The following discussion is intended to convey the managements perspective on our financial condition and results of operations for Fiscals 2025, 2024 and 2023 and should be read in conjunction with "Restated Consolidated Summary Statements" on page 254.
This Red Herring Prospectus may include forward-looking statements that involve risks and uncertainties, and our actual financial performance may materially vary from the conditions contemplated in such forward-looking statements as a result of various factors, including those described below and elsewhere in this Red Herring Prospectus. For further information, see
"Forward-Looking Statements" on page 18. Also see "Risk Factors" and "- Significant Factors Affecting our Results of Operations and Financial Condition" on pages 31 and 322, respectively, for a discussion of certain factors that may affect our business, financial condition or results of operations.
Our Companys Fiscal commences on April 1 and ends on March 31 of the immediately subsequent year, and references to a particular Fiscal are to the 12 months ended March 31 of that particular year. Unless otherwise indicated or the context otherwise requires, the financial information for Fiscals 2025, 2024 and 2023 included herein is derived from the Restated Consolidated Summary Statements, included in this Red Herring Prospectus. For further information, see "Restated Consolidated Summary Statements" on page 254.
Ind AS differs in certain respects from Indian GAAP, IFRS and U.S. GAAP and other accounting principles with which prospective investors may be familiar. Also see "Risk Factors 71. Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and IFRS, which investors may be more familiar with and may consider material to their assessment of our financial condition." on page 74.
Unless otherwise indicated, industry and market data used in this section has been derived from the industry report titled "India Hotel Sector" dated July 6, 2025 (the "Horwath HTL Report") prepared and issued by Crowe Horwath HTL Consultants Private Limited, appointed by us pursuant to an engagement letter dated March 7, 2024 (accepted by our Company on March 13, 2024) and the revised engagement letter dated December 19, 2024 read with the addendum to the engagement letter dated May 2, 2025 and exclusively commissioned and paid for by us to enable the investors to understand the industry in which we operate in connection with the Issue. The data included herein includes excerpts from the Horwath HTL Report and may have been re-ordered by us for the purposes of presentation. Unless otherwise indicated, financial, operational, industry and other related information derived from the Horwath HTL Report and included herein with respect to any particular calendar year/ Fiscal refers to such information for the relevant calendar year/ Fiscal. Further, references to various segments in the Horwath HTL Report and information derived therefrom are references to industry segments and in accordance with the presentation, analysis and categorisation in the Horwath HTL Report. Our segment reporting in our financial statements is based on the criteria set out in Ind AS 108, Operating Segments and we do not present such industry segments as operating segments. A copy of the Horwath HTL Report is available on the website of our Company www.bhvl.in. For further information, see "Risk Factors 62. Certain sections of this Red Herring Prospectus disclose information from the Horwath HTL Report which is a paid report and commissioned and paid for by us exclusively in connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risks." on page 71. Also see, "Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation Industry and Market Data" on page 17.
OVERVIEW
For details regarding the overview of the Company, see "Our Business Overview" on page 188.
SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Our results of operations and financial condition are affected by a number of important factors including:
Development of Hotel Properties
We have a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat). We intend to develop five additional hotels. In particular, we plan to develop a luxury beach resort in Chennai (Tamil Nadu) and two upper midscale hotels in Bengaluru (Karnataka). With respect to the luxury beach resort, we have entered into a definitive agreement with Hyatt to develop the resort under the ‘Grand Hyatt brand.
Similarly, with respect to the two upper midscale hotels in Bengaluru (Karnataka), we have entered into definitive agreements with Marriott to develop these hotels under the ‘Fairfield by Marriott brand. We also intend to develop a luxury hotel under the InterContinental brand in Hyderabad (Telangana), for which our Promoter, BEL, has entered into a definitive agreement with InterContinental Hotels Group. In addition, we plan to develop a wellness resort on 14.70 acres in Vaikom, Kerala of which we own 7.08 acres and have entered into a memorandum of agreement dated October 21, 2024 with Brigade Hospitality Services Limited to purchase the balance 7.62 acres. We have also entered into a definitive agreement with Marriott to develop this resort under ‘The Ritz-Carlton brand. We intend to complete the construction of the luxury beach resort in Chennai (Tamil Nadu) and two upper midscale hotels in Bengaluru (Karnataka) by Fiscal 2028 and the remaining two hotels (including the wellness resort) by Fiscal 2029.
From time to time, we may enter into definitive or non-binding memoranda of understanding ("MoUs") for development of hotels in future. For example, we have entered into (i) a definitive agreement with Marriott for a hotel to be situated at OMR in Chennai (Tamil Nadu) under the "JW Marriott" brand; (ii) a non-binding MoU with Marriott for a hotel to be situated at World Trade Center in Chennai (Tamil Nadu) under the "Courtyard by Marriott" brand; and (iii) a non-binding MoU with Marriott for a hotel to be situated in World Trade Center in Thiruvananthapuram (Kerala) under the "Marriott" brand. As of the date of this Red Herring Prospectus, we do not have any land or building arrangements where the aforementioned hotels may be situated.
Our cost of development is affected by price fluctuations in raw materials, in particular, cement, steel, bricks, glass, electrical accessories, plumbing materials, tiles and paints, lifts and escalators. We oversee the progress and quality of construction to ensure that the costs are under budgetary control. However, any unreasonable cost escalation due to shortage, supply limitations or circumstances beyond our control, could adversely impact the cost and time taken for development and resultantly our return on investment. Further, for development of hotels in new geographies, we may or may not be able to respond to customer requirements as compared to our competitors. The development and construction of real estate projects are subject to inherent development risks. See, "Risk Factors 3. We intend to develop five additional hotels and if we are unable to develop these hotels in a timely manner, our business, results of operations, financial condition and cash flows will be adversely affected." on page 34.
Our Relationships with Hotel Operators
As on the date of this Red Herring Prospectus, we had a portfolio of nine operating hotels. Of these, four hotels are operated by Accor, three hotels are operated by InterContinental Hotels Group, two hotels are operated by Marriott. The following table sets forth details of our relationship with each of our hotel operators, along with revenue attributable to our hotels operated by each of them for the years indicated:
Revenue from hotels operated by |
Average period of relationship/ tenure (in years) |
Fiscal 2025 |
Fiscal 2024 |
Fiscal 2023 |
|||
| Amount ( million) | Percentage of revenue from operations | Amount ( million) | Percentage of revenue from operations | Amount ( million) | Percentage of revenue from operations | ||
| Marriott | 19 | 2,051.61 | 43.81% | 1,708.15 | 42.52% | 1,438.53 | 41.08% |
| Accor | 17 | 1,115.05 | 23.81% | 956.59 | 23.81% | 893.98 | 25.53% |
| InterContinental Hotels | 13 | 1,485.52 | 31.72% | 1,325.53 | 33.00% | 1,143.22 | 32.64% |
| Group | |||||||
The hotel operation agreements provide the hotel operator with day-to-day operational discretion, including personnel management, setting price and rate schedules, managing food and beverage service, procurement of inventories, supplies and services, negotiating and executing agreements with third parties such as vendors, licensees and concessionaires and carrying out marketing, sales, reservations and advertising operations for the hotel, among others. Pursuant to the hotel operations agreements entered into with our hotel operators, we are obliged to pay fees linked to our revenue and profitability for services and know-how rendered by these hotel operators. In addition, we are also required to pay certain fees which are linked to our revenue for the trademark licence granted by these hotel operators under the relevant trademark license agreements. The following table sets forth details of the operator management fees and other fees and charges paid by us to the hotel operators for our hotels for the years indicated:
Particular |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount ( million) | Percentage of revenue from operations | Amount ( million) | Percentage of revenue from operations | Amount ( million) | Percentage of revenue from operations | |
Operator management fees and other fees & charges |
205.25 | 4.38% | 173.49 | 4.32% | 150.93 | 4.31% |
In the event our relationships with the hotel operators deteriorate and our agreements with them are terminated, or if we are unable to enter into hotel operator services agreements for our new hotels, our results of operations may be adversely affected.
