividends on Equity shares:roposed dividends on Equity shares:Final cash dividend for the year ended on 31 March 2017:Rs. 1.00 per share (31 March 2016: Rs. 0.75 per share) 759.91 569.93DDT on proposed dividend 154.70 116.03

914.61914.61914.61914.61914.61 685.96 685.96 685.96 685.96 685.96

Proposed dividends (including DDT thereon) on equity shares are subject to approval at the annual generalmeeting and are not recognised as a liability as at 31 March 2017.

NONONONONOTE 50 : CAPITTE 50 : CAPITTE 50 : CAPITTE 50 : CAPITTE 50 : CAPITAL MANAAL MANAAL MANAAL MANAAL MANAGEMENTGEMENTGEMENTGEMENTGEMENT

For the purpose of the Group’s capital management, capital includes issued equity capital, share premium andall other equity reserves attributable to the equity holders of the Group. The primary objective of the Group’scapital management is to maximise the shareholder value.

The Group manages its capital structure and makes adjustments in light of changes in economic conditions andthe requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust thedividend payment to shareholders, return capital to shareholders or issue new shares. The Group monitorscapital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group’s policy is tokeep the gearing ratio between 30% and 50%. The Group includes within net debt, interest bearing loans andborrowings, trade payables, less cash and cash equivalents.


Borrowings (Note 18, 23 & 25) 129,623.07 116,219.13 116,929.39Trade payables (Note 24) 4,051.07 2,683.14 3,166.72Less: Cash and cash equivalents (Note 10) (6,762.39) (1,951.64) (6,633.28)

Net debtNet debtNet debtNet debtNet debt 126,911.75 126,911.75 126,911.75 126,911.75 126,911.75 116,950.63116,950.63116,950.63116,950.63116,950.63 113,462.83113,462.83113,462.83113,462.83113,462.83

Equity 93,427.34 95,751.83 100,244.25

Capital and net debtCapital and net debtCapital and net debtCapital and net debtCapital and net debt 220,339.09 220,339.09 220,339.09 220,339.09 220,339.09 212,702.46212,702.46212,702.46212,702.46212,702.46 213,707.08213,707.08213,707.08213,707.08213,707.08

Gearing ratio 58% 55% 53%

In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensurethat it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structurerequirements.

Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in thecurrent period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31March 2017 and 31 March 2016.


188

NONONONONOTE 51 : INTEREST IN JOINTTE 51 : INTEREST IN JOINTTE 51 : INTEREST IN JOINTTE 51 : INTEREST IN JOINTTE 51 : INTEREST IN JOINT-----VENTURESVENTURESVENTURESVENTURESVENTURES

The Group has a 50% & 16.67% interest in Kujjal Builders Private Limited and Cavern Hotels & Resorts Fz Co.respectively, joint ventures involved in business of operation of Hotels. The Group’s interest in the joint venturesis accounted for using the equity method in the consolidated financial statements. Summarised financial informationof the joint ventures, based on their Ind AS financial statements, and reconciliation with the carrying amount ofthe investment in consolidated financial statements are set out below:

Summarised Balance SheetSummarised Balance SheetSummarised Balance SheetSummarised Balance SheetSummarised Balance Sheet

PPPPParticularsarticularsarticularsarticularsarticulars KKKKKujjal Builders Pujjal Builders Pujjal Builders Pujjal Builders Pujjal Builders Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited Cavern Hotels & Resorts FZ Co.Cavern Hotels & Resorts FZ Co.Cavern Hotels & Resorts FZ Co.Cavern Hotels & Resorts FZ Co.Cavern Hotels & Resorts FZ Co.

31 March31 March31 March31 March31 March 31 March31 March31 March31 March31 March 01 April01 April01 April01 April01 April 31 March31 March31 March31 March31 March 31 March31 March31 March31 March31 March 01 April01 April01 April01 April01 April20172017201720172017 20162016201620162016 20152015201520152015 20172017201720172017 20162016201620162016 20152015201520152015

Total Current assets 1,142.57 1,109.19 893.49 2,159.88 2,210.33 2,076.95

Total non-current assets 44,084.94 45,735.30 47,639.08 4,852.65 4,965.43 4,665.27

Total Current liabilities (12,804.25) (10,705.76) (9,119.76) (2,109.21) (2,158.23) (2,027.76)

Total Non-current liabilities (41,335.76) (38,808.71) (35,778.00) (6,233.56) (6,378.43) (5,992.86)

Equity Share Capital (8,000.00) (8,000.00) (8,000.00) (65.20) (65.20) (65.20)

Reserve & SurplusReserve & SurplusReserve & SurplusReserve & SurplusReserve & Surplus (16,912.50)(16,912.50)(16,912.50)(16,912.50)(16,912.50) (10,669.98)(10,669.98)(10,669.98)(10,669.98)(10,669.98) (4,365.19)(4,365.19)(4,365.19)(4,365.19)(4,365.19) (1,395.44)(1,395.44)(1,395.44)(1,395.44)(1,395.44) (1,426.10)(1,426.10)(1,426.10)(1,426.10)(1,426.10) (1,343.60)(1,343.60)(1,343.60)(1,343.60)(1,343.60)

Proportion of the Group’sownership 50.00% 50.00% 50.00% 16.67% 16.67% 16.67%

Group’s share of loss* (8,456.25) 5,334.99) (2,182.60) (232.62) (237.73) (223.98)

*Loss for Cavern Hotels & Resorts FZ Co. has not been recognised for 2015-16 and 2016-17 since the Group’s share oflosses exceeds its interest in the joint venture.

Reconcilation to carrying amountsReconcilation to carrying amountsReconcilation to carrying amountsReconcilation to carrying amountsReconcilation to carrying amounts


31 March31 March31 March31 March31 March 31 March31 March31 March31 March31 March 01 April01 April01 April01 April01 April 31 March31 March31 March31 March31 March 31 March31 March31 March31 March31 March 01 April01 April01 April01 April01 April20172017201720172017 20162016201620162016 20152015201520152015 20172017201720172017 20162016201620162016 20152015201520152015

Gross investment in joint ventures 4,000.00 4,000.00 4,000.00 10.85 10.85 10.85Less: Provision for diminution — — — (10.85) (10.85) —

Net Investment in joint venturesNet Investment in joint venturesNet Investment in joint venturesNet Investment in joint venturesNet Investment in joint ventures 4,000.004,000.004,000.004,000.004,000.00 4,000.004,000.004,000.004,000.004,000.00 4,000.004,000.004,000.004,000.004,000.00 ————— ————— 10.8510.8510.8510.8510.85

Loan to joint ventures 29,812.59 23,057.46 19,817.25 678.03 678.03 678.03Less: Provision for doubtful loan — — — (454.05) (454.05) (140.76)Less: Share of loss for previous years — — — (223.98) (223.98) —

29,812.5929,812.5929,812.5929,812.5929,812.59 23,057.4623,057.4623,057.4623,057.4623,057.46 19,817.2519,817.2519,817.2519,817.2519,817.25 ————— ————— 537.27537.27537.27537.27537.27Group’s share of loss for the yearadjusted through investment (4,000.00) (4,000.00) (2,182.60) — — (10.85)Group’s share of loss for the yearadjusted through loans (4,456.25) (1,334.99) — — — (213.13)

Closing net investmentClosing net investmentClosing net investmentClosing net investmentClosing net investment ————— ————— 1,817.411,817.411,817.411,817.411,817.41 ————— ————— —————

Closing net loanClosing net loanClosing net loanClosing net loanClosing net loan 25,356.3425,356.3425,356.3425,356.3425,356.34 21,722.4721,722.4721,722.4721,722.4721,722.47 19,817.2519,817.2519,817.2519,817.2519,817.25 ————— ————— 324.14324.14324.14324.14324.14

189

Summarised statement of profit and lossSummarised statement of profit and lossSummarised statement of profit and lossSummarised statement of profit and lossSummarised statement of profit and loss


31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016 31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 201631 March 201631 March 201631 March 201631 March 2016

Revenue 3,554.76 3,434.88 — —

Interest and other income 197.30 170.06 — —

3,752.063,752.063,752.063,752.063,752.06 3,604.94 3,604.94 3,604.94 3,604.94 3,604.94 ————— —————

Cost of material consumed 606.43 640.02 — —

Employee benefits expense 797.99 786.78 — —

Depreciation and amortisation 2,050.30 2,057.12 — —

Other expenses 1,840.39 1,693.02 0.25 0.25

Finance cost 4,701.50 4,738.54 — —

LLLLLoss before taxoss before taxoss before taxoss before taxoss before tax (6,244.55)(6,244.55)(6,244.55)(6,244.55)(6,244.55) (6,310.54) (6,310.54) (6,310.54) (6,310.54) (6,310.54) (0.25) (0.25) (0.25) (0.25) (0.25) (0.25)(0.25)(0.25)(0.25)(0.25)

Income tax expense - —

LLLLLoss for the yeaross for the yeaross for the yeaross for the yeaross for the year (6,244.55) (6,310.54) (0.25) (0.25)

GroupGroupGroupGroupGroup’s share of loss for the year*’s share of loss for the year*’s share of loss for the year*’s share of loss for the year*’s share of loss for the year* (3,122.28)(3,122.28)(3,122.28)(3,122.28)(3,122.28) (3,155.27) (3,155.27) (3,155.27) (3,155.27) (3,155.27) — — — — —

Other comprehensive income 2.04 5.74 — —

TTTTTotal comprehensive incomeotal comprehensive incomeotal comprehensive incomeotal comprehensive incomeotal comprehensive income (6,242.51) (6,304.80) (0.25) (0.25)

GroupGroupGroupGroupGroup’s share of total comprehensive’s share of total comprehensive’s share of total comprehensive’s share of total comprehensive’s share of total comprehensiveincome for the year*income for the year*income for the year*income for the year*income for the year* (3,121.26)(3,121.26)(3,121.26)(3,121.26)(3,121.26) (3,152.40) (3,152.40) (3,152.40) (3,152.40) (3,152.40) ————— —————

*Loss for Cavern Hotels & Resorts FZ Co. has not been recognised for 2015-16 and 2016-17 since the Group’s share oflosses exceeds its interest in the joint venture.

52. SPECIFIED BANK NO52. SPECIFIED BANK NO52. SPECIFIED BANK NO52. SPECIFIED BANK NO52. SPECIFIED BANK NOTESTESTESTESTES

Details of Specified Bank Notes (SBN) held and transacted during the period 8 November 2016 to 30 December2016 are as provided in the table below:

PPPPParticularsarticularsarticularsarticularsarticulars SpecifiedSpecifiedSpecifiedSpecifiedSpecified OtherOtherOtherOtherOther TTTTTotalotalotalotalotalBank NotesBank NotesBank NotesBank NotesBank Notes denominationdenominationdenominationdenominationdenomination

notesnotesnotesnotesnotes

Closing cash in hand as on 8 November 2016Closing cash in hand as on 8 November 2016Closing cash in hand as on 8 November 2016Closing cash in hand as on 8 November 2016Closing cash in hand as on 8 November 2016 197.03 11.89 208.92

(+) Permitted receipts — 617.95 617.95

(-) Permitted payments — 219.28 219.28

(-) Amount deposited in banks 197.03 357.87 554.90

Closing cash in hand as on 30 December 2016Closing cash in hand as on 30 December 2016Closing cash in hand as on 30 December 2016Closing cash in hand as on 30 December 2016Closing cash in hand as on 30 December 2016 — 52.70 52.70


190

53.53.53.53.53. CONTINGENT LIABILITIES NOCONTINGENT LIABILITIES NOCONTINGENT LIABILITIES NOCONTINGENT LIABILITIES NOCONTINGENT LIABILITIES NOT PROT PROT PROT PROT PROVIDED FOR:VIDED FOR:VIDED FOR:VIDED FOR:VIDED FOR:

a)a)a)a)a) Income TIncome TIncome TIncome TIncome Tax Mattersax Mattersax Mattersax Mattersax Matters

Holding Company:Holding Company:Holding Company:Holding Company:Holding Company:

Assessment yearAssessment yearAssessment yearAssessment yearAssessment year Amount disputedAmount disputedAmount disputedAmount disputedAmount disputed


1988 - 89 to 2009-10 8,254.08 8,254.08 8,254.08

2011 - 12 to 2014-15 634.02 438.27 31.09

TTTTTotalotalotalotalotal 8,888.10 8,888.10 8,888.10 8,888.10 8,888.10 8,692.35 8,692.35 8,692.35 8,692.35 8,692.35 8,285.17 8,285.17 8,285.17 8,285.17 8,285.17

The above income tax matters include certain disallowances of expenses claimed by the Company andcertain other additions made by the assessing officers in respective years. These matters are pending withvarious judicial/appellate authorities including CIT(A), ITAT and High court. For some of the matters, judicial/appellate authorities have decided the cases in favor of the Company. However, these are being contestedagain by the Department of Income tax. Company believes that it has merit in these cases and it is onlypossible, but not probable, that these cases may be decided against the Company. Hence, these have beendisclosed as contingent liability and no provision for any liability has been deemed necessary in the financialstatements.

Subsidiary CompanySubsidiary CompanySubsidiary CompanySubsidiary CompanySubsidiary Company

Jyoti LimitedJyoti LimitedJyoti LimitedJyoti LimitedJyoti Limited

For the assessment years from 2005-06 to 2014-15, demand orders amounting to Rs. 1,918.76 lacs (31March 2016: Rs. 1,743.76 lacs; 01 April 2015: Rs. 1,596.49lacs) were passed against the company byrelevant assessing officers on account of difference between actual market rent of the property and thelicense fee received. Appeals and cross appeals were filed with various judicial/appellate authorities includingCIT(A) and ITAT. During the course of judicial proceedings, matters were decided in favor of the companyand demand was initially reduced to Rs. 201.08 lacs. The order was further contested by the company andthe demand has been finally reduced to Rs. Nil.

However, effect of the favorable orders to the demand of Rs. 201.08 lacs has not been passed by therelevant officers. Also, the department may file an appeal with High Court against such favorable order.

The management believes that it has merit in these cases and it is only possible, but not probable, that thesecases may be decided against the company. Hence, these have been disclosed as contingent liability and noprovision for any liability has been deemed necessary in the financial statements.

191

b)b)b)b)b) GuaranteesGuaranteesGuaranteesGuaranteesGuarantees

Holding CompanyHolding CompanyHolding CompanyHolding CompanyHolding Company

As atAs atAs atAs atAs at As atAs atAs atAs atAs at As atAs atAs atAs atAs at31 March 201731 March 201731 March 201731 March 201731 March 2017 3131313131 March 2016March 2016March 2016March 2016March 2016 0101010101 April 2015April 2015April 2015April 2015April 2015

i. Corporate guarantee given on behalf of asubsidiary to Customs for obtainingEPCG licenses 796.85796.85796.85796.85796.85 796.85 796.85

ii. Corporate guarantee given on behalf ofa subsidiary to bank for obtaining loan forconstruction of fixed assets 12,275.00 12,275.00 12,275.00 12,275.00 12,275.00 16,575.00 16,575.00

iii. Corporate guarantee given on behalf of aJoint venture of a subsidiary to bank for obtaining loan for construction of fixed assets. 11,650.00 11,650.00 11,650.00 11,650.00 11,650.00 15,500.00 15,500.00

c) Certain employees have filed cases in the courts/ legal forums against termination/ suspension andhave sought relief. The liability, if any, with respect to these claims is not currently ascertainable and inthe opinion of the management, would not have material effect on these financial statements.

