(n) Provisions
A provision is recognised if, as a result of a past event, the
Company has a present, legal or constructive, obligation that
can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future
cash flows (representing the best estimate of the expenditure
required to settle the present obligation at the balance sheet
date) at a pre-tax rate that reflects current market assessments
ofthe time value of money and the risks specific to the liability.
The unwinding ofthe discount is recognised asfinancecost.
(o) Contingent liabilities
A contingent liability is a possible obligation that arises from
past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future
events beyond the control of the Company or a present
obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does
not record a contingent liability in books of account but
discloses its existence in the financial statements.
(p) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash
at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an
insignificant risk of changes in value.
q) Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended 31 March 2025, MCA has not notified
any new standards or amendments to the existing standards
applicable to the Company.
Revaluation Surplus
Revaluation Reserve represents increase in net book value arising on revaluation of Property, Plant and Equipment under previous
GAAP appearing as on the transition to Ind AS i.e. on 1 April 2017 and is not available for distribution and thus presented separately
from retained earnings.
Capital Investment Subsidy
Capital Investment subsidy represents balances of government grant recognised as income before the date of transition to Ind
AS on a systematic basis over the earlier periods in which the Company had recognised expenses for which the related costs for
which the grants was intended to compensate.
The balances under the reserve are in the nature of free reserves which are available for distribution.
General Reserve
General reserve represents balances in the nature of free reserves which are available for distribution.
31) Employee Benefits
The Company has a defined benefit gratuity plan in India with Life Insurance Corporation of India (LICI), governed by the Payment
of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the
rate of fifteen days salary/ wages for every completed year of service or part thereof in excess of six months, based on the rate of
salary/ wages last drawn bythe employee concerned.
The defined benefit plan for gratuity is administered by a single gratuity fund that is legally separate from the Company. The board
of the gratuity fund is required by law to act in the best interests of the plan participants and is responsible for setting certain
policies (e.g. investment and contribution policies) of the fund.
These defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market
(investment) risk.
A. Funding
The Plan is fully funded by the Company. The funding requirements are based on the gratuity fund's actuarial measurement
framework set out in the funding policies of the plan. The funding of the Plan is based on a separate actuarial valuation for
funding purposes for which the assumptions may differ from the assumptions set out in (E). Employees do not contribute to
the plan.
The Company expects to pay INR17.98 Lakh (31 March 2024 : INR15.05 Lakh) in contributions to its defined benefit plans in
2025-26.
B. Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the dosing balances for the net defined benefit (asset)
liability and its components
B. Measurement of fair values
For Investments in mutual funds, the fair value is determined using Level 2 inputs. The mutual funds are valued against closing
Net asset value.
C. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- credit risk (see (C) (ii));
- liquidity risk (see (C) (Hi)); and
- market risk (see (C) (iv)).
i. Risk management framework
The Company is exposed to normal business risks from changes in market interest rates and from non-performance of contractual
obligations by counterparties. The Company does not hold or issue derivative financial instruments for speculative or trading
purposes.
Risk management is integral to the whole business of the Company.The Company has a system of controls in place to create
an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually
monitors the Company's risk management process to ensure that an appropriate balance between risk and control is achieved."
ii. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers. The maximum exposure to the
credit risk at the reporting date is primarily from trade receivables, investment in mutual funds, investments in Corporate bonds
and bank deposits which are represented by the carrying amount of receivables in the Balance Sheet.
Trade receivables
A significant part of the Companies'sales are against advances or payable at the time of checkout which entails no credit risk.
For others, an impairment analysis is performed at each reporting date on an individual basis for all the customers.
The Company's historical experience of collecting receivables and the level of default indicate that credit risk is low and generally
uniform across locations; consequently, trade receivables are considered to be a single class of financial assets. All overdue
customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the
counterparty, etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.
Details of concentration of revenue are included in Note 23.
Investments and Bank Deposits
Credit riskfrom balances with banks and financial institutions is managed by the management 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. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's
potential failure to make payments. Credit risk on investments and cash and cash equivalents including other bank balances
is limited as the Company generally invests in deposits with banks, financial institutions and investees with high credit ratings
assigned by international and domestic credit rating agencies.
Credit risk exposure
The allowance for expected credit loss on customer balances at 31 March 2025 is INR 6.06 lakh (31 March 2024: INR3.36 lakh).
iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.