See also "Risk Factors 1. We have entered into hotel operator services agreements and other related agreements with Marriott, Accor and InterContinental Hotels Group to receive operating and marketing services for our hotels. In Fiscal 2025, two of our hotels which are operated by Marriott contributed 43.81% of our revenue from operations. If these agreements are
323 terminated or not renewed, our business, results of operations, financial condition and cash flows may be adversely affected." on page 31.
Changes in Consumer Demand due to Seasonality and Macroeconomic Conditions
Consumer demand for our hotels can subject our revenues to significant volatility, and are largely affected by seasonal variations across the hospitality industry as well as general macroeconomic conditions in India and globally. The periods during which our hotels experience higher revenues vary from property to property, depending principally upon location and the guests served. Our revenues are generally higher during the second half of each Fiscal as compared to first half of the Fiscal. Seasonality affects leisure travel and the meetings, incentives, conferences and exhibitions ("MICE") bookings, including weddings. According to the Horwath HTL Report, the winter months are preferred for travel into India for leisure, MICE events, leadership level business travel and high-end destination weddings. Further, the months from October through March of any Fiscal are materially busier than the summer and monsoon seasons, as per the Horwath HTL Report. This seasonality can be expected to cause quarterly fluctuations in our revenue, profit margins and net earnings. The table below sets forth details of average occupancy in the periods indicated:
Particulars |
From October 1, 2024 till March 31, 2025 | From April 1, 2024 till September 30, 2024 | From April 1, 2023 till September 30, 2023 | From October 1, 2023 till March 31, 2024 | From April 1, 2022 till September 30, 2022 | From October 1, 2022 till March 31, 2023 |
| Average occupancy* | 79.78% | 77.42% | 70.01% | 74.38% | 64.55% | 65.30% |
Revenue per available room |
5,703.74 | 4,777.38 | 4,261.29 | 4,962.23 | 3,494.99 | 4,236.37 |
| ("RevPAR")( )** |
*Average Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. **RevPAR is calculated by multiplying average daily rate and average occupancy.
The combination of changes in economic conditions and in the supply of hotel rooms can result in significant volatility in results of hotel properties. The costs of running a hotel, such as for power, fuel and water, employees and rental, tend to be more fixed than variable. When demand for our hotels decreases, due to high operating leverage the resulting decline in our revenues can have an adverse effect on our net cash flow, margins and profits. This effect can be especially pronounced during periods of economic contraction or slow economic growth. Similarly, in conditions of economic upturns, when the demand for hotel rooms increases, due to high operating leverage, our net cash flow, margins and profits may increase disproportionately to the increase in revenues. In addition, the hospitality industry and the demand for rooms is also affected by travel advisories, worldwide health concerns, geo-political developments, natural disasters in the region and inflation. Declines in consumer demand due to adverse general economic conditions, risks affecting or reducing travel patterns, lower consumer confidence and adverse political conditions can lower the revenues and profitability of our hotels.
See also "Risk Factors 15. Our business is subject to seasonal and cyclical variations that could result in fluctuations in our results of operations, financial condition and cash flows." on page 42.
Competition
The hotel industry in India is intensely competitive and we compete with large multinational and Indian companies, in each of the regions that we operate. Our nine operating hotels are located in competitive regions, including locations such as Bengaluru (Karnataka), Chennai (Tamil Nadu), Mysore (Karnataka), Kochi (Kerala) and GIFT City, Ahmedabad (Gujarat). Further, demographic, political, geographic, geological or other changes in one or more of our markets could impact the convenience or desirability of the sites where our operating hotels are located at, which could adversely affect their operations. Our success is dependent on our ability to compete on various factors such as room rates, quality of accommodation, location of our hotels, service levels, scope of other amenities, including food and beverage facilities and brand recognition, among others. We may also have to compete with new hotel properties that commence operations in the areas in which we operate. The new supply of hotel rooms in a particular location significantly affects our ability to increase rates charged to customers at our hotels. Our ability to capture the expected growth in tourism and the hospitality industry, and respond to the consequent competition in the hospitality industry, will be critical to our results of operations in future.
See also "Risk Factors 13. The hotel industry is intensely competitive and our inability to compete effectively may adversely affect our business, results of operations, financial condition and cash flows." on page 40.
Government Regulations and Policies
Our business is subject to significant governmental regulation, particularly in relation to safety, health, environment, real estate, excise and labour laws. In connection with our ownership of hotels and development of properties, we are also subject to a variety of national, state and local laws and regulations relating to environmental laws. Under some of these laws, a current or former owner or operator of real estate property may be held liable for the costs of investigating or remediating hazardous or toxic substances or wastes on, under or in such real property, as well as third-party sites where the owner or operator sent wastes for disposal. The costs of investigating or remediating contamination, at our properties or at properties where we sent substances or wastes for disposal, may be substantial. We are also subject to laws and regulations governing relationships with employees in such areas as minimum wages and maximum working hours, overtime, working conditions, hiring and termination of employees, contract labour and work permits and maintenance of regulatory/ statutory records. For instance, the Government of India has introduced (i) the Code on Wages, 2019, (ii) the Code on Social Security, 2020, (iii) the Occupational Safety,
Health and Working Conditions Code, 2020, and (iv) Industrial Relations Code, 2020 (collectively, the "Codes"). The aim of the Codes is to consolidate, subsume and replace various existing central labour legislation. We are also subject to regulations relating to the sale and service of food, alcoholic and non-alcoholic beverages and hosting of events and weddings at our hotel properties. These regulations and policies can be extensive and amended periodically. Further, we are required to comply with certain reporting requirements under the provisions of the Foreigners Act, 1946 (read with the applicable rules and regulations) with respect to the arrival of foreign guests at our hotels. Any delay in complying with such reporting requirements within the prescribed timelines could expose us to potential litigation and penal action. The extensive regulatory structure within which we operate may constrain our flexibility to respond to market conditions, competition or changes in our cost structure, which could have an adverse effect on our business and prospects.
See also "Risk Factors 52. We are subject to extensive government regulation with respect to safety, health, environmental, real estate, excise and labour laws. Any non-compliance with, or changes in, regulations applicable to us may adversely affect our business, results of operations, financial condition and cash flows." on page 68.
PRESENTATION OF FINANCIAL INFORMATION
The Restated Consolidated Summary Statements of our Company and our Subsidiary comprises the restated consolidated statement of assets and liabilities as of March 31, 2025, March 31, 2024 and March 31, 2023, the restated consolidated statement of profit and loss (including other comprehensive income), the restated consolidated statement of changes in equity, the restated consolidated statement of cash flow, each for the years ended March 31, 2025, March 31, 2024 and March 31, 2023, the summary statement of significant accounting policies and other explanatory information, prepared as per the requirement of
Section 26 of Part I of Chapter III of the Companies Act, 2013, SEBI ICDR Regulations, and the Guidance Note on ‘Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India, as amended from time to time.
MATERIAL ACCOUNTING POLICIES
The material accounting policies forming basis of the preparation of our Restated Consolidated Summary Statements is set forth below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Current versus non-current classification
We present 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 purposes 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 purposes 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.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. We have evaluated and considered our operating cycle as one year and accordingly has reclassified our assets and liabilities into current and non-current.
Assets and liabilities, other than those discussed above, are classified as current to the extent they are expected to be realized/ are contractually repayable within one year from the Balance sheet date and as non-current, in other cases.
Deferred tax assets/ liabilities are classified as non-current assets/ liabilities.
