NOTICE TO THE SHAREHOLDERS OF SOALTEE HOTEL LIMITED FOR 50TH ANNUAL GENERAL MEETING

Dear Respected Shareholder,

This is to inform all Shareholders of the Company that, as decided at the 253rd Meeting of the Board of Directors of the Company
held on Tuesday, 29th October 2024 (13th Kartik 2081), the 50th Annual General Meeting of Soaltee Hotel Limited (the Company) is
scheduled to be held on the following date, time and venue to consider, approve and adopt the agenda. All the shareholders of the
Company are hereby notified and requested to present himself/herself or present through a valid representative (proxy) through
Physical and Virtual, video conference mediums.
1 date, time, and venue:

Date : Thursday, 19th December 2024 (4th Poush 2081)

Time : 11.00 am

Venue : Nepal Academy, Pragya Sama Conference Hall, Kamaladi, Kathmandu.

The 50th Annual General Meeting of the Company will be conducted through physical and virtual video conferencing
medium. The respected shareholders of the Company have been requested to attend/participate in the Annual
General Meeting through physical or a virtual video conference online medium and the virtual video conference
arrangements will be made accordingly.
2 agenda:

(A) Ordinary Resolutions

1. To receive, consider and adopt the Directors’ Report for the Fiscal Year 2023/24 (2080/81);
2. To Consider and Approve the Financial Statements for the Fiscal Year 2023/24 (2080/81) comprising of Balance
Sheet (Statement of Financial Position) as on 15th July 2024 (31st Ashadh 2081); Profit and Loss Account (Statement
of Profit or Loss and Other Comprehensive Income) for the year ended on 15th July 2024 (31st Ashadh 2081); Cash
Flow Statement (Statement of Cash Flow) and Statement of Changes in Equity for the year ended on 15th July 2024
(31st Ashadh 2081); and Notes to Financial Statement along with the Auditors’ Report and Consolidated Financial
Statement for the fiscal year 2023/24 (2080/81); comprising the Financial Statement of the Company and its Subsidiary
Companies for the fiscal year 2023/24 (2080/81) of the Company;
3. To consider and adopt the Cash Dividend Proposed by the Board of Directors at the rate of 26.84210526% of the
Subscribed and Paid-up Capital to the shareholders from the Profit of the fiscal year 2023/24 (2080/81);
4. To appoint the Statutory Auditors of the Company and fix their remuneration for the Fiscal Year 2081/82 (2024/2025)
as recommended by the Audit Committee of the Company;
(B) Special resolutions:

5. To consider and approve the Proposed issue of 10% Bonus Shares i.e. 1 (one) Bonus Share for every 10 (ten) equity
shares and an increase in the Subscribed and Paid up Capital to the extent of Bonus Shares issued to the shareholders
of the Company;
6. To consider and approve a Special Resolution to increase the Share Capital of the Company as proposed by the Board
of Directors of the Company: -
(a) To increase the Authorized Capital of the Company from Rs. 1,500,000,000 (Rupees one billion and five hundred
million only) divided into 150,000,000 number of Ordinary Shares of Rs. 10/- each of the Company to Rs.
2,000,000,000 (Rupees two billion only) divided into 200,000,000 number of Ordinary Shares of Rs.10/- each of the
Company.
(b) To increase the Issued Capital of the Company from Rs. 10,00,000,000 (Rupees one billion) divided into 100,000,000
number of Ordinary Shares of Rs. 10/- each of the Company to Rs. 1,500,000,000 (Rupees one billion and five
hundred million only) divided into 150,000,000 number of Ordinary Shares of Rs. 10/- each of the Company;
7. To consider and approve a Special Resolution to amend the Memorandum of Association and the Articles of Association
in accordance with the recommendation of the Board of Directors to increase in the Share Capital of the Company;
Further, to authorize the Board of Directors to make any required necessary changes / amendments or adjustments or
alter in proposed amendment as may be received the direction or advise / suggestion from the Office of the Company
Registrar or any other regulatory authorities;
(C) Others
8. Any other matters with the permission of the Chairman
By Order of the Board of Directors

Lil Bahadur Khatri

Company Secretary
Enclosed documents:-
1. Information relating to the 50th Annual General Meeting, Proxy Application Form.
2. The Directors’ Report to the shareholders of the Company for the Fiscal Year 2023/24 (2080/81)
3. Financial Statements of the Company along with Auditors’ Report, and Consolidated Financial Statement for the fiscal year
2023/24 (2080/81) comprising the Financial Statement of the Company and its Subsidiary Companies for the fiscal year 2023/24
(2080/81).
 GENERAL INFORMATION RELATING TO THE 50TH ANNUAL GENERAL MEETING
1. The 50th Annual General Meeting (AGM) of the Company will be held on Thursday, 4th Poush 2081 corresponding to 19th December
2024 at 11.00 am at Nepal Academy, Pragya Sama Conference Hall, Kamaladi, Kathmandu.
2. The meeting of the 50th Annual General Meeting of the company will be conducted through physical as well as virtual video conferencing
mediums. At the 50th Annual General Meeting of the Company, the facility to participate through virtual video conferencing will be
provided to the shareholders on a first come first serve basis, or who register first will be served first and provided the link to virtual
participation due to limited service of the service provider. Further, the virtual participation/presence through video conferencing of
the shareholders at the meeting of the 50th Annual General Meeting (AGM) will be recognized and recorded as present in the AGM hall
and considered while calculating the quorum as per Section 73 of the Companies Act, 2063.
3. The Shareholders’ Register shall be closed for 22 days from Thursday, 28th November 2024 (13th Mangsir 2081) to Thursday,
19th December 2024 (4th Poush 2081) both days inclusive i.e., till the conclusion of the 50th Annual General Meeting (AGM) of the
Company. Further, shareholders who have been duly shares transacted as per the regulations in Nepal Stock Exchange Limited
(NEPSE) till Wednesday, 27th November 2024 (12th Mangsir 2081) and have been received by the Share Registrar of the Company, NIMB
Ace Capital Limited, Lazimpat, Kathmandu will be valid for the updates in the Share Register of the Company and will be considered
as a shareholder of the Company for purpose of 50th Annual General Meeting.
4. Respected Shareholders participating/attending through virtual video conferencing will be recognized as attending the ensuing 50th
Annual General Meeting. Attendance of shareholders attending/participating through virtual video conferencing will be based on their
virtual login. Arrangements will be made accordingly for the shareholders to send the video conferencing link to the official email ID of
the shareholders from the email [email protected] of the company for the participation of the shareholders.
5. The AGM Notice of the 50th Annual General Meeting and the abstracts (summarized) of the Annual Report comprising the
summarized Financial Statement and Director’s report to the shareholders for the fiscal year 2080/81 (2023/24) under Section
84 of the Companies Act, 2063 will be sent to respected shareholders at their available email address maintained in the Company’s
Shareholder Register. The 50th Annual Report 2080/81 (2023/24) along with the AGM Notice of the 50th Annual General Meeting,
Audited Financial Statements, and related information can be viewed on the website http://www.soalteehotel.com of the Company.
6. Shareholders wishing to discuss any matters under the agenda item of the 50th Annual General Meeting should notify the Executive
Chairman of the Company in writing through the Company Secretary 7 days before the 50th Annual General Meeting, i.e., by Thursday,
12th December 2024 (27th Mangsir 2081). However, it will not be included as an agenda and Resolution of the meeting for consideration.
7. Shareholders who wish to appoint a representative (proxy) to attend the 50th Annual General Meeting, the letter of appointment of the
representative (Proxy) should be registered by the shareholder at the Registered Office of the company, KMC-13, Tahachal, Kathmandu
at least 48 hours before the start of the 50th Annual General Meeting.
8. Shareholders are kindly requested to produce a Share Certificate or Statement of Demat Beneficiary Account Number details
along with proof of their Identity (such as a citizenship certificate or any other certificate issued by the government of Nepal with
a photograph) must be presented compulsorily and shareholders will be allowed to enter the meeting hall only after Signing the
Shareholder Attendance Register available at the AGM meeting hall. All shareholders are requested to attend the meeting room half
an hour before the scheduled meeting time. The Shareholder Attendance Register will be open from 9 am morning until the end of the
Annual General Meeting for the signatures of the shareholders.
9. Shareholders are requested to kindly cooperate with security personnel deployed at the AGM hall venue to comply with the security
procedures arrangements of the Academy Hall. Due to security reasons, Respected Shareholders shall not be allowed to bring in any
kind of bags, bags, packets, etc. inside the Academy meeting hall.
10. For further information relating to the 50th Annual General Meeting of the Company, respected shareholders are kindly requested to
contact the Registered Office of the Company at KMC-13, Soaltee Hotel Premises, Tahachal, Kathmandu between 10:00 am to 4:00 pm
(except 1:00 pm to 2:00 pm) during office hours from Sunday to Friday.
11. Shareholders may contact the Share Registrar of the Company NIMB Ace Capital Ltd., Lazimpat, Kathmandu for more information
regarding shareholding and the 50th Annual General Meeting of the Company.

