EIH Ltd Management Discussions

Moreover, the report highlights a moderation in global inflation from its peak in mid-calendar year 2022, concurrent with the expansion of economic activity, thus mitigating the risk of a potential global recession. The IMF anticipates a further decline in global inflation from an annual average of 6.8% in 2023 to 5.9% in 2024 and to 4.5% in 2025, with advanced economies expected to converge to their inflation targets sooner than emerging markets and developing economies. Risks to the global economic outlook for 2024 are viewed as broadly balanced, emanating from potential price surges triggered by geopolitical tensions and regional conflicts, such as those observed in Gaza, incidents in the Red Sea and ongoing warfare in Ukraine, as well as the prospect of core inflation which excludes volatile factors like food and energy exhibiting a slower-than-expected deceleration and interest rates persisting at levels higher than anticipated.

Outlook

The global economy is expected to maintain a consistent growth rate from FY 2023-24 to FY 2024-25, accompanied by a gradual decrease in global inflation. While there have been minor adjustments for major economies, such as a more optimistic outlook for the United States and slight downward revisions for others, overall stability is anticipated.

As the global economy approaches a soft landing, central banks face a critical near-term challenge: ensuring a smooth reduction in inflation. This task requires careful management to avoid premature policy adjustments or excessive delays that could result in inflation falling below target levels.

According to the World Economic Outlook report, global inflation is forecasted to decline steadily over the next few years. The projection shows a decrease from 6.8% in 2023 to 5.9% in 2024 and further to 4.5% in 2025. Advanced economies are expected to achieve their inflation targets sooner than emerging markets and developing economies. Core inflation is expected to decline at a slower pace.

Indian economy

India ascended to become the worlds fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). According to the Second Advance Estimates of National Income released by the National Statistical Office (NSO) of the Government of India in February 2024, the GDP growth rate for the fiscal year 2023-24 is estimated at 7.6%, an improvement from the 7.0% growth recorded in FY 2022223. Consumption, constituting 56% of GDP, experienced a modest growth of 3.0% in FY 2023-24. This growth trend was bolstered by government initiatives focusing on capital expenditure (capex), which facilitated private investment, leading to a robust Gross Fixed Capital Formation (GFCF) growth rate of 10.2% in FY 2023-24, accounting for 34% of GDP. On the supply side, agriculture expanded by 0.7%, manufacturing by 8.5%, construction by 10.7% and services by 7.5% in FY 2023-24. Notably, within the services sector, trade, hotels, transport, communication and broadcasting- related services, representing approximately one-third of overall services grew by 6.5%.

7.6%

For FY24

The Reserve Bank of India (RBI) has maintained a prolonged pause in its policy rates, keeping the repo rate unchanged at 6.5% since April 2022. This steady approach reflects the RBIs confidence in the gradual easing of inflation, allowing the effects of previous rate hikes to permeate throughout the system. Market expectations align with this stance, anticipating the RBI to continue the pause and maintain status quo on the repo rate. This expectation is based on several factors, including easing inflation, resilient economic growth and the need to assess the impacts of previous rate adjustments.

6.5%

Interest/Repo Rate for FY24

(Source: RBI)

The Indian government has placed significant focus on infrastructure investment, recognising its role in driving economic growth and development. The infrastructure sector, which includes power, bridges, dams, roads and urban infrastructure development, acts as a catalyst for Indias overall development. The government has initiated policies and schemes to ensure the timely creation of world- class infrastructure in the country. The focus has expanded beyond physical infrastructure to include digital and social infrastructure, considering the evolving environment and demographics. The Indian government has implemented various initiatives to address the countrys infrastructural needs. The National Infrastructure Pipeline (NIP), introduced in 2019, emphasises social and infrastructure projects, including energy, roads, railways and urban development projects worth I 11.11 lakh crores.

K 11 11

lakh crores

Infrastructure Creation Interim Budget for FY25

10

lakh crores

Infrastructure Creation Budget for FY24

(Source: Economic Times)

Outlook

The forecast for FY 2024-25 remains optimistic. The Reserve Bank of India (RBI) anticipates continued momentum in the manufacturing sector and expects services to surpass pre-pandemic growth levels. Agricultural activities are poised to benefit from an anticipated normal south-west monsoon. Additionally, private consumption is expected to strengthen, driven by increased rural activity and a rise in discretionary spending among urban households, supported by improving income levels according to the RBIs consumer survey. Furthermore, credit growth and private investment are projected to rise, buoyed by optimistic sentiments among businesses and consumers, as well as robust corporate and bank balance sheets, which are set to catalyse an upswing in the private capital expenditure cycle. Core inflation is anticipated to maintain a downward trajectory, signalling a broad-based moderation in price pressures.