Property, plant and equipment
Capital work in progress is stated at cost, net of accumulated impairment loss, if any. Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to our working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. This applies mainly to components for machinery. When significant parts of plant and equipment are required to be replaced at intervals, we depreciate them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.
Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from its previously assessed standard of performance. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.
Borrowing costs directly attributable to acquisition of property, plant and equipment which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.
Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other noncurrent assets.
An item of property, plant and equipment and any significant part initially recognized is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the Property, plant and equipment is de-recognized.
Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized to the extent to which the expenditure is indirectly related to construction or is incidental thereto. Other indirect expenditure (including borrowing costs) incurred during the construction period which is neither related to the construction activity nor is incidental thereto is charged to the statement of profit and loss.
Costs of assets not ready for use at the balance sheet date are disclosed under capital work-in-progress.
Depreciation on property, plant and equipment
Depreciation is calculated on written down value basis using the following useful lives estimated by the management, which are equal to those prescribed under Schedule II to the Companies Act, 2013:
Category of Asset |
Useful lives (in years) |
| Buildings | 60 |
| Plant and machinery | 15 |
| Electrical installation and equipment | 10 |
| Furniture and fixtures | 8 |
| Used in hotels, restaurants, etc. | 10 |
| Others | |
| Computer hardware | |
| End user devices | 3 |
| Server and network equipment | 6 |
| Office equipment | 5 |
| Motor vehicles | 8 |
For certain hotel-specific assets, depreciation is calculated on a straight-line basis using the rates arrived at, based on the useful lives estimated by the management based on technical assessment as below:
Category of Asset |
Useful lives (in years) | Schedule II lives (in years) |
| Buildings | 25-30 | 60 |
| Plant and machinery | 15 | 15 |
| Electrical installation and equipment | 10 | 10 |
| Furniture and fixtures | ||
| Used in hotels, restaurants, etc. | 8 | 8 |
| Others | 10 | 10 |
Category of Asset |
Useful lives (in years) | Schedule II lives (in years) |
| Computer hardware | ||
| End user devices | 3 | 3 |
| Server and network equipment | 6 | 6 |
| Office equipment | 5 | 5 |
| Motor vehicles | 8 | 8 |
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows: Leasehold land 25 to 35 years
The management considers residual value at 5% as prescribed under Schedule II of Companies Act, 2013.
The management believes that the above estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
Intangible assets comprising of computer software are amortized on a written down value basis over a period of six years, which is estimated by the management to be the useful life of the asset. In case of certain hotels, the intangible assets comprising of computer software are amortized on a straight-line basis over a period of six years as estimated by the management.
The residual values, useful lives and methods of amortization of intangible assets are reviewed at each financial year end and adjusted prospectively, if appropriate.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when asset is derecognized.
Impairment
Financial assets
We assess at each date of balance sheet whether a financial asset or a group of financial assets is impaired and measures the required expected credit losses through a loss allowance. We apply the expected credit loss ("ECL") model for measurement and recognition of impairment losses on trade receivables. We follow the simplified approach for recognition of impairment allowance on trade receivables wherein, it recognises impairment allowance based on lifetime ECLs at each reporting date. We recognize lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction.
For all other financial assets, expected credit losses are measured at an amount equal to the 12-month expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
Non-financial assets
We assess 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, we estimate the assets recoverable amount. An assets recoverable amount is the higher of an assets or cash-generating units ("CGU") net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, 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 specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.
Impairment losses are recognized in the statement of profit and loss. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, we estimate the assets or CGUs recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the assets recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit and loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.
Leases
We assess at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Where our Company is lessee
We apply a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. We recognize lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
Our Company at the inception of the lease contract recognizes a Right-of-Use ("RoU") asset at cost (included in Property, Plant and Equipment) and corresponding lease liability, except for leases with term of less than twelve months (short term) and low-value assets. The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the inception date of the lease plus any initial direct costs, less any lease incentives received. Subsequently, the right of-use assets are measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use assets.
For lease liabilities at inception, we measure the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate is readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental borrowing rate. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by our Company and payments of penalties for terminating the lease, if the lease term reflects our Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
We recognize the amount of the re-measurement of lease liability as an adjustment to the right-of-use assets. Where the carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the measurement of the lease liability, we recognize any remaining amount of the re-measurement in the statement of profit and loss.
We apply the short-term lease recognition exemption to our short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.
Where our Company is lessor
Leases in which we do not transfer substantially all the risks and rewards incidental to ownership of an asset is classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.
Borrowing costs
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized/inventorised as part of the cost of the respective asset. All other borrowing costs are charged to statement of profit and loss.
Inventories
Inventories comprising of food, beverages and other items are valued at lower of cost and net realizable value. Cost of inventories is determined on a weighted average basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.
Revenue recognition
Revenue from contracts with customers
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and other credits, if any, as specified in the contract with the customer. We present revenue from contracts with customers net of indirect taxes in our statement of profit and loss.
We consider whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, we consider the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer, if any.
The following specific recognition criteria must also be met before revenue is recognized:
Revenue from hospitality services
Revenue from hospitality operations comprise revenue from room charges, food & beverage sales, facility usage charges and allied services, including telecommunication, laundry, etc. Revenue is recognized as and when the services are rendered and is disclosed net of allowances.
Contract balances
Contract asset is the right to consideration in exchange for goods or services transferred to the customer. If we perform by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.
Trade receivable represents our right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).
Contract liability is the obligation to transfer goods or services to a customer for which we have received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before we transfer goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when we perform under the contract.
Income from lease rentals
Refer accounting policy under "Leases" above.
Interest income
Interest income, including income arising from other financial instruments measured at amortized cost, is recognized using the effective interest rate ("EIR") method. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, we estimate the 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.
Dividend income
Dividend income is recognized when our right to receive dividend is established, which is generally when shareholders approve the dividend.
Foreign currency translation
Functional and presentation currency
Items included in the restated consolidated summary statements of our Company are measured using the currency of the primary economic environment in which the Company operates (the "functional currency"). The restated consolidated summary statements are presented in Indian rupee (INR), which is our Companys functional and presentation currency.
Foreign currency transactions and balances
Initial recognition - Foreign currency transactions are initially recorded at the functional currency spot rate at the date the transaction first qualifies for recognition.
Conversion - Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of initial transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
Exchange differences We account for exchange differences arising on translation/ settlement of foreign currency monetary items as income or as expense in the period in which they arise. The gain or loss arising on translation of non-monetary items measured at fair value is treated 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 recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively).
Retirement and other employee benefits
Retirement benefits in the form of state governed Employee Provident Fund, Employee State Insurance and Employee Pension
Fund Schemes are defined contribution schemes (collectively the ‘Schemes). We have no obligation, other than the contribution payable to the Schemes. We recognize contribution payable to the Schemes as expenditure, when an employee renders the related service. The contribution paid in excess of amount due is recognized as an asset and the contribution due in excess of amount paid is recognized as a liability.
Gratuity, which is a defined benefit plan, is accrued based on an independent actuarial valuation, which is done based on project unit credit method as at the balance sheet date. We recognize the net obligation of a defined benefit plan in our balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/ (asset) are recognized in other comprehensive income. Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on the net defined benefit liability, are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
We recognize the following changes in the net defined benefit obligation as an expense in the consolidated statement of profit and loss:
Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and
Interest expense
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee benefit. We measure the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.
We treat accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method, made at the end of each financial year. Actuarial gains/losses are immediately taken to the statement of profit and loss. We present the accumulated leave liability as a current liability in the balance sheet, to the extent we do not have an unconditional right to defer our settlement for twelve months after the reporting date.
Income taxes
Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year.
Current and deferred tax are recognized in the statement of profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.
Current income tax
Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for that period. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date.
