EIH : PT Waka Oberoi Indonesia 2024

PT Waka Oberoi Indonesia

BOARD

Mr. I Ketut Siandana

Mr. Rajaraman Shankar

Mr. I Wayan Pasek

AUDITORS

Purwantono, Sungkaro & Surja

A member firm of Ernst & Young Global Limited Indonesia Stock Exchange Building

Tower 2, 7th Floor,

Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190,

Indonesia

REGISTERED OFFICE

Patai Medana,

Desa Sigar Penjalin-

Tangung-LombokUtara-NTB

Indonesia

Report of the Directors

We present the report and the audited financial statements of PT Waka Oberoi Indonesia ("the Company") for the year ended March 31, 2024.

PRINCIPAL ACTIVITY

The principal activity of the Company is hotel ownership and management.

RESULTS

The Company's financial position and results of operations as of and for the year ended March 31, 2024 are set out in the financial statements on pages 1 to 5 preceded by the independent auditors' report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

We are responsible for the preparation and the presentation of the financial statements, and keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company. We are also responsible for the Company's internal control systems and safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In preparing the financial statements of the Company, we are required to:

• select suitable accounting policies and then apply them consistently;
• prepare and present the financial statements in accordance with Indonesian Financial Accounting Standards;
• make judgments and estimates that are reasonable and prudent;

We confirm that we have complied with the above requirements in preparing the financial statements and all information contained in the financial statements are complete and correct. The financial statements do not contain or omit misleading information and/or facts.

This statement letter is made truthfully.

Bali, May 10, 2024

On behalf of the Board of Directors

I Wayan Pasek

President Director

Office address: Jl. Kayu Aya, Seminyak Beach, Kuta-Badung

Domicile address: Jl. Sarigading Gg. Gadingmas 9/15, Denpasar

Telephone number: [phone]

PT Waka Oberoi Indonesia | Annual Report 2023-24

245

Independent Auditor's Report

Report No. 01308/2.1032/AU.1/10/1175-9/1/V/2024

The Shareholders and the Boards of

Commissioners and Directors

PT Waka Oberoi Indonesia

OPINION

We have audited the accompanying financial statements of PT Waka Oberoi Indonesia ("the Company"), which comprise the statement of financial position as of March 31, 2024, and the statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2024, and its financial performance and cash flows for the year then ended, in accordance with Indonesian Financial Accounting Standards.

BASIS FOR OPINION

We conducted our audit in accordance with Standards on Auditing established by the Indonesian Institute of Certified Public Accountants ("IICPA"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements paragraph of our report. We are independent of the Company in accordance with the ethical requirements relevant to our audit of the financial statements in Indonesia, and we have fulfilled our other ethical responsibilities in accordance with such requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

OTHER MATTER

Our audit was conducted for the purpose of forming an opinion on the basic Indonesian rupiah financial statements taken as a whole. The translations of the Indonesian rupiah amounts into United States Dollar have been made on the basis set forth in Note 2n to the financial statements and are presented for purposes of additional analysis only and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we do not express an opinion thereon.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Indonesian Financial Accounting Standards, and for such internal control as management determines is necessary to

enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting, unless management either intends to liquidate the Company or to cease its operations or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements taken as a whole are free from material misstatement, whether due to fraud or error, and to issue an independent auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing established by the IICPA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing established by the IICPA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to such risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material

246

uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our independent auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our audit opinion. Our conclusion is based on the audit evidence obtained up to the date of our independent auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

