2.21 Provisions and Contingent Liabilities:
Provisions:
Provisions are recognised when the Company
has a present obligation (legal or constructive)
because of a 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. When the Company expects
some or all of a provision to be reimbursed, the
reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually
certain. The expense relating to a provision is
presented in the statement of profit and loss net
of any reimbursement.
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 recognised as a finance cost.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed
only by future events not wholly within the
control of the Company or
• Present obligations arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the amount
of the obligation cannot be made.
2.22 Significant estimates and judgement:
The preparation of financial statements in
conformity with Ind AS requires management to
make judgements, estimates and assumptions
that affect the application of accounting
policies and the reported amounts of assets,
liabilities, income, expenses and disclosures
of contingent assets and liabilities at the date
of these financial statements and the reported
amounts of revenues and expenses for the years
presented. These judgements and estimates are
based on management's best knowledge of the
relevant facts and circumstances, having regard
to previous experience, but actual results may
differ materially from the amounts included in the
financial statements.
Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the
period in which the estimate is revised, and future
periods affected.
The information about significant areas of
estimation uncertainty and critical judgements in
applying accounting policies that have the most
significant effect on the amounts recognised in
the financial statements are as given below:
(i) Significant estimates
Recoverability of deferred tax assets
The Company has carry forward tax losses,
unabsorbed depreciation and MAT credit that are
available for offset against future taxable profit.
Deferred tax assets are recognised only to the
extent that it is probable that taxable profit will
be available against which the unused tax losses
or tax credits can be utilised. This involves an
assessment of when those assets are likely to
reverse, and a judgement as to whether there will
be sufficient taxable profits available to offset the
assets. This requires assumptions regarding future
profitability, which is inherently uncertain. To the
extent assumptions regarding future profitability
change, there can be an increase or decrease in
the amounts recognised in respect of deferred tax
assets and consequential impact in the statement
of profit and loss.
Deferred tax asset is recognized on unabsorbed
depreciation and business losses to the extent
it is probable that future taxable profits will be
available against which the deductible temporary
differences and unabsorbed depreciation can
be utilised.
(ii) Significant judgements
a) Determining the Lease Term
Ind AS 116 'Leases' requires lessees to determine
the lease term as the non-cancellable period of
a lease adjusted with any option to extend or
terminate the lease, if the use of such option is
reasonably certain. The Company makes an
assessment on the expected lease term on a lease-
by-lease basis and thereby assesses whether it
is reasonably certain that any options to extend
or terminate the contract will be exercised.
In evaluating the lease term, the Company
considers factors such as any significant leasehold
improvements undertaken over the lease term,
costs relating to the termination of the lease
and the importance of the underlying asset to
Company's operations taking into account the
location of the underlying asset and the availability
of suitable alternatives. The lease term in future
periods is reassessed to ensure that the lease term
reflects the current economic circumstances.
Critical Judgements in Determining the Discount
Rate: The discount rate is generally based on the
incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with
similar characteristics.
b) Employee Benefits (Estimation of defined benefit
obligation)
Post-employment benefits represent obligation
that will be settled in the future and require
assumptions to project benefit obligations. Post¬
employment benefit accounting is intended to
reflect the recognition of future benefit cost
over the employee’s approximate service period,
based on the terms of plans and the investment
and funding decisions made. The accounting
requires the Company to make assumptions
regarding variables such as discount rate, rate
of compensation increase and future mortality
rates. Changes in these key assumptions can
have a significant impact on the defined benefit
obligations, funding requirements and benefit
costs incurred.
c) Impairment of trade receivables
The risk of collectability of accounts receivable is
primarily estimated based on prior experience with,
and the past due status of doubtful debtors, while
large accounts are assessed individually based on
factors that include ability to pay, bankruptcy and
payment history. The assumptions and estimates
applied for determining the valuation allowance
are reviewed periodically.
d) Estimation of expected useful lives and residual
values of property, plants and equipment
Property, plant and equipment are depreciated at
historical cost using straight-line method based on
the estimated useful life, considered at residual
value. The asset's residual value and useful life
are based on the Company's best estimates
and reviewed, and adjusted if required, at each
Balance Sheet date.
e) Contingent Liabilities
Legal proceedings covering a range of matters
are pending against the Company. Due to the
uncertainty inherent in such matters, it is often
difficult to predict the final outcomes. The cases
and claims against the Company often raise
difficult and complex factual and legal issues
that are subject to many uncertainties and
complexities, including but not limited to the
facts and circumstances of each particular case
and claim, the jurisdiction and the differences in
applicable law, in the normal course of business, the
Company consults with legal counsel and certain
other experts on matters related to litigations. The
Company accrues a liability when it is determined
that an adverse outcome is probable, and the
amount of the loss can be reasonably estimated.
In the event an adverse outcome is possible,
or an estimate is not determinable, the matter
is disclosed.
f) Fair value measurements
When the fair values of financial assets and
financial liabilities recorded in the Balance Sheet
cannot be measured based on quoted prices in
active markets, their fair values are measured
using valuation techniques which involve various
judgements and assumptions.
g) Impairment testing
Impairment Testing: Property, plant and equipment,
Right-of-Use assets and intangible assets that are
subject to depreciation/ amortisation are tested
for impairment periodically including when events
occur or changes in circumstances indicate that
the recoverable amount of the cash generating
unit is less than its carrying value. The recoverable
amount of cash generating units is higher of
value-in-use and fair value less cost to sell. The
calculation involves use of significant estimates
and assumptions which includes turnover and
earnings multiples, growth rates and net margins
used to calculate projected future cash flows,
risk-adjusted discount rate, future economic and
market conditions.
