(m) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a binding present obligation. This may be either legal
because it derives from a contract, legislation or other operation of law, or constructive because the
Company created valid expectations on the part of third parties by accepting certain responsibilities. To
record such an obligation, it must be probable that an outflow of resources will be required to settle the
obligation and a reliable estimate can be made for the amount of the obligation. The amount
recognised as a provision and the indicated time range of the outflow of economic benefits are the best
estimate (most probable outcome) of the expenditure required to settle the present obligation at the
balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Non¬
current provisions are discounted if the impact is material.

Contingent liabilities are disclosed only when there is a possible obligation arising from past events,
due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the

control of the Company, or where any present obligation cannot be measured in terms of future
outflow of resources, or where a reliable estimate of the obligation cannot be made. Obligations are
assessed on an ongoing basis and only those having a largely probable outflow of resources are
provided for.

Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow
of economic benefits is probable.

Provisions, contingent assets and contingent liabilities are reviewed at each balance sheet date.

(n) Borrowing Costs:

General and specific borrowing costs directly attributable to the acquisition or construction of
qualifying assets that necessarily takes a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale. Borrowing costs consist of interest and other costs that the company incurs in
connection with the borrowing of funds.

Interest income earned on temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalization. Borrowing costs that
are not directly attributable to a qualifying asset are recognised in the Statement of Profit or Loss using
the effective interest method.

(o) Statement of Cash Flows:

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments.

(p) Exceptional items:

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to
provide further understanding of the financial performance of the Company. These are material items of
income or expense that have to be shown separately due to their nature or incidence.

(q) Financial Instruments:

(I) Financial assets

Initial recognition and measurement

Financial assets are recognised when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company determines the classification of its
financial assets at initial recognition.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of
financial assets not at fair value through profit or loss directly attributable transaction costs.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in the
Statement of Profit and Loss. However, trade receivables that do not contain a significant financing
component are measured at transaction price.

Classification

• Cash and Cash Equivalents - Cash comprises cash on hand and demand deposits with banks.
Cash equivalents are short-term balances (with an original maturity of three months or less from
the date of acquisition), highly liquid investments that are readily convertible into known
amounts of cash and which are subject to insignificant risk of changes in value.

• Debt Instruments - The Company classifies its debt instruments as subsequently measured at
amortised cost, fair value through Other Comprehensive Income or fair value through profit or
loss based on its business model for managing the financial assets and the contractual cash flow
characteristics of the financial asset.

(i) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held
for collection of contractual cash flows where those cash flows represent solely payments of
principal and interest. Interest income from these financial assets is included as a part of the
Company's income in the Statement of Profit and Loss using the effective interest rate
method.

(ii) Financial assets at fair value through Other Comprehensive Income (FVOCI)

Financial assets are subsequently measured at fair value through Other Comprehensive
Income if these financial assets are held for collection of contractual cash flows and for
selling the financial assets, where the assets' cash flows represent solely payments of principal
and interest. Movements in the carrying value are taken through Other Comprehensive
Income, except for the recognition of impairment gains or losses, interest revenue and
foreign exchange gains or losses which are recognised in the Statement of Profit and Loss.
When the financial asset is derecognised, the cumulative gain or loss previously recognised
in Other Comprehensive Income is reclassified from Other Comprehensive Income to the
Statement of Profit and Loss. Interest income on such financial assets is included as a part of
the Company's income in the Statement of Profit and Loss using the effective interest rate
method.

(iii) Financial assets at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value
through profit or loss. A gain or loss on such debt instrument that is subsequently measured
at FVTPL and is not part of a hedging relationship as well as interest income is recognised
in the Statement of Profit and Loss.

• Equity Instruments - The Company subsequently measures all equity investments (other than
the investment in subsidiaries, joint ventures and associates which are measured at cost) at fair
value. Where the Company has elected to present fair value gains and losses on equity
investments in Other Comprehensive Income (“FVOCI”), there is no subsequent reclassification
of fair value gains and losses to profit or loss. Dividends from such investments are recognised in
the Statement of Profit and Loss as other income when the Company's right to receive payment
is established.

