9. Provisions, Contingent Liabilities and

Contingent Assets

1. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.

2. Where as a result of past events, there is a possible obligation that may, but probably will not, require any outflow of resources, no provision is recognized but appropriate disclosure is made in the notes as Contingent Liabilities.

3. Contingent liabilities are disclosed on the basis of judgement of the management/independent experts. These are revised at each Balance

Sheet date and adjusted to reflect the current management estimate.

4. Contingent assets are disclosed

where an inflow of economic

benefits is probable.

5. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

6. However, where the effect of time

value of money is material, the

amount of provision shall be the present value of the expenditure expected to be required to settle the obligation.

7. Capital commitments and Contingent liabilities disclosed are in respect of items which exceed '100,000/- in each case.

10. Non-current assets or disposal group held for sale

Non-current assets, or disposal groups comprising assets and liabilities are classified as held for sale if it is highly probable that they will be recovered primarily through a sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet. Property, plant and equipment and intangible assets once classified as held for sale/ distribution to owners are not depreciated or amortised.

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss post tax from discontinued operations in the statement of profit and loss.All other notes to the financial statements mainly include amounts for

continuing operations, unless otherwise mentioned.

11. Income-tax

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 recognised in the Statement of Profit and Loss, except when they relate to items that are recognised in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognised in Other Comprehensive Income or directly in equity, respectively.

Current tax:

Current tax expenses are accounted for in the same period to which the revenue and expenses relate. Provision for current income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the applicable tax rates and the prevailing tax laws.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Additional Income tax that arise from the distribution of dividends are recognized at the same time when the liability to pay the related dividend is recognized.

Deferred tax:

Deferred tax is recognized using the balance sheet method, providing for temporary difference between the carrying amount of an asset or liability in the balance sheet and its tax base.

Deferred tax is measured at the tax rates

that are expected to apply when the temporary differences are either realised or settled, based on the laws that have been enacted or substantively enacted by the end of reporting period.

A deferred tax asset is recognized to the extent that it is probable that the future temporary difference will reverse in the foreseeable future and the future taxable profit will be available against which the temporary difference can be utilized.

The carrying amount of deferred tax assets are reviewed at each reporting period and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Minimum Alternative Tax (“MAT”) credit forming part of Deferred tax assets is recognized as an asset only when and to the extent that it is probable that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer probable to the effect that the Company will pay normal income tax during the specified period.

12. Borrowing Cost

1. Borrowing Costs if any, directly attributable to the acquisition/ construction of qualifying assets are capitalized as part of the cost of the respective assets.

2. Other borrowing costs are expensed in the year in which they are incurred.

13. Government Grants:

1. Grants from the government are recognised at their fair value where

there is a reasonable assurance that the grant will be received and the group will comply with all attached conditions.

2. Government grants relating to

income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

3. Government grants relating to

the purchase of property, plant and equipment are included in

non-current liabilities as deferred

income and are credited to profit or loss on a straight-line basis over the useful lives of the related assets and presented within other income.

14. Financial Instruments

Recognition, Initial Measurement and de-recognition

Financial Assets and Financial Liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted by transaction costs, except for those carried at fair value through profit or loss (FVTPL) which is measured initially at fair value. Subsequent measurement of Financial Assets and Financial Liabilities are described below.

Classification_and_Subsequent

Measurement of Financial Assets

For purpose of subsequent measurement financial assets are classified in two broad categories:-

• Amortized Cost

• Financial assets at FVTPL

All financial assets except for those at FVTPL are subject to review for impairment.

Amortised cost

A financial asset shall be measured at amortised cost using effective interest rates if both of the following conditions are met:

a) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

b) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amounts outstanding.

The Company’s cash and cash equivalents, trade and other receivables fall into this category of financial instruments.

Impairment of financial assets

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financial assets in FVTPL category.

For receivables and contract assets, the Company applies the simplified approach permitted by Ind AS 109 Financial instruments, which requires expected lifetime losses to be recognized from initial recognition of the trade receivables and contract assets.

De-recognition of Financial Instruments

Financial Assets are derecognised when the contractual rights to the cash flows from the Financial

Assets expire, or when the Financial Assets and all substantial risks and rewards are transferred. A Financial Liability is derecognised when it is extinguished, discharged, cancelled or expires.

15. Leases

i. As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct cost incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-to-use asset or the end of the lease term. The estimated useful life of right-of-use asset is determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate

implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments from a change in an index or rate. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in the profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company presents right-of-use asset that do not meet the definition of investment property in “Property, plant and equipment” and lease liabilities in “other financial liabilities” in the Balance Sheet.

Short term leases and leases of low value assets: The Company has elected not to recognize right-of-use asset and lease liabilities for short term leases that have a lease term of 12 months or less and leases of low value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Cancellable lease: The Company recognise the lease payments associated with the leases which are cancellable in nature as expense on a straight-line basis over the lease term.

ii. As a lessor

When the Company acts as a lessor,

17. Prior Period Items

Material prior period items which arise in the current period as a result of error or omission in the preparation of prior period’s financial statement are corrected retrospectively in the first set of financial statements approved for issue after their discovery by:

a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or

b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.

c) Any items exceeding rupees five lakhs ('5 Lakhs) shall be considered as material prior period item.

d) Retrospective restatement shall be done except to the extent that it is impracticable to determine either the period specific effects or the cumulative effect of the error. When it is impracticable to determine the period specific effects of an error on comparative information for one or more prior periods presented, the company shall restate the opening balances of assets, liabilities and equity for the earliest prior for which retrospective restatement is practicable (which may be the current period).

18. Cash and Cash Equivalent

Cash and cash equivalents comprise cash at bank and on hand. It includes term deposits and other short-term money market deposits with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

19. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Board of Directors assesses the financial performance and position of the group and makes strategic decisions and have identified business segment as its primary segment.

20. Cash Flow Statement

Cash Flow Statement, as per Ind AS 7, is prepared using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.

21. Earnings per share

1. Basic earnings per share: Basic earnings per share is calculated by dividing the net profit or loss for the year post tax attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

2. Diluted earnings per share: Diluted earnings per share is calculated by dividing the net profit or loss for the year post tax attributable to equity shareholders by the weighted average number of equity shares outstanding including equity shares which would have been issued on the conversion of all dilutive potential equity shares unless they are considered anti-dilutive in nature.