Deferred income tax
Deferred income tax is recognized on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it 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 utilized.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax relating to items recognized outside profit or loss is recognized in correlation to the underlying transaction either in OCI or directly in equity.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
We offset deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Provisions and contingent liabilities
A provision is recognized when we have a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of our Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. We do not recognize a contingent liability but discloses it in the restated consolidated summary statements, unless the possibility of an outflow of resources embodying economic benefits is remote.
Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income 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 the expected useful life of the related asset.
Financial Instruments
Financial assets
Initial recognition and measurement
Financial assets are recognized when our Company become a party to the contractual provisions of the instrument. Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets (other than financial assets at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
Financial assets at amortised cost (debt instruments)
Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses (debt instruments)
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)
Financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive income ("FVTOCI") (debt instruments)
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. For debt instruments, at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value changes recognised in OCI is reclassified from the equity to profit or loss.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognised in the statement of profit and loss. This category includes derivative instruments and listed equity investments which we had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment has been established.
Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, we can elect to classify irrevocably our equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit and loss when the right of payment has been established, except when we benefit from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.
Financial assets at amortised cost (debt instruments)
A ‘financial asset is measured at the amortized cost if both the following conditions are met:
The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
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 amortized cost using the effective interest rate
("EIR") method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade and other receivables.
Investment in subsidiary
Investment in subsidiary is carried at cost. Impairment recognized, if any, is reduced from the carrying value.
De-recognition of financial asset
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from our consolidated balance sheet) when:
The rights to receive cash flows from the asset have expired, or
We have transferred our 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) we have transferred substantially all the risks and rewards of the asset, or (b) we have neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or as payables, as appropriate. Our financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.
Subsequent measurement
For purposes of subsequent measurement, financial liabilities are classified in two categories:
Financial liabilities at fair value through profit or loss
Financial liabilities at amortised cost (loans and borrowings)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities 332 designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities at amortized cost
Financial liabilities are subsequently carried at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
Interest-bearing loans and borrowings are subsequently measured at amortized cost using EIR method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
De-recognition of financial liability
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification 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 and loss.
Reclassification of financial assets and liabilities
We determine classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Fair value of financial instruments
We measure our financial instruments such as derivative instruments, etc at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based 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 fair value of an asset or a liability is measured using the assumptions that market participants would use 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 participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
All assets and liabilities for which fair value is measured or disclosed in the restated consolidated summary statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant 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 value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the restated consolidated summary statements on a recurring basis, we determine 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 end of each reporting period.
For the purpose of fair value disclosures, we have determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Cash and cash equivalents
We consider all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of our cash management.
Cash dividend to equity holders of the Holding Company
The Holding Company recognizes a liability to make cash distributions to equity holders of the Holding Company when the distribution is authorized and the distribution is no longer at the discretion of the Holding Company. Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Holding Companys Board of Directors.
Significant accounting judgments, estimates and assumptions
The preparation of our restated consolidated summary statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the Grouping disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
In the process of applying our accounting policies, management makes judgment, estimates and assumptions which have the most significant effect on the amounts recognized in the restated consolidated summary statements. The key judgment, estimates and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. We based our judgments and assumptions and estimates on parameters available when the restated consolidated summary statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of our Company. Such changes are reflected in the assumptions when they occur.
Significant accounting judgements, estimates and assumptions used by management are as below:
Defined benefit plans Gratuity
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates and expected salary increase thereon.
Useful life and residual value of property, plant and equipment and intangible assets
The useful life and residual value of property, plant and equipment and intangible assets are determined based on evaluation made by the management of the expected usage of the asset, the physical wear and tear and technical or commercial obsolescence of the asset. Due to the judgments involved in such estimates the useful life and residual value are sensitive to the actual usage in future period.
Evaluation of control, joint control or significant influence by us over our investee entity for disclosure
Judgment is involved in determining whether we have control over an investee entity by assessing our exposure/rights to variable returns from our involvement with the investee and our ability to affect those returns through our power over the investee entity.
We consider all facts and circumstances when assessing whether it controls an investee entity and reassess whether it controls an investee entity if facts and circumstances indicate that there are changes to one or more elements of control. In assessing whether we have joint control over an investee we assess whether decisions about the relevant activities require the unanimous consent of the parties sharing control. Further, in assessing whether Group has significant influence over an investee, we assess whether it has the power to participate in the financial and operating policy decisions of the investee, but is not in control or joint control of those policies.
Measurement of financial instruments at amortized cost
Financial instrument are subsequently measured at amortized cost using the EIR method. The computation of amortized cost is sensitive to the inputs to EIR including effective rate of interest, contractual cash flows and the expected life of the financial instrument. Changes in assumptions about these inputs could affect the reported value of financial instruments.
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
Except as disclosed below, there have been no changes in our accounting policies and disclosures during the last three Fiscals:
The Ministry of Corporate Affairs has notified the following amendments to Ind AS which have been applied by us for the first-time.
Ind AS 117 Insurance Contracts
The Ministry of corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated August 12, 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024, which is effective from annual reporting periods beginning on or after April 01, 2024.
Ind AS 117 Insurance Contracts is a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Ind AS 117 replaces Ind AS 104 Insurance Contracts. Ind AS 117 applies to all types of insurance contracts, regardless of the type of entities that issue them as well as to certain guarantees and financial instruments with discretionary participation features; a few scope exceptions will apply. Ind AS 117 is based on a general model, supplemented by:
A specific adaptation for contracts with direct participation features (the variable fee approach)
A simplified approach (the premium allocation approach) mainly for short-duration contracts
The application of Ind AS 117 had no impact on the Groups restated consolidated summary statements.
Amendment to Ind AS 116 Leases Lease Liability in a Sale and Leaseback
The MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024, which amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and Leaseback.
The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains.
The amendment is effective for annual reporting periods beginning on or after April 01, 2024 and must be applied retrospectively to sale and leaseback transactions entered into after the date of initial application of Ind AS 116.
The amendment does not have a material impact on our restated consolidated summary statements.
Definition of Accounting Estimates - Amendments to Ind AS 8
The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors, which is effective from annual reporting periods beginning on or after April 01, 2023. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.
The amendment does not have a material impact on our restated consolidated summary statements.
Disclosure of Accounting Policies - Amendments to Ind AS 1
The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant accounting policies with a requirement to disclose their ‘material accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures, which is effective from annual reporting periods beginning on or after April 01, 2023.
The amendments had an impact on our disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in our restated consolidated summary statements.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12
The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases, which is effective from annual reporting periods beginning on or after April 01, 2023.
We previously recognised for deferred tax on leases on a net basis. As a result of these amendments, we have recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of Ind AS 12, there is no impact in the balance sheet. There was also no impact on the opening retained earnings.
Apart from these, consequential amendments and editorials have been made to other Ind AS to the extent possible like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.
PRINCIPAL COMPONENTS OF INCOME AND EXPENDITURE
Income
Our total income comprises (i) revenue from operations and (ii) other income.
Revenue from Operations
Revenue from operations comprise (i) revenue from contracts with customers i.e., revenue from hospitality services; (ii) income from leasing; and (iii) other operating income i.e., other ancillary services.
Other Income
Other income comprises (i) interest income on financial assets carried at amortised cost from (a) bank deposits and (b) others; (ii) government grants; (iii) liabilities no longer required written back; (iv) reversal of impairment allowance for bad and doubtful debts; (v) profit on sale of property, plant and equipment (net); and (vi) miscellaneous income.
Expenses
Our expenses comprise (i) cost of materials consumed, (ii) employee benefits expense; (iii) depreciation and amortization expenses; (iv) finance costs; and (v) other expenses.
Cost of Materials Consumed
Cost of materials consumed consists of food and beverages and stores and spares, including groceries and food staples, alcoholic and non-alcoholic beverages etc.