7%

For FY25

Global travel and hospitality industry overview

In 2023, the global tourism industry showed impressive growth and there was a significant recovery in international tourist arrivals. The number of tourists worldwide reached 1,286 million, marking a 34% increase compared to 2022 and an 88% recovery from pre-pandemic levels in 2019. Europe remained the top destination for global inbound tourism, capturing ~55% share in 2023. This region witnessed a growth of 17% compared to 2022 and achieved 94% of its pre-pandemic levels. This indicates a strong resurgence in European tourism. These positive trends observed in the tourism sector in 2023 have had a direct impact on the global hospitality industry. As peoples interest in travel and exploration has rebounded, there has been a surge in international tourist arrivals, creating a greater demand for hospitality services worldwide.

The hospitality industry is directly linked to the travel and tourism. The increase in international tourist arrivals signifies a larger customer base for the hospitality industry to cater to, presenting significant opportunities for growth and development.

In 2023, revenue from the global hospitality industry reached US$ 4.7 trillion and is expected to reach US$ 5.5 trillion in 2024.

US$ 4.7 Trillion

Revenue in 2023

US$ 5.5 Trillion

Projected Revenue in 2024

In 2023, the global hospitality industry witnessed a positive shift as it adapted to meet the changing needs and preferences of travellers. Accommodation providers, including hotels, resorts and vacation rentals, focused on enhancing guest experiences by offering personalised services, state-of-the-art facilities and unique amenities. Furthermore, the hospitality industry embraced technological advancements to streamline operations and provide convenience to guests. Mobile check-in options, digital concierge services and smart room features became increasingly prevalent, offering a seamless and efficient experience for travellers.

The global hotel and resort industry market size experienced consistent growth after the pandemic started to ease. The industry saw growth from 2022 and was projected to reach a market size of 1.6 trillion U.S. dollars by 2024.

Outlook: Looking ahead, the hospitality industry is expected to continue its growth trajectory, closely tied to the travel and tourism industry. As international tourist arrivals continue to rise, demand for quality hospitality services will remain strong. Industry players will need to adapt to evolving consumer preferences, leverage technology and prioritise sustainability to remain competitive in the global market.

(Source: Statista)

Indian hospitality and tourism Sector

The Indian hospitality and tourism industry witnessed a significant increase in international tourist arrivals, indicating a positive trend for the industry. This recovery brought forth promising opportunities for growth and development within the sector. The Indian government implemented several initiatives to support the hospitality and tourism industry. Measures such as the easing of visa restrictions and promotional campaigns aimed to boost domestic and international tourism. To promote tourism, the Ministry of Tourism of the Government of India launched many initiatives, including Swadesh Darshan, PRASHAD, UDAN and Dekho Apna Desh. Under the Swadesh Darshan project, up to 50 destinations are planned to give an unparalleled tourism experience. Furthermore, the PRASHAD initiative intends to develop pilgrimage sites around the country. Additionally, numerous Indian states have launched projects and made expenditures to boost local tourism. The governments electronic visa system currently covers almost every country in the world, including foreign citizens from 166 nations and is valid for admission at 28 authorised airports and five designated seaports in India. Indias strong economic development, along with revolutionary reforms, has had a favourable influence on the tourist and hospitality industries.

According to ICRA, the pan-India premium hotel occupancy is estimated to reach decadal highs of approximately 70-72% in FY 2023-24 and FY 2024-25, after recovering to 68-70% in FY 2022-23. Average room rates (ARRs) for these hotels are expected to be around I 7,200-7,400 in FY 2023-24, rising to I 7,800-8,000 in FY 2024-25. The Revenue per Available Room (RevPAR) is projected to be at an 8-12% discount to the FY 2007-08 peak in FY 2023-24 and is expected to converge towards the FY 2007-08 peak in FY 2024-25. Some hotels and destinations have experienced even higher ARR levels, with a few outliers surpassing the FY 2007-08 peak in FY 2023-24. These estimates indicate a positive trend in the recovery and growth of the Indian hospitality industry, with increasing occupancy rates and a recovery in RevPAR. The adoption of technology played a significant role in the industrys recovery. Contactless checkins, digital payments and enhanced hygiene protocols became standard practices, instilling confidence among travellers and ensuring their safety.