* The Share are not transferable without the consent of Co-promoters within ten years. Even after ten years Shares can not be transferred to private parties.

** Proposal was received from the State Government to pay ' 79.39 lakh as depreciated cost of building as full and final amount to ITDC against transfer of all rights and ownership of the project to PTDC and other expenses will be borne by both the Joint Venture Partners as per their respective shareholding and will be booked as loss in their books of accounts. The proposal was examined and approved in the ITDC Board. Hence, on a prudent basis, provision for dimunition in value of investment has been created for an amount of ' 48.11 lakh.

*** Share in Joint Venture Company - ITDC Aldeasa India Private Limited for an amount of ' 0.50 lakh, for which provision for dimunition in value of investment 0f ' 0.50 lakh was already created. RoC vide Notice No ROC-DEL/248(5)/STK-7/071 dated September 1, 2017, notified that the Joint Venture Company - ITDC Aldeasa India Private Limited, have been struck off from the Register of the Companies and the said is dissolved, w.e.f. August 21, 2017.

**** Investment worth ' 25/-, provision has been created against these investments due to non-traceability of the respective share certificates"

Note:

The investment in equity/preference shares in three subsidiary companies viz. Ranchi Ashok Bihar Hotel Corporation Ltd. (RABHCL), Utkal Ashok Hotel Corporation Ltd. (UAHCL) and Pondicherry Ashok Hotel Corporation Ltd. for ' 800.48 lakh included in ' 879.87 lakh and amount recoverable from subsidiary - UAHCL are considered good for recovery despite their having incurred significant accumulated losses.

As regards RABHCL, outstanding loans with interest and other receivables including price of investment, upto December 28, 2020 has been received. However, on account of pendency of share transfer formalities amount against investment has been shown as advance of ' 306.00 lakh.

During the previous financial years sale proceeds of disinvestment of three other subsidiary companies viz. Assam Ashok Hotel Corporation Ltd. (AAHCL), Madhya Pradesh Ashok Hotel Corporation Ltd. (MPAHCL) and Donyi Polo Ashok Hotel Corporation Ltd. (DPAHCL) were received by ITDC which were much more than the amount originally invested in the said subsidiary companies. Moreover, all other outstanding amount receivables from these three subsidiary companies were also fully settled by them. The process of disinvestment of remaining subsidiary company, i.e., UAHCL & Pondicherry Ashok Hotel Corporation Ltd. are also being carried out on the same principle. Therefore, the investment in the subsidiary company and amount recoverable from them are considered good for recovery and no provision against such investment and recoverable is considered necessary.

Note no (1): Contingent Liabilities at Sr. No.(A)(a)(i) and (A)(a)(iii) are dependent upon court decision/out of court settlement/disposal of appeal etc.

Note no (2): Amount indicated as Contingent liability/ claims against the company only reflect basic value. Legal, Interest and other costs being indeterminable at this stage are not considered.

Note no (3): Contingent liabilities at A(a)(i) above includes ' 285.05 lakh (Previous Year ' 1,013.20 lakh) in respect of matters under litigation with suppliers in respect of works relating to supply of furniture and furnishing of flats on behalf of Delhi Development Authority(DDA). However, the MoU with DDA indicates that the payments of decreed amounts, if any, as decided by arbitrator, court of law will be made by DDA.

Note no (4): Contingent liabilities at A(a)(i) above includes ' 2,470.00 lakh (Previous Year ' 2,790.00 lakh) in respect of 247 cases pertain to service matters i.e. termination / dismissal / suspension / regularization, promotion, fixation of pay, bonus, stoppage of increments, gratuity, supersession, transfer, disciplinary proceedings etc. In service matters, it is difficult to ascertain as to whether what amount shall be awarded in favour of an employee by the court in each case. In some of the cases, the case has been filed by the Unions on behalf of one more number of employees. It is pertinent to mention that the contingent liability of court cases depends upon the award of the Courts. However, as per practice, the company is considering for contingent liability an average amount of ' 10.00 lakh per case.

Note no (5): Contingent liabilities at A(a)(i) above includes ' 28,609.39 lakh (Prev'ous Year ' 27,428.87 lakh) in respect of claims against the Company not acknowledged as debts, wherein ITDC has also filed claims to the tune of ' 66,320.85 lakh (Prev'ous Year ' 66,290.85 lakh). Further, compensation is pending to be received against Hotel Janpath (loss of business opportunity) amounting to ' 15,340.00 lakh, pending before IMG.

Note no (6): Indemnity Bond have been entered with Custom Authorities for operations of Duty Free Shops for total ' 4,950.00 lakh (Previous Year ' 4,950.00 lakh). Contingent Liability above does not consist of this indemnity bond value.

1 The Airports Authority of India(AAI) and other private airport operators had levied service tax on their billings for licence fee/royalty for Duty Free Shops at various locations and Ashok Airport Restaurant w.e.f. September 10, 2004. However, the Circular dated 17.9.2004 issued by the Government of India provides that the activity of renting, leasing out part of airport/ civil enclave premises does not amount to rendering of services and the license fee/ royalty payable in this regard is not subject to service tax. M/s Airports Authority of India had filed an appeal in CESTAT interalia to adjudicate if Service tax is chargeable on Appellants revenue from renting/ leasing of space inside Airports Civil Enclave to various persons for their business activities. The CESTAT vide their order date January 2, 2015 had ordered that service tax is chargeable on above renting/ leasing. The AAI has further appealed against the order. Further an amount of ' 160.97 lakh paid by ITDC as security deposit in the form of Fixed Deposit during 2006-07 was encashed by Delhi International Airport Pvt. Ltd.(DIAL) on account of Service tax levied as above. Pending final resolution of the matter the estimated liability of ' 1,723.96 lakh (Previous year '1,723.96 lakh) from September 10, 2004 to March 31, 2008 has been included as Contingent Liability at

Para A(a)(i). above, and ' 160.97 lakh has been included under Other Financial Assets (Non-Current). However, provision for credit losses have been made for the deposit amount of ' 160.97 lakh during F.Y. 2020-21.