KAP Purwantono, Sungkoro & Surja

TJOA TJEK NIEN

Public Accountant Registration No. AP.1175

May 10,2024

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247

Statement of Financial Position

As of 31 March, 2024

			(Expressed in Rupiah, unless otherwise stated, with Translations into United States Dollar)
									Translations into U.S. Dollar ($)
					Indonesian Rupiah	Unaudited (Note 2n)
			Notes	As at	As at	As at	As at
			31 March, 2024	31 March, 2023	31 March, 2024	31 March, 2023
ASSETS
CURRENT ASSETS
			2c, 2o, 4,
Cash on hand and in banks		23,24		4,844,939,971	3,103,414,507	305,617	206,043
Trade receivable		5		1,617,949,503		451,693,788		102,060		29,989
Inventories		2e,6		1,166,410,667		1,344,254,322		73,577		89,248
Prepayments and advances		2f,7		2,384,552,102		1,796,430,695		150,416		119,269
Other current financial assets		2o,23,24		35,804,656		18,336,387		2,259		1,217
TOTAL CURRENT ASSETS				10,049,656,899	6,714,129,699		633,929	445,766
NON-CURRENT ASSETS
Fixed assets - net		2g,8		43,704,028,757		46,519,560,726		2,756,830		3,088,538
Other non-current financial assets		2o, 23		126,615,000		126,615,000		7,987		8,406
TOTAL NON-CURRENT ASSETS				43,830,643,757	46,646,175,726		2,764,817	3,096,944
TOTAL ASSETS			53,880,300,656	53,360,305,425		3,398,746	3,542,710
LIABILITIES AND EQUITY
LIABILITIES
CURRENT LIABILITIES
Trade payables		2o, 9, 23, 24		1,886,061,854	724,490,510	118,972	48,101
Other payables - Third parties		2o, 10, 23, 24	757,017,289		377,190,240		47,752		25,043
Taxes payable		2m,11a		1,013,660,247		292,912,517		63,941		19,447
Accrued expenses	2o,12,23, 2d,
			2o		4,175,163,394		3,446,025,102		263,367		228,789
Due to related parties		13, 23, 24		45,324,807,511		48,812,889,926		2,859,068		3,240,797
Due to hotel operator		13, 23, 24		255,098,542		-		16,091		-
Reserve for replacement of furniture,
	fixtures and equipment		2i,14		6,114,211,892		6,954,964,435		385,682		461,756
Other current financial liabilities		2o,15,23, 24		4,099,174,706		3,430,087,505		258,578		227,730
TOTAL CURRENT LIABILITIES				63,625,195,435	64,038,560,235		4,013,451	4,251,663
NON-CURRENT LIABILITY
Employee benefits liability		2j,16		4,372,119,143	3,539,486,014	275,791	234,994
TOTAL LIABILITIES			67,997,314,578	67,578,046,249		4,289,242	4,486,657
CAPITAL DEFICIENCY
Capital stock A series -
	Rp180,000 par value
	Authorized, issued and fully paid -
	129,385 shares		17		23,289,300,000		23,289,300,000		11,450,000		11,450,000
Capital stock B series -
Rp750,000 par value
Authorized, issued and fully
paid - 461,359 shares		17		346,019,250,000		346,019,250,000		26,016,500		26,016,500
Additional paid-in capital		2m		385,000,000		385,000,000		28,902		28,902
Other comprehensive loss
Re-measurement loss on long-term
	employee benefits liability				(1,259,702,883)		(728,693,602)		(91,989)		(58,493)
Translation adjustment		2n		-		-		(6,379,512)		(6,267,105)
Deficit				(382,550,861,039) (383,182,597,222)		(31,914,397)		(32,113,751)
CAPITAL DEFICIENCY
		(14,117,013,922)	(14,217,740,824)		(890,496)	(943,947)
TOTAL LIABILITIES
NET OF CAPITAL DEFICIENCY				53,880,300,656	53,360,305,425		3,398,746	3,542,710

The accompanying notes to the financial statements form an integral part of these financial statements taken as a whole.