(Source: STR and Horwath HTLs India Hotel Market Review 2023)

44%

Foreign tourist arrival growth

487

No. of Airports in India FY24

140

Total Airports operationalised in the last decade

Future Outlook

The Indian hospitality and tourism industry holds promising prospects. The revival of international travel, the hosting of major events and continued government support are expected to contribute to further growth in FY 202425. The Indian hotel sector is positioned for significant expansion, driven by long-term demand. Notable drivers of this growth include a recovery in foreign tourist arrivals, improved connectivity with new airports and national highways across the country, an increase in global capability centres, more middle-income households and a clear trend of premiumisation, which leads to increased demand for leisure destinations and stronger business travel. The introduction of spiritual tourism, weddings in India, a resurgent M.I.C.E (Meetings, Incentives, Conferences and Exhibitions) tourism surrounding recent and planned convention facilities and rising wildlife tourism all provide new locations and circuits, providing a strong incentive for expansion. Continued infrastructural development projects inside the country, increased air and rail passenger traffic and increased demand are predicted to offer a lengthy and sustained upcycle for Indias hospitality. The demand for branded rooms is anticipated to expand faster than the supply of those rooms.

Industry trends

The hospitality industry in FY 2023-24 is brimming with promises of innovation, sustainability, culinary excellence, adaptable travel trends, prioritised wellness, personalised services driven by data insights, integration of AI and robotics, with social media acting as a catalyst for engagement.

Technological advancements

The hospitality industry at the cusp of a technology revolution. Technology, from contactless check-ins to smart room controls, revolutionises guest experiences and operations. Artificial Intelligence (AI) and data analytics are no longer optional but essential, providing personalised services, predicting guest preferences and optimising resources. Hotels embracing technology see higher guest satisfaction, leading to increased loyalty and positive reviews.

Ethical sustainability

Sustainability is now a key principle in hospitality, not just a trendy term. Forward-thinking leaders see sustainable practices as essential, not just morally, but for business success. Hotels are changing how they operate, using eco-

friendly materials and energy-saving methods to support global environmental goals. These practices not only help the environment but also save costs, benefiting the hotels financial performance.

Culinary experiences on the rise

The culinary landscape in the hospitality sector is poised for a significant transformation in FY 2023-24. Travellers today are increasingly looking for an immersive culinary experience Fusion cuisines, distinctive dining ideas and focus on regional, authentic flavours are increasingly essential for attracting and retaining loyalty of guests.

Workcation-staycation trend

The way people travel has changed because of global events. Workcations and staycations are increasingly becoming popular as is evident from the Economic Times. Hotel stays now offer a complete experience that includes work, fun and relaxation.

Social media engagement

In this digital age, social media is more than just a marketing tool for hotels and is now a useful medium to interact with guests create experiences based on what guests want in real time. Social media is where guests share their experiences and what they like, helping hotels respond quickly and give more personalised service.

FINANCIAL AND OPERATING PERFORMANCE

The outstanding performance of the Company is a testimony to our unwavering commitment to quality, our premium positioning and our meticulous attention to detail, principles which are consistently prioritised in all aspects of our business, ensuring an exceptional experience for our valued guests. The reopening of global economies has provided a significant boost to our business, allowing us to capitalise on the increased demand for travel and hospitality services.

In FY 2023-24, the Company achieved a revenue of I 23,167.81 million, a 26.19% increase compared to the previous years I 18,358.30 million. The EBITDA reached I 9,108.95 million, reflecting a substantial year-on-year growth of 45.61% from I 6,255.53 million. The Company recorded a profit before tax of I 6,920.16 million, a significant improvement from the previous years profit before tax of I 4,365.81 million. The net profit for the year amounted to I 5,208.97 million, from the net profit of I 3,201.69 million in the previous year.

To ensure the well-being and security of guests and employees, the Company and its hotels have implemented comprehensive measures in accordance with the guidelines provided by the World Health Organisation (WHO). Further details about these measures can be found on the official websites of Oberoi Hotels & Resorts and Trident Hotels.

RISK MANAGEMENT

The Company has a dedicated Risk Management Committee (RMC) comprising of members from the Board of Directors and senior management. The RMC regularly monitors key risks, business strategies and reviews critical risk indicators. The Committee collaborates with management to define the Companys risk tolerance and strategies for managing key risks. The RMC develops guidelines, policies and processes to and mitigate these risks.