2 Rent of Regional Office (South), Chennai was revised from ' 0.45 lakh to ' 8.81 lakh fixed the fair rent per month by The Rent Controler Appellate Tribunal vide order dated 01.09.2018. An amount of ' 200.00 lakh has been deposited with "The Registrar General,High Court, Chennai 104" as ordered by this Hon'ble Court order. Subsequently, the landlord lady filed a payment out petition in the High Court, Madras to withdraw the entire ' 200.00 lakh deposited by us in the High Court. After hearing both the sides, the Court vide Order dated September 25, 2019 permitted the applicant/ landlord to withdraw a sum of ' 100.00 lakh deposited by ITDC before the Court along with proportionate accrued interest. Further ITDC has deposited 288.75 lakh as per Hon'ble Court Order dated October 31, 2022. ITDC Filled a SLP to the Hon'ble Court and The Court grant interim stay in order passed by the High Court of Madras vide order dated September 29, 2022. The balance amount of deposit with the Court is shown in Financials as "Other Current Assets",

and balance amount of ' 388.75 lakh has been considered under Contingent Liability.

3 The dispute between ITDC hotels and NDMC spans several years, with significant developments in recent legal proceedings. NDMC finalized the assessment against a court case filed by ITDC, up to the financial year 2008-09. ITDC accepted the assessment and made the payment accordingly. However, the dispute escalated from the financial year 2009-10 onwards when NDMC implemented the unit area method for taxation, resulting in notices and assessments for 2010-11, 201314 & 2015-16 under New Annual rent bye law 2009. The assessment done by the NDMC on very high side in comparison with previous years assessment.

Various associations, including ITDC, challenged the unit area method in the Hon'ble High Court of Delhi, which was eventually struck down on August 10, 2017. NDMC then filed a Special Leave Petition (SLP) in the Hon'ble Supreme Court of India, which upheld the judgment of the Hon'ble High Court of Delhi on January 27, 2019.

Despite the dismissal of NDMC's appeal by the Hon'ble Supreme Court of India, NDMC reassess the hotels on comparable rent under section 63(1) of NDMC Act 1994. The Court directed ITDC officials to meet NDMC officials for an amicable solution. A representation dated December 12, 2023 already submitted NDMC. The next hearing scheduled for October 28, 2024.

During this period, ITDC deposited its 4,419.00 lakh (' 1,000.00 lakh in F.Y. 2020-21, '500.00

lakh in F.Y. 2021-22, ' 1,419.00 lakh in F.Y. 2022-23 and ' 1,500.00 lakh in F.Y. 2023-24) on adhoc basis, pending writ petition in the Hon’ble High Court of Delhi. As of March 12, 2024, NDMC raised a demand for Rs. 47,638.05 lakh (including ' 28056.83 lakh for Hotel Ashok, ' 13892.49 lakh for Hotel Samrat and ' 56.89 lakh for erstwhile Hotel Janpath).

ITDC considered a contingent liability of ' 49,138.05 lakh.

4 M/s Good Times Restaurant Private Limited has filed claimed before the sole arbitrator claiming a total sum of '1,400.00 lakh (approx.) towards refund of license fee. Arbitrator has passed an award of ' 1,169.59 lakh with interest 18% and cost of ' 5.00 lakh against Hotel Samrat on March 30, 2019.ITDC (Hotel Samrat) has challenged an award and filed an appeal against the arbitration award before the Delhi High Court under relevant and Applicable law and after hearing the matter the operation of the award has been stayed by the Hon’ble Delhi High Court vide order dated November 23, 2020 subject to deposit the amount of ' 904.16 lakh inclusive of interest as per arbitration order. Accordingly, 904.16 lakh has been deposited with the High Court for admission of appeal (shown under Note 13 - Other Current Assets - Amount Recoverable) and matter to be heard before the Hon'ble High Court as the company has challenged the arbitration award. M/s Good Times Restaurant Private Limited has also filed an execution petition, the matter is listed on July 11, 2024. Contingent liability has been considered for an amount of ' 1,169.59 lakh (Previous Year ' 1,169.59 lakh).

1. System has been developed for obtaining confirmation from Debtors. Multiple confirmation letters have been sent to parties and kept on record. The Company does not expect any material variation w.r.t the recoverability/ payment of the same.

In the opinion of the management, the value of current assets, loans and advances on realization in the ordinary course of business, will not be less than the value at which they are stated in the Financial Statement.

The net accumulated amount of losses -' 4,136.36 lakh (Previous year ' 3,987.48 lakh) of subsidiary companies so far as it concerns the company, not dealt with in the accounts is as under:-

3. Following the past practice, consumption of Stocks, stores, crockery, cutlery etc. has been worked out by adding opening balances to purchases and deducting therefrom closing balance based on physical inventories valued as per the accounting policy.

Valuation of stock of crockery, cutlery, glassware and linen, etc. in circulation, items are to written off/ amortized as per the same accounting practice followed over the years (applicable for Hotel Units), i.e., as a total % of items in circulation. Item wise amortization rate is detailed below:

a. Crockery & Cutlery (Brass Items) - 20.00%

b. Crockery & Cutlery (Other Items) - 33.33%

c. Linen Items - 50.00%

4. Impairment of Financial Assets (Provisioning of Trade Receivables and Other Receivables)

Expected credit losses are recognized for all financial subsequent to initial recognition other than financial assets in FVTPL category.

For receivables and contract assets, the Company applies the simplified approach permitted by Ind AS 109 - Financial Instruments which requires expected lifetime losses to be recognized of the trade receivables and contract assets.

Hence, company is complying to the requirements of Ind AS. Under the simplified approach company is following the below mentioned practice:

a. Impairment / provision is being created 100% - on the Receivables (other than Government or PSU Parties or Autonomous bodies), ageing more than 3 years, net of Bank Guarantee or Security Deposit or lien of the assets any other security available with the Company;

b. For Government or PSU parties on case to case basis based on detailed review by the Unit

Management/ Cross functional committee assessment considering the circumstances and facts of the relevant case;

c. Impairment / Provision is being created 100% - on Receivables ageing below 3 years where party has filed a legal suit / litigation against the Company;

d. After providing impairment/ provision as per above steps, company assesses its total impairment during the year in comparison to the estimated provisioning of the past trend. Shortfall (if any) is created as an additional impairment/ provision for the year.