The Company has made an irrevocable election to present in Other Comprehensive Income
subsequent changes in the fair value of equity investments that are not held for trading.

When the equity investment is derecognised, the cumulative gain or loss previously recognised
in Other Comprehensive Income is reclassified from Other Comprehensive Income to the
Retained Earnings directly.

' Interest

Interest income is accrued on a time proportion basis using the effective interest rate method.
Dividend

Dividend income is recognised when the Company's right to receive the amount is established.
De-recognition

A financial asset is derecognised only when the Company has transferred the rights to receive cash
flows from the financial asset. Where the Company has transferred an asset, the Company evaluates
whether it has transferred substantially all risks and rewards of ownership of the financial asset. In
such cases, the financial asset is derecognised. Where the Company has not transferred substantially
all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the Company retains control of the financial asset, the asset is continued to be recognised to
the extent of continuing involvement in the financial asset.

(II) Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when, and only when, the Company becomes a party to the
contractual provisions of the financial instrument. The Company determines the classification of its
financial liabilities at initial recognition.

AH financial liabilities are recognised initially at fair value, plus, in the case of financial liabilities not
at fair value, through profit or loss directly attributable transaction costs.

Subsequent measurement

After initial recognition, financial liabilities that are not carried at fair value through profit or loss
are subsequently measured at amortised cost using the effective interest method. Gains and losses
are recognised in the Statement of Profit and Loss when the liabilities are derecognised, and
through the amortisation process.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same lender
on substantially different terms, or the terms of an existing liability are substantially modified, such
an exchange or modification is treated as a de-recognition of the original liability and the
recognition of a new liability, and the difference in the respective carrying amounts is recognised in
the Statement of Profit and Loss.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Company are recognised at the
proceeds received, net of direct issue costs.

(III) Impairment of financial assets

The Company assesses, at each reporting date, whether a financial asset or a group of financial
assets is impaired. Ind AS 109 on Financial Instruments, requires expected credit losses to be
measured through a loss allowance. For trade receivables only, the Company recognises expected
lifetime losses using the simplified approach permitted by Ind AS 109, from initial recognition of
the receivables. For other financial assets (not being equity instruments or debt instruments
measured subsequently at FVTPL) the expected credit losses are measured at the 12 month
expected credit losses or an amount equal to the lifetime expected credit losses if there has been a
significant increase in credit risk since initial recognition.

Note 3: Recent accounting pronouncements

(i) New and amended standards adopted by the Company:

During the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance Contracts and
amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the
Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant impact in its financial statements.

(ii) New Standards/Amendments notified but not yet effective:

During the year ended March 31, 2025, MCA has not notified any new standards or amendments,
which are not yet effective, to the existing standards applicable to the Company.

The expected contribution for the next year is ' 20 lakhs after payment of shortfall of the current year.

The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority,
promotions and other relevant factors. The above information has been certified by the actuary and has been relied
upon by the Auditors.

Information disclosed above is to the extent provided by actuary.

Exposure to Risks:

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to government security yields prevailing as at the Balance Sheet date. If the return on plan
asset is below this rate, it will create a plan deficit. The current plan has made investments in special deposit schemes of
banks & FDRs. Due to the long-term nature of the plan liabilities, the Trustees of the Fund consider it appropriate to
invest funds in the bank FDRs.

Interest risk: A decrease in the Government Securities (G-Sec Bonds) interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants
will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

(a) Financial Risk Management

The Company's Board of Directors has overall responsibility for the establishment and oversight of
the Company's risk management framework. The Company's risk management policies are
established to identify and analyse the risk faced by the Company, to set appropriate risk limits and
controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company's activities. The
Company's Audit Committee oversees how management monitors compliance with the Company's
risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company. The Audit Committee is assisted in its
oversight role by internal audit team. Internal audit team undertakes both regular and ad hoc reviews
of risk management controls and procedures, the results of which are reported to the audit committee.