2.23 New and amended standards:
(i) Ind AS 117 Insurance Contracts
The Ministry of corporate Affairs (MCA) notified
the Ind AS 117, Insurance Contracts, vide
notification dated 12 August 2024, under the
Companies (Indian Accounting Standards)
Amendment Rules, 2024, which is effective from
annual reporting periods beginning on or after 1
April 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 Company standalone financial statements as
the Company has not entered any contracts in the
nature of insurance contracts covered under Ind
AS 117.
(ii) 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 1 April 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 the Company financial statements.
Capital work-in-progress as at March 31, 2026 includes assets under construction at various projects and
renovation works which are pending installation.
4.1 In prior years, the Company had acquired certain parcel of lands of 3.36 acres at EM Bypass, Kolkata on
lease for 99 years aggregating to INR 146.78 crores for expanding its hotel business. In previous years,
the Company executed a Joint Development Agreement ('JDA'), for development of serviced apartments
(49% of land area) and hotel (51% of land area) at EM Bypass with Ambuja Housing and Urban Infrastructure
Company Limited (“Developer”). Accordingly, the proportionate land parcel and ancillary cost of INR 92.10
crores relating to hotel was classified as right-of-use assets - Land and INR 88.50 crores relating to serviced
apartments was classified under inventories. Further, construction cost of INR 5.85 crores relating to
serviced apartments was transferred from capital work-in-progress to inventories. The Company has
received the approvals for architectural designs and other approvals required to be taken for the purpose of
construction of serviced apartments/ hotel. Active development on the project is on going and is expected
to be completed by 2030.
4.2 During the year, the Company has capitalised the borrowing cost amounting to INR 1.53 crores which is
included in the cost of capital work-in-progress (CWIP). The rate used to determine the amount of borrowing
costs eligible for capitalisation was 8.65% p.a, which is the effective interest rate of the specific borrowing.
Note:
For impairment testing, goodwill of INR 22.81 crores as at March 31, 2026 and March 31, 2025 respectively,
acquired through business combinations for Flurys brand (cash generating unit referred as “CGU”), having
indefinite life is allocated to the hospitality segment which is also an operating and reportable segment of
the Company.
The Company has performed its annual impairment test for the year ended March 31, 2026 and March 31, 2025
in accordance with the provisions of Ind AS 36 “Impairment of Assets”. The Company considers the cash flows
from the said CGU in comparison to the cash projections at the time of acquisition, amongst other factors, when
reviewing for indicators of impairment. For the year ended March 31, 2026 and March 31, 2025, there were no
impairment triggers identified since the Company was able to meet the cash flow projections.
The estimated value-in-use of this CGU is calculated using cash flow projections basis 10.00% growth rate (March
31, 2025: 10.00%) till March 31, 2035, 4.50% terminal growth rate (March 31, 2025: 4.50%) for periods subsequent
to the forecast period of 10 years, pre-tax weighted average cost of capital (“WACC”) of 16.00% (March 31, 2025:
16.00%) and capitalisation rate of 9.00% (March 31, 2025: 9.00%). An analysis of the sensitivity of the value-in-use
to a change in key parameters (such as operating margin, WACC and average growth rate) based on reasonable
assumptions, did not identify any probable scenario in which the recoverable amount of the CGU would decrease
below its carrying amount.
Lease Commitments
A Company as a lessee
The Company as a lessee has entered into various lease contracts, which includes lease of land, office
space, club, restaurant and guest houses. The Company has several lease contracts that include extension
and termination options. These options are negotiated by management to provide flexibility in managing
the leased-asset portfolio and align with the Company's business needs. Management exercises significant
judgement in determining whether these extension and termination options are reasonably certain to
be exercised.
The Company also has certain leases of guest houses with lease terms of 12 months or less. The Company
applies the 'short-term lease' recognition exemptions for these leases.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets
are sufficient to meet the obligations related to lease liabilities as and when they fall due.
(v) Total cash outflow in respect of leases for the year ended March 31, 2026 is amounting to INR 29.26 crores
(March 31, 2025: INR 22.49 crores).
(vi) The effective interest rate for lease liabilities is 9.40% with maturity between 2026 - 2077.
B Company as a lessor
(i) The Company has given certain portion of a building in Hyderabad and Kolkata under cancellable
operating lease. Tenure of such lease extends to 9 years with an option to renew it for a further period
of 18 years. This lease agreement inter-alia includes escalation clauses to compensate for inflation,
option for renewals etc. Lease income (rental and service charges) aggregating INR 3.50 crores
(March 31, 2025: INR 3.48 crores) has been recognized in the Statement of Profit and Loss in keeping
with lease arrangements.
(ii) The Company has entered into cancellable operating leases wherein some area of the properties have
been leased for shops, towers, etc. Tenure of such leases is generally one year with an option for renewal.
Lease income aggregating INR 0.40 crores (March 31, 2025: INR 0.79 crores) has been recognized in
the statement of profit and loss in keeping with lease arrangements.
Optionally Convertible Redeemable Preference Shares (“OCRPS”) issued by ANWHPL. These OCRPS carry
a non-cumulative discretionary dividend of 12% with a tenure of 10 years and convertible at face value of
INR 100 each, which are convertible or redeemable at the option of ANWHPL. These OCRPS are recognised
as investment in equity instruments and are measured at cost in the books of account of the Company in
accordance with Ind AS 27 “Separate Financial Statements”.