On the analysis of past trend of provisioning, an estimated impairment/ provisioning of 3% is derived on the total trade and other receivables of the Company. The same would be followed for the coming years as well, unless there are exceptional changes or circumstances.

5. Company entered into an Agreement dated February 19, 2002 with M/s. Maruti Udyog Ltd. (now Maruti Suzuki India Limited - MSIL) for renewal of Sub-Lease from February 1, 2002 to January 31, 2011 and another period of nine years thereafter subject to enhancement of rent in respect of the property comprising of workshop cum Depot constructed on Plot No.C-119, Naraina Industrial Area, Phase-I, New Delhi. As per terms of agreement the entire rent for a period of 9 years was paid by Maruti Udyog Ltd in advance. During the currency of the sub lease period, MSIL carried out additional construction in the said premises and in the process, the Workshop cum depot that had been let out was demolished and rendered extinct which was neither envisaged nor intended in the Sub- Lease agreement. Therefore, a legal notice dated June 14, 2010 was given to MSIL to vacate the premises w.e.f. July 1, 2010. The balance amount of advance rent lying with ITDC amounting to ' 25.02 lakh was accordingly returned to MSIL which has not been encashed by MSIL. Applications dated July 1, 2010 were filed by ITDC for eviction of premises and recovery of

damages under Public Premises [Eviction of Unauthorized Occupants] Act, 1971 before the Estate Officer. In the meanwhile, being aggrieved MSIL filed a writ petition in Hon'ble High Court of Delhi against the eviction and recovery applications of ITDC which has been dismissed the Hon'ble High Court. Against the order of Hon'ble High Court MSIL had filed an appeal before the Division Bench of Hon'ble High Court of Delhi which was also dismissed vide order dt. April 29, 2013. MSIL filed an SLP challenging the orders of Hon'ble High Court of Delhi. The said SLP was disposed off with a direction to Estate Officer to decide the Jurisdiction. The Estate Officer vide its order dt. March 23, 2013 held that the Estate Officer has the jurisdiction to entertain the application filed by ITDC.

Arguments on behalf of MSIL have been concluded before the Trial Court (Appellate Court) in Public Premises Appeal cases whereby MSIL has challenged the 2 separate orders of the Ld. Estate Officer, ITDC both dated December 31, 2018 by way of filing 2 separate PP Appeals No. 03 & 04 of 2019 under section 9 of the PP Act, 1971 (amended time to time) and both the Appeals were pending before the Hon’ble Additional District Judge, Patiala House District Courts, New Delhi for the final arguments.

ITDC has commenced its arguments in the above noted cases. Matter was last heard on May 6, 2023 and the same was conclusively argued by Sr. Advocate engaged by ITDC. ITDC also filed written submissions vetted by engaged Sr. Advocate. During the same hearing, the Appellant Maruti has also made rejoinder arguments and completed the argument on appeal on the order on Section 4.

MSIL has challenged the order through appeal and on July 24, 2023 appelate court admitted that appeal. Steps have been taken by ITDC to challenge the judgement of appelate court.

6. Below mentioned are the disclosures as per requirements to Ind AS 115 - Revenue from Contracts with Customers:

i. Contract assets is recognised over the period in which services are performed to represent the Company's right to consideration in exchange for goods or services transferred to the customer. It includes balances due from customers under construction contracts that arise when the Company receives payments

from customers as per terms of the contracts however the revenue is recognised over the period under input method. Any amount previously recognised as a contract asset is reclassified to trade receivables on satisfaction of the condition attached i.e. future service which is necessary to achieve the billing milestone.

7. Disclosure pursuant to Indian

Accounting Standard (Ind AS) 108

on Segment Reporting is given in

Annexure A to this note.

8. Disclosure of transactions with related parties as per Indian Accounting Standard -24, to the extent applicable, is as under: -

Key Management Personnels:

1 Shri M.R. Synrem, Managing Director w.e.f. October 11, 2023 to till date

2 Shri Piyush Tiwari, Director (Commercial & Marketing) w.e.f. May 28, 2015 to June 30, 2023

Managing Director (additional Charge) w.e.f. February 3, 2023 to May 2, 2023

3 Shri Lokesh Kumar Aggarwal, Director (Finance) & CFO w.e.f. August 24, 2022 to till date

4 Shri. V. K. Jain, Company Secretary w.e.f December 15, 2008 to till date

10. Risk Management :

The company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

a. Credit Risk: Credit Risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Primarily exposure to the credit risk is from trade receivables amounting to ' 16,204.84 lakhs (previous year ' 15,970.72 lakhs) and unbilled revenue amounting to ' 1,295.00 lakh (previous year ' 573.53 lakh) which are typically unsecured. Credit risk is being managed by continuously monitoring the outstanding dues from the customers.

Further, most of the clients of the company are Government or Government Undertakings; hence credit risk is bare minimum. Company has impaired, as a prudent measure, the trade receivables towards expected credit loss as per company accounting policy to the extent of ' 8,583.83 lakhs (previous year ' 8,068.06 lakhs). Keeping in view the nature of business expected credit loss is provided as per the policy on impairment of financial assets.

No significant credit risk on cash and bank balances amounting to ' 5,337.53 lakhs (previous year ' 2,318.41 lakhs) is expected as company parks surplus funds with Schedule Banks having good

credit adequacy ratio and least NPA as determined by RBI and guidelines of the company. Company has parked its owned funds in fixed deposits of ' 13,251.14 lakhs (previous year ' 17,871.05 lakhs) with Schedule banks with negligible credit risks.

The Company has also provided House Building Loan, Vehicle Loan and Computer Loan to the employees amounting to ' 2.78 lakhs (previous year ' 2.58 lakhs), these loans are secured and the Company does not envisage any risk from the same in nearby future.

The Company has granted interest bearing loans to its subsidiaries (incl. interest) amounting to ' 2,912.38 lakh (previous year ' 2,741.74 lakh).

b. Liquidity risk: Company's principal source of liquidity are ""cash and bank balances"" and the cash flow that is generated from the operations. The Company has no bank borrowings and is an unleveraged entity.