Information and guidelines to be followed by the respected shareholder to attend the 50th Annual General Meeting of the Company
through the virtual medium using the Video Conferencing (Zoom) Application.

1. The participating shareholders are invited to attend the 50th Annual General Meeting to be held at Nepal Academy, Pragya Sama
Conference Hall, Kamaladi, Kathmandu through video conferencing (virtual) medium using Zoom Applications. All the shareholders
are requested to obtain the confirmation by registering their name in advance through the link provided by the company in the
respective valid official email ID of the Shareholders available in the Shareholders’ register or as may be received from the shareholder.
After registration, the participating shareholders will receive a confirmation email from the company’s system support, which will
include a link to the virtual presence/participation at the meeting along with information and the process of joining the meeting.

2. Respected Shareholder who wishes to present and participate in the discussions at the meeting in a virtual medium and wish to
express their views at the meeting should inform in advance through email at least two days before the meeting by contacting the
Company Secretary or the company’s official email ID [email protected]. The shareholders are requested to provide their name,
shareholder’s Code Number or BOID number for Demat shares, number of Shares owned, email ID of the Shareholder, and mobile
number should be made available to the company while registering as a speaker to the meeting.

3. As virtual participation in the 50th Annual General Meeting will depend on the limitations of technology, punctuality, availability,
continuity, and interruption of the Internet, the shareholders are requested to make comments within the stipulated time. The link
will be automatically disconnected if there is any technical glitch unnecessary background sound or unusual activities on the part of
the participating shareholders through the virtual medium.

4. We encourage shareholders to participate in the meeting through a laptop for a technically good experience at the virtual participation
in the 50th Annual General Meeting of the Company.

5. Respected Shareholders participating in the meeting through mobile devices or tablets or through Laptops connecting via mobile
hotspots may experience Audio/Video loss due to fluctuation/deterioration in their respective networks. It is therefore recommended
to use stable Wi-Fi and LAN connection to mitigate any kind of aforesaid glitches.
 Application to appoint proxy

Date:

the board of directors

Soaltee hotel limited

Tahachal, Kathmandu.

Appointment of Proxy
Sub: Representation at 50th Annual General Meeting

Dear Sirs

In the capacity of a shareholder of your Company, I/We .................................... resident(s) of ........................

District, ................... Metropolitan City/ Sub Metropolitan City / Municipality/Rural Municipality, Ward
No. ........., being unable to be personally present and take part in the discussion and decision at the 50th
Annual General Meeting scheduled to be held on Thursday, 19th December 2024 (4th Poush 2081),
hereby appoint Mr./Ms................................................, a shareholder of the Company having Shareholder
code No. or BO Account No. ……………………………….and a resident of ...................... District ...................
Metropolitan City / Municipality/Rural Municipality, Ward No. ......... as my/our representative to
participate and vote on my/our behalf in the said General Meeting.

Applicant,

Signature of the Shareholder ………………………..

Name of Shareholder: …………………………………..

Address: ……………… ……………. ………………. ………………….

Demat share - BO Account No.: …… …………… ……………..

Shareholder Code No. (If holding Physical Share certificate) ………….

Total No. of Shares Owned …………………

Date: ………………..

_______________________________________________________________________________________________________

Note: This Proxy application should be submitted to the Registered Office of the Company at Tahachal, Kathmandu before
48 hours of the Annual General Meeting.
 General Rules relating to appointment of Proxy

1. Shareholders desirous to send a proxy to the meeting may appoint another shareholder to attend the Annual
General Meeting as a representative should register the completed proxy form within office hours in the
Company’s Registered Office at Tahachal, Kathmandu, at least 48 hours before the commencement of the
Annual General Meeting. In such event, the representation through the proxy shall be allowed to participate
and vote at the Annual general Meeting.

2. The proxy appointment by a private firm to represent them in the Annual General Meeting shall only be valid
if such proxy is appointed by the owner of a private firm. Such proxy appointment application should also be
accompanied by a copy of the private firm registration certificate of the shareholder. The proxy appointment
by a partnership firm to represent them in the Annual General Meeting shall only be considered valid if
such proxy is unanimously appointed and the application is duly signed by all the partners of the firm for
proxy appointment. Such appointment of the proxy application should also be accompanied by a copy of the
partnership firm registration.