The Company has exposure to the following risks arising from financial instruments:

(b) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Such changes in the values of financial instruments may result from
changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.
The predominant currency of the company revenue and operating cash flows is the Indian Rupees. A few
of the Company's reported trade payables have exposure to payables held in US dollars. Movements in
foreign exchange rates can affect the Company's reported profits and net assets, however, the said impact
is not material. The company does not have any investments, hence, price risk is not applicable.

(c) Credit risk

Credit risk arises from the possibility that customers or counter party to financial instruments may not be
able to meet their obligations. To manage this, the Company periodically assesses the financial reliability
of customers, taking into account the financial condition, current economic trends, analysis of historical
bad debts and ageing of accounts receivable. Credit risks arises from cash and cash equivalents, deposits
with banks, financial institutions and others, as well as credit exposures to customers, including
outstanding receivables.

The Company's policy is to place cash and cash equivalents and short term deposits with reputable banks
and financial institutions.

The Company has established a credit policy under which each new customer is analysed individually for
creditworthiness before entering into contract. Credit limits are established for each customer, reviewed
regularly and any sales exceeding those limits require approval from the appropriate authority. There are
no significant concentrations of credit risk within the Company. The carrying amount of trade receivable
(net of impairment) was ' 403.9 Lakhs and ' 507.17 Lakhs as at March 31, 2025 and 2024 respectively.

The Company’s exposure to credit risk for trade receivables (net of impairment) based on geography is as
follows:

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and deposits with banks, financial institutions and others. The company's policy is to place cash and cash
equivalents and short term deposits with reputable banks and financial institutions. During the year, following
provisions for doubtful debts has been made (reversed):

Trade receivables

Customer credit risk is managed as per the Company's established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on a credit rating scorecard and individual credit
limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables
which do not contain a significant financing component. The application of simplified appr oach does not require
the company to track changes in credit risk, rather it recognises impairment loss allowance based on life time
expected credit loss at each balance sheet date, since its initial recognition.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The
Company does not hold collateral as security. The company evaluates the concentration of risk with respect to
trade receivables as low.

(d) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance
department in accordance with the Company’s policy. Investments of surplus funds are made only with
approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits
are reviewed by the Company’s management on an annual basis, and may be updated throughout the year.
The limits are set to minimise the concentration of risks and therefore mitigate financial loss through
counterparty’s potential failure to make payments.

(e) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements. Also, the company has an WCDL/ overdraft facility from a bank of which details are mentioned
below. The balance of borrowings at year end is Nil.

Note 39: Guarantees given and FDRs under Lien

The company has given Bank Guarantees of ? 3.00 lakhs (PY - ? 3.00 lakhs) to various government authorities &
other parties for registrations and business purposes. These guarantees were secured against Fixed Deposits of
? 6.51 lakhs (PY - ? 6.15 lakhs) with the bank, with a lien created on the same. The amount of fixed deposits is
reported without accrued interest as of the reporting period.

The company has given Fixed Deposits of ? 7.69 lakhs, the lien created is INR 6.25 lakhs, (PY - FDR - ? 7.25
lakhs, lien of INR 6.25 lakhs) to various government authorities & other parties for registrations and business
purposes. The amount of fixed deposits is reported without accrued interest as of the reporting period.

Note 44: Other Statutory Information:

i. Details of Benami Property held

No proceedings have been initiated on or are pending against the company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. Wilful Defaulter

The company has not been declared Wilful defaulter by any bank or financial institution or government or
any government authority.

iii. Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

iv. Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current
or previous financial year.

v. Loans to promoters, directors, KMPs and other Related Parties

During the year, the Company has not granted any loans or advances in the nature of loans to promoters,
directors, KMPs, and the related parties (as defined under the Companies Act, 2013), either severally or
jointly with any other person that are either:

(a) repayable on demand or

(b) without specifying any terms or period of repayment.

vi. Loans and Advances

A. The company has 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.

B. The company has 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.

vii. Undisclosed income

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 provision of the Income Tax Act, 1961).

viii. Details of Crypto currency or Virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or
previous year.

ix. Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right of use assets) or intangible
assets or both during the current or previous year.

x. Registration of charges or satisfaction with Registrar of Companies:

The Company is not required to register any charge and also not required to file any satisfaction of charges
during the year with the Registrar of Companies. Hence, this is not applicable.