The Company has a working capital of ' 38,049.69 lakh (previous year ' 32,087.98 lakh) including cash and bank balances of ' 5,337.53 lakhs (previous year ' 2,318.41 lakhs). Fund flow statement and investment of surplus funds is also reported in the audit committee meetings held from time to time.

Company believes that the working capital is sufficient to meet its requirements and to discharge its liabilities towards trade payables and other current liabilities as and when they fall due, accordingly no liquidity risk is being perceived by the Company.

c. Market Risk:

• Interest rate risk: The company is exposed to interest rate risk to the extent of its investments in fixed deposits with banks. The company also invested in preference share capital of its subsidiary company Utkal Ashok Hotel Corporation limited (unit is non-operative since 31.03.2004).

• Foreign currency risk: The Company

has duty free shops at major sea ports in India. The foreign currency is being collected against the sale proceeds from customers at these shops. The duty free goods for the same are purchased centrally for these shops. The Foreign currency exposure in the company is not material.

d. Capital Management:

The Company’ s capital management objectives are :

- to ensure the Company’s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet. Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage.

The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to avoid debt.

11. Private Licensees of Hotel and Catering Units of ITDC, i.e., Hotel Ashok (New Delhi), Hotel Samrat (New Delhi) and Taj Restaurant (Agra) had made request for waiver of licence fees for the lockdown period.

The matter has been submitted before the Board of ITDC. Keeping in mind the business scenario and considering the impact on cash flow, bills were not generated against most of the Private Licensees for the lockdown period amounting to '1,292.59 lakh upto September, 2020 and hence, not considered in the Financial Results. ITDC Board discussed that the grievances of Licences are genuine but it is also a fact that ITDC is a commercial organization and has been paying taxes,

charges etc. despite lockdown without any exemption being granted to ITDC by any Statutory Organization. The matter is referred to MoT for their consideration.

12. Prior to Ind AS transition, i.e., before April 1, 2016, old recoverable dues from Subsidiary Companies (UAHCL & PAHCL) in the nature of Management Fees and Interest on Loan has not been recognized to the extent of ' 65.50 lakh and ' 312.46 lakh.

13. Impact of Fire accident at DFS Mumbai Unit

A fire accident occurred at Unit of ITDC, DFS Mumbai on March 30, 2021. Company filed an Insurance claim for the loss of stock and property, plant & equipment at the site, cause was stated as electrical short circuit. Claim for an amount of ' 48.30 lakh was submitted to the Insurer (National Insurance Company Limited) dated March 30, 2021. A claim of amount of ' 39.78 Lakhs was accepted by the Insurer on account of the same on March 28, 2024. Also, admitted claim of ' 39.78 Lakhs was received on April 29, 2024.

14. In 2007 ITDC formed a Joint Venture Company (JV) in collaboration with M/s Aldeasa of Spain. After incorporation, no business was carried on. On the basis draft financial statements of F.Y. 2009-10 of the JV company and concept of prudence Corporation’s share of loss amounting to ' 245.52 Lakh in connection with running the JV has been accounted for based on the ratification of expenditure by JV Board & subsequent acceptance by ITDC. Since the F.Y. 2007-08 to 2013-14 the Financial Statement were prepared and audited and thereafter, i.e., for the F.Y. 2014-15 to 201617 the unaudited financial statement was prepared. From F.Y. 2017-18 to 2022-23, no share of profit/ loss with respect to ITDC Aldeasa has been booked as per the MCA Notice No. ROC-DEL/248(5)/STL-7/5071 dated September 1, 2017 and it has been struk off by the registrar of companies and the said company is dissolved, w.e.f. August 21, 2017. As at March 31, 2024, an amount of ' 226.51 lakh (Previous year ' 226.51 lakh), liability is outstanding towards ITDC Aldeasa (JV).

15. Pursuant to a decision of the Government of India, it was decided that the Ministry of Tourism will examine the proposal for Sale/ Lease of Hotel Properties of the Company including Properties of Subsidiary Companies. In the cases where Hotel properties are

located on State Govt Leased Land and the State is reluctant to extend the lease and allow it to be sub-leased to the private party, then the property may be offered to the State Govt at its officially valued price. According to this decision the process of disinvestment is carried on as under:

a. HotelJanpath:

Ministry of Tourism (MoT) communicated vide their letter dtd. June 14, 2017 the in-principle approval of the government for transferring the property of Hotel Janpath to the Ministry of Urban Development (MoUD) and for compensating ITDC for loss of business opportunity with disputed liability to be sorted out.

Subsequently it was decided by the government to close the operations of Janpath Hotel, New Delhi and to handover the land & building of Janpath Hotel to L&DO, MoHUA (erstwhile MoUD). Accordingly, the Land & Building was technically handed over to L&DO, MoHUA on October 31, 2017.

The matter was also discussed inter alia in 26th & 27th Inter Ministerial Group (IMG) meetings as under:

- In the 26th meeting of IMG dated December 4, 2017, it was decided that compounded annual growth rate (CAGR) of last 10 years i.e. from 2006-07 to 2015-16 of profit before depreciation may be applied on above said average profit of last 5 years before depreciation. IMG directed that ITDC may get the valuation done on this basis and obtain approval through circulation for the same.

- In minutes of the 27th meeting of IMG held on December 27, 2017 it was recorded that “The valuation of loss of business opportunity of Hotel Janpath was decided by the IMG in its meeting held on December 4, 2017.

The Company requested the Ministry to convey the amount of compensation to be considered by ITDC in its Financial Statement. The working of the amount

of compensation based on PBT as well as PAT was also communicated to MoT. The amount of compensation based on PAT was ' 14,981.00 lakh and on PBT was ' 19,303.00 lakh.

MoT constituted Valuation Committee to determine the amount of compensation which will be payable to ITDC and sorting of disputed liability. The first meeting of the reconstituted valuation committee was held on September 16, 2021. Valuation Committee, after deliberation, recommended to IMG the valuation of ' 15,340.00 lakh based on average (PBT Depreciation) of F.Y. 2012 to 2016 and compounded annual growth rate (CAGR) of last 29 years’ profit before tax which comes to 9.51%.