3. Amongst the registered joint owners, the proxy appointed by such shareholders shall only be considered valid
if all shareholders jointly sign in the proxy appointment application form. In case of the shareholders not being
able to appoint unanimous proxy amongst them, the person whose name is on the top of list among them
in the Register Book of the shareholder of the company will be considered to legitimate to submit the proxy
application to appoint the proxy.

4. The shares owned by the minor shareholder, the guardian of such minor shareholder is authorized to appoint
the proxy if such guardian is mentioned as the authorized person of the minor shareholder in the Shareholder
Registration Book maintained by the Company, such guardian should have the right to sign the Proxy Form
which will be considered valid.

5. In case, the Company receives more than one Proxy Form appointing a person as a proxy, the Company will
treat the first application of proxy registered at its registered office, as valid and such appointed proxy shall
have the right to attend the Annual General Meeting and exercise the voting right.

6. The appointment of the proxy by the shareholder shall only be acceptable and considered to be valid only if the
signature in Proxy application Form is verified with the signature maintained in the company’s shareholders
Register Book.

7. If any shareholder desires to cancel the proxy appointed to attend the Annual General Meeting such shareholder
shall have to inform in writing the cancellation of proxy 48 hours before the commencement of Annual General
Meeting to the registered office of the Company such cancellation letter should be registered within the office
hour. A shareholder who had already appointed a proxy and is present in the Annual General Meeting can only
attend and participate in the meeting once such shareholder duly cancels earlier Proxy appointment
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Corporate Information
MANAGEMENT TEAM
CA Mr. Dinesh Bahadur Bista Executive Chairman
CA Mr. Sudarshan Chapagain Vice President
Mr. Lil Bahadur Khatri Chief of Corporate Affairs and Company Secretary
Mr. Mukti Nath Shrestha Director of Finance
Mr. Chudamani Parajuli Senior Manager Administration and Public Relations
Mr. Suman Gwachha Manager Projects
HOTEL OPERATION DIVISION | THE SOALTEE KATHMANDU
Mr. Avinash Deshmukh General Manager
Mr. Rajiv Kumar Thakur EAM - Rooms Division
Mr. Harish Kumar Bhatt Director of Sales and Marketing
Mr. Khem Bahadur Poudel Director of Human Resource
Ms. Sumati Shakya Sr. Director of Meetings & Events
Mr. Narendra Neupane Financial Controller
Mr. Rupesh Shrestha Director of Learning & Development
Mr. Niranjan Ratna Shakya Cluster IT Manager
Mr. Naveen Dhakal Cluster Revenue Manager
Mr. Jeeban Kumar Rai Executive Housekeeper
Mr. Sanil Mule Front Office Manager
Mr. Nanda Kumar Bhandari Chief Engineer
Mr. Avanish K. Jain Executive Chef
Mr. Harish Thakur Food & Beverage-Manager
Mr. Sher Bahadur Chand Security Manager

FLIGHT SERVICES DIVISION

Mr. Vivek T Nambiar, General Manager- Flight Services
Mr. Yubraj Pokharel Cluster Executive Chef – Flight Services
Ms. Binita Shrestha Director Quality Assurance
Mr. Rajiv Baniya Operation Manager – Flight Services

INTERNAL AUDITORS
JOSHI & BHANDARY
Chartered Accountants
Kathmandu.
LEGAL ADVISORS
Mr. Komal Prakash Ghimire
Senior Advocate,
Ghimire & Company
Kathmandu.
Mr. Samir Sharma
Advocate,
S S LEGAL PVT. LTD.
Kathmandu
Mr. Mahesh K Thapa
Senior Advocate,
SINHA VERMA LAW CONCERN
Kathmandu
Mr. Shail Nath Gautam
Senior Advocate,
Mercantile Law Firm
Kathmandu
AUDITORS
J. B. RAJBHANDARY & DIBINS
Chartered Accountants
Kathmandu
SHARE REGISTRAR
NIMB Ace Capital Limited
Lazimpat, Kathmandu
BANKERS
Nabil Bank Limited
Nepal Investment Mega Bank Limited
Nepal SBI Bank Limited
Everest Bank Limited
Himalayan Bank Limited
Kathmandu
REGISTERED OFFICE
Tahachal, Kathmandu
50th ANNUAL REPORT 2023/2024 (2080/2081)

Contents Page No

• Simplified Statement of Financial Position and Income Statement 1

• Directors’ Report 2

• Major Financial Highlights 22

• Auditors’ Report 32

• Statement of Financial Position 36

• Statement of Profit or Loss and Other Comprehensive Income 37

• Statement of Cash Flow 38

• Statement of Changes in Equity 39

• Notes to the Financial Statements 40

• Consolidated Financial Statements 66

• Special Resolution 100

 50th ANNUAL REPORT 2023/2024 (2080/2081)

Soaltee Hotel Limited

Simplified Statement of Financial Position as at 15 July 2024 (31 Ashadh 2081)

Rupees
Particulars Current Year Previous Year
WHAT THE COMPANY OWNED
Non-Current Assets
Property, Plant and Equipment 2,193,754,170 1,902,297,989
Intangible Assets 49,612 426,854
Investment Property 89,383,825 87,197,495
Investments 281,276,188 275,487,563
Trade and Other Receivables 22,899,490 23,389,414
2,587,363,285 2,288,799,315
Current Assets
Inventories, Investments, Receivables, Prepayments,
Cash and Cash Equivalents 564,021,912 538,970,418
Less: Current Liabilities 525,673,188 485,776,736
Working Capital 38,348,724 53,193,682
Total Assets 2,625,712,009 2,341,992,997
WHAT THE COMPANY OWED
Non-Current Liabilities 258,896,045 235,580,260
Shareholders Fund 2,366,815,964 2,106,412,737
Represented by
Share Capital 928,953,700 884,715,060
Retained Earnings and Reserves 1,437,862,264 1,221,697,677
2,366,815,964 2,106,412,737
DEBT/EQUITY RATIO 0.01 0.01