7.2 During the year, the Company has entered into a Share Purchase Agreement dated December 16, 2025,
with Thali hotels and destination private limited and Fishermans grove resorts private limited for a net
purchase consideration of INR 18.11 crores to acquire controlling interest. The Company acquired control
of Fishermans Grove Resorts Private Limited (FGRPL) (100% stake), Thali Hotels and Destinations Private
Limited (Thali) (ASPHL directly holds 75% stake and balance through FGRPL), which owns a hotel property
in Kerala on December 22, 2025. The Net fair value of the consideration payable has been recognized as
investment in subsidiaries with a corresponding liability on the date of acquisition.
7.3 During the year, the Company entered into a Share Purchase Agreement (SPA) dated September 24, 2025,
with Zillion Hotels and Resorts Private Limited. ASPHL would acquire equity stake in ZHRPL for 90% of the
shareholder stake and for the remaining 10% of the equity stake is agreed to be transferred after one year
from the commercial operation date. As part of the transaction, the purchase consideration amounting
INR 93.81 crores towards 90% will be discharged through repayment of identified liabilities of ZHRPL and
balance payable to the selling shareholders.
The net fair value of the acquisition of the aforesaid transaction has been recognized as investment in
subsidiaries with acorresponding liability on the date of acquisition. As of March 31, 2026, 76% of shareholding
has been transferred and balance will be transferred as per the terms and conditions stipulated in the SPA.
1) Loans to body corporate carries interest at rate of 9% p.a and shall be repaid on March 31, 2029.
2) During the year company had received the loan given to Apeejay Tea Private limited amounting INR 6.30
crores along with accrued interest amounting to INR 0.57 crores
3) Refer note 37 for disclosures of related party transactions.
4) Refer Note 33 and 34 for fair value measurements and financial risk disclosures.
Notes:
1) Trade receivables are non interest bearing and generally on terms of up to 90 days.
2) No trade or other receivable are due from directors or other officers of the Company either severally or
jointly with any other person. Nor any trade or other receivable are due from firms or private companies
respectively in which any director is a partner, a director or a member.
3) Refer note 18 and 42 for information on trade receivables pledged as security by the Company
against borrowings.
4) Refer note 33 and 34 for fair value measurements and financial risk disclosures.
5) The Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on historical credit loss experience and forward looking experience.
6) Refer note 37 for disclosures of related party transactions.
(ii) Terms/ rights attached to equity shares
The Company has only one class of equity shares referred to as equity shares having a par value of INR 1
per share. Each Shareholder is entitled to one vote per share held. The dividend proposed by the Board
of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in
case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential amounts, if any, the distribution will
be in proportion to number of equity shares held by the shareholders.
Retained earnings include re-measurement loss/(gain) on defined benefit plans, net of taxes that will not
be reclassified to statement of profit and loss.
(iii) General reserve: It represents a free reserve not held for any specific purpose. The Company has transferred
a portion of net profit of the Company before declaring dividend to general reserve pursuant to the earlier
provisions of the Companies Act, 1956. Mandatory transfer to general reserve is not required under the
Companies Act, 2013. However, the amount previously transferred to the general reserve can be utilised
only in accordance with the specific requirements of the Companies Act, 2013.
(iv) Securities premium reserve: It represents premium received on issue of shares. The reserve will be utilised
in accordance with the provisions of the Companies Act, 2013 .
(v) Capital redemption Reserve: It represents amount arisen on account of buy back of equity shares during
FY 2017-18.
(i) Borrowings are net of EIR adjustment of INR 0.96 crores (March 31, 2025: INR 0.61).
(ii) For the financial year 2025-26, Interest rates on Term Loan carries interest rate of 8.65 % p.a.
(iii) The amounts stated in footnotes above are inclusive of any amounts disclosed under current maturities of
long term borrowings, if any.
(iv) The Company has complied with all financial covenants as at the reporting date and there is no indication
of any default or breach of these covenants. These covenants are tested annually as per the terms of the
loan agreements. Details of Covenants are mentioned below:
Loan covenants
The secured bank loan is subject to the following covenants:
Term Loan INR 75 crore: Net Debt should not exceed INR 400 Crore.
Net Debt is defined as aggregate of Long term debt and short term debt including working capital demand loan
and cash credit minus cash and cash equivalents defined as per sanction letter.
Net Debt as on 31st March 2026 is INR 139.69 Crore, which does not exceed INR 400 Crore
Term Loan INR 100 crore & INR 50 crore: Net Debt should not exceed INR 500 crore.
Net Debt is defined as aggregate of Long term debt and short term debt including working capital demand loan
and cash credit minus cash and cash equivalents defined as per sanction letter.
Net Debt as on 31st March 2026 is INR 140 Crore, does not exceed INR 500 Crore
Ratio of Net Debt to EBITDA shall not exceed 3 times.
EBITDA is defined as Sales minus excise duty plus other recurring income incidental to main business minus
operating expense (excluding Interest, Amortisation and Depreciation) defined as per sanction letter.
EBITDA for the year INR 209.35 Crore
Net Debt to EBITDA ratio is 0.66 times which does not exceed 3 times.
18.3 Working capital loan and cash credit
(i) During the year ended March 31, 2026 and March 31, 2025, no written information or stock statements
were required to be submitted with the lenders by the Company under the terms of respective
borrowing agreement.
(ii) Secured working capital loans and Cash credit of INR 35.03 crores as at March 31, 2026 (INR 30 crores:
March 31, 2025) which is secured by first charge by way of hypothecation of First charge on all current
assets, including book debts of borrower, both present and future, of the company ranking pari passu
where applicable. Second pari passu over the property The Park Kolkata. These loans carries interest
rate of 8.50% to 9.70%. Working capital loans and cash credits are repayable on demand.
(iii) The Company has complied with all financial covenants as at the reporting date and there is no indication
of any default or breach of these covenants. These covenants are tested semi-annually as per the terms
of the loan agreements.
18.4General
(i) During the year ended March 31, 2026 and March 31, 2025, no proceedings were initiated against the
Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and the rules made thereunder.
(ii) The Company is not declared wilful defaulter by any bank or financial Institution or other lender during
the year ended March 31, 2026 and March 31, 2025.
(vi) Contract liabilities
An entity's obligation to transfer goods or services to a customer for which the entity has received
consideration (or the amount is due) from the customer.
(a) Advance from customers
Advance from customer is recognised when payment is received before the related performance obligation
is satisfied. The table does not include amounts which were received and recognised as revenue in the year.
Performance obligation
As per the terms of the contract with its customers, the customer loyalty points can be redeemed up to two
years from generation of points. All other performance obligations are to be completed within one year
from the date of contracts with customer. Accordingly, the Company has availed the practical expedient
available under paragraph 121 of Ind AS 115 and dispensed with the additional disclosures with respect
to performance obligations that remained unsatisfied (or partially unsatisfied) at the balance sheet date.
Further, since the terms of the contracts directly identify the transaction price for each of the completed
performance obligations there are no elements of transaction price which have not been included in the
revenue recognised in the financial statements. Further, there is no material difference between the contract
price and the revenue from contract with customers.
31 Earning per share (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the
weighted average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting
for interest on the convertible preference shares, if any) by the weighted average number of equity shares
outstanding during the year plus the weighted average number of equity shares that would be issued on
conversion of all the dilutive potential equity shares into equity shares.
(ii) Fair Value
1) The management assessed that cash and cash equivalents, trade receivables, trade payables, investment
in mutual fund and other investments, other current financial assets and other current financial liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments
2) The fair value of the other financial assets and liabilities is included at the amount at which the instrument
could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. The following methods and assumptions were used to estimate the fair values:
3) The fair values of the company's interest-bearing borrowings are determined by using effective interest
rate (EIR) method using discount rate that reflects the issuer's borrowing rate as at the end of the
reporting period. The own non-performance risk as at March 31, 2026 and March 31, 2025 was assessed
to be insignificant.
4) Long-term receivables/payables are evaluated by the Group based on parameters such as interest
rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the
financed project. Based on this evaluation, allowances are taken into account for the expected credit
losses of these receivables.
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial
statements are a reasonable approximation of their fair values since the company does not anticipate that
the carrying amount would be significantly different from the values that would eventually be received
or settled.
b. Fair value hierarchy
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 under current market conditions.
The Company categorises assets and liabilities measured at fair value into one of the three levels depending
on the ability to observe inputs employed in their measurement which are described as follows:
Level 1: Inputs are quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Inputs are observable inputs, either directly or indirectly, other than quoted prices included within
level 1 for the asset and liability.
Level 3: Inputs are unobservable inputs for the asset or liability reflecting significant modifications to
observation related market data or Company's assumptions about pricing by market participants.
(i) As per the Company policies, whenever any investment is made by the company in equity securities,
the same is made either with some strategic objective or as a part of contractual arrangement.
Valuation technique used to determine fair value include
Investment in unquoted equity shares in Green Infra Wind Farms Limited and Green Infra Wind
Generation Limited amounting to INR 0.02 (March 31, 2025: 0.02) are made pursuant to the contract
for procuring electricity supply at the hotels units. Investment in said companies is not usually traded
in market. Considering the terms of the electricity supply contract and best information available in the
market, cost of investment is considered as fair value of the investments.
(ii) Valuation technique for fair value of fixed-rate and variable-rate borrowings has been determined by the
Company based on parameters such as interest rates, country risk factors, and the risk characteristics
of the financed project.
(iii) Investment in mutual funds traded in active markets are determined by reference to quotes from the
financial institutions; for example: Net asset value (NAV) for investments in mutual funds declared by
mutual fund house.
(iv) In the absence of observable inputs to measure fair value the assets and liabilities have been classified
as level 3. The Company has not given further disclosures since the amount involved is not material.
The management considers that the carrying amounts of financial assets and financial liabilities having
short term maturities recognised in the standalone financial statements approximates their face values.
34 Financial risk management objectives and policies
The Company's principal financial liabilities comprise of borrowings, trade and other payables and other
financial liabilities. The main purpose of these financial liabilities is to finance and support the operations
of the Company. The Company's principal financial assets include trade and other receivables, loans,
investments and cash & cash equivalents that derive directly from its operations.
The Company's business activities are exposed to a variety of risks including liquidity risk, credit risk and
market risk. The Company seeks to minimize potential adverse effects of these risks by managing them
through a structured process of identification, assessment and prioritization of risks followed by coordinated
efforts to monitor, minimize and mitigate the impact of such risks on its financial performance and capital.
For this purpose, the Company has laid comprehensive risk assessment and minimization/mitigation
procedures and are reviewed by the management from time to time. These procedures are reviewed to
ensure that executive management controls risks by way of properly defined framework. The Company
does not enter into derivative financial instruments for speculative purposes.