Recommendation of Valuation Committee was placed before IMG. IMG directed to put up the comments of JS-DIPAM and L&DO on file. L&DO has raised certain demands against CPWD dues, difference of premium, damage charges inclduing unauthorised construction. Breakup of the damage charges is being collected from L&DO. After receipt of requisite details, further meeting of the valuation committee will be called.

Since, the approval of amount of compensation due on account of loss of business opportunity is still awaited from MoT therefore, the VRS amount of ' 658.57 lakh has been kept under recoverable and nothing towards compensation for loss of business opportunity has been considered in the Financial Statements for the Financial Year 2023-24.

b. Hotel Ashok:

DIPAM has appointed Transaction Advisor for studying lease terms & conditions of land, explore the possibilities of giving Hotel Ashok on operation & management (O&M)/ Sub-leasing and optimum utilisation of vacant/ unused land in Hotel Ashok-Samrat Complex.

Road show was conducted to obtain the views of the market players/potential bidders on the models suggested in the feasibility report. 23 Companies participated in the roadshow physically

and 10 parties participated online. Minutes of the roadshow and feedbacks from the potential market players have been received from the Consultant. Recently meeting was held with Niti Aayog wherein it was discussed to go through PPPAC route. IIT Roorkee has been engaged for conducting a detailed structural analysis of hotel building for checking the remaining life. LoI has been issued to IIT Roorkee for structural analysis of Hotel Ashok. As per schedule timeline given by IIT Roorkee, Report on Structural analysis by IIT Roorkee is likely to be received by mid of May, 2024.

The draft Concessionaire Agreement submitted by the Consultant has been submitted to the MOT on April 26, 2023 with the request to send the same to the Neeti Aayog. Meanwhile, the Draft Concessionaire Agreement is being examined internally within ITDC and Final Concession Agreement will be put up to the Board for approval before being submitting to the PPPAC through Ministry of Tourism.

c. Kosi Restaurant:

The operation of Kosi Restaurant, a unit managed by the Company had been closed on October 31,2017. The Ministry of Tourism has been requested to take possession of the Restaurant building. In response MoT vide letter dated November 11, 2019, requested ITDC for exploring possibilities for making it operational, by submitting a plan and to indicate feasibility and viability of the project. Meanwhile, notice was received from the office of Ziledaar, Apar Khand Agra Naher, Mathura stating that Department of Irrigation, Mathura is the owner of the land on which ITDC was running Kosi Restaurant. In view of the aforesaid notice and non-availability of any lease documents either with ITDC or MoT pertaining to land, it was not prudent to proceed with the process of appointing the Consultant and getting the DPR prepared. Hence, MoT has been requested to initiate necessary action for surrendering back the land to State Govt.

d. Hotel Kalinga Ashok, Bhubaneswar

RFP floated in 2017, 2018 and 2019 but remained unsuccessful. IMG in the meeting held on March 6, 2020 decided to retender with revised selection criteria. In the IMG meeting held on March 4, 2021, TA presented the revised selection criteria. IMG directed the ITDC officials to do the road show with the revised parameters and apprise of the result/ inputs. Roadshow has been conducted and report from TA was presented to the IMG in the meeting held on September 7, 2021. IMG decided that a letter may be sent to the State Government seeking permission for subleasing of property and for increasing the lease tenure for developing the property on PPP model. Meeting was held with State Govt. and State Govt. reiterated the concerned fee for sub leasing permission. The IMG decided that if State Govt. is interested to take back the property, the matter may be discussed with the State Govt.

IMG was apprised that in the meeting held on September 6, 2022 between the Chief Secretary, Odisha and MD-ITDC, ITDC was requested to send the terms & conditions for transfer of land and building of Hotel Kalinga Ashok to the Govt. of Odisha. IMG directed that Govt. of Odisha and ITDC to discuss mutually on the terms of transfer and apprise the result to the IMG in the next meeting.

Proposal from TA (M/s CBRE) regarding terms of transfer of property were approved by ITDC Board in its meeting and a letter from Secretary (Tourism) to Chief Secretary (Odisha) is under submission.

For Freehold Land ITDC Board in its meeting dated February 25, 2020 and IMG in the meeting dated March 6, 2020 directed ITDC for outright sale of land through DIPAM. Proposal was sent to DIPAM for monetization of land. DIPAM requested to submit estimated value of land and circle rate of property. In the IMG meeting held on September 22, 2022, the official of the GA Department apprised that the circle rate is ' 1,500.00 lakh per acre in the area of

Hotel Kalinga Ashok for the vacant land. The same was apprised to DIPAM vide email dated November 28, 2022.

DIPAM vide its OM dated April 25, 2024 informed that vide OM dated March 21, 2022, Cabinet approved setting up of National Land Monetization Corporation (NLMC) and indicated that NLMC will function under the administrative control of DPE. Accordingly, works on asset monetization stood transferred to DPE w.e.f. March 21, 2022 onwards. An agenda will be put up to the IMG for further direction in this regard.

e. Pondicherry Ashok Hotel Corporation Limited:

Transaction Advisors (TA) for Pondicherry Ashok Hotel Corporation Limited have already been appointed. TA are engaged for doing the entire exercise of valuation of the properties, devising framework for transfer/ exit of ITDC, documentation, etc. as applicable. TA submitted their report which had some concerns from State Govt., Subsidiary Board and ITDC. TA has been asked to submit revised DPR.

IMG in the meeting on March 4, 2021 decided to give the existing Hotel along with 8 acres of land for development on O&M basis for 50 years and remaining land will be monetized through DIPAM. Meeting was held with MHA and State Govt. and it was discussed that as per the current laws in State of Pondicherry, max. leasing is allowed for a term of 19 years only.

In the IMG meeting held May 2, 2022, it was decided that if permission for leasing beyond 19 years is not possible, State Govt. may be offered buyout for the equity stake of ITDC in the JV Company.

In IMG meeting held on September 22, 2022, MD-Pondicherry Industrial Promotion and Development Investment Corporation (PIPDIC) apprised that the PIPDIC Board had accorded approval to buy out the 51% equity of ITDC in the Pondicherry Ashok Hotel Corporation Limited.

PIPDIC vide letter dated November 3, 2022, forwarded the resolution of the PIPDIC Board conveying the acceptance of the proposal in principle subject to State Government approval. Reply from the State Govt. is awaited.