Simplified Income Statement for the period Ended on 15 July 2024 (31 Ashadh 2081)
Rupees
Particulars Current Year Previous Year Increase/
(Decrease) %
Income
Rooms, Restaurants, Banquets & Other Services &
Other Income 2,498,418,467 2,254,626,261 10.81%
Expenditure
Employee Benefit Expenses 563,383,728 502,368,131 12.15%
Consumption of Food and Beverages 405,153,476 380,083,406 6.60%
Operating Expenses 303,460,367 285,399,823 6.33%
Depreciation and Amortization Expense 137,503,255 113,641,170 21.00%
Other Expenses 337,967,880 277,343,565 21.86%
Finance Cost 3,602,880 8,660,738 (58.40%)
Total Expenditure 1,751,071,586 1,567,496,833 11.71%
Profit/(Loss) for the year (before Taxes) 747,346,881 687,129,428 8.76%
Current Tax (137,462,999) (124,608,113) 10.32%
Deferred Tax Income/(Expense) (9,841,419) (7,541,720) 30.49%
Net Profit/(Loss) for the year 600,042,463 554,979,595 8.12%
Balance of Profit Brought Forward 1,160,362,926 827,114,838
Tax Payment of Prior Years (110,282,798) -
Issue of Bonus Share (44,238,640) (42,135,330)
Fraction of Bonus Share Recovered/(Paid) in Cash 2,887 6,344
Payment of Dividend (235,147,950) (179,602,521)
Transferred to General Reserve 1,370,738,888 1,160,362,926

1
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

________________________________
DIRECTORS' REPORT

Dear Respected Shareholders,

The Board of Directors takes immense pleasure in welcoming you all, respected shareholders at the 50th Annual
General Meeting of the Company. We have the privilege of presenting before you the 50th Annual Report and
Audited Financial Statements for the fiscal year ended 15th July 2024 (31st Ashadh 2081). In compliance with
statutory requirements, your Company has prepared and presented its Financial Statements in accordance with
the Nepal Financial Reporting Standard (NFRS).

Review of the Operating Activities

During the fiscal year 2080/81 (2023/24), Total Revenue increased by 10.81% (previous fiscal year an increase
of 64.68%) as compared to the previous fiscal year. Total Revenue for the fiscal year was Rs. 2,498.42 million
(previous year Rs. 2,254.63 million) which is an increase of Rs. 243.79 million (previous fiscal year Rs. 885.50
million) compared to the previous fiscal year. During the year under review, your Company registered a Cash
Profit of Rs 884.85 million as compared to the previous fiscal year’s Cash Profit of Rs. 800.77 million with Net
Profit after Tax being Rs. 600.04 million as compared to the previous fiscal year’s Net Profit of Rs. 554.98 million.

Performance Highlights
Financial Results
The major performance indicators of the Company for the fiscal year 2080/81 (2023/24) and comparative
figures are summarised as under:

Rupees in Million
Fiscal Year Increase /
Particulars Variance
2023/24 2022/23 (Decrease) %
Total Revenue 2,498.42 2,254.63 243.79 10.81%
Total Expenditure 1,747.47 1,558.84 188.63 12.10%
Profit from Operations 750.95 695.79 55.16 7.93%
Less: Finance Cost 3.60 8.66 (5.06) (58.43%)
Profit before Taxes 747.35 687.13 60.22 8.76%
Less: Provision for Income Tax 137.46 124.61 12.85 10.31%
Less: Deferred Tax Expenses/(Income) 9.84 7.54 2.30 30.50%
Net Profit after Taxation
600.04 554.98 45.06 8.12%
(before appropriation)
Net Profit Transfer to Reserves
600.04 554.98 45.06 8.12%
(before appropriation)
Awards and Recognition
We are delighted and honored to inform you that your hotel The Soaltee Kathmandu has been awarded with
the following Awards: -

Leading Meeting and Conference Hotel/Resort in Nepal

Your hotel, The Soaltee Kathmandu was awarded with South Asia’s on of the Most Prestigious Travel Industry
Gold Awards ‘Leading Meeting and Conference Hotel/Resort’ during the 8th South Asian Travel Awards
(SATA) 2024, organized by the South Asian Travel Awards (SATA). SATA has been recognizing the best of South
Asia’s hospitality and travel industry since 2016. The 8th edition of the South Asian Travel Awards (SATA) 2024
was held at Aloft Kathmandu on 20th September 2024.

2
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Haute grandeur global hotel awards

Your hotel, The Soaltee Kathmandu was awarded with the ‘Best Luxury Hotel in Asia’,

‘Best City Hotel in Nepal’, ‘Best Conference Venue Hotel in Nepal’, ‘Best Family Hotel in Nepal’, ‘Best
Destination Wedding Hotel in Asia’ by Haute Grandeur Global Hotel Awards in August 2024. The Haute
Grandeur Global Hotel Awards was established as an independent and unbiased initiative to honour the very
highest achievements from across the global hotel industry in 2014, recognising exceptional contributions by
outstanding hotels.

Business, leisure, travel & mice (bltm) excellence award

Your hotel, The Soaltee Kathmandu was awarded with the ‘Most Exclusive Leisure Product for MICE’ by
Business Leisure Travel MICE (BLTM) Excellence Award, held at Yashobhoomi (IIC) Dwarka, New Delhi on 31st
August 2024.

International, regional and national scenarios and their Impacts on the business

The hotel industry in Nepal faces a dynamic landscape in 2024, shaped by various international, regional, and
national factors. This section outlines specific developments and events that, while unique to the current period,
have a significant impact on the business environment of Nepal’s hospitality sector.

International Scenario
In 2024, the global hotel industry is influenced by several critical international factors. These include geopolitical
shifts, economic fluctuations, and a growing focus on sustainability, all of which play a role in shaping the travel
and tourism market worldwide.

1. Geopolitical Uncertainty:
Ongoing geopolitical tensions, particularly in Eastern Europe and the Middle East, have resulted in fluctuating
tourist flows and flight patterns. While some regions are experiencing a tourism boom, others face disruptions.
Changes in visa policies, air connectivity, and economic sanctions in certain markets can indirectly affect
tourist numbers in Nepal, particularly from Europe and North America.
2. Inflation and Global Economic Trends:
In 2024, global inflationary pressures have impacted disposable income levels, leading to changes in travel
behaviors. Many international travellers are opting for shorter trips or budget-friendly options, while luxury
travel markets remain resilient. This duality in tourist preferences necessitates adaptability within Nepal’s
hotel industry, focusing on offering both affordable and premium experiences to capture diverse segments.
3. Sustainability-Driven Travel:
The heightened global awareness around sustainability has reshaped international travel preferences.
Travelers are increasingly seeking eco-friendly destinations and accommodations that prioritize environmental
responsibility. Hotels in Nepal are expected to enhance their sustainability efforts to meet these expectations,
such as reducing carbon footprints, adopting renewable energy, and offering eco-conscious guest experiences.
4. Shifts in Major Tourism Markets:
A diversification of source markets is evident in 2024, with an increased influx of tourists from emerging
markets such as Southeast Asia and Africa. Traditional markets, like Europe and the United States, remain
significant but are increasingly complemented by newer, high-growth regions. This shift calls for hotels in
Nepal to tailor their services and marketing to cater to a more geographically diverse clientele.