Employee Benefits Expense
Employee benefit expenses comprise (i) salaries, wages and bonus; (ii) contribution to provident and other funds; and (iii) staff welfare expenses.
Depreciation and Amortization Expense
Depreciation and amortization expense comprises: (i) depreciation of property, plant and equipment and right of use assets; and (ii) amortisation of intangible assets.
Finance Costs
Finance costs include (i) interest expense on financial liabilities at amortised cost on (a) bank borrowings, (b) related party borrowings, (c) lease liabilities, and (d) others; and (ii) other borrowing costs.
Other Expenses
Other expenses comprise: (i) power and fuel; (ii) rent; (iii) repairs and maintenance on (a) buildings, (b) plant and machinery, and (c) others; (iv) sub-contracting expenses; (v) consumable costs; (vi) insurance; (vii) rates and taxes; (viii) payment to auditor; (ix) property taxes; (x) advertising and sales promotion; (xi) agency commission; (xii) security charges; (xiii) impairment allowance for bad and doubtful debts; (xiv) training and recruitment expenses; (xv) legal and professional charges; (xvi) directors sitting fees; (xvii) printing and stationery expenses; (xviii) travelling and conveyance; (xix) loss on sale of property, plant and equipment (net); (xx) communication expenses; (xxi) exchange difference (net); and (xxii) miscellaneous expenses.
RESULTS OF OPERATIONS
The following table sets forth select financial data for Fiscals 2025, 2024 and 2023, the components of which are also expressed as a percentage of total income for such years.
Particulars |
Fiscal | |||||
| 2025 | 2024 | 2023 | ||||
| ( million) | Percentage of Total Income (%) | ( million) | Percentage of Total Income (%) | ( million) | Percentage of Total Income (%) | |
INCOME |
||||||
| Revenue from operations | 4,682.50 | 99.48% | 4,017.00 | 99.22% | 3,502.20 | 98.26% |
| Other income | 24.30 | 0.52% | 31.50 | 0.78% | 6 1.90 | 1.74% |
Total Income |
4,706.80 | 100.00% | 4,048.50 | 100.00% | 3,564.10 | 100.00% |
EXPENSES |
||||||
| Cost of materials consumed | 447.60 | 9.51% | 403.40 | 9.96% | 350.80 | 9.84% |
| Employee benefits expense | 863.10 | 18.34% | 762.60 | 18.84% | 633.10 | 17.76% |
Depreciation and amortization expenses |
498.00 | 10.58% | 436.40 | 10.78% | 493.50 | 13.85% |
| Finance costs | 725.60 | 15.42% | 688.90 | 17.02% | 691.70 | 19.41% |
| Other expenses | 1,727.40 | 36.70% | 1,436.40 | 35.48% | 1,550.40 | 43.50% |
Total expenses |
4,261.70 | 90.54% | 3,727.70 | 92.08% | 3,719.50 | 104.36% |
Restated profit/(loss) before exceptional items and tax |
445.10 | 9.46% | 320.80 | 7.92% | (155.40) | (4.36)% |
EXCEPTIONAL ITEMS |
||||||
Reversal of impairment of property, plant and equipment |
- | - | - | - | (110.00) | (3.09)% |
Total Exceptional items |
- | - | - | - | (110.00) | (3.09)% |
Restated profit/(loss) before tax |
445.10 | 9.46% | 320.80 | 7.92% | (45.40) | (1.27)% |
TAX EXPENSE |
||||||
| Current tax | - | - | - | - | - | - |
| Deferred tax charge/ (credit) | 208.50 | 4.43% | 9.40 | 0.23% | (14.50) | (0.41)% |
Total tax expense |
208.50 | 4.43% | 9.40 | 0.23% | (14.50) | (0.41)% |
Restated profit/ (loss) for the year |
236.60 | 5.03% | 311.40 | 7.69% | (30.90) | (0.87)% |
Fiscal 2025 compared to Fiscal 2024
Total Income
Our total income increased by 16.26% from 4,048.50 million in Fiscal 2024 to 4,706.80 million in Fiscal 2025, primarily due to an increase in our revenue from operations.
Revenue from operations
Our revenue from operations increased by 16.57% from 4,017.00 million in Fiscal 2024 to 4,682.50 million in Fiscal 2025, primarily due to an increase in the revenue from hospitality services by 16.55% from 3,947.30 million in Fiscal 2024 to 4,600.70 million in Fiscal 2025 on account of increase in average room rate from 6,387.58 in Fiscal 2024 to 6,693.59 in Fiscal 2025, increase in revenue per available room from 4,681.17 in Fiscal 2024 to 5,138.18 in Fiscal 2025 and increase in average occupancy from 73.29% in Fiscal 2024 to 76.76% in Fiscal 2025. The following table sets forth the average room rate, average occupancy and revenue per available room for Fiscal 2024 and 2025:
Particulars |
As of / for the year ended March 31, 2025 | As of / for the year ended March 31, 2024 |
| Average Room Rate(1) ( ) | 6,693.59 | 6,387.58 |
| Average Occupancy(2) (%) | 76.76% | 73.29 |
| Revenue per Available Room(3) ("RevPAR") ( ) | 5,138.18 | 4,681.17 |
1. Average Room Rate represents revenue from room rentals at our hotels divided by total number of room nights sold (including keys that were available for only a certain portion of a year)
2. Average Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels.
3. RevPAR is calculated by multiplying average daily rate and average occupancy.
Other Income
Our other income decreased by 22.86% from 31.50 million in Fiscal 2024 to 24.30 million in Fiscal 2025, primarily as a result of a decrease in reversal of impairment allowance for bad and doubtful debts from 5.90 million in Fiscal 2024 to 1.50 million in Fiscal 2025 and a decrease in interest income on financial assets carried at amortised cost bank deposits from
16.40 million in Fiscal 2024 to 13.30 million in Fiscal 2025, which was partially offset by an increase in liabilities no longer required written back from nil in Fiscal 2024 to 2.50 million in Fiscal 2025.
Total Expenses
Our total expenses increased by 14.33% from 3,727.70 million in Fiscal 2024 to 4,261.70 million in Fiscal 2025, primarily due to an increase in other expenses by 20.26% from 1,436.40 million in Fiscal 2024 to 1,727.40 million in Fiscal 2025 and employee benefits expense by 13.18% from 762.60 million in Fiscal 2024 to 863.10 million for Fiscal 2025.
Cost of Materials Consumed
Cost of materials consumed increased by 10.96% from 403.40 million in Fiscal 2024 to 447.60 million in Fiscal 2025 due to an increase in purchases during the year by 8.76% from 418.90 million in Fiscal 2024 to 455.60 million in Fiscal 2025.
Employee Benefits Expense
Our employee benefits expense increased by 13.18% from 762.60 million in Fiscal 2024 to 863.10 million for Fiscal 2025 due to an increase in salaries, wages and bonus by 13.29% from 650.00 million in Fiscal 2024 to 736.40 million in Fiscal
2025.
Depreciation and Amortization Expense
Our depreciation and amortization expense increased by 14.12% from 436.40 million in Fiscal 2024 to 498.00 million in Fiscal 2025 primarily due to an increase in depreciation of property, plant and equipment and right of use assets by 14.12% from 432.00 million in Fiscal 2024 to 493.00 million in Fiscal 2025.
Finance Costs
Our finance costs increased by 5.33% from 688.90 million in Fiscal 2024 to 725.60 million in Fiscal 2025 primarily due to an increase in interest expense on financial liabilities at amortised cost on lease liabilities by 73.26% from 76.30 million in Fiscal 2024 to 132.20 million in Fiscal 2025, which was partially offset by a decrease in interest expense on financial liabilities at amortised cost on bank borrowings by 8.98% from 440.00 million in Fiscal 2024 to 400.50 million in Fiscal 2025.