Meanwhile, the Subsidiary Board approved a proposal adding 20 container rooms by taking a loan of ' 200.00 lakh from PIPDIC at rate of 1 or 2 % higher to prevailing FD interest rate.

f. Punjab Ashok Hotel Company Limited, Punjab:

In the IMG meeting held on November 29, 2018, it was decided that the incomplete project may be handed over to the State Government with transfer of 51% of equity of ITDC in the JV Company to the State Government, on cost basis.

A letter dated March 28, 2019 has been sent from Secretary (Tourism), MoT to the Chief Secretary, Govt. of Punjab for exploring options other than tourism for utilization of land & building.

In the IMG meeting held on March 6, 2020, Representative of Government of Punjab proposed for sharing depreciated cost of building and actual cost of other expenditure being incurred by the company. IMG directed the representative of Government of Punjab to send the proposal to ITDC. Proposal was received from the State Government dated August 25, 2021, to pay ' 79.39 lakh as depreciated cost of building as full and final amount to ITDC against transfer of all rights and ownership of the project to PTDC. The proposal was approved in the ITDC Board Meeting held on March 28, 2022.

IMG in meeting dated September, 22, 2022, approved the Valuation of ' 79.39 lakh for transfer 51% equity of ITDC in the Punjab Ashok Hotel Company Limited to the PTDC/Govt. of Punjab. Share Transfer Agreement will be executed after the CCEA approval and receipt of funds from the Punjab Government. MoU signed on February 14, 2023.

Revised Draft CCEA Note sent to the MoT on October 6, 2023 for further action. CCEA Note was circulated by the MoT for inter ministerial consultations. DIPAM advised for taking approval of Alternative Mechanism instead of CCEA Note. Accordingly, the note for Alternative Mechanism has been sent to MoT on March 28, 2024.

g. Ranchi Ashok Bihar Hotel Corporation Limited:

In case of Ranchi Ashok Bihar Hotel Corporation Limited, operations of the Hotel have been closed w.e.f. March 29, 2018 with the approval of InterMinisterial Group of Ministry of Tourism. It has been decided by MOT that the ITDC’s equity stake will be transferred to the Jharkhand State Government.

MoU for transfer of 51% equity stake of ITDC in RABHCL to Govt. of Jharkhand signed on November 24, 2020.

Consideration for an amount of ' 942.51 lakh has been received on December 28, 2020 including settled price of ' 306.00 lakh, against investment in shares.

VRS was offered thrice and out of 32 employees, presently there are 6 employees, the rest have taken VRS/ Super Annuated. Salaries and other terminal benefits of the 32 employees are due, i.e., ' 81.26 lakh as at March 31, 2024. Employees of the Hotel had been repeatedly threatening of self immolation with their families due to non receipt of their legitaimate dues.

Upon request from Subsidiary company, ITDC has disbursed loan of ' 613.44 lakhs to clear the outstanding dues of employees. Dues upto June 2022 have been cleared. A proposal for the fourth time VRS for remaining employees of RABHCL has been sent to the MoT vide letter dated February 23, 2023 for approval, which is under process. Loan and other dues of ' 960.07 lakh are receivable upto March 31, 2024 (Previous Year ' 870.34 lakh).

Property will be transferred after CCEA approval and after receiving all residual dues from Jharkhand Govt. The financial statements of RABHCL have

been incorporated treating the same as Subsidiary for the year ended March 31, 2024.

h. Utkal Ashok Hotel Corporation Limited

(UAHCL):

Property was tendered out for subleasing. Letter of Intent (LoI) issued to successful bidder, M/s Paulmech Infrastructure Pvt. Ltd. (PIPL) in 2010. M/s PIPL could not fulfill the terms of the LoI. LoI was cancelled. M/s PIPL went to the Court. Supreme Court on October 4, 2021 dismissed the appeal of M/s PIPL and pronounced judgement in favour of ITDC. Supreme Court has directed ITDC to refund the amount of ' 411.00 lakh to the appellant and for the balance amount of ' 441.00 lakh, M/s PIPL has been given liberty to file a civil suit for recovery of ' 441.00 lakh and all contentions of the parties in that regard are left open. Supreme Court in its judgement has also observed that pendency of the Civil Suit that may be filed by M/s PIPL shall not be an impediment for UAHCL to deal with the property or to re tender the same in any manner. As per the direction of the Supreme Court, ' 411.00 lakh has been refunded to the Appellant M/s PIPL.

UAHCL Board in its meeting held on January 6, 2022 approved that proposal of initiating disinvestment process of Hotel Nilachal Ashok, Puri be sent to IMG.

In the IMG meeting held on May 02, 2022, IMG decided that State Government must be involved in the matter. All options such as taking back of the property by the State Govt. or sub-leasing of the property or O&M/ licensing out of the property, etc. to be discussed with the State Government and the views of the State Government should be taken in writing. After having taken the views of the State Government, financial and legal pros and cons of all the options to be analyzed and the report to be put up to the IMG in the next meeting for taking a decision.

Letter sent on June 8, 2022 from DG (Tourism), GoI to the Chief Secretary,

Odisha in this regard. Reply is awaited. In the Board meeting held on January 19, 2024 at Puri in which the Board members visited the ITDC properties at Puri and Bhubaneswar. After inspecting the properties, a report was prepared and the same was placed before the Board in the meeting held on February 9, 2024. Board advised to move proposal to IMG for making Hotel Nilachal Ashok operational.

i. In the process of disinvestment of various ITDC Subsidiary companies properties which is currently going on, the ITDC shareholding of three of the Subsidiary companies viz. Assam Ashok Hotel Corporation Ltd.; Madhya Pradesh Ashok Hotel Corporation Ltd. and Donyi Polo Ashok Hotel Corporation Limited had been already transferred to the their respective State Governments, and the sales proceeds as worked out by the Transaction Advisor on the basis of valuation of available business opportunity etc. which had been received by ITDC is more than the amount originally invested by ITDC in respective subsidiary companies. Moreover all outstanding trade receivables from these three Subsidiary Companies have also been fully cleared by them.

The process of disinvestment / divestment of Utkal Ashok Hotel Corporation Limited is also being carried out and as ITDC’s equity / preference shares investment are considered good for recovery, no provision is considered necessary.