d) Interest on delayed payment of lease management fees for one of the properties taken on lease, undera lease cum management contract, amounting to Rs. 72.28 lacs (31 March 2016: Rs. 182.63 lacs; 01April 2015: Rs. 182.63 lacs) is contingent in nature.

e) Interest on delayed payment of license fees under license arrangement amounting to Rs. 1,181.81 lacs(31 March 2016: Rs. 1,181.81 lacs; 01 April 2015: Rs. 1,181.81 lacs) is contingent in nature.

f) Demand by Custom Authorities against import of aircraft for Rs. 968.05 lacs (31 March 2016:Rs. 968.05 lacs; 01 April 2015: Rs. 968.05 lacs).

g) Demand of Service Tax, Service Tax amounting to Rs. 350.39 lacs (31 March 2016: Rs. 313.64 lacs; 01April 2015: Rs. 313.64 lacs).

h) A show cause notice has been issued by the Collector of Stamps, Udaipur in respect of stamp duty ontransfer of Laxmi Vilas Palace Hotel, the erstwhile unit of India Tourism Development CorporationLimited, based on valuation of Rs. 15,138.24 lacs which is being contested by the Company in theHigh Court of Jodhpur. Management believes, based on expert analysis, that no provision is requiredat this stage.

i) Municipal Council of Udaipur has raised a demand of Urban Development tax of Rs. 190.58 lacs forthe financial years 2007-08 to 2016-17. The demand has been challenged in the High Court ofJodhpur and as per the interim order passed by the court, the Company has paid Rs. 25.00 lacs for thesaid period. Management has based upon expert analysis, believes that no further provision is necessaryat this stage.

j) The Payment of Bonus (amendment) Act, 2015 enhanced the eligibility limit for payment of bonus ofemployees from Rs. 0.10 lacs per month to Rs. 0.21 lacs per month from the Financial Year 2014-15.The Company has estimated liability of Rs. 195.28 lacs for the financial year 2014-15. The aboveamendment has been stayed by various High Courts and the management, based on this, has notprovided for enhanced bonus for Financial Year 2014-15 in the books of accounts.


192

k) Claim received from a contractor not accepted by the Company amounting to Rs. 1,700.00 lacs (31March 2016: Rs. 1,700.00 lacs; 01 April 2015: NIL) against which the Company has given an advanceof Rs. 662.00 lacs.

l) Other Claims not acknowledged as debts – Rs. 195.95 lacs (31 March 2016: Rs. 278.08 lacs; 01 April2015: 277.79 lacs).

Subsidiary CompanySubsidiary CompanySubsidiary CompanySubsidiary CompanySubsidiary Company

Apollo Zipper India LimitedApollo Zipper India LimitedApollo Zipper India LimitedApollo Zipper India LimitedApollo Zipper India Limited

i) Contingent Liabilities not provided for:

PPPPParticularsarticularsarticularsarticularsarticulars As atAs atAs atAs atAs at As atAs atAs atAs atAs at As atAs atAs atAs atAs at31 March 201731 March 201731 March 201731 March 201731 March 2017 31 March 2016 01 April 2015

Export commitment against EPCG licenses obtained 7,318.94 7,318.94 7,318.94 7,318.94 7,318.94 7,318.94 7,318.94Duty payable if export commitment not met 960.26 960.26 960.26 960.26 960.26 960.26 960.26Service tax and VAT 34.41 34.41 34.41 34.41 34.41 — —

ii) During earlier years, Apollo Zipper had given certain portion of the premises to various entities andindividuals on rent. After acquisition by Bharat Hotels Limited, the renovation of the property wasinitiated, for which it was necessary to have the afore-mentioned rented out portions vacated. As at theend of current year, two tenants are yet to vacate the premises. The Kolkata High court has passedeviction order against one of the two tenants, who has filed appeal before the division bench. Thecompany is also negotiating the settlement with them and at this stage, it is not feasible to quantify theamount of settlement required, if any, and therefore, no amount has been accrued in this regard inthese financial statements.

Joint VJoint VJoint VJoint VJoint Venture Companyenture Companyenture Companyenture Companyenture Company

KKKKKujjal Builders Pujjal Builders Pujjal Builders Pujjal Builders Pujjal Builders Private Limitedrivate Limitedrivate Limitedrivate Limitedrivate Limited

i) Contingent Liabilities not provided for:


Export commitment against EPCG licenses obtained 5,239.54 5,239.54 5,239.54 5,239.54 5,239.54 5,239.54 6,539.71Duty payable if export commitment not met 678.97 678.97 678.97 678.97 678.97 678.97 844.79

ii) The Estate Officer, Chandigarh has raised a demand of Rs. 141.93 lacs against the company onaccount of service tax on lease rent paid/payable after April 1, 2010 to the Estate Office, Chandigarh.The company had filed a writ petition in the High Court of Punjab &Haryana against the said demand,which was disposed by the Hon’ble High Court of Punjab, and Haryana. The Hon’ble court orderedthat since the estate office is itself contesting the applicability of service tax on ground rent, the estateoffice should keep their demand of service tax and interest thereon from the company in abeyance tillthe matter between the estate office and department of Service Tax is finally decided. In the meantime,the company shall submit an irrevocable bank guarantee equivalent to the principal amount of servicetax to the estate office. Till date, the company has not received any information regarding adjudicationof the ongoing dispute between the Estate Office and Service Tax department.

193

iii) During the year 2013-2014, the company had received a demand notice for Rs. 18,750.00 lacs onaccount of delay in commencement of operations from Estate Office, Chandigarh which was laterreduced to Rs. 14,030.00 lacs by the Finance Secretary. As per the orders of the Finance Secretary, thecompany paid Rs.450.00 lacs under protest and the remaining has to be deposited within a year fromthe date of Partial Occupation Certificate. The company had filed writ petition with Hon’ble High Courtof Punjab & Haryana against the same demand. The Hon’ble Court has passed an order stating thatfurther amount shall remain stayed till the final decision. Management believes that no provision isrequired.

iv) A suit has been filed against the Hotel and its directors / officers, claiming damages of Rs. 50 lacs bythe parents of a guest who had died in the hotel premises. The damages have been claimed for allegednegligence of the hotel and its officers. The Company has contested the claim at Punjab and HaryanaHigh Court and the suit is at initial stage. The management believes that they have a strong case andno provision is required.

v) Guarantees:Guarantees:Guarantees:Guarantees:Guarantees:In respect of bank guarantees issued in favour of:


Customs Department for Export obligation 862.20 862.20 862.20 862.20 862.20 862.20 862.20

Estate Office, Chandigarh 330.03 330.03 330.03 330.03 330.03 330.03 330.03

Service Tax Department 0.50 0.50 0.50 0.50 0.50 0.50 0.50

5454545454 The Company has taken land on license of 99 years from New Delhi Municipal Corporation (NDMC) witheffect from March 11, 1981. The Company has constructed a Hotel and Commercial Towers on the abovementioned land. The Company is paying an annual license fee of Rs 145.00 lacs to the NDMC which issubject to revision after every 33 years provided that increase in license fees at each such time shall notexceed 100% of immediate previous license fees before the enhancement. During the current year, theCompany received a provisional demand of Rs. 19,877.73 lacs from NDMC which has been quashed andset aside by the Delhi High Court. The Delhi High Court further directed NDMC to raise the fresh ‘FinalBills’.

The Company has further sub-licensed the Commercial Towers and taken interest free security deposits(shown as deferred payment liabilities) from the occupants of space in World Trade Centre and World TradeTower at New Delhi. These deposits amounting to Rs 4,750.56 lacs (31 March 2016: Rs. 4,748.08 lacs; 01April 2015: 4,743.61 lacs) are refundable at the end of the license period which coincides with the end ofthe License period of Company’s agreement with New Delhi Municipal Corporation and are due to be paidon 10 March 2080.