248

Statement of profit or loss

And other comprehensive income

For the Year Ended 31 March, 2024

		(Expressed in Rupiah, unless otherwise stated, with Translations into United States Dollar)
								Translations into U.S. Dollar ($)
				Indonesian Rupiah		Unaudited (Note 2n)
				Year Ended 31 March,		Year Ended 31 March,
		Note	2024		2023		2024		2023
DEPARTMENTAL REVENUES		2k,18
Rooms				35,392,070,320		15,227,568,494		2,300,278		1,008,910
Food and beverages				20,594,960,470		8,376,633,132		1,338,552		554,998
Other operating departments				3,774,314,138		1,498,325,000		245,309		99,272
Others				1,368,347,861		320,456,700		88,934		21,232
Total Departmental Revenues				61,129,692,789		25,422,983,326		3,973,073		1,684,412
COST OF REVENUES		2k,19		(26,284,454,930)	(13,869,371,337)		(1,708,339)		(918,922)
GROSS PROFIT (LOSS)				34,845,237,859		11,553,611,989		2,264,734		765,490
HOTEL OPERATING EXPENSES		2k
General and administrative expenses		20		(6,746,324,532)	(5,597,299,621)		(438,472)		(370,852)
Property operations, maintenance
and energy expenses		21		(10,527,458,722)	(8,289,247,358)		(684,223)		(549,208)
Marketing expenses		22,25		(4,304,467,249)	(2,318,892,585)	(279,765)	(153,639)
Total Hotel Operating Expenses			(21,578,250,503)	(16,205,439,564)	(1,402,460)	(1,073,699)
HOTEL GROSS OPERATING PROFIT (LOSS)				13,266,987,356		(4,651,827,575)		862,274		(308,209)
OWNER'S OPERATING INCOME (EXPENSES)		2k
Depreciation and amortization				(3,645,680,527)		(4,190,921,402)		(236,948)		(277,672)
Foreign exchange (loss) gain - net		2n		(2,435,574,342)	(1,920,663,930)		-		-
Management fee				(1,658,373,419)	-		(107,785)-		-
Insurance				(1,552,615,547)	(1,424,642,872)		100,911)		(94,390)
Professional fees				(1,486,621,946)	(1,220,487,503)		(96,622)		(80,864)
Salaries and wages				(809,779,213)	(528,969,916)		(52,631)		(35,047)
Taxes				(874,985,067)	(190,441,863)		(56,869)		(12,618)
Finance income				352,448	130,262		23		9
Other operating expense- net				(171,973,560)	(116,513,632)		(11,177)		(7,720)
Owner's Operating Expenses - Net			(12,635,251,173)		(9,592,510,856)	(662,920)	(508,302)
INCOME (LOSS) BEFORE INCOME TAXES				631,736,183		(14,244,338,431)		199,354		(816,511)
Income tax benefit (expense)		2m,11b		-		(2,350,874,422)	-	(155,758)
NET INCOME (LOSS) FOR THE YEAR				631,736,183		(16,595,212,853)		199,354		(972,269)
OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss)
not to be reclassified to profit or
loss in subsequent periods:
Re-measurement gain (loss)
long-term employment benefits
liability- net of tax				(531,009,281)		19,339,435		(33,496)		1,284
Other comprehensive income (loss)
to be reclassified to profit or loss in
subsequentperiods:
Translation adjustment		-		-		(112,407)		(137,305)
NET COMPREHENSIVE INCOME
(LOSS) FOR THE YEAR				100,726,902		(16,575,873,418)		53,451		(1,108,290)

The accompanying notes to the financial statements form an integral part of these financial statements taken as a whole.

PT Waka Oberoi Indonesia | Annual Report 2023-24

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Statement of Changes in Equity

For the Year Ended 31 March, 2024

(Expressed in Rupiah, unless otherwise stated, with Translations into United States Dollar)

Balance as of 31 March, 2022

Loss for the year

Re-measurement gain (loss) on long-term employee benefits liability

Balance as of 31 March, 2023

Income for the year

Re-measurement gain (loss) on long-term employee benefits liability

Balance as of 31 March, 2024

Note

Balance as of

• March 31, 2022 Loss for the year Re-measurementgain
• (loss) on long-term
• employee benefits
• liability16 Translation adjustment Balance as of
• March 31, 2023

Income for the year

Re-measurement gain (loss) on long-term employee benefits

liability16

Translation adjustment

Balance as of

    March 31, 2024

				Indonesian Rupiah
				Additional		Other				Equity
Note		Capital Stock	Paid in	Comprehensive	Deficit	(Capital
				Capital	Loss			Deficiency)
		369,308,550,000	385,000,000	(748,033,037)	(366,587,384,369)	2,358,132,594
										(16,595,212,853)
		-	-		-	(16,595,212,853)
16		-	-		19,339,435	-	19,339,435
		369,308,550,000		385,000,000		(728,693,602)		(383,182,597,222)		(14,217,740,824)
		-		-		-		631,736,183		631,736,183
16		-		-		(531,009,281)		-		(531,009,281)
		369,308,550,000		385,000,000		(1,259,702,883)		(382,550,861,039)		(14,117,013,922)