16. Hotel Jammu Ashok, Jammu:

40 years lease period of the land expired in January 2010. ITDC had first requested for an extension in February 2007. ITDC repeatedly requested State Government for renewal but the renewal of land lease remained pending with the State Government.

Govt. of J & K vide letter dated March 20, 2020, informed about non-renewal of lease and resumption of land by the State Govt. Pursuant to the Board decision, Operation of Hotel was closed on June 17, 2020 and employees were offered VRS. Those who did not opt VRS, were adjusted in other units of ITDC.

Matter was pursued with the State Govt. for taking possession of the Hotel after payment of compensation in accordance with clause 3 (ii) of the lease deed. A Committee has been formed both by ITDC and Govt. of J & K. for determining amount of compensation. Architect cum Valuer have been appointed and they have given their report which has been sent to the State Government.

In the IMG meeting held on September 22, 2022, IMG approved the Valuation for transfer of all property, plant and equipment items constructed by ITDC on the leased land on “As is where is basis”.

The same was agreed by Govt. of J & K. Handing over to take place immediately after CCEA approval and receipt of consideration amount from the Govt. of J & K. MoU with Govt. of J & K signed on February 9, 2023. Revised Draft CCEA Note sent to the Ministry of Tourism on October 25, 2023.

The unit results had been considered as a part of discontinued operations in the financial statements for the year ended March 31, 2024.

17. Merger of Kumarakruppa Frontier Hotels Pvt. Ltd. (KFHPL) with ITDC

ITDC Board in its meeting held on December 12, 2019 has accorded in-principal approval to the merger of Kumarakruppa Frontier Hotels Pvt. Ltd. (KFHPL) with ITDC. ITDC has requested Ministry of Tourism (MoT) vide letter dated December 30, 2019 to consider the proposal for onward approvals from DIPAM, Ministry of Finance/ CCEA, etc. MoT vide letter dated September 14, 2020 requested DIPAM, Ministry of Finance to grant approval in connection with merger of KFHPL with ITDC. The Matter is still under consideration at end of MoT/DIPAM.

18. In Ashok Consultancy and Engineering Services Unit, out of total 79 projects, 56 projects were completed/ closed but not closed in the books of accounts as final bills were reportedly not received/ settled. Amount due from customers includes ' 612.31 lakh (Previous Year ' 422.83 lakh) and amount due to customer includes ' 1,461.98 lakh (Previous Year ' 1,475.98 lakh) which pertains to completed projects. Exercise is in progress to reconcile the work done, provision for liability for work done and finalisation of final bill payment.

21. Leases Company as lessee

The company has adopted Ind AS - 116 w.e.f. 01.04.2019, and has elected certain available practical expedients. Thus, the company has no significant impact of the same in it's financial statements.

Company as lessor

The Company has given certain portion of office premises at Corporate Office on cancellable operating lease. The rent received on the same has been grouped under Revenue from Operations. The rental income during the current year is amounting to ' 42.25 lakh (Previous Year ' 39.66 lakh).

22. Impairment of Assets

Impairment of Property, Plant & Equipment/ Capital work-in-progress at each balance sheet date and impairment loss, if any, ascertained as per Indian Accounting Standard (Ind AS) 36-'Impairment of Assets' is recognised. As on March 31, 2024, in the opinion of the Management the impairment loss has been recognised in respect of assets not in active use.

23. M/s Kayo Enterprises Pvt Ltd has entered into a License Agreement dated January 06, 2018 with Hotel Samrat - a unit of ITDC, for occupying space in Hotel Samrat for running restaurant on license fees basis for a period

of five years. M/s Kayo Enterprises (Licensee) has failed to make the payment of license fees on regular basis. Due to non-payment of license fees, the license agreement has been terminated on May 14, 2020 and Hotel Samrat has filed cases under section 138/ 141 to the tune of ' 857.18 lakh which is almost equal to the outstanding amount (after adjusting the existing security deposit of ' 201.67 lakh). Further the fixed assets and equipments are lying in the premises of Hotel Samrat which is under lien to Hotel Samrat as per the agreement and can be auctioned as per direction of Estate Office, ITDC under PPE Act. Hotel Samrat has prayed for recovery of damages of ' 48,578.85 lakh quantified as on June 20, 2022 for illegal occupation by Kayo from May 15, 2020 till the date of handing over of the possession before the Ld. Estate Officer under provisions of the PP Act,1972. Total Provision for Bad & Doubtful has been created against the party of ' 756.72 lakh (Previous year ' 709.29 lakh).

24. The receivables pertaining to Ticketing Business (Ashok Travels & Tour Division) are reclassified from Trade Receivables to Other Receiavbles under Other Financial Assets. Bifurcation is made on the basis of estimated % (as per internal working) which on average varies between 1-6% (for respective year).

25. Disclosure in pursuance to Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent

30. Disclosure as per Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

Change in Accounting Estimates

- Modification in Accounting Estimate in relation to Impairment of Financial Assets (Provisioning of Trade Receivables and Other Receivables)

Under the simplified approach company is following the below mentioned practice:

a. Impairment / provision is being created 100%

- on the Receivables (other than Government or PSU Parties or Autonomous bodies), ageing more than 3 years, net of Bank Guarantee or Security Deposit or lien of the assets any other security available with the Company;

b. For Government or PSU parties on case to case basis based on detailed review by the Unit Management/ Cross functional committee assessment considering the circumstances and facts of the relevant case;

c. Impairment / Provision is being created 100%

- on Receivables ageing below 3 years where

party has filed a legal suit / litigation against the Company;

d. After providing impairment/ provision as per above steps, company assesses its total impairment during the year in comparison to the estimated provisioning of the past trend. Shortfall (if any) is created as an additional impairment/ provision for the year.

On the analysis of past trend of provisioning, an estimated impairment/ provisioning of 3% is derived on the total trade and other receivables of the Company. The same would be followed for the coming years as well, unless there are exceptional changes or circumstances.

Change in the above accounting estimate has a nil impact on the standalone financial statement of the FY 2023-24.

31. The dues to Micro and Small Enterprises as required under the Micro, Small and Medium Enterprises Development Act, 2006 to the extent information available with the company is given below: