3.13 CONTINGENCY AND PROVISION
Contingent liabilities are recognized only when there is a possible obligation that arises from past events and the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
enterprise: or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of re¬
sources embodying economic benefits will be required to settle the obligation or a reliable estimate of the amount of obligation cannot
be made.
The Company creates a provision when there is present obligation as result of a past event that probably requires an outflow of re¬
sources and a reliable estimate can be made of the amount of the obligation.
3.14 TAXATION
Provision for current taxation is made in accordance with the applicable taxation laws.
Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified
using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax asset is recognized and carried forward to the extent there is a reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be realized.
3.15 Prior period and extraordinary items and changes in Accounting Policies having material impact on the financial affairs of the company
are disclosed.
Note:- "The Company on the basis of legal opinion is of the firm belief that the above demands are not tenable and highly unlikely to
be retained by higher authorities and is accordingly not carrying any provision in its books in respect of such demands. The amounts
disclosed are based on the notices/ orders received from the authorities."
* As per the letter No. D/Tax/HQ/Cir.CNZ/SDMC/2021-22/5833 dated 30th March,2022 an amount of Rs. 516.32 lacs/- is demanded by the
Municipal Authorities towards arrears of Property Tax (principal and interest) as on 31st March, 2022 and it is pending adjudications before the
Hon'ble Delhi High Court.
**“ CJSC CHL International, our subsidiary Company had taken a term loan of USD 32.50 million from the Export Import Bank of India (EXIM
Bank) for construction of a five star hotel in Dushanbe, Tajikistan. To secure the above loan Corporate and Personal Guarantees were executed
by CHL Limited and Late Dr. L K Malhotra respectively.
Exim Bank filed an application being CP No.IB-392 (PB)/2017 under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) before
National Company Law Tribunal, Delhi (NCLT), against CHL Limited, which was dismissed vide order dated 11.01.2018, on the ground that there
was no default on the part of the borrower. This judgment was upheld by the National Company Law Tribunal (NCLAT) through its judgment and
order dated 16.01.2019. This judgment and order dated 16.01.2019 was challenged by EXIM Bank by way of Civil Appeal bearing No. 1671 of
2019, titled as Export Import Bank of India v CHL Limited before the Hon'ble Supreme Court which is pending adjudication.
Exim Bank also filed original application being no OA No.508/2020, titled as Exim Bank v CHL Limited converted to TA No.224/2022, Exim Bank
v CHL Limited claiming an amount of USD 44,611,207 alongwith pendentlite and future interest, before Debt Recovery Tribunal - III, New Delhi
(DRT-III), which is pending adjudication, and the matter is next listed on 27.05.2025.
Our subsidiary Company CJSC CHL International, filed a case bearing Case No. 52/2023 against EXIM Bank before the Economic Court of
Dushanbe in respect of loan availed by it. During the pendency of the case, One Time Settlement (OTS) was executed by EXIM Bank, the
Principle Borrower and Guarantors on 23.11.2023, which was modified on 08.12.2023. This OTS was placed before the Economic Court of
Dushanbe, which crystallized the liability of CJSC CHL International to USD 34 million. The OTS is under implementation as on Balance Sheet
Date.
EXIM Bank filed an application bearing I.A No. 189/2024 in Transfer Application No. 224 of 2022 titled as EXIM Bank vs CHL Limited before Debt
Recovery Tribunal-III, in order to bring the above OTS on record. Additionally, the corporate guarantor, i.e CHL Limited also filed application for
bringing on record inter-alia the judgments passed by the Economic Court of Dushanbe bearing no 332/2024 in IA No.224/2022.
However, the above applications were dismissed by DRT-III on 27.08.2024. In light of the dismissal, order dated 27.08.2024 was challenged
by the corporate guarantor i.e. CHL Limited, before Debt Recovery Appellate Tribunal (DRAT), by way of an appeal bearing Misc Appeal
No.304/2024.Notice was issued in the appeal on 30.09.2024. The appeal is pending adjudication, and is next listed for hearing on 26.05.2025.
27. i) Other advances are for business purposes and do-not carry interest.
ii) Legal & Professional charges include payment of auditors.
28. The Fixed Deposits are pledged with:
i) Statutory Authorities - Rs. 1.77 lacs (Rs.1.57 lacs),
ii) BSES - Rs.42.29 lacs (Rs.33.93 lacs).
29. Estimated amount of contracts remaining to be executed on capital account, net of advances:
This year is Rs.70.64 lacs (previous year Rs.141.51 lacs).
30. Debts due to or by the company, are generally confirmed in most of the cases by the parties.
31. In the opinion of the management, the assets of the company have a value on realization, in the normal course of business, at least equal
to the amounts stated in the balance sheet.
32. MICRO AND SMALL ENTERPRISES
The company has received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development
Act 2006 and hence disclosure relating to the amounts unpaid at the year end under this Act is Nil. There is no overdue payment and hence
no interest has been provided.
33. EMPLOYEES BENEFITS
Defined Contribution Plans
Retirement benefit in the form of provident fund, family pension fund and ESI is a defined contribution scheme.
Defined Benefit Plans
37. The company, in respect of financial year commencing on 01.04.2024, has used accounting software for maintaining its books of accounts
which have a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions
recorded in the software except that it is not possible to comment if the audit trail (audit log) facility was enabled for accounting software
in respect of maintenance of property plant and equipment records operated by a third party service provider in absence of independent
auditor's report in relation to control at the third party service provider. Further, there is no instance of audit trail feature being tampered with.
38. Amount transferred to Investor Education and Protection Fund as required under section 124 and 125 of the Companies Act 2013 - Rs. Nil
(Previous Year Rs. Nil lacs)
39. FINANCIAL RISK MANAGEMENT
The Company's financial risk management is an integral part of how to plan and execute the business strategies. The Company's financial
risk management policy is set by the Managing Board.
i. Credit Risk
a) Credit risk on trade receivables is managed by ensuring that credit is extended to customers with an established credit history. To man¬
age this, the Company periodically assess the financial reliability of customer taking into account the credit history, past experience
and other relevant factors. Individual risk limits are set accordingly. In respect of walk-in customers, the Company does not allow any
credit period and therefore is not exposed to any credit risk.
b) Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment
plan with the Company and the debt is outstanding for a sufficient period and depending upon case to case basis. Where loans or
receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable dues.
When recoveries are made, these are recognized in profit or loss.
The Company believes that no impairment allowance is necessary in respect of abovementioned financial assets, considering the
marketable value of debtors. Balance with banks are subject to very low credit risk due to good credit rating assigned to these banks.
ii. Liquidity Risk
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities. The board
has developed a risk management framework for the management of the company's short, medium and long-term liquidity require¬
ments thereby ensuring that all financial liabilities are settled as they fall due. The company manages liquidity risk by continuously
reviewing forecasts and actual cash flows, and maintaining banking facilities to cover any shortfalls.
The table below summarises the maturity analysis for financial liabilities to their remaining contractual maturities. The amounts dis¬
closed are the contractual undiscounted cash flows
iii. Capital Management
For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves. The primary objective of
the Company's Capital Management is to maximize shareholder value. The Company manages its capital structure and makes adjustments
in the light of changes in economic environment and the requirement of the financial covenants.
The company monitors capital using gearing ratio, which is total debt divided by total capital plus debt.
40. Segment Reporting:
The Company operates only in one reportable segment, i.e. Hospitality/Hotel
Business.
41. Previous year's figures have been regrouped and rearranged wherever necessary to make it comparable with the Current Years figures. All
figures have been rounded off to nearest lac rupee.
As per our report of even date attached For and on behalf of the Board of Directors of CHL Limited
for DGA & Co.
Chartered Accountants
Reg. No. 003486N
(D K Agarwal, FCA) LUV MALHOTRA ASHISH KAPUR
Partner Managing Director Director
Membership No. 080355 DIN 00030477 DIN 00002320
UDIN: 25080355BMUHWY3768
GOPAL PRASAD DINESH KUMAR MAURYA
CFO Company Secretary
M No 508750 M No ACS35880
Place: New York USA Place: New Delhi
Date: 26-05-2025 Date: 26-05-2025
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