		Translations into U.S. Dollar - Unaudited (Note 2n)
Capital		Additional		Other					Translation		Equity
Paid in	Comprehensive	Deficit	Adjustment	(Capital
Stock
Capital		Loss					(Note 2n)		Deficiency)
37,466,500	28,902	(59,777)	(31,141,482)			(6,129,800)		164,343
											(972,269)
-	-		-	(972,269)			-
-		-		1,284		-			-		1,284
-		-		-		-			(137,305)		(137,305)
37,466,500		28,902		(58,493)		(32,113,751)			(6,267,105)		(943,947)
-		-		-		199,354			-		199,354
-		-		(33,496)					-		(33,496)
-		-		-		-			(112,407)		(112,407)
37,466,500		28,902		(91,989)		(31,914,397)			(6,379,512)		(890,496)

The accompanying notes to the financial statements form an integral part of these financial statements taken as a whole.

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Statement of Cash Flows

For the Year Ended 31 March, 2024

		(Expressed in Rupiah, unless otherwise stated, with Translations into United States Dollar)
								Translations into U.S. Dollar ($)
				Indonesian Rupiah		Unaudited (Note 2n)
				Year Ended March 31,		Year Ended March 31,
		Notes	2024	2023	2024	2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Profit (loss) before income tax				631,736,183		(14,244,338,431)		199,354		(816,511)
Adjustments to reconcile
Income (loss) before income
tax for the year to net cash
provide by (used in)
operating activities:
Depreciation and amortization	8	3,645,680,527	4,190,921,403	236,948	277,672
Provision for replacement of
furniture, fixtures and equipment	14	1,833,890,784	762,689,500	119,192	50,532
Provision for international sales marketing		13		199,022,689		92,668,951		12,145		6,065
Provision for employee benefits
net of benefit payments	16	301,623,848	(816,002,996)	19,957	(64,763)
Unrealized loss (gain) on foreign exchange				2,435,574,342		1,920,663,930		-		-
Changes in operating asset and liabilities:
Trade receivables		(1,166,255,715)	(451,693,788)	(72,071)	(29,989)
Inventories				177,843,655		(349,742,304)		15,671		(19,939)
Prepayments and advances				(588,121,407)		(50,888,923)		(31,147)		2,380
Other current financial assets				(17,468,269)		(3,434,769)		(1,042)		(179)
Trade payables				1,161,571,344		(36,795,675)		70,871		(4,954)
Other payables				379,827,049		148,239,266		22,709		18,755
Accrued expenses				714,792,940		537,739,551		34,578		25,207
Taxes payable				720,747,730		107,932,622		44,494		6,556
Security deposit				-		-		419		418
Due to Hotel Operator				255,098,542		107,932,622		16,091		-
Other current liabilities				669,087,201		2,779,798,137		30,848		180,211
Net Cash Flows Used in
Operating Activities		11,354,651,443	(5,412,243,526)	719,017	(368,539)
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisitions of fixed assets		8		(830,148,558)		(1,780,970,623)		(53,955)		(118,000)
Utilization of reserve for replacement
of furniture, fixtures and equipment	14	(2,674,643,327)	(765,427,560)	(171,600)	(50,657)
Total Cash Used in Investing Activities				(3,504,791,885)		(2,546,398,183)		(225,555)		(168,657)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net receipts from (payment to)
related parties	13, 27	(6,172,787,186)	9,900,427,517	(393,888)	659,240
NET INCREASE IN CASH
ON HAND AND IN BANKS		1,677,072,372	1,941,785,808	99,574	122,044
NET EFFECT OF DIFFERENCES
IN FOREIGN EXCHANGE RATES		64,453,092	(43,666,959)	-	-
CASH ON HAND AND IN BANKS
AT BEGINNING OF YEAR	4	3,103,414,507	1,205,295,658	206,043	83,999
CASH ON HAND AND IN BANKS
AT END OF YEAR		4		4,844,939,971		3,103,414,507		305,617		206,043

The accompanying notes to the financial statements form an integral part of these financial statements taken as a whole.