Regional Scenario
The South Asian hotel industry continues to recover in 2024, driven by increasing regional cooperation,
infrastructure development, and evolving traveller preferences. These regional dynamics are reshaping the
tourism landscape and impacting hotels across Nepal.

1. Strengthening Regional Connectivity:

Enhanced transport and infrastructure links, such as direct flights between Nepal and cities in India,
Bangladesh, and Thailand, are boosting intra-regional travel. The improved air and road networks facilitate

3
 50th ANNUAL REPORT 2023/2024 (2080/2081)

easier movement for business travellers and tourists alike, resulting in increased hotel bookings. This growing
connectivity positions Nepal as a regional hub for cultural tourism and adventure tourism within South Asia.
2. Growing Popularity of Regional Tourism Circuits:
Initiatives such as the South Asian Association for Regional Cooperation (SAARC) and the BIMSTEC tourism
cooperation programs have fueled interest in developing regional tourism circuits. These circuits encourage
cross-border travel between neighbouring countries. Nepal’s rich cultural heritage, trekking routes, and
religious sites are becoming integrated into broader South Asian tourism packages, contributing to higher
occupancy rates in hotels across the country.
3. Rise of Wellness and Adventure Tourism:
Adventure tourism and wellness retreats are gaining momentum in the region, driven by demand from tourists
seeking unique and rejuvenating experiences. With Nepal’s diverse landscapes and cultural offerings, hotels
are increasingly collaborating with local operators to offer curated packages that cater to wellness travellers,
trekkers, and spiritual seekers, tapping into this growing trend.

National Scenario
Within Nepal, the hotel industry in 2024 is shaped by domestic policies, infrastructure development, and evolving
tourism trends. These national factors significantly influence business operations and growth prospects.

1. Government Investment in Tourism:

The Nepalese government continues to focus on tourism as a key driver of economic growth, with investments
in infrastructure development, tourism marketing campaigns, and support for cultural heritage sites. A
major focus has been on enhancing the country’s aviation infrastructure, which is vital for accommodating
the growing number of international and domestic visitors. This includes the renovation of Tribhuvan
International Airport in Kathmandu, aimed at modernizing the facilities, improving operational efficiency,
and providing a better experience for travelers. In addition to Tribhuvan International Airport, two new
regional international airports Pokhara International Airport and Gautam Buddha International Airport in
Bhairahawa have been completed. These new airports are pivotal in expanding Nepal’s connectivity to global
destinations, reducing reliance on Kathmandu as the sole entry point for international flights, and opening
new gateways to key tourism regions.
2. Cultural Tourism and Festivals:
Nepal’s rich cultural heritage and vibrant festivals are key drivers of domestic and international tourism.
Government-supported initiatives to promote cultural tourism, such as restoring ancient temples and hosting
international festivals, have increased tourist arrivals during key events. Hotels located near heritage sites or
festival locations are benefiting from increased occupancy during these peak periods.
3. Focus on Sustainable Tourism:
The push for sustainable tourism practices has gained momentum in Nepal, with government policies
encouraging eco-friendly operations across the hospitality industry. Hotels are adopting energy-efficient
technologies, reducing plastic use, and offering sustainable food sourcing to align with the growing demand
for responsible travel. These efforts are critical in attracting environmentally conscious travellers and
ensuring long-term operational sustainability.
4. Rural Tourism and Community-Based Initiatives:
The development of rural tourism is gaining prominence in Nepal, with initiatives aimed at promoting off-the-
beaten-path destinations. These initiatives, often supported by the government, encourage community-based
tourism where visitors can experience local culture, agriculture, and lifestyles. Hotels in urban centers are
leveraging this trend by offering packages that combine city stays with excursions to rural areas, providing
tourists with a well-rounded Nepalese experience.
5. Digital Transformation in Hospitality:
With digital tools becoming increasingly important in tourism, the hotel industry in Nepal is rapidly adopting
technologies that enhance guest experiences. This includes online booking platforms, contactless payments,
and digital concierge services. Hotels are also investing in data-driven marketing to better target potential
customers and personalize their services, which is critical for staying competitive in a digitally evolving
marketplace.

4
 50th ANNUAL REPORT 2023/2024 (2080/2081)

The hotel industry in Nepal in 2024 is subject to a range of specific and non-generic factors that have the potential
to significantly impact its performance. These events and developments underscore the need for adaptability
and strategic planning in the industry, as Nepal navigates a rapidly changing tourism landscape influenced by
international, regional, and national dynamics.

Current year performance as of the date of Report and future outlook

During the current fiscal year 2024/25, the hotel has posted a total revenue of Rs. 517.99 million till 30th
September 2024 (14 Ashwin 2081) against Rs. 376.08 million compared to the same period last year. The room
occupancy is 64% as compared to 50% same period last year. The Average Room Rate (ARR) and Revenue Per
Available Room (RevPAR) are Rs. 9,496 and Rs. 6,032 against Rs. 8,383 and Rs. 4,186 respectively compared to
the same period last year.
Product and Service Up-Gradation
In our continued effort to enhance guest experiences, a series of key renovation and upgrade projects have
been undertaken to ensure the property remains at the forefront of luxury hospitality. These improvements
demonstrate our commitment to maintaining the highest standards of comfort and elegance. Below are the
highlights of these initiatives:

1. New Suites - Everest, Lhotse, and Pumori:

The addition of the Everest, Lhotse, and Pumori suites represents a significant upgrade to our accommodation
offerings. These newly introduced suites are meticulously designed to exude opulence and comfort, providing
an elevated experience for guests seeking the highest standards in luxury. This expansion positions the
hotel as an ideal destination for both leisure and business guests who prioritize exclusivity and personalized
service.
2. New Patio Bar Renovation:
The recently completed renovation of the Patio Bar has transformed it into a modern and vibrant space for
guests to unwind. Designed with a contemporary aesthetic, the bar now offers an enhanced ambiance, perfect
for social gatherings or a relaxed evening under the stars. This renovation has positioned the Patio Bar as a
central hub for both in-house guests and local visitors, providing a perfect setting for an unforgettable dining
and bar experience.
3. Himalayan Wing - 4th and 5th Floor Upgrades:
The renovation of the 4th and 5th floors of the Himalayan Wing marks a complete transformation of these
rooms. With updated décor, refreshed interiors, and state-of-the-art furnishings, these rooms now offer a
sophisticated blend of comfort and style. Each room has been meticulously upgraded to reflect the hotel’s
commitment to providing a rejuvenating and luxurious experience, ensuring guests enjoy both relaxation
and modern amenities during their stay.
4. Regal Suite Renovation:
The ongoing renovation of the Regal Suite is set to elevate it into a premier luxury suite with cutting-edge
design and finishes. Upon completion, the Regal Suite will offer unparalleled elegance, featuring exclusive
amenities such as a private lounge area coupled with a private elevator, personalized services, and premium
in-room experiences. This upgrade reinforces our dedication to maintaining a high standard of luxury
accommodation for VIP and high-profile guests.
5. Landscape and Main Entrance Upgrade:
The complete redesign and beautification of the hotel’s landscape including the main entrance are underway
to create a grand and welcoming first impression. This project includes a revitalized landscape, modernized
gate design, redesign of the fountains and enhanced lighting to make the entrance visually striking. This
significant upgrade is aimed at setting the tone for the luxurious and serene atmosphere that awaits within
the hotel, ensuring guests feel welcomed from the moment they arrive.
6. Completion of New Corporate Office Building:
A new state-of-the-art corporate office building has been constructed to accommodate our growing
administrative needs. This modern facility is designed to streamline operations and support the hotel’s long-
term growth objectives. The office building features an open-concept design with cutting-edge technology,
fostering a collaborative and efficient work environment.

5
 50th ANNUAL REPORT 2023/2024 (2080/2081)

7. Additional Parking Space:

In response to the increasing demand for parking, we are implementing a new puzzle-type car lift system
with a capacity of 112 vehicles. A façade will be constructed to house this lift parking system in the existing
parking area adjacent to the ATM lounge on the hotel premises. Additionally, the old corporate office building
is being dismantled, and the resulting space will be repurposed to further expand our parking facilities.
These improvements will significantly increase parking availability for guests and event attendees, alleviating
congestion and ensuring smoother arrivals and departures. This initiative is part of our ongoing efforts
to optimize the functionality of the hotel’s infrastructure and better accommodate the growing number of
visitors.
8. Construction of Project Store:
A dedicated project store is being constructed within the expanded car parking area. This new facility will
serve as a centralized storage space for project materials and equipment, eliminating the need for the existing
picket stores at different locations within the hotel premises. By moving storage to a purpose-built structure,
we not only streamline operational efficiency but also free up more parking space for guests.
9. Megha Malhar Hall Extension Plan:
Starting in early 2025, the Megha Malhar Hall will undergo an extension, adding an additional 4,000 sq. ft. of
space. This expansion will extend from the Malhar section towards Marva Hall, covering the existing Manjari
area. The goal is to increase capacity and enhance the overall functionality of the space for large events and
gatherings.
10. Princep Wing Renovation:
Renovation work will commence in early 2025 on the 3rd and 4th floors of the Princep Wing. Two rooms on
each floor will be merged to create premium accommodations, designed to offer the highest level of luxury
with state-of-the-art, modern technology. These rooms will reflect a contemporary Soaltee touch, blending
elegance with comfort. Additionally, the interiors of the 2nd and 1st floors will be revamped, introducing
a fresh and sophisticated look, much like the renovations recently completed on the 4th and 5th floors of
the Himalayan Wing. This effort will further enhance the aesthetic appeal and guest experience across the
Princep Wing.
These renovation and upgrade initiatives reflect our unwavering commitment to continuous improvement
and the enhancement of guest experiences. By investing in both infrastructure and guest services, the hotel
ensures that it remains a top destination for travellers seeking a blend of luxury, comfort, and memorable
experiences. As these projects are completed, they will further strengthen the hotel’s position as a premier
destination in the hospitality industry. We are excited to continue offering world-class amenities and a
superior stay to all our guests.
Investment diversification
Soaltee Hospitality Limited
The Company has invested Rs. 250,000,000/- (Rupees Two Hundred Fifty million) in the equity of its wholly
owned subsidiary Company Soaltee Hospitality Limited, incorporated under the Companies Act, 2006 (2063) as
a strategic decision taken by the Company for investment in hotels outside the Kathmandu valley to be operated
under the Company’s trademark and brand. Further, the Company has paid aggregating Rs. 12,640,000/-
against further equity in its subsidiary Company Soaltee Hospitality Limited as an advance against share
Investment.

Himal International Power Corp (P) Ltd

The Company has an investment in Bhote Koshi Power Company (P) Ltd (BKPC) through Himal International
Power Corp (P) Ltd (HIPC).
The Company has an equity stake of 5.97% in the Share Capital of the Himal International Power Corp (P) Ltd
(HIPC), the HIPC has an investment in Bhote Koshi Power Company (P) Ltd (BKPC) which owns and operates the
Upper Bhote Koshi Hydroelectric Project (UBKHEP). As reported by the HIPC, the UBKHEP has been commercially
operating and supplying electricity to the national grid. HIPC had distributed a dividend of Rs. 27 per ordinary
share for the year ended 16th July 2023 (32nd Ashadh 2080) and accordingly your company received a cash
dividend of Rs. 27,00,000/- during the year under review.

6
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Stream Peak International Pvt. ltd.

(previously known as Soaltee Sibkrim Hotels and Resorts Pvt. Ltd)
Stream Peak International Pvt. Ltd. has merged with Soaltee Sibkrim Hotels & Resorts Pvt. Ltd., and following
this merger, the company will continue to operate under the name Stream Peak International Pvt. Ltd. This
strategic merger was undertaken to facilitate the growth and expansion of the company, it reflects the company’s
vision to broaden its portfolio and position itself for future growth in the hospitality sector.
This merger does not affect any prior investments, and it was executed with the goal of enhancing the company’s
long-term potential. By integrating these two entities, the company aims to strengthen its market presence, drive
innovation, and explore new opportunities for expansion.
Additionally, Soaltee Westend Premier Nepalgunj, which was previously operating under the registered brand
Soaltee Sibkrim Hotels & Resorts, will now operate under Stream Peak International Pvt. Ltd. Soaltee Westend
Premier Nepalgunj, located in Lumbini state, is notable for being Nepal’s first LEED-certified Green Hotel, setting
a benchmark for sustainability in the hospitality industry.
Expansion of the “Soaltee” brand

Your Company’s “Soaltee” brand has been under the expansion of new five-star standard hotels have been in
operation under the Brand and Tradename “Soaltee Westend Resort Chitwan” in Chitwan Bharatpur, “Soaltee
Westend Itahari” in Itahari, Sunsari, “Soaltee Westend Resort Manakamana”, in Manakamana, Gorkha,
Gandaki Province and “Soaltee Westend Resort Nagarkot”, in Nagarkot, Bhaktapur, Bagmati Province, Nepal.
Furthermore, two more Hotels and Resorts are under the pipeline and will be operated and managed with
Soaltee Brand.
Soaltee Westend Premier, Nepalgunj
Soaltee Westend Premier, located in Nepalgunj, Lumbini Province of Nepal, is a premier luxury hotel offering a
serene and modern stay experience. The hotel features 80 well-appointed rooms, including 8 suites designed
for ultimate comfort. Guests can enjoy dining at exquisite restaurant, offering a range of local and international
cuisines. With versatile meeting rooms, the hotel is ideal for corporate events and social gatherings. Additional
amenities include an outdoor swimming pool, a fitness center, and a full-service spa, providing guests with a
perfect blend of relaxation and luxury. The hotel is managed and operated by Soaltee Hospitality Limited under
a Trademark License Agreement, ensuring world-class standards and service.

Soaltee Westend Resort, Chitwan

Soaltee Westend Resort is located at Patihani Chitwan, Bagmati Province of Nepal. It is a luxury resort hotel
with a lush green garden. The resort features a total of 52 rooms including 10 Deluxe Villas and 2 Presidential
Villas. With 2 restaurants for dining options and, 4 meeting rooms, the resort caters to all kinds of bookings
including leisure, family & corporate. Outdoor swimming pool and full-service Spa add to the charm of the resort
for a comfortable and luxurious stay. The resort is being managed and operated under registered brands, trade
names, and trademarks of Soaltee Hospitality Limited, a wholly owned subsidiary of the Company under the
arrangement of Trademarks License Agreement between the Companies.

Soaltee Westend, Itahari

Soaltee Westend located in Itahari, Koshi Province of Nepal is the first 5-star standard hotel in the Eastern Region
of the Country, comfortable and inviting the hotel exudes modernity with stylish design and a contemporary look.
The hotel features 85 rooms, an all-day dining restaurant, one specialty restaurant, a business centre, a travel
desk, and a banquet hall of approx. 5000 Sq. feet, a swimming pool, and a spa. The hotel will be managed and
operated under registered brands, trade names, and trademarks of Soaltee Hospitality Limited, a wholly owned
subsidiary of the Company under the arrangement of Trademarks License Agreement between the Companies.

Soaltee Westend Resort, Nagarkot

Soaltee Westend Resort (trademark branded as Tayo Eco Resort) is located at Nagarkot, Bagmati Province of
Nepal. It is. The resort features a total of 42 rooms including 10 Villas and 2 Suite Villas offering luxury and
comfort. Delightful dining experience at the restaurant and bar, with both indoor and outdoor seating. The

7
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Resort features an outdoor pool, a full-service spa, and meetings and events venue with a view of the mesmerizing
mountain range. But the real highlight is the perfect sunset views, painting the sky and mountains in golden
hues. The resort is being managed and operated under registered brands, trade names, and trademarks of
Soaltee Hospitality Limited, a wholly owned subsidiary of the Company under the arrangement of Trademarks
License Agreement between the Companies.

Soaltee Westend Resort, Manakamana

Soaltee Westend Resort Manakamana, opening soon in the sacred region of Manakamana, Gandaki Province will
feature 51 luxurious rooms, including 47 Deluxe Rooms, 2 Junior Suites, 1 Executive Suite, and 1 ADA Room.
Guests can enjoy a multi-cuisine restaurant with indoor and outdoor seating, an outdoor pool, gym, and spa.
The resort will also offer modern meetings and events spaces, making it perfect for both leisure and business
stays. The resort will be managed and operated under registered brands, trade names, and trademarks of Soaltee
Hospitality Limited, a wholly owned subsidiary of the Company under the arrangement of Trademarks License
Agreement between the Companies. The resort combines luxury with proximity to the revered Manakamana
Temple for a unique and serene getaway experience.

Mithila Yatri Niwas, Janakpur

Mithila Yatri Niwas, located in the heart of Janakpur, Madhesh Province of Nepal, offers a welcoming and
comfortable stay for both pilgrims and travellers. The hotel features 30 well-appointed rooms, including deluxe
and family suites, designed to provide a restful environment. Guests can enjoy a delightful dining experience
at the in-house restaurant, which serves a variety of local and traditional Mithila cuisines. The hotel also offers
facilities for gatherings and meetings, making it suitable for both leisure and business stays.

Major Factors Affecting the Business of the Company

In 2024, several key factors are shaping the business landscape of our company within Nepal’s tourism and
hotel industry. The global recovery of tourism is evident, with a significant increase in international arrivals from
markets like India, China, and Europe. This growth enhances the outlook for the hotel sector but also intensifies
competition with the rise of boutique hotels and eco-resorts. To maintain our competitive edge, we must focus
on diversifying offerings and enhancing unique guest experiences, such as cultural immersions and wellness
tourism.
Political stability in Nepal continues to foster a conducive environment for business operations, while global
economic conditions, including inflation and fluctuating exchange rates, affect tourists’ travel decisions.
Infrastructure improvements—such as expanded airports and upgraded road networks have significantly
enhanced accessibility to key tourist destinations, further driving visitor numbers.
Environmental concerns, particularly regarding climate change, remain critical, necessitating a commitment
to sustainable practices within the hotel industry. Establishing eco-friendly initiatives and energy-efficient
technologies will be vital for attracting environmentally conscious travellers. Additionally, safety and security
measures are essential for maintaining Nepal’s reputation as a secure destination for tourists.
Technological advancements are transforming guest experiences in 2024, with increased reliance on digital
solutions for bookings and personalized services. Hotels must adopt data-driven strategies and AI tools to
enhance customer engagement. Furthermore, government initiatives to promote Nepal as a vibrant, safe, and
culturally rich destination are boosting the industry through strategic marketing campaigns and relaxed visa
policies.
In this rapidly evolving landscape, adaptability and innovation are crucial for ensuring our continued growth
and success in Nepal’s hotel sector.
Corporate Social Responsibility (CSR) Activities
Soaltee Hotel Limited (“SHL”) has been at the forefront of Corporate Social Responsibility (CSR) activities. The
objective of the Company’s CSR activities is to attain sustainable development of the society around the area of
operations of the Company and to support the society. The Company’s social responsibility activities focus on
using the capabilities of business to improve lives and contribute to sustainable living, through contributions to
local communities and society at large.
8
 50th ANNUAL REPORT 2023/2024 (2080/2081)

1. CSR Contributions to Kathmandu Institute of Child Health (KIOCH):

Soaltee Hotel Limited has made significant CSR contributions, donating a total of 75 lakh rupees to the
Kathmandu Institute of Child Health (KIOCH). This generous support is divided into two parts: for the
construction and equipping of the KIOCH Damak Satellite Children’s Hospital in the Jhapa district of Koshi
province and for the establishment of a children’s hospital in Hepali Height, Budhanilkanth Municipality,
Kathmandu. The KIOCH Damak Satellite Children’s Hospital in Jhapa is envisioned to serve as a crucial
healthcare center for children in the eastern region of Nepal, providing specialized pediatric services.
Meanwhile, the children’s hospital in Kathmandu is being established with state-of-the-art facilities to
address the growing need for comprehensive child healthcare services in the capital. The collaboration
between Soaltee Hotel Limited and Kathmandu Institute of Child Health exemplifies the power of partnership
in addressing critical healthcare challenges and fostering positive change in communities. Through such
initiatives, both organizations aim to create a healthier and more prosperous future for the children of Nepal.