These deposits have been recorded at the amortised cost as per the relevant measurement principles of IndAS and carried at Rs. 108.47 lacs (31 March 2016: Rs. 105.66 lacs; 01 April 2015: 100.89 lacs) under thehead “Other Non - Current Financial Liability.”

55.55.55.55.55. In accordance with the provisions of section 197(3) and Schedule V of the Companies Act 2013, theCompany had sought necessary approval from the Central Government for the payment of managerialremuneration to Directors of Rs. 474.64 lacs. However, during the year, Company has paid an amount ofRs. 300.00 lacs (including reimbursements for LTA & Medical) against the above as managerial remunerationand no further amount is payable to Directors on account of Managerial Remuneration.


194

56.56.56.56.56. As per the terms of the land allocation agreement of Ahmedabad property, the Company was required tocomplete the construction within two years from the date of allotment i.e. by 23 March 2010. During theprevious year, the Company had applied to the State Government of Gujarat for an extension of theconstruction period upto 19 June 2018. The management does not anticipate any problem in obtainingextension of the completion deadline for the project.

57.57.57.57.57. The Group has an investment of Rs. 4,000.00 lacs (31 March 2016: Rs. 4,000.00 lacs; 1 April 2015: Rs.4,000.00 lacs) and has also provided a loan of Rs. 29,812.59 lacs (31 March 2016: Rs. 23,057.46 lacs;1 April 2015: Rs. 19,817.25 lacs) to Kujjal Builders Private Limited (KBPL) which is a Joint Venture of theGroup with 50% shareholding. The Group has entered in to a Joint Venture for the hotel property atChandigarh. The audited financial statements of KBPL show accumulated losses of Rs. 16,912.50 lacs as at31 March 2017 (31 March 2016: Rs. 10,669.98 lacs; 1 April 2015: Rs. 4,365.19 lacs). Based on equitymethod of accounting, the Group’s 50% share of accumulated losses of the joint venture have been adjustedagainst investment by Rs. 4,000 lacs (31 March 2016 : Rs. 4,000.00 lacs; 1 April 2015: Rs. 2,182.60 lacs)and loan amount by Rs. 4,456.25 lacs (31 March 2016 : Rs. 1,334.99 lacs; 1 April 2015: Rs. Nil).

Based on future projections and considering value of assets held by the joint venture, the managementbelieves that the loan amount is fully recoverable. Also, the management may consider to convert the loangiven to KBPL into equity share capital after taking necessary approvals from the relevant authorities.Accordingly, no provision has been made there against in these financial statements.

58.58.58.58.58. Management has decided to sell a piece of land and initiated the process of identifying a potential buyer.Further, based on market survey, the management expects to sell it at a value more than its carrying value.Hence, the same has been accordingly disclosed as an asset held for sale at its carrying amount of Rs.1,618.77 lacs (31 March 2016: Rs. 1,618.77 lacs; 01 April 2015: Nil). Currently, the management isdiscussing with few potential buyers for the same and expects to materialize the sale.

59. Standards issued but not yet made effective59. Standards issued but not yet made effective59. Standards issued but not yet made effective59. Standards issued but not yet made effective59. Standards issued but not yet made effective In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards)

(Amendments) Rules, 2017, notifying amendment to Ind AS 7, ‘Statement of cash flows’. This amendmentis in accordance with the recent amendments made by International Accounting Standards Board (IASB) toIAS 7, Statement of cash flows. The amendment is applicable to the Group from 1 April 2017.

Amendment to Ind AS 7:Amendment to Ind AS 7:Amendment to Ind AS 7:Amendment to Ind AS 7:Amendment to Ind AS 7:The amendments to Ind AS 7 inter-alia require the entities to provide disclosures that enable users offinancial statements to evaluate changes in liabilities arising from financing activities, including both changesarising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the openingand closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosurerequirement

195

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196

NONONONONOTE 61 : IMPTE 61 : IMPTE 61 : IMPTE 61 : IMPTE 61 : IMPAIRMENT TESTING OF GOODAIRMENT TESTING OF GOODAIRMENT TESTING OF GOODAIRMENT TESTING OF GOODAIRMENT TESTING OF GOODWILWILWILWILWIL

For the purpose of impairment testing, goodwill is allocated to the Group’s operating divisions which representthe lowest level within the group at which goodwill is monitored for internal management purposes, which is nothigher than the Group’s operating segments. The aggregate carrying amounts of goodwill allocated to each unitare as follows :


Hotel operations at Kolkata property 5,141.35 5,141.35 5,141.35

Hotel operations at Srinagar property 3,268.10 3,268.10 3,268.10

8,409.458,409.458,409.458,409.458,409.45 8,409.458,409.458,409.458,409.458,409.45 8,409.458,409.458,409.458,409.458,409.45

Units without significant goodwill 16.02 16.02 16.02

8,425.478,425.478,425.478,425.478,425.47 8,425.478,425.478,425.478,425.478,425.47 8,425.478,425.478,425.478,425.478,425.47

Hotel operations at KHotel operations at KHotel operations at KHotel operations at KHotel operations at Kolkata propertyolkata propertyolkata propertyolkata propertyolkata propertyThe recoverable amount of this CGU is based on fair value less costs to sell, estimated using discounted cashflows. The fair value measurement has been categorised as Level 3 fair value based on the inputs to the valuationtechnique used.

The key assumptions used in the estimation of the recoverable amount are set out below. The values assigned tothe key assumptions represent management’s assessment of future trends in the relevant industries and havebeen based on historical data from both external and internal sources.

(in percent)(in percent)(in percent)(in percent)(in percent)


Discount RateDiscount RateDiscount RateDiscount RateDiscount Rate 12 12 12

Average Room revenue (ARR) growth rateAverage Room revenue (ARR) growth rateAverage Room revenue (ARR) growth rateAverage Room revenue (ARR) growth rateAverage Room revenue (ARR) growth rate 5 5 5

Occupancy RateOccupancy RateOccupancy RateOccupancy RateOccupancy Rate 2 2 2

EBITDEBITDEBITDEBITDEBITDA growth rateA growth rateA growth rateA growth rateA growth rate 3 3 3

The discount rate is a post-tax measure estimated based on the weighted-average cost of capital.

The cash flow projections include specific estimates for five years and a terminal growth rate thereafter.

EBITDEBITDEBITDEBITDEBITDA has been estimated taking into account past experience, adjusted as follows:A has been estimated taking into account past experience, adjusted as follows:A has been estimated taking into account past experience, adjusted as follows:A has been estimated taking into account past experience, adjusted as follows:A has been estimated taking into account past experience, adjusted as follows:

- Revenue growth has been projected taking into account the average growth levels experienced over the pastfive years at its ither hotel properties and the estimated sales volume and price growth for the next five years.It has been assumed that the average room price would increase in line with forecast inflation over the nextfive years.

- Cost increase has been factored into the budgeted EBITDA, reflecting various operational costs in which theCGU operates which are assumed to grow in line with inflation over the years.

The estimated recoverable amount of the CGU exceeds its carrying amount by approximately Rs. 3,262.43 lacs(31 March 2016 : Rs. 1,999.07 lacs). Management has identified that a reasonably possible change in three keyassumptions could cause the carrying amount to exceed the recoverable amount. The following table shows thepercent by which these three assumptions would need to change individually for the estimated recoverableamount to be equal to the carrying amount.

197

Changes required for recoverable amount to equal carrying amountChanges required for recoverable amount to equal carrying amountChanges required for recoverable amount to equal carrying amountChanges required for recoverable amount to equal carrying amountChanges required for recoverable amount to equal carrying amount

(in percent)(in percent)(in percent)(in percent)(in percent)


Discount Rate 1.77 1.05

Occupancy rate growth rate (3.30) (2.16)

Average Room revenue (ARR) growth rate (5.22) (3.80)

Hotel operations at Srinagar propertyHotel operations at Srinagar propertyHotel operations at Srinagar propertyHotel operations at Srinagar propertyHotel operations at Srinagar propertyThe recoverable amount of this CGU is based on fair value less costs to sell, estimated using valuation techniquesby a registered valuer. The fair value measurement has been categorised as Level 2 fair value based on theinputs to the valuation technique used. For the purpose of valuation, cost approach has been used to determinethe value of subject land/leasehold rights. Value in real estate is created by utility of the real estate and capacityto satisfy the needs and wants.

The value of land represents the value in exchange where the valuation of land and development reflects thevalue in exchange and the additional return for development of the land on account of holding cost, constructionexecution risk and operating risk for running and maintaining the property. The contributions to the valuation ofland parcels are derived from general uniqueness of the land, age of the construction, location of the land,relatively limited supply, heritage value of the property and specific utility of a given site.

NONONONONOTE 62 : NON-TE 62 : NON-TE 62 : NON-TE 62 : NON-TE 62 : NON-CONTROLLING INTERESTSCONTROLLING INTERESTSCONTROLLING INTERESTSCONTROLLING INTERESTSCONTROLLING INTERESTS

The Company holds 90% equity interest in a subsidiary of the Group. As per the agreement with the shareholderof the non- controlling interest, such shareholder shall not be responsible for any liabilities of the subsidiarycompany other than the liabilities specifically agreed to. The subsidiary company has accumulated losses of Rs.13,242.54 lacs (31 March 2016: Rs. 9,525.89 lacs, 1 April 2015: Rs. 5,138.91 lacs). In terms of the contractualarrangement with such shareholder, the Group has not allocated share of losses towards non-controlling interest.

Also, the subsidiary company had a revaluation reserve of Rs. 5,970.38 lacs arising out of revaluation exerciseof certain fixed assets carried out in earlier years under previous GAAP. Although under Ind AS, such revaluationreserve has been transferred to retained earnings, however, the Group has allocated share of revaluation reserveaggregating to Rs. 597.04 lacs (31 March 2016: Rs. 597.04 lacs, 1 April 2015: Rs. 597.04 lacs) towards non-controlling interest on a conservative basis.

NONONONONOTE 63 :TE 63 :TE 63 :TE 63 :TE 63 : FIRST TIME ADOPTION OF IND ASFIRST TIME ADOPTION OF IND ASFIRST TIME ADOPTION OF IND ASFIRST TIME ADOPTION OF IND ASFIRST TIME ADOPTION OF IND AS

These consolidated financial statements, for the year ended 31 March 2017, are the first the Group has preparedin accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Group preparedits consolidated financial statements in accordance with accounting standards notified under section 133 of theCompanies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).Accordingly, the Group has prepared consolidated financial statements which comply with Ind AS applicable forperiods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31March 2016, as described in the summary of significant accounting policies. In preparing these consolidatedfinancial statements, the Group’s opening consolidated balance sheet was prepared as at 1 April 2015, theGroup’s date of transition to Ind AS. An explanation of how the transition from previous GAAP to Ind AS hasaffected the Group’s financial position, financial performance and cash flows is set out in the following tablesand notes.


198

Exemptions and exceptions availedExemptions and exceptions availedExemptions and exceptions availedExemptions and exceptions availedExemptions and exceptions availedSet out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in thetransition from previous GAAP to Ind AS.

a) Ind AS Optional exemptionsa) Ind AS Optional exemptionsa) Ind AS Optional exemptionsa) Ind AS Optional exemptionsa) Ind AS Optional exemptions

Deemed CostDeemed CostDeemed CostDeemed CostDeemed CostInd AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plantand equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as perthe previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustmentsfor de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38Intangible Assets. However as per revision made in ITFG Bulletin no. 5 the unamortised amount of processingcost as at the date of the transition should be adjusted from the carrying amount of loan to arrive at its amortisedcost.

Accordingly, the Group has elected to measures all of its property, plant and equipment and intangible assets attheir previous GAAP carrying values except for the adjustment allowed as per ITFG Bulletin no. 5.

Composite LComposite LComposite LComposite LComposite LeaseseaseseaseseaseseasesWhen a lease includes both land and building elements, a first time adopter may assess the classification of eachelement as finance or an operating lease at the date of transition to Ind AS on the basis of the facts andcircumstances existing at that date. Accordingly, the Group has fair valued land and building components ofleased property at Bangalore as at 31 March 2015 to assess the classification as finance or operating for boththe components.

Investment in joint venturesInvestment in joint venturesInvestment in joint venturesInvestment in joint venturesInvestment in joint venturesInd AS 101 permits a first-time adopter to choose the previous GAAP carrying amount at the entity’s date oftransition to Ind AS to measure the investment in joint venturesas the deemed cost. Accordingly, the Group hasopted to measure its investment in joint ventures at deemed cost i.e., previous GAAP carrying amount.

LLLLLong term foreign currency monetary itemsong term foreign currency monetary itemsong term foreign currency monetary itemsong term foreign currency monetary itemsong term foreign currency monetary itemsInd AS 101 allows a first-time adopter to continue the policy adopted for the accounting for exchange differencesarising on translation of the long-term foreign currency monetary items recognised in the financial statements forthe period ending immediately before the beginning of the first Ind AS financial reporting period as per previousGAAP. Accordingly for exchange differences, arising on translation/ settlement of long-term foreign currencymonetary items acquired before 1 April 2016, pertaining to the acquisition of a depreciable asset, are adjustedto the cost of the asset.

Business CombinationsBusiness CombinationsBusiness CombinationsBusiness CombinationsBusiness CombinationsInd AS 103, Business Combinations has not been applied to acquisition of subsidiaries, which are consideredunder Ind AS that occurred before 1 April 2015. Use of this exemption means that Indian GAAP carrying amountof assets and liabilities, that are required to be recognised under Ind AS, is their deemed cost at the date of theacquisition. After the date of the acquisition, measurement is in accordance with the respective Ind AS.

b) Ind AS mandatory exceptionsEstimatesb) Ind AS mandatory exceptionsEstimatesb) Ind AS mandatory exceptionsEstimatesb) Ind AS mandatory exceptionsEstimatesb) Ind AS mandatory exceptionsEstimatesAn entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent withestimates made for the same date in accordance with previous GAAP (after adjustments to reflect any differencein accounting policies), unless there is objective evidence that those estimates were in error.Ind AS estimates asat 1 April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP.The Group made estimates for following items in accordance with Ind AS at the date of transition as these werenot required under previous GAAP: - Impairment of financial assets based on expected credit loss model.

199

Classification and measurement of financial assetsClassification and measurement of financial assetsClassification and measurement of financial assetsClassification and measurement of financial assetsClassification and measurement of financial assetsInd AS 101 requires an entity to assess classification and measurement of financial assets on the basis of thefacts and circumstances that exist at the date of transition to Ind AS.

c) Reconciliations between previous GAAP and Ind ASc) Reconciliations between previous GAAP and Ind ASc) Reconciliations between previous GAAP and Ind ASc) Reconciliations between previous GAAP and Ind ASc) Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods.The following tables represent the reconciliations from previous GAAP to Ind AS.

Reconciliation of total equity as reported previously (referred to as ‘PReconciliation of total equity as reported previously (referred to as ‘PReconciliation of total equity as reported previously (referred to as ‘PReconciliation of total equity as reported previously (referred to as ‘PReconciliation of total equity as reported previously (referred to as ‘Previous GAAPrevious GAAPrevious GAAPrevious GAAPrevious GAAP’) and as per Ind AS’) and as per Ind AS’) and as per Ind AS’) and as per Ind AS’) and as per Ind AS

PPPPParticularsarticularsarticularsarticularsarticulars Notes to firstNotes to firstNotes to firstNotes to firstNotes to first 31 March 201631 March 201631 March 201631 March 201631 March 2016 1 April 20151 April 20151 April 20151 April 20151 April 2015time adoptiontime adoptiontime adoptiontime adoptiontime adoption

TTTTTotal equity (shareholderotal equity (shareholderotal equity (shareholderotal equity (shareholderotal equity (shareholder’s funds) as per P’s funds) as per P’s funds) as per P’s funds) as per P’s funds) as per Previous GAAPrevious GAAPrevious GAAPrevious GAAPrevious GAAP 99,588.5599,588.5599,588.5599,588.5599,588.55 104,332.62104,332.62104,332.62104,332.62104,332.62First time consolidation of trust 1 383.64 815.06Joint ventures accounted for using equity methodas per Ind AS 2 118.39 71.66Finance lease income and its related impact 3 1,836.22 1,773.30Proposed dividend including DDT thereon 4 685.96 457.31Fair valuation of financial instruments -interest free security deposits paid/received 5 (366.56) (356.08)Ancilliary cost of borrowing as interest expenseon borrowings 6 (223.67) (434.58)Lease equalisation reserve 10 (12.95) —Prior period items 7 (31.68) (173.37)Deferred tax adjustments 8 (6,226.08) (6,241.68)

TTTTTotal adjustmentsotal adjustmentsotal adjustmentsotal adjustmentsotal adjustments (3,836.72)(3,836.72)(3,836.72)(3,836.72)(3,836.72) (4,088.37)(4,088.37)(4,088.37)(4,088.37)(4,088.37)

Total equity as per Ind AS 95,751.8395,751.8395,751.8395,751.8395,751.83 100,244.25100,244.25100,244.25100,244.25100,244.25

Non-controlling interests 611.98 612.13

Total Equity 96,363.81 96,363.81 96,363.81 96,363.81 96,363.81 100,856.38100,856.38100,856.38100,856.38100,856.38

Reconciliation of net profit as reported previously (referred to as ‘PReconciliation of net profit as reported previously (referred to as ‘PReconciliation of net profit as reported previously (referred to as ‘PReconciliation of net profit as reported previously (referred to as ‘PReconciliation of net profit as reported previously (referred to as ‘Previous GAAPrevious GAAPrevious GAAPrevious GAAPrevious GAAP’) and the total comprehensive’) and the total comprehensive’) and the total comprehensive’) and the total comprehensive’) and the total comprehensiveincome as per Ind ASincome as per Ind ASincome as per Ind ASincome as per Ind ASincome as per Ind AS

PPPPParticularsarticularsarticularsarticularsarticulars Notes for firstNotes for firstNotes for firstNotes for firstNotes for first 31 March 201631 March 201631 March 201631 March 201631 March 2016time adoptiontime adoptiontime adoptiontime adoptiontime adoption

PPPPProfit after tax as per Profit after tax as per Profit after tax as per Profit after tax as per Profit after tax as per Previous GAAPrevious GAAPrevious GAAPrevious GAAPrevious GAAP (4,044.40)(4,044.40)(4,044.40)(4,044.40)(4,044.40)Ancilliary cost of borrowing as interest expense on borrowings 6 210.91First time consolidation of trust 1 (659.09)Joint ventures accounted for using equity method as per Ind AS 2 257.61Prior period items 7 141.69Finance income recognised on Finance lease 3 62.92Employee benefits- remeasurements (gain)/loss 9 (61.79)Lease equalisation reserve 10 (12.95)Fair valuation of interest free security deposits paid/received 5 (10.45)Deferred tax adjustments 8 34.95TTTTTotal profit after tax as per Ind ASotal profit after tax as per Ind ASotal profit after tax as per Ind ASotal profit after tax as per Ind ASotal profit after tax as per Ind AS (4,080.61)(4,080.61)(4,080.61)(4,080.61)(4,080.61)

Other comprehensive income (net of tax) 42.63

Share of Other Comprehensive Income of joint ventures 2.87

TTTTTotal comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the yearotal comprehensive income for the year 4,035.11)4,035.11)4,035.11)4,035.11)4,035.11)


200

d) Notes to firstd) Notes to firstd) Notes to firstd) Notes to firstd) Notes to first-time adoption:-time adoption:-time adoption:-time adoption:-time adoption:

Note 1:Note 1:Note 1:Note 1:Note 1:Interest free loans to trust are measured in accordance with Ind AS 109, Financial Instruments i.e at amortizedcost using the effective interest rate method. The loan amount is trued up every year with a corresponding creditto statement of profit and loss on account of finance income. The benefit of the interest free loan is measured asthe difference between initial carrying value of the loan at fair value in accordance with Ind AS 109 and the loanamount advanced. The same is classified as a deemed investment in the trust which was written off in thestandalone financial statements.

Further, based on the assessment carried out by the management under Ind AS 110, The Lalit Suri Educational& Charitable Trust has been assessed as an entity controlled by the Group. Accordingly, the assets, liabilities,incomes and expenses of The Lalit Suri Educational & Charitable Trust have been consolidated with the group ona line by line basis.

Resultingly, deemed investment written off amounting to Rs. 1,673.18 lacs and Rs. 1,900.85 lacs in the standalonefinancial statements as on April 1, 2015 and as on March 31, 2016 have been reversed, with an increase in theequity balance by an equal amount.

Also, in the standalone financial statements, an amount of Rs. 800.00 lacs was considered as provision fordoubtful advances as on April 1, 2015 and the same was reversed in the financial year 2015-16. The provisionamount has been eliminated as a part of consolidation process, with an increase in equity as on April1, 2015and decrease in equity by Rs. 800.00 lacs as on March 31, 2016.

The surplus earned by the Trust has also been recognised amounting to Rs. 15.06 lacs as on 1 April 2015 andRs. 155.97 lacs as on 31 March 2016.

The above adjustments have resulted in total impact of Rs. 2,488.24 lacs and Rs. 2,056.82 lacs in equity at April1 2015 and 31 March 2016 respectively and a total impact of Rs. 659.09 lacs in consolidated statement of profitor loss for FY 2015-16.

Note: 2Note: 2Note: 2Note: 2Note: 2The group holds 50% & 16.67% interest in Kujjal Builders Private Limited and Cavern Hotels & Resorts FZ Co.respectively and exercises joint control over these entities. Under previous GAAP, the Group had proportionatelyconsolidated its interest in Kujjal Builders Private Limited and Cavern Hotels & Resorts FZ Co. in the consolidatedfinancial statements. On transition to Ind AS, the Group has assessed that Kujjal Builders Private Limited andCavern Hotels & Resorts FZ Co.Y are its Joint Ventures under Ind AS 111 Joint Arrangements which are requiredto be accounted for using the equity method as against proportionate consolidation. For the application of equitymethod, the initial investment is measured as the aggregate of Ind AS amount of assets and liabilities that theGroup had previously proportionately consolidated. On application of equity method, the balance of equitystands increased by Rs. 71.66 lacs and by Rs. 118.39 lacs at April 1 2015 and 31 March 2016 respectively.

Note : 3Note : 3Note : 3Note : 3Note : 3AS 19 excluded lease agreements to use land from its scope. However, lease agreements to use land are withinthe scope of Ind AS 17. Accordingly, in accordance with principles set out in Ind AS 17, shops in World tradecenter and World trade tower given under lease have been determined to be a finance lease arrangement.

Accordingly, finance income on such leases has been recognised and rent income which was earlier recognisedunder previous GAAP has been derecognised having a net impact of Rs. 1,335.07 lacs on 1 April 2015 and ofRs. 49.02 lacs for the FY 2015 -16. Further, leasehold building which was earlier capitalised under previousGAAP amounting to Rs. 956.82 lacs has been decapitalised and recognised as finance lease receivable.Accordingly, depreciation on leasehold buildings has also been reversed amounting to Rs. 438.22 lacs as on 1April 2015 and Rs. 14 lacs in the FY 2015 -16.

201

The above has resulted in a net impact of Rs. 1,773.30 lacs as on 1 April 2015 and Rs. 1,836.22 lacs as on 31March 2016 in equity. Further, this has resulted an impact of Rs. 62.92 lacs in the net profit for the FY 2015 -16.

Note : 4Note : 4Note : 4Note : 4Note : 4Under Indian GAAP, proposed dividends including DDT are recognised as a liability in the period to which theyrelate, irrespective of when they are declared/paid. Under Ind AS, a proposed dividend is recognised as aliability in the period in which it is declared by the Group (usually when approved by shareholders in a generalmeeting) or paid which happens after year end.

Therefore, the liability of Rs. 457.31 lacs for the year ended on 31 March 2015 recorded for proposed dividendhas been derecognised on 1 April 2015 and the same has been recognised as an appropriation of profit in theFY 2015-16. Similarly, the proposed dividend for the year ended on 31 March 2016 of Rs. 685.96 lacs recognizedunder Indian GAAP has been reversed in the FY 2015-16.

Note : 5Note : 5Note : 5Note : 5Note : 5Interest free security deposits paid/received were carried at nominal cost under previous GAAP. On applicationof Ind AS 109, all such financial assets are now being measured at amortised cost using effective rate of interest.At the date of transition to Ind AS, difference between the amortised cost and Indian GAAP carrying amountthese security deposits lacs has been recognised as prepaid rent. Correspondingly, interest income/expense onsecurity deposits and amortisation of prepaid rent have also been accounted for.

The above recognition has a net impact of Rs. 356.08 lacs on 1 April 2015 and Rs. 11 lacs in the FY 2015 -16accumulating to Rs. 366.56 lacs on 31 March 2016.

Note : 6Note : 6Note : 6Note : 6Note : 6Under previous GAAP, ancillary costs associated with raising of funds are amortised on a straight line basis overthe period of borrowings. Ind AS 109 requires transaction costs incurred towards origination of borrowings to bededucted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profitor loss over the tenure of the borrowing as part of the interest expense by applying the effective interest ratemethod. Also, under Ind AS borrowings are presented net of any ancillary costs associated with raising of debt,while under previous GAAP such ancillary costs were shown as prepayments.

Under previous GAAP, the Group had capitalised the processing cost as a part of the cost of the fixed assets.However as per revision made in ITFG Bulletin no. 5 the unamortised amount of processing cost as at the dateof the transition should be adjusted from the carrying amount of loan to arrive at its amortised cost. As aconsequence, to restate the carrying amount of loan in accordance with paragraph 10 of Ind AS 101, thecarrying amount of fixed assets as at the date of the transition has been reduced by the amount of processingcost (net of cumulative depreciation impact). The difference between the adjustments to the carrying amount ofloan and to fixed assets, respectively is recognised in the retained earnings as at 1 April 2015.The above has a net impact of Rs. 434.58 lacs on 1 April 2015 and of an income being recognised in the FY2015-16 of Rs. 210.91 lacs accumulating to a net increase of Rs. 223.67 lacs to equity on 31 March 2016.

Note : 7Note : 7Note : 7Note : 7Note : 7Under Indian GAAP, Prior period items are shown separately on the face of statement of profit and loss in theyear in which these are identified. However, Ind AS requires the recognition of such items in the period to whichthey relate.

Prior period items of Rs. 173.37 lacs which were earlier recognised in FY 2015-16, has now been adjustedagainst retained earnings on 1 April 2015. Further, period items of Rs. 141.69 lacs relating to FY 2015-16identified in the current year has been recongised in FY 2015 -16 having a cumulative impact of Rs. 31.68 lacson 31 March 2016.


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Note : 8Note : 8Note : 8Note : 8Note : 8Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differencesbetween taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferredtaxes using the balance sheet approach, which focuses on temporary differences between the carrying amountof an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resultedin recognition of deferred tax on new temporary differences which was not required under Indian GAAP. Inaddition, the various transitional adjustments lead to temporary differences. According to the accounting policies,the Group has to account for such differences. Deferred tax adjustments are recognised in correlation to theunderlying transaction either in retained earnings or a separate component of equity. The net impact on deferredtax liabilities is of Rs. 6,241.68 lacs on 1 April 2015 and Rs. 6,226.08 lacs on 31 March 2016.

Note : 9Note : 9Note : 9Note : 9Note : 9Both under Indian GAAP and Ind AS, the Group recognised costs related to its post-employment defined benefitplan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are chargedto profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the assetceiling, excluding amounts included in net interest on the net defined benefit liability and the return on planassets excluding amounts included in net interest on the net defined benefit liability] are recognised to retainedearnings through OCI. Thus, remeasurements gains of Rs. 61.79 lacs has been reduced from the net profit ofthe FY 2015-16 and has been recognised in OCI at Rs. 42.64 lacs (net of tax). This has no resulting impact onequity.

Note : 10Note : 10Note : 10Note : 10Note : 10As per the provisions of AS 19, lease rentals were accounted for on a straight line basis for certain premisesobtained on lease having an escalation clause in the lease agreement. However, as per Ind AS 17, straight liningof lease rentals is not required in case lease rent escalation reflects expected inflation cost. The Group hasdetermined that escalation rates in the existing agreements of leased premises are broadly in line with theinflation rates. Hence, lease equalisation charge of Rs. 12.95 lacs recognised under previous GAAP in the FY2015 -16, has now been reversed.

Note : 11Note : 11Note : 11Note : 11Note : 11As per the provisions of AS 20, grants received against fixed assets were accounted as a deduction form thegross value of the related asset. However, as per Ind AS 20, grant received against fixed assets is required to berecognised in the profit and loss on a systematic basis over the useful life of the assets. Accordingly, net bookvalue fixed assets has been increased by Rs. 530.19 lacs (i.e. value of grant net of depreciation till date) on 1April 2015 with a corresponding increase in the deferred government grant. Further, depreciation expense andgovernment grant income have also been recognised of Rs. 266.80 lacs 1 April 2015 and Rs. 247.81 lacs on 31March 2016. This has also resulted in an decrease in the depreciation charge as well grant income recognisedby Rs. 18.99 lacs in the FY 2015-16.

The above has no resulting impact on equity and net profit.

Note : 12Note : 12Note : 12Note : 12Note : 12AS 19 excluded lease agreements to use land from its scope. However, lease agreements to use land are withinthe scope of Ind AS 17. Basis lease assessment, land taken on lease at Jaipur has been determined to be anoperating lease. Consequently, leasehold land having net book value of Rs. 2,323 lacs as at 1 April 2015amounting to which earlier capitalised as fixed assets has now been reclassified as prepaid lease rent under thehead other non current assets.

Further, as a result, depreciation charge of Rs. 26 lacs has been reduced and lease rent expenses have beenincrease with an equal amount. This has no resulting impact on equity and net profit.

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Note : 13Note : 13Note : 13Note : 13Note : 13Ind AS 12 requires classification of MAT credit as Deferred tax asset. Accordingly, the Group has reclassified MATcredit amounting to Rs. 1,585.88 lacs to Deferred tax asset as at the transition date. Further, MAT credit as at 31March 2016 amounting to Rs. 2,813.98 lacs has been reclassified as Deferred tax asset. This has no resultingimpact on equity or net profit.Note : 14Note : 14Note : 14Note : 14Note : 14In earlier years, the Group carried out a revaluation of a part of its fixed assets which resulted in an upwardvaluation of fixed assets amount. As per the requirements of IGAAP, a revaluation reserve amounting to Rs.37,377.70 lacs was lying under the head ‘reserves and surplus’ as on the date of the transition. Under Ind AS,the Group has adopted cost model approach for the measurement of the cost of the fixed assets. Accordingly,revaluation reserve of Rs. 37,377.70 lacs has been transferred to retained earnings as on the date of thetransition. This transfer of reserve has no resulting impact on the equity or net profit. Further, deferred tax relatedimpact has been explained at note 7 above.

Note : 15Note : 15Note : 15Note : 15Note : 15The Group operates a customer reward points programme in its Hotel business. The programme allows customersto accumulate points on bookings. The points can be redeemed by the customers for future bookings. UnderIndian GAAP, the group created a provision towards its liability under the programme.

Under Ind AS, sales consideration received has been allocated between the booking revenue and the rewardpoints issued. The consideration allocated to the customer reward points has been deferred and will be recognisedas revenue when the reward points are redeemed or lapsed. Accordingly, an amount of Rs. 26 lacs and Rs. 42lacs which were earlier recognised as provisions, have now been disclosed as deferred revenue on 1 April 2015and 31 March 2016 respectively. This has no resulting impact on equity and net profit.

Note : 16Note : 16Note : 16Note : 16Note : 16The Group has reclassified certain items of assets and liabilities to comply with the requirements of Ind AS. Thishas no resulting impact on equity and net profit.

Note : 17Note : 17Note : 17Note : 17Note : 17Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goodsincludes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit andloss. Thus sale of goods under Ind AS has increased by Rs. 38.31 lacs with a corresponding increase in otherexpense. This has no impact on equity and net profit.

Note : 18Note : 18Note : 18Note : 18Note : 18The transition from previous GAAP to Ind AS has not made a material impact on the statement of cash flows.


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STSTSTSTSTAAAAATEMENT CONTTEMENT CONTTEMENT CONTTEMENT CONTTEMENT CONTAINING SALIENT FEAAINING SALIENT FEAAINING SALIENT FEAAINING SALIENT FEAAINING SALIENT FEATURES OF THE FINANCIAL STTURES OF THE FINANCIAL STTURES OF THE FINANCIAL STTURES OF THE FINANCIAL STTURES OF THE FINANCIAL STAAAAATEMENT OF SUBSIDIARIES/ASSOCIATEMENT OF SUBSIDIARIES/ASSOCIATEMENT OF SUBSIDIARIES/ASSOCIATEMENT OF SUBSIDIARIES/ASSOCIATEMENT OF SUBSIDIARIES/ASSOCIATETETETETECOMPCOMPCOMPCOMPCOMPANIES/JOINT VENTURESANIES/JOINT VENTURESANIES/JOINT VENTURESANIES/JOINT VENTURESANIES/JOINT VENTURES

FORM AFORM AFORM AFORM AFORM AOCOCOCOCOC-1-1-1-1-1(Pursuant to first provisio to sub section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules 2014)(Pursuant to first provisio to sub section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules 2014)(Pursuant to first provisio to sub section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules 2014)(Pursuant to first provisio to sub section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules 2014)(Pursuant to first provisio to sub section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules 2014)

PART “A” : SUBSIDIARIESPART “A” : SUBSIDIARIESPART “A” : SUBSIDIARIESPART “A” : SUBSIDIARIESPART “A” : SUBSIDIARIES

Sl.Sl.Sl.Sl.Sl. PPPPParticularsarticularsarticularsarticularsarticulars Name of SubsidiaryName of SubsidiaryName of SubsidiaryName of SubsidiaryName of SubsidiaryNo.No.No.No.No.

Apollo ZipperApollo ZipperApollo ZipperApollo ZipperApollo Zipper JyotiJyotiJyotiJyotiJyoti PPPPPrime Buidwellrime Buidwellrime Buidwellrime Buidwellrime Buidwell PPPPPrime Cellularrime Cellularrime Cellularrime Cellularrime CellularIndia LimitedIndia LimitedIndia LimitedIndia LimitedIndia Limited LimitedLimitedLimitedLimitedLimited Pvt. Limited Pvt. Limited Pvt. Limited Pvt. Limited Pvt. Limited LimiteLimiteLimiteLimiteLimite

1 Reporting period 1-4-2016 to 1-4-2016 to 1-4-2016 to 1-4-2016 to31-3-2017 31-3-2017 31-3-2017 31-3-2017

2 Reporting Currency INR INR INR INR3 Share Capital 8,087,100 6,300,400 30,100,000 400,000,0004 Reserves & Surplus (583,890,023) (76,826,848) (84,640,352) (34,146,836)5 Total Assets 4,097,149,098 12,201,445 24,628,096 695,379,9116 Total Liabilities 4,097,149,098 12,201,445 24,628,096 695,379,9117 Investments — — — 400,000,0008 Turnover 479,061,423 5,000,000 3,710,132 20,985,5549 Profit / (Loss) before Taxation (228,507,231) (954,645) (386,834) (4,575,224)10 Provision for Taxation — 1,098,452 — —11 Profit / (Loss) after Taxation (228,507,231) (2,053,097) (386,834) (4,575,224)12 Proposed Dividend — — — —13 % of Shareholding 90% 99.99% 99.99% 99.60%

PPPPPART “BART “BART “BART “BART “B”: ASSOCIA”: ASSOCIA”: ASSOCIA”: ASSOCIA”: ASSOCIATES AND JOINT VENTURESTES AND JOINT VENTURESTES AND JOINT VENTURESTES AND JOINT VENTURESTES AND JOINT VENTURES

Sl.Sl.Sl.Sl.Sl. PPPPParticularsarticularsarticularsarticularsarticulars Name of Joint V Name of Joint V Name of Joint V Name of Joint V Name of Joint VenturesenturesenturesenturesenturesNoNoNoNoNo

KKKKKujjal BuildersPujjal BuildersPujjal BuildersPujjal BuildersPujjal BuildersPrivate Limited *rivate Limited *rivate Limited *rivate Limited *rivate Limited * Cavern Hotels & Resorts FZCo. **Cavern Hotels & Resorts FZCo. **Cavern Hotels & Resorts FZCo. **Cavern Hotels & Resorts FZCo. **Cavern Hotels & Resorts FZCo. **

1 Latest Audited Balance sheet date 1-4-2016 to 31-3-2017 1-4-2016 to 31-3-20172 Shares held by the company

on the year endNumber — —Amount of Investment — —Extent of Holding %

3 Description of how there is significant JV of Prime Cellular Ltd. JV of Prima Buildwell Pvt. Ltd.influence

4 Reason why not consolidated N.A. N.A.5 Net worth attributable to shareholding (891,250,394) (133,024,141)6 Profit / Loss for the year

i Considered in Consolidation (312,227,714) —ii Not Considered in Consolidation (312,227,714) (24,863)

* 50.00 % shares held by Prime Cellular Ltd. (subsidiary of the Company)** 16.67 % shares held by Prima Buildwell Pvt. Ltd.(wholly owned subsidiary of the Company)In case of Joint Venture i.e. Cavern Hotel & Resorts FZ Co, unaudited financial statements, as certified by the Management,have been considered

FFFFFor and on behalf of the Board of Directors ofor and on behalf of the Board of Directors ofor and on behalf of the Board of Directors ofor and on behalf of the Board of Directors ofor and on behalf of the Board of Directors ofBharat Hotels LimitedBharat Hotels LimitedBharat Hotels LimitedBharat Hotels LimitedBharat Hotels Limited

Sd/- Sd/- Sd/- Sd/-DrDrDrDrDr. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri. Jyotsna Suri Ms. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri SinghMs. Divya Suri Singh Ms. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha SuriMs. Deeksha Suri MrMrMrMrMr. K. K. K. K. Keshav Surieshav Surieshav Surieshav Surieshav Suri

Chairperson and Managing Director Executive Director Executive Director Executive DirectorDIN 00004603) (DIN 00004559) (DIN 00005367) (DIN 00005370)




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Salient Features of Financial Statements of Subsidiaries 204thelalithotels.in/pdf/Annual Report 2016-17-Bharat Hotels Ltd.pdf · 1 CONTENTS PAGE NO. Board of Directors 2 Board’s