Other Expenses
Our other expenses increased by 20.26% from 1,436.40 million in Fiscal 2024 to 1,727.40 million in Fiscal 2025, primarily due to an increase in rent by 32.14% from 78.10 million in Fiscal 2024 to 103.20 million in Fiscal 2025, increase in subcontracting expenses by 67.48% from 114.10 million in Fiscal 2024 to 191.10 million in Fiscal 2025, increase in rates and taxes by 57.35% from 49.00 million in Fiscal 2024 to 77.10 million in Fiscal 2025, increase in legal and professional charges by 21.51% from 227.30 million in Fiscal 2024 to 276.20 million in Fiscal 2025 and increase in agency commission by 31.34% from 128.90 million in Fiscal 2024 to 169.30 million in Fiscal 2025. These were partially offset by a decrease in repairs and maintenance buildings by 11.09% from 55.00 million in Fiscal 2024 to 48.90 million in Fiscal 2025.
Restated profit/ (loss) before tax
As a result of the foregoing factors, our restated profit/(loss) before tax was 445.10 million in Fiscal 2025 compared to 320.80 million in Fiscal 2024.
Tax Expense
Our total tax expense increased from 9.40 million in Fiscal 2024 to 208.50 million in Fiscal 2025, primarily due to an increase in deferred tax charge/(credit) from 9.40 million in Fiscal 2024 to 208.50 million in Fiscal 2025.
Restated profit/ (loss) for the year
As a result of the foregoing factors, our restated profit/(loss) for the year was 236.60 million in Fiscal 2025 compared to 311.40 million in Fiscal 2024.
Fiscal 2024 compared to Fiscal 2023
Total Income
Our total income increased by 13.59% from 3,564.10 million in Fiscal 2023 to 4,048.50 million in Fiscal 2024, primarily due to an increase in our revenue from operations.
Revenue from operations
Our revenue from operations increased by 14.70% from 3,502.20 million in Fiscal 2023 to 4,017.00 million in Fiscal 2024, primarily due to an increase in the revenue from hospitality services by 14.64% from 3,443.30 million in Fiscal 2023 to 3,947.30 million in Fiscal 2024 on account of increase in average room rate from 5,943.57 in Fiscal 2023 to 6,387.58 in Fiscal 2024, increase in revenue per available room from 4,136.34 in Fiscal 2023 to 4,681.17 in Fiscal 2024 and increase in average occupancy from 69.59% in Fiscal 2023 to 73.29% in Fiscal 2024 and increased travel demand as a result of the easing of restrictions in relating to the COVID-19 pandemic. The following table sets forth the average room rate, average occupancy and revenue per available room for Fiscal 2023 and 2024:
| Particulars | As of / for the year ended March 31, | As of / for the year ended March 31, |
| 2024 | 2023 | |
| Average Room Rate(1) ( ) | 6,387.58 | 5,943.57 |
| Average Occupancy(2) (%) | 73.29 | 69.59 |
| Revenue per Available Room(3) ("RevPAR") ( ) | 4,681.17 | 4,136.34 |
1. Average Room Rate represents revenue from room rentals at our hotels divided by total number of room nights sold (including keys that were available for only a certain portion of a year)
2. Average Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels.
3. RevPAR is calculated by multiplying average daily rate and average occupancy.
Other Income
Our other income decreased by 49.11% from 61.90 million in Fiscal 2023 to 31.50 million in Fiscal 2024, primarily as a result of a decrease in profit on sale of property, plant and equipment (net) by 98.43% from 38.10 million in Fiscal 2023 to 0.60 million in Fiscal 2024, which was partially offset by an increase in reversal of impairment allowance for bad and doubtful debts from nil in Fiscal 2023 to 5.90 million in Fiscal 2024.
Total Expenses
Our total expenses increased by 0.22% from 3,719.50 million in Fiscal 2023 to 3,727.70 million in Fiscal 2024, primarily due to an increase in cost of materials consumed by 14.99% from 350.80 million in Fiscal 2023 to 403.40 million in Fiscal 2024 and employee benefits expense by 20.45% from 633.10 million in Fiscal 2023 to 762.60 million for Fiscal 2024. These were partially offset by a decrease in other expenses by 7.35% from 1,550.40 million in Fiscal 2023 to 1,436.40 million in Fiscal 2024.
Cost of Materials Consumed
Cost of materials consumed increased by 14.99% from 350.80 million in Fiscal 2023 to 403.40 million in Fiscal 2024 due to an increase in purchases during the year by 13.62% from 368.70 million in Fiscal 2023 to 418.90 million in Fiscal 2024.
Employee Benefits Expense
Our employee benefits expense increased by 20.45% from 633.10 million in Fiscal 2023 to 762.60 million for Fiscal 2024 due to an increase in salaries, wages and bonus by 19.84% from 542.40 million in Fiscal 2023 to 650.00 million in Fiscal
2024.
Depreciation and Amortization Expense
Our depreciation and amortization expense decreased by 11.57% from 493.50 million in Fiscal 2023 to 436.40 million in Fiscal 2024 primarily due to a decrease in depreciation of property, plant and equipment and right of use assets by 11.09% from
485.90 million in Fiscal 2023 to 432.00 million in Fiscal 2024.
Finance Costs
Our finance costs decreased by 0.40% from 691.70 million in Fiscal 2023 to 688.90 million in Fiscal 2024 primarily due to a decrease in interest expense on financial liabilities at amortised cost on bank borrowings by 8.28% from 479.70 million in Fiscal 2023 to 440.00 million in Fiscal 2024, which was partially offset by an increase in interest expense on financial liabilities at amortised cost on related party borrowings by 17.11% from 114.00 million in Fiscal 2023 to 133.50 million in Fiscal 2024.
Other Expenses
Our other expenses decreased by 7.35% from 1,550.40 million in Fiscal 2023 to 1,436.40 million in Fiscal 2024, primarily due to a decrease in property taxes by 86.24% from 337.10 million in Fiscal 2023 to 46.40 million in Fiscal 2024; increase in expenses on advertising and sales promotion from 50.70 million in Fiscal 2023 to 59.70 million in Fiscal 2024 and decrease in rates and taxes by 11.87% from 55.60 million in Fiscal 2023 to 49.00 million in Fiscal 2024. These were partially offset by an increase in power and fuel by 11.78% from 257.20 million in Fiscal 2023 to 287.50 million in Fiscal 2024 and an increase in legal professional charges by 14.34% from 198.80 million in Fiscal 2023 to 227.30 million in Fiscal 2024.
Restated profit/ (loss) before tax
As a result of the foregoing factors, our restated profit/(loss) before tax was 320.80 million in Fiscal 2024 compared to (45.40) million in Fiscal 2023.
Tax Expense
Our total tax expense increased by 164.83% from (14.50) million in Fiscal 2023 to 9.40 million in Fiscal 2024, primarily due to increase in profit for Fiscal 2024. This primarily constituted an increase in deferred tax charge/(credit) from (14.50) million in Fiscal 2023 to 9.40 million in Fiscal 2024.
Restated profit/ (loss) for the year
As a result of the foregoing factors, our restated profit/(loss) for the year was (30.90) million in Fiscal 2023 compared to 311.40 million in Fiscal 2024.
LIQUIDITY AND CAPITAL RESOURCES
We have historically financed the expansion of our business and operations through a combination of internal accruals and external borrowings.