A Credit risk
Credit risk refers to risk of financial loss to the Company if customers or counterparties fail to meet their
contractual obligations. The Company is exposed to credit risk from its operating activities (mainly trade
receivables) and from its investing activities (primarily deposit with banks).
(a) Trade receivables
Trade receivables consist of large number of customers, spread across geographical areas. In order to
mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process
in respect of customers who are allowed credit period. In respect of walk-in customers the company does
not allow any credit period and therefore, is not exposed to any credit risk.
(b) Deposits and financial assets (Other than trade receivables):
The Company maintains exposure in Cash and cash equivalents and term deposits with banks. Investments
of surplus are made within assigned credit limits with approved counterparties who meet the threshold
requirements with respect to ratings, financial strength, credit spreads etc. Counterparty credit limits are
set to minimize concentration risk and are reviewed on a periodic basis.
(c) Credit risk related to investments
The Company has made investments in liquid mutual funds to meet their short term liquidity objectives.
The Company analyses the credit worthiness of the party before investing their funds. The Company
limits its exposure to credit risk by generally investing in liquid securities and only with counterparties
that have a good credit rating. The Company does not expect any losses from non-performance by these
counterparties, and does not have any significant concentration of exposures to specific industry sectors
or specific country risks.
B Liquidity risk
Liquidity risk implies that the Company may not be able to meet its obligations associated with its financial
liabilities. The Company manages its liquidity risk on the basis of the business plan that ensures that the
funds required for financing the business operations and meeting financial liabilities are available in a timely
manner and in the currency required at optimal costs. The Management regularly monitors rolling forecasts
of the Company's liquidity position to ensure it has sufficient cash on an ongoing basis to meet operational
fund requirements.
Additionally, the Company has committed fund and non-fund based credit lines from banks which may
be drawn anytime based on Company's fund requirements. The Company maintains a cautious liquidity
strategy with positive cash balance and undrawn bank lines throughout the year.
C Market Risk
Market risk is the risk that the fair value of future cash flow of financial instruments may fluctuate because
of changes in market conditions. Market risk broadly comprises three types of risks namely currency risk,
interest rate risk and price risk (for equity instruments). The above risks may affect the Company's income
and expenses and/or value of its investments. The Company's exposure to and management of these risks
are explained below:
(a) Interest rate risk
The company's exposure to risk of change in market interest rates relates primarily to its debt interest
obligations. It's borrowings are at floating rates and its future cash flows will fluctuate because of changes
in market interest rates.
35 Capital management
For the purposes of the Company's capital management, capital includes issued capital, all other equity
reserves and long term borrowed capital less reported cash and cash equivalents.
The primary objective of the Company's capital management is to maintain an efficient capital structure to
reduce the cost of capital, support the corporate strategy and to maximise shareholder's value.
The Company's policy is to borrow primarily through banks to maintain sufficient liquidity. These borrowings,
together with cash generated from operations are utilised for operations of the Company including periodic
capital projects undertaken for the company's existing projects . The Company monitors capital on the basis
of cost of capital. The Company manages its capital structure and makes adjustments in light of changes
in economic conditions. The Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings,
less cash and cash equivalents.
(ii) Leave Obligations - defined benefit plan
The Company has a scheme of encashment of leave or leave with pay subject to certain rules. The employees
are entitled to accumulate leave subject to certain limits, for future encashment. The liability is determined
on the basis of actuarial valuation using projected unit credit method of unutilized on leave entitlements on
balance sheet date. The scheme is unfunded.
(iii) Gratuity - defined benefit plan
The Company has a post employment defined benefit scheme in the form of gratuity. Under the scheme,
employees are entitled to gratuity benefits based on fifteen days salary (basic plus dearness allowance) for
each completed year of service. The aforesaid benefit accrues on completion of five years of service. The
Company's obligation towards such gratuity benefits are determined on the basis of actuarial valuation
using projected unit credit method of the Company's period end obligation under the scheme. Difference
between the Company's obligation so determined and year end value of the assets of the related gratuity
fund is recognised as charge for the year.
The trustees of the Gratuity fund has entrusted the administration of the fund to HDFC Standard Life
Insurance Co.Ltd.
The following Table sets forth the particulars in respect of the aforesaid Gratuity fund of the Company as
at March 31, 2026 and March 31, 2025.
Notes:
a) The discount rate is based on the prevailing market yields of Indian Government securities as at the
balance sheet date for the estimated term of obligations.
b) The compensated absences are unfunded.
c) The estimates of future salary increase considered takes into account the inflation, seniority, promotion
and other relevant factors.
d) The average duration of the defined benefit plan obligation at the end of the reporting period is 7 years
(March 31, 2025: 9 years).
(vii) Sensitivity Analysis
The following table present a sensitivity analysis to one of the relevant actuarial assumption, holding other
assumptions constant, showing how the defined benefit obligation would have been affected by changes
in the relevant actuarial assumptions that were reasonably possible at the reporting date.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the defined benefit liability
recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared
to the prior period.
Risk associates with plan provisions
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory
framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above
gratuity benefit, the most significant of which are as follows:
Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates
will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase
in the value of the liability (as shown in financial statements).
Liquidity Risk: This is the risk that the Company is not able to meet the short term gratuity pay-outs. This
may arise due to non availability of sufficient cash/cash equivalents to meet the liabilities.
Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of
salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the present value of obligation will have
a bearing on the plan's liability.
Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the
liability. The Company is exposed to the risk of actual experience turning out to be worse compared to
the assumption.
Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity
Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity
payouts e.g. Increase in the maximum limit on gratuity of INR 20,00,000 and upward revision of maximum
gratuity limit will result in gratuity plan obligation.
Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of
assets, exposing the Company to market risk for volatilities/fall in interest rate.
Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any
particular investment.
The Company has recognised an expense of INR 2.09 crores (March 31, 2025: INR 3.64 crores) arising from equity
settled share based payment transactions for employee services received during the year. The carrying amount
of Employee stock options outstanding reserve as at March 31, 2026 is INR 8.78 crores (March 31, 2025: INR 6.69
crores).
The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the
options is indicative of future trends, which may not necessarily be the actual outcome.
37 Related Party Disclosures
The related parties as per the terms of Ind AS-24, "Related Party Disclosures", (under the Section 133 of the
Companies Act 2013 (the Act) read with the Companies (Indian Accounting Standards) Rule 2015 (as amended
from time to time) and other relevant provision of the Act) are disclosed below:-
(b) Loans made to the subsidiaries/ joint venture of subsidiaries are on mutually agreed terms.
(c) The sales and purchase from related parties are made on terms equivalent to those that prevail in arm's
length transactions. Outstanding balance at the year-end are unsecured and interest free and settlement
occurs through banking channels.
(d) The guarantees for the related parties are given in the ordinary course of business and related parties have
provided counter guarantees for such guarantees.
38 Utilisation of IPO Proceeds
Previous year ended March 31, 2024, the Company completed its Initial Public Offer (IPO) of 5,93,85,351
equity shares of face value of INR 1 each at an issue price of INR 155 per share (including a share premium
of INR 154 per share) out of which 5,93,57,646 equity shares were issued and subscribed. A discount of
INR 7 per share was offered to eligible employees bidding in the employee's reservation portion of 6,75,675
equity shares out of which 62,208 equity shares were issued and subscribed. The issue comprised of a fresh
issue of 3,87,12,486 equity shares aggregating to INR 600 Crores and offer for sale of 2,06,45,160 equity
shares by selling shareholders aggregating to INR 320 Crores. Pursuant to the IPO, the equity shares of the
Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on February
12, 2024.
The Company has imported Capital Goods under the Export Promotion Capital Goods Scheme of the Government
of India at concessional rates of duty on an undertaking to fulfill the quantified export. As on date, the Company
has fulfilled export obligation however, export obligation discharge certificate from the DGFT are yet to be
received . The Company is in the process of obtaining such discharge certificates, meanwhile the same has been
disclosed as above.
40 Other statutory information
(i) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(ii) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(iii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries"
(iv) The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income tax act,
1961 (such as, search or survey or any other relevant provisions of the Income tax act, 1961).
(v) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory year.
(vi) The Company has complied with the number of layers for its holding in downstream companies prescribed
under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number
of Layers) Rules, 2017.
(vii) The Company does not have any transaction during the year or balance as at the reporting date with the
companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.
(a) During earlier years, the Company had received a Property Tax demand from New Delhi Municipal Council
(NDMC) for INR 59.70 crores for period upto March 31, 2023 with a view that the assessable value for
calculation of property tax considered by Company is lower than the actual ought to be value. Against the
amount demanded, the Company had deposited INR 2.02 crores in the form of regular tax payment and
remaining INR 8.57 crores was deposited 'under protest' up to March 31, 2025. On October 26, 2023 the
Company have received demand notice raising the demand to INR 67.65 crore till March 31, 2024. During
the year company had deposited INR 0.45 crores under protest.
On January 22, 2019, the matter was decided in favour of Company by Hon'ble Supreme Court of India
('SC'). Thereafter, on September 11, 2019, the Company filed representation before NDMC claiming a sum
of INR 5.34 Crores (amount paid under protest till the date of SC order). Till date, NDMC has not provided
any specific response for refund of such excess amount paid by the Company. Instead, NDMC issued notice
u/s 72 and proposed to increase rateable value w.e.f. April 01, 2018.
The Company is of the view that NDMC has not
adhered to the orders of Supreme Court and the
demand raised for earlier years up to 2024 is not
tenable. For period from April 01, 2018 to March
31, 2024, the Company, basis the legal opinion, is
of the view that the assessable value considered
for calculation of property tax is high and
accordingly revised rate is not acceptable keeping
in view other properties in the vicinity and in same
industry. Based on above, management believes
that there is no impact required to be recorded in
the Company's financial statements.
The Delhi High Court, vide its order dated
September 20, 2022, has ordered a stay on the
aforesaid writ petitions since the same are linked
to certain other writ petitions, and will be disposed
off along with the said petitions. The matter is
listed in Delhi High Court on August 19, 2026."
(b) During the earlier years company has received
order u/s 143(3) of income tax act for the A.Y.
2013-14 with respect to various matters such as
disallowances of interest capitalization, Bad debts
written off and disallowances Amortization of
leasehold land.
During the current the company has received a
demand order u/s 147 for the A.Y. 2022-23 dated
March 22, 2024 and for the A.Y. 2018-19 dated
March 24, 2024 of income tax act from Income
Tax Department with respect to various matters
such as tax on income on buy back of shares and
disallowances of interest capitalization, addition
u/s 37 and other disallowances of expenses.
During the year, the Company received an
assessment order dated March 24, 2026 under
Section 143(3) read with Section 144B of the
Income-tax Act, 1961 for Assessment Year 2024¬
25, pursuant to which additions aggregating to
INR 114.77 Crores were made and a tax demand of
INR 60.68 Crores was raised due to disallowances
of certin expenses & Liabilities.