As of 31 March 2025, the Company had cash and bank balances of INR 76.75 lakh. As of 31 March 2024, the Company had
cash and bank balances of INR 105.11 lakh.
The contractual maturities of financial liabilities at the reporting date are due within one year from the reporting date.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted.
iv. Market risk
Market risk is the risk when the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Financial instruments affected by market risk includes FVTPL Investments only. Market risk comprises only the fluctuations
in the net asset value ofthe respective funds. Reports on the investment portfolio are submitted to the Company's senior management
on a regular basis. The Board of Directors reviews and approves all investment decisions.
- Price Risk
Exposure
The Company's exposure to price risk arises from investments held by the Company and classified as fair value through profit or loss.
To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification ofthe portfolio
is done in accordance with the limits set by the Company.
Sensitivity
The table below summarizes the impact of increases/decreases ofthe NAVonthe Company's equity.
35) Operating Segment
The Company has identified nine operating segments viz, based on the nine hotel units. As per Ind AS -108, due to similar nature
of products, production process, customer types, etc., the nine operating segments have been aggregated as single operating
segment of “Floteliering" during the year. The analysis of geographical segments is based on the areas from which the Company
render services. The Company primarily operates in India and therefore the analysis of geographical segment is not applicable.
The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of
its revenues from transactions with any single external customer.
39) Leases
A. Leases as lessee
i. Short-term / Low-value leases
The Company leases office premises which are considered to be short-term leases. The Company has elected not to recognise
right-of-use assets and lease liabilities for these leases.
Lease payments for short-term leases and leases of low-value assets not included in the measurement of the lease liability are
classified as cash flows from operating activities.
ii. Right-of-use and lease liabilities recognised in the financial statements represents the Company's lease of lands and building.
The leases are ranging between a period of 9- 99 years (previous year 9 -99 years).
The Company has recorded the lands acguired on lease under property, plant and equipment (separately from other owned
assets) at an amount equal to the upfront lease payment plus initial direct costs. Such amount is amortized over the period of
the lease on a straight line method.
During the current year the Company has cancelled lease arrangement at Yangang.Thus, the Company has derecognised Lease
Liabilities and corresponding Right of Use Assets with respect to such arrangement. The resultant gain has been recorded under
other income.
During the current year the Company had acquired Hotel at Udaipur Location on a non cancellable lease of 9 years. On
commencement, the Company has recognised Lease Liabilities and corresponding Right of Use Assets on such lease under
property, plant and equipment (separately from other owned assets) .The lease payments are to be made on a periodic basis.
The Company has recognised such lease as Right of use assets for the purpose of Ind AS 116.
40) In the previous year the Company has completed the buyback of 1,520,000 equity shares having face value of INR 2 each at a price
of I NR 200/- per share. All the equity shares bought back were extinguished on October 26,2023. Capital redemption reserve was
created to the extent of share capital extinguished. The premium on buyback was utlised from securities premium and general
reserve. The number of equity shares post buyback stands reduced to 25,630,000.
The Board of Directors, at its meeting held on December, 22 2023 had approved and recommended the issuance of fully paid bonus
shares in the ratio of 1:1 out of its free reserves created out of profits. Pursuant to the approval given by the shareholders in Extra
Ordinary General Meeting held on January 18,2024, the Board at its meeting held on January 30,2024, issued and allotted
25,630,000 fully paid up Bonus Equity shares of INR 2 each in the ratio of 1:1. The number of equity shares post Bonus issue increased
to 51,260,000.
41) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind
of funds) by the Company to or in any other person(s) or entity(is), including foreign entities ("Intermediaries") with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
(“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
42) Subsequent Events
There are no material non-adjusting events after the reporting period till the date of issue of these financial statements.
As per our report of even date For and on behalf of the Board of Directors
For B S R & Co. LLP SINCLAIRS HOTELS LIMITED
Chartered Accountants CIN: L55101WB1971PLC028152
Firm's Registration Number: 101248W/W-100022
Jayanta Mukhopadhyay Navin Suchanti Dr Niren Suchanti Sanjeev Khandelwal
Partner Chairman Director Director
Membership No.: 055757 (DIN: 00273663) (DIN:00909388) (DIN:00419799)
Place: Kolkata BLSoni SwajibChatterjee AnannaSarkar
Date: May 20,2025 Chief Financial Officer Chief Operating Officer Company Secretary
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