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Notes to The Financial Statements

March 31, 2024 and for the Year Then Ended

(Expressed in Rupiah, unless otherwise stated with Translations into United States Dollar)

1. GENERAL

PT Waka Oberoi Indonesia (the "Company") was established within the framework of the Foreign Capital Investment Law No. 1 of 1967 as amended by Law No. 11 of 1970 based on notarial deed No. 225 dated November 26, 1992 of Siti Pertiwi Henny Shidki, S.H. The deed of establishment was approved by the Ministry of Justice in its decision letter No. C2-1631.HT.01.01.TH.93 dated March 13, 1993 and was published in Supplement No. 2313 of State Gazette No. 42 dated May 25, 1993.

The Company's Article of Association has been amended several times, the latest amendment of which was covered by the notarial deed No.01 dated November 01, 2023 of Dewa Ayu Agung Dewi Utami, SH. M.Kn, regarding the composition of Board of Commissioners and Directors. The latest amendment was reported to the Ministry of Law and Human Rights of the Republic of Indonesia and was acknowledged in its letter No. AHU-AH.01.09-0184505 dated November 14, 2023.

According to Article 3 of the Company's articles of association, the Company is engaged in activities related to providing accommodation and providing food and beverages and other services. The Company is domiciled in North Lombok Regency, West Nusa Tenggara and owns The Oberoi Lombok Hotel (the "Hotel") located in West Nusa Tenggara, which started commercial operations in April 1997. On March 19, 2019, EIH Management Services B.V assigned EIH Holdings Ltd. to manage the hotel operations up to year 2034 with option to extend for 20 years.

The composition of the Company's Boards of Commissioners and Directors as of March 31, 2024 and 2023 are as follows:

		2024		2023
Board of
Commissioners
President		: Sudarshan Rao		Sudarshan Rao
Commissioner
Commissioner		: Ida Bagus Gede		Ida Bagus Gede
		Yudana		Yudana
Board of
Directors
President Director		: I Wayan Pasek		I Wayan Pasek
Director		: I Ketut Siandana		I Ketut Siandana
Director		Rajaraman Shankar		Deepak Madhok

The Company employed a total of 93 and 83 permanent employees as of March 31, 2024 and 2023, respectively (unaudited).

The management of the Company is responsible for the preparation and presentation of the accompanying financial statements that were completed and authorized for issuance by the Board of Directors on May 10, 2024.

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION

1. Basis of Preparation of the Financial Statements
   The financial statements have been prepared and presented in accordance with Indonesia Financial Accounting Standards ("SAK"), "), which comprise the Statements and Interpretations issued by the Financial Accounting Standards Board of the Institute of Indonesia Chartered Accountants (Dewan Standar Akuntansi Keuangan Ikatan Akuntan Indonesia or DSAK IAI).
   Except for the statement of cash flows, the financial statements have been prepared on the accrual concept, using the historical cost concept of accounting, except for certain accounts which are measured on the bases described in the related accounting policies for those accounts.
   The statement of cash flows, which has been prepared using the indirect method, presents cash receipts and disbursements of cash and cash equivalents into operating, investing and financing activities.
   The company's functional currency is the Indonesian rupiah, which is also the currency used in the preparation of the financial statements, with translations into unaudited United States dollar.
   The financial reporting period of the Company is April 1 to March 31.
2. Current and non-current classification
   The Company presents assets and liabilities in the statement of financial position based on current/ non-current classification. An asset is current when it is:
3. 1. expected to be realized or intended to be sold or consumed in the normal operating cycle,
   2. held primarily for the purpose of trading,
   3. expected to be realized within 12 months after the reporting period, or
   4. cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

All other assets are classified as non-current.

A liability is current when it is:

1. expected to be settled in the normal operating cycle,

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