The Company challenged the demand order before
the Hon'ble Calcutta High Court. Vide order dated
May 12, 2026, the Hon'ble High Court quashed
and set aside the assessment order and directed
the Assessing Officer to re-adjudicate the matter
after considering the Company's submissions and
providing an opportunity of hearing.
Based on evaluations of the matters and legal
advice obtained, management believes that the
chances of liability devolving on the company are
less likely and there will be no adverse impact on the
Company in this regard. Accordingly, no provision
has been considered in these financial statements.
c) Apeejay Surendra Park Hotels Ltd challenged
a property tax reassessment and heavy
penalty imposed by the Navi Mumbai Municipal
Corporation after almost 10 years, starting from
the assessment year 2014-15. The total demand
raised by NMMC was approximately §12.37 crore,
including penalties, although the principal tax
amount was around §5.87 crore. The petitioner
had already paid §1.95 crore earlier.
The main grievance of the petitioner was that
penalty was imposed without giving a proper
opportunity of hearing, despite the petitioner
requesting additional time to submit documents
in response to a show-cause notice
NMMC argued that during a survey it discovered
the property was being operated as a four-star
hotel, leading to reassessment and issuance of a
recovery notice demanding payment within 48
hours, along with threats of attachment, seizure,
and water disconnection
The Bombay High Court held that the petitioner
was denied a fair hearing, which violated principles
of natural justice. The Court directed the petitioner
to submit a detailed representation within two
weeks and ordered NMMC to grant a hearing
and decide the matter afresh within four weeks.
The petitioner also agreed to deposit INR 1 crore
without prejudice, and the Court ordered that no
coercive recovery action be taken until the issue
is finally decided."
d) The Company had received a demand on dated
March 11, 2022 amounting to INR 9.81 Crores
from Land & Development Office (LDO), Ministry
of Urban Development, Government of India, to
regularise the alleged breaches relating to the
property of New Delhi. This was the first time that
the Company had received such demand letter
despite regular/ periodic inspection of the said
property carried out by appropriate authority.
Based on the communication received from LDO,
the demand had been raised with retrospective
effect from 1985. The Company has disputed
the alleged claim and the matter is pending
before LDO which is supported by a legal opinion
obtained by the company. Management believes
that, the alleged demand is questionable, arbitrary
and not tenable and is likely to be settled in favour
of the company. Pending such reassessment,
liability in this regard has not been recognised
based on management's best estimate.
Further, subsequent to March 31, 2024, the
Company have received additional demand order
for INR 1.42 Crore till July 14, 2024 calculated
retrospective from January 01, 1994. A Writ
Petition has been filed before the Hon'ble High
Court of Delhi being W.P. (C) No. 14445/2024
inter-alia challenging the aforesaid demand. The
said writ petition was listed before the Hon'ble
Court on 15.10.2024. As on 31.03.2026 the said
Writ Petition was pending adjudication. It may
be noted the subsequently the Writ Petition
has been allowed by the Hon'ble High Court on
16.04.2026 and the Hon'ble Court has quashed the
communication bearing No. L-NI/13(46)/27."
(e) During the year, the Company received a property
tax demand dated July 26, 2024 under Section
108(A) (10) of K.M.C. Act, 1976 and Section 144
(12) of current BBMP Act, 2020 from Office of the
Zonal Commissioner (East), Bruhat Bengaluru
Mahanagra Palike East Zone for INR 8.32 crores
which includes penalty, after revising and fixing
the property tax, by amendments to principal
act, based on for years starting from 2008-09 to
2023-24 for 'The Park Hotels' building situated at
Bengaluru pursuant to Total Station Survey of the
subject Building.
The Company is of the view that amendments to
principal act are contrary to the various provisions
of the Constitution of India, 1950, and accordingly,
the demand raised for earlier years up to 2024
is not tenable. The Company had filed the writ
petition against the said order. The Bengaluru
High Court, vide its order dated August 20, 2024,
has ordered a stay on the aforesaid writ petition.
The date of hearing is not yet notified.
For period from April 01, 2008 to March 31, 2024,
the Company, basis the legal opinion, is of the
view that the amendments to the principal act
for property tax is not tenable and cannot be
retrospective, and accordingly, revised rate is not
acceptable keeping in view other properties in
the vicinity and in same industry. Based on the
above, the management believes that no provision
is required to be made in the standalone financial
statements in this regard.
(f) Pursuant to a lease deed dated August 08, 2007,
executed by and between the Jaipur Development
Authority (“JDA”) and the Company, the JDA
granted leasehold rights in favour of the Company.
The J DA has, from time to time, sent letters/notices
directing the Company to clear its dues of annual
lease rent for the period starting from the year
2008 onwards. The JDA last issued a notice to the
Company on December 12, 2019 under Sections
256 and 257 of the Rajasthan Land Revenue Act,
1956, raising a demand for outstanding dues of
annual rent aggregating up to INR 2.21 Crores,
coupled with interest payable amounting to
approximately INR 1.78 Crores. The Company has
filed a writ of certiorari dated January 17, 2020
before the High Court of Jaipur together with an
application to stay the Notice during the pendency
of the writ petition. Pursuant to the writ petition,
our Company has prayed for, among other things,
to direct JDA (i) not to take any unjust or illegal
action against our Company, in accordance with
the Notice; (ii) to direct JDA not to take any stern
legal action against our Company. The matter
is currently pending. Management believes that
there will be no adverse impact on the Company in
this regard and therefore no liability in this regard
has been recognised in these financial statements
based on management's best estimate.