The Companys comprehensive risk management framework encompasses guidelines, policies and processes designed to effectively assess and manage risks. The Risk Management Committee (RMC) has identified thirteen key risks that could impact business: These are related to risks of business slowdown, low returns, financial deterioration, operational interruptions, environmental impact, reputational damage, safety issues, cyber threats, compliance challenges, fraud, growth obstacles, talent retention difficulties and legal risks.

To strengthen its risk management efforts, the RMC has established a dedicated Risk Management Sub-Committee chaired by Mr. Arjun Singh Oberoi and co-chaired by Mr. Vikramjit Singh Oberoi. Mr. Kallol Kundu, the Chief Financial Officer, is the Risk Officer. This committee meticulously monitors risks and regularly updates the Board, ensuring a proactive and comprehensive approach to risk management throughout the Company.

The Oberoi: Centre of Excellence

The Company has integrated its operations with high- efficiency technological systems and processes through the establishment of The Oberoi Centre of Excellence (TOCE). TOCE encompasses various functions and aims to transform the role of Finance and related areas. By implementing automation and process improvements, the Company has addressed challenges such as manual processes, decentralised systems and time-consuming tasks.

Automation and advanced technologies have led to improved agility, standardised processes\ and cost- effectiveness. Key areas targeted for automation include accounts payable, accounts receivable, financial closing, banking, procurement, FP&A, MDM, user management and analytics. These improvements have increased operational efficiency, productivity and scalability, facilitating the seamless integration of new ventures.

The ongoing commitment to operational efficiency and effectiveness positions the Company for sustained growth and success.

STRATEGIC ALLIANCE BETWEEN THE COMPANY AND MANDARIN ORIENTAL HOTEL GROUP

Oberoi Hotels & Resorts has a strategic alliance with the renowned Mandarin Oriental Hotel Group. This partnership aims to combine their strengths and expertise to enhance various aspects of their operations. The collaboration spans

across several areas, including marketing, sales, customer loyalty, food and beverage, human resources, spa and sustainability. The partnership also facilitates knowledge sharing and best practice exchanges in areas such as food and beverage, human resources, spa operations and sustainable practices. By leveraging each others expertise, the two organisations implement innovative strategies, improve service quality and ensure sustainable operations.

Hotels and resorts under planning and development

• The Oberoi Group is currently engaged in the development of The Oberoi Rajgarh Palace, a luxury leisure hotel situated near Khajuraho, Madhya Pradesh. The 66 key resort and historic palace incorporating 18 suites and 48 garden villas will also feature a seven acre lake and spa within the 70 acre estate. The Oberoi Rajgarh Palace is expected to be operational by the end of FY 2024-25.

• "The Oberoi" located in South Goa, shall be a 90 key luxury resort planned on a 52 acres site overlooking a pristine beach and views of the Arabian Sea. Planning is currently underway and the resort is expected to open in the last quarter of 2027. The Company has further entered into a hotel management agreement for a second project as a luxurious Oberoi Resort at Bogmalo Beach in South Goa.

• The planning process is underway for a mixed-use development in Bengaluru.

• Construction of The Oberoi Vindhyavilas, a resort located on the periphery of Bandhavgarh National Park and Tiger Sanctuary is nearing completion. The 21 key tented jungle resort managed by the Company will be operational by the end of this year.

• An overseas subsidiary of the Company has signed management contract to operate two resorts, The Oberoi and Trident, on KohTan Island, located southwest of Koh Samui, Thailand. This expansive 100-acre site offers breathtaking views of a two-kilometre pristine beach. The project includes multiple restaurants, meeting and recreation facilities, as well as spas and wellness centres. Necessary announcements on the progress will be made as and when applicable.

• The Oberoi Kathmandu is being developed on a greenfield site measuring five acres. This luxury hotel will be conveniently situated near major tourist attractions such as the Royal Palace and Thamel, as well as important business locations. The hotel will feature 80 keys within a low-rise garden setting, along with multiple restaurants, meeting facilities, a spa and recreational amenities. The management of the hotel will be overseen by the Company.

• The Oberoi Wildlife Resort, located near Bardia National Park in Nepal, will be developed on a greenfield site covering approximately 30 acres. This nature-inspired resort will comprise 20 luxury tents, a restaurant, a spa and a wellness centre. The management of the resort will be handled by the Company.

• A management agreement has been signed between the Companys overseas subsidiary and One and Only Nile Company LLP, Egypt, for two traditional luxury Cruise Boats called dahabiyas. These boats, featuring seven cabins each, will cruise the Nile between Luxor and Aswan. The planning and design phase of the project

is currently underway, with an expected operational launch in the last quarter of 2024-25.