Cash Flows
The following table sets forth certain information relating to our cash flows in the years indicated:
Particulars |
Fiscal | ||
| 2025 | 2024 | 2023 | |
| ( million) | |||
| Net cash flow from/(used in) operating activities (A) | 1,489.50 | 1,548.60 | 1,078.70 |
| Net cash flow from/(used in) investing activities (B) | (949.90) | (453.00) | 9.80 |
| Net cash flow from/ (used in) financing activities (C) | (817.90) | (921.30) | (1,322.40) |
| Net increase/ (decrease) in cash and cash equivalents (A + B + C) | (278.30) | 174.30 | (233.90) |
Cash and cash equivalents as at the end of the year |
(238.80) | 39.50 | (134.80) |
Operating Activities
Fiscal 2025
Net cash flow from/ (used in) operating activities was 1,489.50 million in Fiscal 2025. In Fiscal 2025, our restated profit/(loss) before tax was 445.10 million. Primary adjustment to reconcile restated profit/ (loss) before tax to net cash flows consisted of interest expense of 725.60 million and depreciation and amortization expenses of 498.00 million.
Operating profit before working capital changes was 1,648.90 million in Fiscal 2025. The main working capital changes in Fiscal 2025 comprised an increase in trade payables of 110.30 million, which was partially offset by an increase in other assets of 162.90 million and a decrease in other liabilities of 42.90 million.
Fiscal 2024
Net cash flow from/ (used in) operating activities was 1,548.60 million in Fiscal 2024. In Fiscal 2024, our restated profit/(loss) before tax was 320.80 million. Primary adjustment to reconcile restated profit/ (loss) before tax to net cash flows consisted of interest expense of 688.90 million and depreciation and amortization expense of 436.40 million.
Operating profit before working capital changes was 1,438.60 million in Fiscal 2024. The main working capital changes in Fiscal 2024 comprised decrease in other assets of 148.00 million, increase in other liabilities of 27.00 million, which was partially offset by a decrease in trade payables of 41.20 million.
Fiscal 2023
Net cash flow from/ (used in) operating activities was 1,078.70 million in Fiscal 2023. In Fiscal 2023, our restated profit/(loss) before tax was (45.40) million. Primary adjustment to reconcile restated profit/ (loss) before tax to net cash flows consisted of finance costs of 691.70 million and depreciation and amortization expense of 493.50 million.
Operating profit before working capital changes was 979.90 million in Fiscal 2023. The main working capital changes in
Fiscal 2023 included increase in trade payables of 125.40 million and increase in other liabilities of 77.90 million, which was partially offset by increase in trade receivable of 88.60 million.
Investing Activities
Fiscal 2025
Net cash flow from/(used in) investing activities in Fiscal 2025 was (949.90) million, primarily due to purchase of property, plant and equipment (including capital work in progress) of (947.40) million and investment in bank deposits of (100.60) million, which were offset by redemption of bank deposits of 86.70 million.
Fiscal 2024
Net cash flow from/(used in) investing activities in Fiscal 2024 was (453.00) million, primarily due to purchase of property, plant and equipment (including capital work in progress) of (554.80) million and investment in bank deposits of (80.00) million, which were offset by redemption of bank deposits of 160.90 million.
Fiscal 2023
Net cash flow from/(used in) investing activities in Fiscal 2023 was 9.80 million, primarily due to purchase of property, plant and equipment (including capital work in progress) of (97.10) million. This was partially offset by proceeds from sale of property, plant and equipment of 116.70 million.
Financing Activities
Fiscal 2025
Net cash flow from/ (used in) financing activities in Fiscal 2025 was (817.90) million, primarily on account of repayment of borrowings of (471.80) million and interest paid of (444.20) million, which was partially offset by proceeds from borrowings of 183.20 million.
Fiscal 2024
Net cash flow from/ (used in) financing activities in Fiscal 2024 was (921.30) million, primarily on account of repayment of borrowings of (1,431.40) million and interest paid of (478.70) million, which was largely offset by proceeds from borrowings of 1,156.90 million.
Fiscal 2023
Net cash flow from/ (used in) financing activities in Fiscal 2023 was (1,322.40) million primarily on account of repayment of borrowings of (1,025.10) million and interest paid of (508.30) million, which was partially offset by proceeds from borrowings of 267.90 million.
INDEBTEDNESS
As of March 31, 2025, we had total borrowings of 6,173.20 million. Further, as of May 31, 2025, our outstanding borrowings on a consolidated basis aggregated to 6,191.50 million. The interest rate for the term loans typically ranges from 8.25% per annum to 9.95% per annum and the interest rate for the working capital loans ranges from 8.25% per annum to 9.05% per annum. These rates are linked to the marginal cost of fund-based lending rate or external benchmark rates. The tenor of our working capital facilities is up to one year and can be renewed by mutual agreement, whereas the tenor of the term loans availed by us typically ranges for approximately 6 to 11 years. Non-convertible debentures have been issued at par carrying an interest rate of 0.01%. For further information, see "Financial Indebtedness" on page 347.
MATURITY PROFILE OF FINANCIAL LIABILITIES
The table below provides details regarding the maturity profile of our financial liabilities based on contractual undiscounted payments as of the dates indicated:
Particulars |
Maturity period | March 31, 2025 | March 31, 2024 | March 31, 2023 |
| ( million) | ||||
Financial liabilities - Current |
||||
| Current borrowings - term loans from banks | Within 1 year | 890.70 | 880.10 | 1,336.80 |
Particulars |
Maturity period |
March 31, 2025 | March 31, 2024 | March 31, 2023 |
| ( million) | ||||
| Current borrowings loans from related parties | Within 1 year | 400.00 | - | - |
Current borrowings - bank overdraft |
Repayable on demand |
346.50 | 40.30 | 212.40 |
| Current borrowings - Debentures | Within 1 year | 10.00 | 5.40 | - |
| Trade payables | Within 1 year | 381.20 | 273.30 | 314.50 |
| Lease liabilities | Within 1 year | 20.40 | - | - |
| Other financial liabilities | Within 1 year | 233.20 | 310.40 | 329.20 |
Financial liabilities - Non-current |
||||
| Non-Current borrowings - term loans from banks | Between 1-10 years | 5,279.50 | 6,126.00 | 4,409.80 |
Non-Current borrowings - loans from related parties |
Between 1-10 years |
1,379.00 | 1,779.00 | 1,779.00 |
| Non-Current borrowings - Debentures | Between 1-10 years | - | 10.00 | 15.40 |
| Lease liabilities | Between 1-30 years | 4,158.10 | 1,956.00 | 2,016.00 |
| Other financial liabilities | Between 1-3 years | 3.40 | 20.90 | 20.60 |
CONTINGENT LIABILITIES AND COMMITMENTS
As of March 31, 2025, our contingent liabilities as per Ind AS 37 - Provisions, Contingent Liabilities and Contingents Assets that have been derived from our Restated Consolidated Summary Statements, were as follows:
| As at March 31, 2025 | |
Particulars |
|
| ( million) | |
| Bank guarantee | 22.10 |
| Income Tax demands | 26.70 |
| Goods and Services Tax demands | 203.30 |
| Property tax demand under litigation | 287.40 |
For further information of our contingent liabilities as at March 31, 2025 in accordance with Ind AS 37 Provisions, Contingent Liabilities and Contingents Assets, see "Restated Consolidated Summary Statements Note 27 Commitments and Contingencies" on page 297.
COMMITMENTS
The estimated amount of contracts (net of capital advance) remaining to be executed on capital account not provided for is 1,900.70 million in Fiscal 2025, 229.80 million in Fiscal 2024, and 113.70 million in Fiscal 2023.
OFF-BALANCE SHEET COMMITMENTS AND ARRANGEMENTS
We do not have any off-balance sheet arrangements, derivative instruments or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.
RELATED PARTY TRANSACTIONS
We enter into various transactions with related parties in the ordinary course of business. Related parties with whom transactions have taken place during the year include reimbursement of expenses, interest on borrowings, purchase of materials, purchase of services, rent paid, loan proceeds and revenue from hospitality services. Also, see, "Risk Factors 44. We have in the past entered into related party transactions and may continue to do so in the future. The terms of these related party transactions, while at arms length, may be unfavorable to us." on page 59.