Note 44: Other Statutory Information (Contd.)

xi. Title deeds

The title deeds of all the immovable properties (other than properties where the company is the lessee and
the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held
in the name of the company.

xii. Fair Valuation of Investment Properties

The Company does not hold any investment property and hence the disclosure on fair valuation of
investment property is not applicable to the Company.

xiii. Returns to Banks

During the year, the Company has availed borrowings from banks on the basis of the security of current
assets. However, the sanction terms do not specify filings of any returns with banks. Further, the company
has not availed any borrowings from financial institutions. Hence, this is not applicable.

xiv. Transactions with Struck off Companies

There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

Note 45:

There are no financial liabilities and assets that are set off as at 31st March 2025 and 31st March 2024.

Note 46: Dividends

The dividends paid during the fiscal year 2025 represent an amount of ' 325 lakhs @ ' 25.00 per equity share
towards dividend for fiscal 2024.

The dividends declared by Benares Hotels Limited are in Indian Rupees and are based on the profits available for
distribution as reported in the statutory financial statements of Benares Hotels Limited. Subsequent to March
31, 2025, the Board of Directors of Benares Hotels Limited have proposed a dividend of ' 25 per share in
respect of fiscal 2025. The proposal is subject to the approval of shareholders at the Annual General Meeting,
and if approved, would result in a cash outflow of approximately ' 325 lakhs.

Note 47: Capital Management

The The Company manages its capital to ensure that it will be able to continue as a going concern through a
judicious mix for short term and long term sources. The structure is managed to maintain an investment grade
credit rating, to provide ongoing returns to shareholders and to service debt obligations, whilst maintaining
maximum operational flexibility. Consistent with others in the industry, the Company monitors capital on the
basis of the gearing ratio. This ratio is calculated as net debt divided by Equity. Net debt is calculated as total
borrowings (including ‘current and non-current term loans’ as shown in the balance sheet) less cash and cash
equivalents and Current Investment.

The Company has borrowings of ? Nil lakhs (previous year: ? Nil lakhs) and Net Debts of ? Nil lakhs (previous
year: ? Nil lakhs) as at the end of the reporting period. Accordingly, the Company has Nil gearing ratio (Net
Debt/ Total Equity) as at 31- Mar - 2025 and 31 - Mar - 2024.

Note 48: Others

The date of implementation of the Code on Social Security, 2020 ('the Code') relating to employee benefits is yet
to be notified by the Government and when implemented will impact the contributions by the Company
towards benefits such as Provident Fund, Gratuity etc. The Company will assess the impact of the Code and give
effect in the financial statements when the Code and Rules there under are notified.

Note 49: Events Occurring After The Balance Sheet Date

The Company has used accounting software for maintaining its books of account, which have a feature of
recording audit trail (edit log) facility and the same has operated thr oughout the year for all relevant transactions
recorded in the respective software. In respect of revenue software and EPR used for one of the units, access to
direct database level changes is not available to any of the Company’s personnel.

Note 50: Events Occurring After The Balance Sheet Date

There are no adjusting events occurring after the balance sheet date for the financial year 2024-25.

Note 51:

The The disclosure required to be made in terms of Schedule V of SEBI (Listing Obligation And Disclosure
Requirement) 2015 is not applicable to the company.

As per our Report of even date attached For and on behalf of the Board

For PKF Sridhar & Santhanam LLP Dr. Anant Narain Singh Rohit Khosla

Chartered Accountants Chairman Director

Firm Registration No. 003990S/S200018 DIN: 00114728 DIN: 07163135

R. Suriyanarayanan Vishal Singh Vanika Mahajan

Partner Chief Executive Officer Company Secretary

Membership No.: 201402 ICSI M.No. ACS34515

Date : 28th April, 2025 Veeramani Venkata Date : 28th April, 2025

Place: Mumbai Chief Financial Officer Place: Mumbai