• The planning phase has commenced for the Trident resort in Tirupati Andhra Pradesh. This upcoming 100- key resort, developed by the Companys subsidiary Mumtaz Hotels Ltd., will be managed by the Company. The resort is projected to be operational in the first quarter of 2027.

• A 20-key, "The Oberoi" resort at Gandikota shall establish a new destination in India. Gandikota, also known as the "Grand Canyon of India", is famous for spectacular gorges formed by the Penna river flowing through the Erramala Hills. The Resort is expected to open in August 2027.

HUMAN RESOURCE DEVELOPMENT AT THE OBEROI GROUP

The Oberoi Group strongly believes that well-treated and engaged employees build a strong guest-centric culture where the guest is everything. We take extreme care in ensuring that our culture is sensitive and empathetic, listening to and supporting employees. We also carefully review our people policies to ensure they resonate with our Dharma and foster well-being of our people.

The following people practices have been reviewed and re-aligned:

1. Talent Acquisition and Retention: Hiring the right talent is vital for organisational success. While external selection remains crucial, this year we prioritised leveraging our internal talent pool. Preparing customised individual development plans for high potential employees ensured that a notable 64% of our positions were filled internally, fostering career progression and mobility for our employees.

2. Employee Engagement: We realigned our policies to enhance the employee experience and bolster retention among high-performing individuals. Amendments to employee benefits and streamlining policies such as Variable Pay and Maternity Benefits were made to enrich overall employee satisfaction. Our achievement of an 84% employee engagement score in the Financial Year 2023-24 surpassed Global

Hospitality Top Quartile Scores. Moving forward, we are committed to fortifying employee engagement and retention through targeted action plans based on employee feedback and global best practices.

3. HR Automation: To increase efficiencies, we are embracing new technologies that will benefit both employees and the Human Resources function. Implementation slated for the coming financial year promises streamlined processes, integrated services and expedited delivery, ultimately enhancing the employee experience.

4. Compensation Benchmarking & Industrial Relations: We prioritise the well-being of our employees and adhere to best compensation practices. This year, we carfully reviewed and strategically adjusted employee compensation to ensure competitiveness. Additionally, we successfully negotiated a long-term wage settlement in one of our hotels, demonstrating our commitment to fostering positive industrial relations.

A detailed policy document, The Oberoi Group Code of Conduct, was introduced to guide employees on acceptable behaviour and ethical conduct.

The number of people employed by the Group as of March 31, 2024, was 11,350. Industrial Relations remained stable throughout the year.

Learning & Development

The Oberoi Centre of Learning and Development (OCLD) consistently offers expansive learning opportunities to every employee. In the FY 2023-24, it continued to facilitate the professional growth and development of employees across the organisation.

OCLD has been instrumental in executing The Oberoi Groups philosophy, which emphasises continuous learning and skill enhancement.

OCLD conducts the following core training programmes:

1. Post Graduate Management Programmes in Guest Services, Housekeeping, Kitchen and Sales.

2. Systematic Training and Education Programme (STEP) in Hotel and Kitchen Operations.

3. Learning and Development (L&D) Programmes, designed to refine functional and behavioural competencies of employees at all levels.

The Post Graduate Management Programmes,

established in 1966 and preparing talented individuals for executive roles. The curriculum is designed for providing experiential learning both at OCLD and in the hotels. Blending Instructor Led Training with experiential learning at hotels, the curriculum encourages students to learn actively. Techniques like peer mentoring, master class sessions from external and internal experts and simulations are integrated into the pedagogy. These programmes have helped maintain a steady talent pipeline of the finest hospitality professionals for the Company.

This year OCLD introduced new training modules on sustainability and emerging technologies. Associates underwent online certification courses in these subjects.

The current batch strength for the years 2022-2024 and 2023-2025 comprises a total of 65 and 102 Associates respectively. The intake for the batch of 2024-26 is 112.

The Systematic Training and Education Programme (STEP), launched in 2004, transforms high school graduates into proficient hotel professionals. The three-year programme offers hands-on training and comprehensive lesson plans at a host hotels of The Oberoi Group, resulting in trainees gaining practical exposure to the hospitality industry. Its comprehensive curriculum, structure and rigorous training at 14 hotels had made it highly regarded in the hospitality industry. Many STEP graduates are subsequently selected for one of the Post Graduate Management Training Programmes at OCLD.

A total of 178 STEP Trainees are enrolled across the batches of 2021 -24, 2022-25 and 2023-26.

Learning content pertaining to various functional roles were made available on the Adobe Learning Manager. The learning aids ensure easy access to training materials and courses, resulting in better recall and retention of information.

INTERNAL CONTROL MECHANISM AND ADEQUACY

The Company places great importance on maintaining a robust internal control system, guided by The Oberoi Dharma. As dedicated members of the organisation, we uphold the highest standards of conduct, including ethics, intellect, finance and morality.

To ensure the orderly and efficient conduct of our operations, safeguarding of assets, the prevention and detection of fraud and errors, accurate accounting records, timely financial reporting and compliance with laws and regulations, we have implemented effective internal controls at process level as well as at entity level.

Our internal control mechanisms strike a balance between the imperative of governance and the need for smooth operations and management. These mechanisms incorporate appropriate checks and balances to ensure governance and operational efficiencies.

INTERNAL FINANCIAL CONTROLS (IFC)

The Board of Directors have established a robust internal control framework in accordance with Section 134(5)(e) of the Companies Act, 2013, incorporating measures to ensure the adequacy and ongoing effectiveness of such controls. The Independent Directors, as mandated by Section 149(8) and the Code for Independent Directors under Schedule IV, Clause 11(4) of the Companies Act, 2013, have verified the integrity of financial information and ensured the efficacy and defensibility of financial controls and risk management systems.

The Board has implemented comprehensive systems, frameworks and mechanisms within the Company, empowering the Audit Committee to periodically review and confirm their effectiveness and suitability. Our internal control framework aligns with global best practices for organisations of similar size, nature and complexity. This framework includes structured control risk assessments through Standard Operating Procedures (SOPs), Risk and Control Matrices (RACM), IT policies and ERP-based information systems, incorporating MIS and automated system controls integrated within the ERP and other IT systems.

The Entity Level policies of the Company include anti-fraud policies such as Code of Conduct and Whistle-Blower policy, along with other policies like Insider Trading policy, DOA, HR policy and IT Security policy to ensure effective internal control systems. These internal controls are reviewed by the Senior Management periodically.

Internal controls are reviewed through annual internal audit process, which is undertaken for every operational unit and all major corporate functions. The Audit Committee oversees the adequacy of internal control environment through periodic reviews of audit findings and review of resolution process of critical audit issues.

During the financial year 2023-24, the Company, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India, has assessed the adequacy and operating effectiveness of such internal controls through a reputed external expert. The Audit Committee reviewed the assessment performed by the external expert based on a separate presentation made on adequacy of design and operating effectiveness of IFC controls.

Internal audit mechanism and review systems

The Internal Audit Department, led by the Chief Internal Auditor, comprises a proficient team of Chartered Accountants trained in ERP and specialised in various domains including finance, operations, legal, statutory compliance, projects and process audits. They regularly collaborate with reputable co-sourced firms to conduct audits and manage specialised tasks, ensuring an impartial review of the internal control environment and adherence to industry best practices. The department leverages advanced Computer Assisted Audit Techniques (CAATs) and implements online monitoring systems across all IT functions and units of the Company. They focus on specific audits identified through a structured risk assessment process and an annually approved internal audit plan by the Audit Committee. Audit findings are documented

in an online database for comprehensive records, easy accessibility and structured follow-ups.

A dedicated team of senior executives, guided by the Managing Director and Chief Executive Officer, convenes periodically to address and resolve pending audit issues. The Chief Internal Auditor periodically presents findings to the Audit Committee, prioritising risks and their likelihood, along with the status of pending issues across various units. The Internal Audit team is responsible for recommending effective monitoring mechanisms and procedures to prevent and detect process failures and faults. Their observations, along with recommended mitigating actions and target dates, are reported to the Audit Committee periodically, which reviews the presentation and provides guidance for further actions. The Audit Committee has expressed satisfaction with the effectiveness of the Companys internal control systems, procedures and the performance of the Internal Audit Department.

Conclusion

In conclusion, this year has demonstrated our unwavering determination, adaptability and dedication to upholding excellence. We have achieved remarkable financial growth, effectively managed risks and embraced innovation to optimise our operations. Our strategic alliances and expansion plans have laid a solid foundation for future prosperity, while our numerous accolades reinforce our commitment to delivering unparalleled service.

The driving force behind our accomplishments remains our exceptional workforce, whose growth and well-being are paramount. We have implemented robust internal control mechanisms to ensure the integrity and efficiency of our operations. Looking ahead, we are confident in our ability to continue delivering exceptional value to our stakeholders, guests and employees, while maintaining our position as a leader in the global hospitality industry.