AUDITOR OBSERVATIONS
There are no qualifications, reservations and adverse remarks by our Statutory Auditors in our Restated Consolidated Summary Statements. Also, see "Risk Factors 14. Our Statutory Auditors have included certain emphasis of matters in their audit reports on our financial statements for the years ended March 31, 2025, March 31, 2024 and March 31, 2023. Further, our Statutory Auditors have included certain modifications under the section Other Legal and Regulatory Requirements in their audit reports on our financial statements for the years ended March 31, 2025 and March 31, 2024. We cannot assure you that any similar emphasis of matters or modifications, will not form part of our financial statements for the future fiscal periods, which could have an adverse effect on our reputation, financial condition, results of operations and cash flows." on page 41.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance our operations. Our principal financial assets include loans, trade, other receivables and cash and cash equivalents that derive directly from its operations. We are exposed to market risk, credit risk and liquidity risk. Our senior management oversees the management of these risks and ensures that our financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with our policies and risk objectives.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of risk: interest rate risk, currency risk and price risk.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market interest rates. Our exposure to the risk of changes in market interest rates relates primarily to our long-term debt obligations with floating interest rates. We manage our interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
Currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Our exposure to the risk of changes in foreign exchange rates arises on account of purchases from foreign countries. We have not taken any derivative instrument during the year and there is no derivative instrument outstanding as at the year end.
Price risk
We are affected by the price volatility of certain commodities. Our management has developed and enacted a risk management strategy regarding commodity price risk and its mitigation. We are subject to the price risk variables, which are expected to vary in line with the prevailing market conditions.
Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. Our exposure to credit risk arises majorly from trade receivables/ unbilled revenue and other financial assets. Other financial assets are bank deposits with banks and hence, we do not expect any credit risk with respect to these financial assets. With respect to other financial assets, we have constituted teams to review the receivables on periodic basis and to take necessary mitigations, wherever required. We apply the expected credit loss ("ECL") model for measurement and recognition of impairment losses on trade receivables and unbilled revenue. We follow the simplified approach for recognition of impairment allowance on trade receivables wherein, it recognises impairment allowance based on lifetime ECLs at each reporting date. At the balance sheet date, there was no significant concentration of credit risk and exposure thereon.
Liquidity risk
Our objective is to maintain a balance between continuity of funding and flexibility through the use of borrowings and lease contracts. We have assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.
CAPITAL EXPENDITURES
The following table sets forth additions to property, plant and equipment by category, for the years indicated below:
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| (in million) | |||
| Freehold land (A) | 7.50 | - | - |
| Leasehold land (ROU Assets) (B) | 179.00 | 600.00 | - |
| Buildings (C) | 641.80 | 31.10 | 14.60 |
| Plant & Machinery (D) | 91.60 | 9.00 | 2.70 |
| Electrical installation (E) | 94.90 | 3.10 | 1.30 |
| Office equipment (F) | 83.30 | 24.00 | 12.60 |
| Office equipment (ROU assets) (G) | 33.40 | - | - |
| Computer hardware (H) | 23.20 | 3.40 | 6.50 |
| Motor vehicles (I) | 1.40 | - | 1.10 |
| Furniture & fixtures (J) | 127.40 | 22.60 | 1.70 |
Total (K = A + B + C + D + E + F + G + H + I + J) |
1,283.50 | 693.20 | 40.50 |
SIGNIFICANT ECONOMIC CHANGES
Other than as described in this section and in "Risk Factors", "Industry Overview" and "Our Business" on pages 31, 148 and 188, respectively, there have been no significant economic changes that materially affected or are likely to affect income from continuing operations.
UNUSUAL OR INFREQUENT EVENTS OF TRANSACTIONS
Except as described in this Red Herring Prospectus, to our knowledge, there have been no "unusual" or "infrequent" events or transactions that have in the past or may in the future affect our business operations or future financial performance.
KNOWN TRENDS OR UNCERTAINTIES
Our business has been affected and we expect will continue to be affected by the trends identified above in "-Significant Factors Affecting Our Results of Operations and Financial Condition" and the uncertainties described in "Risk Factors" beginning on pages 322 and 31. To our knowledge, except as described or anticipated in this Red Herring Prospectus, there are no known factors which we expect will have a material adverse impact on our revenues or income from continuing operations.
FUTURE RELATIONSHIP BETWEEN COST AND INCOME
Other than as described in "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 31, 188 and 322, respectively, there are no known factors that might affect the future relationship between costs and revenues.
NEW PRODUCTS OR BUSINESS SEGMENTS
Except as set out in this Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new business segments other than in the normal course of business.
COMPETITIVE CONDITIONS
We operate in a competitive environment. See "Our Business", "Industry Overview" and "Risk Factors" on 188, 148 and 31, respectively, for further information on competitive conditions that we face.
EXTENT TO WHICH MATERIAL INCREASES IN NET SALES OR REVENUE ARE DUE TO INCREASED SALES VOLUME, INTRODUCTION OF NEW PRODUCTS OR SERVICES OR INCREASED SALES PRICES
Changes in revenue in the last three Fiscals are as described in " Fiscal 2025 compared to Fiscal 2024", " Fiscal 2024 compared to Fiscal 2023" above on pages 337 and 338, respectively.
SEGMENT REPORTING
Our Company and its Subsidiary are engaged in the business of hospitality. The Board of Directors being the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on an analysis of various performance indicators by industry classes. All operating segments operating results are reviewed regularly by CODM to make decisions about resources to be allocated to the segments and assess their performance. CODM believes that these are governed by same set of risks and returns hence, CODM reviews them as one component. Hence, there are no additional disclosures to be provided under Ind-AS 108 Segment information with respect to the single reportable segment. Further, our Company and its Subsidiary are domiciled in India and their non-current assets are located in India. There is no identifiable major customer who is contributing more than 10% of revenue.
SIGNIFICANT DEPENDENCE ON SINGLE OR FEW CUSTOMERS AND SUPPLIERS
We have a wide customer and supplier base and do not have any material dependence on any particular customer and supplier.
Further, for the details of our dependence on third-party hotel operators, see "Risk Factors - 1. We have entered into hotel operator services agreements and other related agreements with Marriott, Accor and InterContinental Hotels Group to receive operating and marketing services for our hotels. In Fiscal 2025, two of our hotels which are operated by Marriott contributed 43.81% of our revenue from operations. If these agreements are terminated or not renewed, our business, results of operations, financial condition and cash flows may be adversely affected." on page 31.
SEASONALITY/ CYCLICALITY OF BUSINESS
The hospitality industry in India is subject to seasonal variations. The periods during which our hotels experience higher revenues vary from property to property, depending principally upon location and the customers served. Our revenues are generally higher during the second half of each Fiscal. See also " Significant Factors Affecting Our Results of Operations Changes in Consumer Demand due to Seasonality and Macroeconomic Conditions" above on page 324.
RECENT ACCOUNTING PRONOUNCEMENTS
As at the date of this Red Herring Prospectus, there are no recent accounting pronouncements which would have a material effect on our results of operations or financial condition.
SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2025 THAT MAY AFFECT OUR FUTURE RESULTS OF OPERATIONS
Except as disclosed below, no circumstances have arisen after March 31, 2025 which materially and adversely affect or are likely to affect our profitability, or the value of our assets or our ability to pay our material liabilities within the next twelve months.
The Company has allotted an aggregate of 14,000,000 Equity Shares on a preferential basis for an aggregate consideration of 1,260.00 million at a price of 90.00 per Equity Share (including a premium of 80.00 per Equity Share). For further details, see "Capital Structure" on page 94.
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