(g) Imposition of Vacant land Tax on constructed land.
Notice of demand is raised by the Visakhapatnam
Municipal Corporation related to the Vacant land
tax. Notice was challenged on the ground that no
notice was served on the amalgamated company.
Further there is no vacant land available to pay
vacant land tax as it was fully utilized for lawn,
swimming pool, approach road, trees, gardens,
parking's etc. Suit was dismissed without hearing
on merits. Therefore IA No. 984/1994 filed to
restore and rehear the case. The same was
also dismissed.
Then C.R.P. No. 1014 of 1997 was filed before the
Hon'ble High Court of A.P. During the pendency
of the Revision before the Hon'ble High Court, stay
was granted on 18/08/1997 subject to depositing
half of the demanded amount. Accordingly, the
same was deposited. The said C.R.P. was allowed
on 14/07/2000 in favour of the Park Hotel and
directed the Trail Court to rehear the case.
After the matter was remanded to the Trail Court
to re-hear the matter on merits. However, O.S.
No. 204 of 1988 was dismissed with costs on
02/01/2003 by the 1st Additional Senior Civil
Judge, Visakhapatnam against the Park Hotel.
The Division Bench of the Hon'ble Court while
admitting the appeal pleased to grant stay on
11/11/2003 in C.M.P. No. 11622/2003 on a
condition to deposit the suit costs i.e., INR 9093/-
only. The appeal is still pending before the Hon'ble
High Court. The matter is listed in Hon'ble High
Court on 15 July 2026.
(h) (i) There are service tax cases outstanding from FY 2011-12 to FY 2018-19 with respect to various matters
like reversal of input tax credit due to mismatch in returns, short payment of service tax on entry fee
collected for Spa and Tantra under club & association service, non inclusion of catering charges under
mandap keeper service etc. And pending at various forums.
(ii) There are multiple Goods and Service Tax matter for which company have received demand order for
INR 6.16 Crore for various matters like short payment of tax on outward liability and wrong availment
or utilisation of input tax credit for the period from 2017-18 to 2023-24.
Based on evaluations of the matters and legal advice obtained, Management believes that there will be
no adverse impact on the Parent Company in this regard and therefore no liability in this regard has been
recognized in these financial statements based on management's best estimate.
(i) The Company did not have any long term contracts including derivative contracts for which there were any
material foreseeable losses.
43 Segment Reporting
The Company is primarily engaged in business of owning, operating and managing hotels ('Hospitality
segment'). The Board of directors which has been identified as the Chief operating decision maker ('CODM')
reviews the performance of the Company as a single operating segment in accordance with Ind AS-108
“Operating Segments"" i.e., the 'Hospitality segment', notified pursuant to the Companies (Indian Accounting
Standard) Rules 2015. Accordingly, no separate segment information has been furnished herewith.
Information about geographical areas
The Company has only domestic operations and hence no information required for the Company as per the
requirements of Ind AS 108 - “Operating Segments”.
Information about major customers
No customer individually accounted for more than 10% of the revenue.
44 The financial figures disclosed as zero values are due to rounding off norms.
45 Events after the reporting period
(i) Subsequent to the year ended March 31, 2026, on May 26, 2026, the Company has declared a dividend of
INR 0.75 per share on face value of INR 1 each equity share.
(ii) No other than significant subsequent events have been observed which may require an adjustment to the
standalone financial statements of assets and liabilities.
46 The previous year's figures have not been regrouped/ reclassified.
47 The Company has defined process to take daily back-up of books of account in electronic mode on servers
physically located in India. However, the backup of the books of account and other books and papers
maintained in electronic mode with respect to Symphony software implemented at individual hotel units
for Food & Beverage billing has not been maintained on servers physically located in India on daily basis.
The Company's individual units (except for Someplace Else and Flurys) have used accounting software
for maintaining its books of account which has a feature of recording audit trail (edit log) facility which
was not enabled throughout the year for all relevant transactions recorded in the software and feature is
not enabled for certain changes made using privileged/ administrative access rights to the Opera, Web
prolific, Micros, Wish and Touche applications and the underlying database. In respect of Flurys unit, its
accounting software 'Tally' did not have the feature of recording audit trail (edit log) facility for all relevant
transactions recorded in the software. Further, in respect of Someplace else and Flurys, the Company has
used accounting softwares Web prolific, Infrasis and Pace Automation which is operated by a third-party
software service provider, for maintaining its books of account. Management is not in possession of Service
Organisation Controls Report to determine whether audit trail feature of the said software was enabled and
operated throughout the year for all relevant transactions recorded in the software or whether there were
any instances of the audit trail feature being tampered with, in respect of an accounting software(s) where
the audit trail has been enabled. Additionally, the Company preserved audit trail in full compliance with the
requirements of Section 128(5) of the Act to the extent it was enabled and recorded.
48 Exceptional items
On 21 November 2025, the Government of India notified four Labour Codes-Code on Wages, 2019; Industrial
Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working
Conditions Code, 2020-consolidating 29 existing labour laws. The Ministry of Labour & Employment has
published draft Central Rules and FAQs to facilitate assessment of financial impact due to changes in
regulations. The Company has assessed and accounted for the incremental impact of these changes with the
best information available, and guidance from the Institute of Chartered Accountants of India, considering
the impact is non-recurring in nature and is driven by regulatory changes, the incremental impact of INR 2.99
crore has been disclosed under Exceptional Items in the standalone financial statements the year ended
March 31, 2026.
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