2. Contribution to Katha Nepal for Maatri Nepal Project:

Soaltee Hotel Limited has made a CSR contribution, donating a total of 15 lakh rupees to Katha Nepal
Private Limited for the production and distribution of audio-visual teaching materials based on the national
curriculum of the Nepali subject for Grades 8 and 9. This initiative enables students from less privileged
backgrounds to receive the same quality education as their counterparts in more affluent schools. The
educational audio-visual content will be circulated to 86 public schools in and around Nepalgunj, Janakpur,
and Chitwan, including 43 schools in Nepalgunj, 23 schools in Janakpur, and 20 schools in Chitwan.

3. Short Documentary on Social Awareness:

Soaltee Hotel Limited’s CSR efforts include supporting the creation of a short documentary film aimed at
promoting social awareness. This initiative was carried out based on a recommendation from the Kalimati
Police Station. The documentary addresses important social issues, educates the public, and raises
awareness on matters that require attention and action.

4. Installation of Street Lights, Fiber Splicing, and CCTV:

Soaltee Hotel Limited has taken steps to enhance safety and security in the vicinity of The Soaltee Kathmandu
compound, particularly around the Tahachal and Bafal areas. This project has installed and tested street
lights, conducted fiber splicing for improved communication infrastructure, and installed CCTV cameras.
This collaborative effort with the Kalimati Police Station aims to create a safer environment for the local
community and hotel guests.

5. Roadside Plantation in Coordination with KMC and Rotary Club:

Soaltee Hotel Limited has joined hands with the Kathmandu Metropolitan City (KMC - 13) and the Rotary
Club of Kathmandu to carry out a roadside plantation project. This initiative involves planting trees and
greenery along the stretch from Soaltee Mode to Kalimati Bridge. It contributes to beautifying the area,
improving air quality, and promoting environmental conservation.

6. Support for Vulnerable Women at Maternity Hospital:

The company has provided support for vulnerable women at Maternity Hospital Prashuti Griha, following a
request from the Rotary Club of Kupandole. This assistance includes financial aid, medical equipment, or
other resources to help women in need, particularly in the context of maternal and child health.

7. Contribution to Basic Health Equipment:

Soaltee Hotel Limited has made a contribution to provide basic health equipment to a public health post
located in Sandhikharka Municipality Ward no 2, Kura, Argakhachi District. This support helps to improve
healthcare infrastructure in a rural area, enhancing access to medical services and health outcomes for the
local community.

9
 50th ANNUAL REPORT 2023/2024 (2080/2081)

8. Sponsorship for the 3rd Jumla Marathon:

Recognizing the importance of sports and community engagement, Soaltee Hotel Limited has sponsored
the 3rd Jumla Marathon in response to a request from the Karnali Sports Club. This sponsorship supports
the organization and execution of the marathon event, promoting sports, physical fitness, and community
participation in the Jumla region.

SUSTAINABILITY
At The Soaltee Kathmandu, our commitment to sustainability goes beyond mere compliance; it reflects our
dedication to responsible resource use and environmental stewardship that positively impacts both the
community and the ecosystem. We believe that true luxury hospitality harmonizes with nature, and as such,
we have implemented a variety of initiatives designed to minimize our ecological footprint while enhancing guest
experiences. Our approach integrates sustainable practices into every facet of our operations, ensuring that
we contribute to the well-being of both the environment and the people who rely on it. Below, we detail our key
sustainability initiatives:

1. Sustainable Solar Panel Project:

In partnership with Gham Power, we have launched a 500-kilowatt solar power system that exemplifies our
commitment to sustainable luxury. This project makes use of available rooftop and parking area space to
harness solar energy, resulting in a projected reduction of diesel consumption by 196 kiloliters over the next
15 years. Furthermore, this initiative is expected to decrease carbon emissions by 995 tons, significantly
contributing to our goal of a cleaner future. Beyond environmental benefits, we anticipate a 25% reduction
in electricity bills, demonstrating that sustainability can also be financially advantageous. By adopting solar
energy, The Soaltee Kathmandu aims to set a benchmark for the hospitality industry and inspire other
establishments to follow suit.

2. Water Bottling Plant:

Our state-of-the-art water bottling plant represents a significant investment in both sustainability and guest
satisfaction. By purifying and bottling water on-site, we eliminate the reliance on single-use plastic bottles, a
major contributor to environmental pollution. This initiative not only reduces our carbon footprint associated
with transporting bottled water but also ensures that guests enjoy fresh, purified water conveniently
available within the hotel premises. The glass bottles we utilize are crafted from natural materials, free from
harmful chemicals like BPA and phthalates, which pose risks to both human and environmental health.
By producing our own bottled water, we take substantial strides toward minimizing plastic waste while
enhancing the overall guest experience.

3. Sustainability Practices in Housekeeping:

Our housekeeping department has adopted a range of innovative sustainability practices aimed at reducing
waste and conserving resources. The introduction of bulk dispenser bottles for toiletries significantly reduces
plastic waste, while the replacement of soap bars with dispensers ensures efficient use of resources. Our
Linen Reuse Program encourages guests to extend the use of their linens and towels for more than one
day, leading to the conservation of millions of gallons of water daily and the generation of less grey water.
Furthermore, we have established water refill stations that provide water served in jugs and carafes for
meetings and events, minimizing the need for single-use bottled water and enhancing our commitment to
sustainability.

4. Waste Management:
We have initiated a comprehensive waste management program that includes waste segregation at the
source. This approach helps us understand the types and volumes of waste produced, allowing for targeted
reduction efforts. Our primary objective is to minimize food waste alongside single-use plastics. To support
this, we plan to install a compost plant within the hotel, which will process compostable materials such as
food scraps, garden waste, and paper. This facility will generate organic, chemical-free fertilizers for use in
our gardens and greenhouse, further enhancing our sustainable practices.

10
 50th ANNUAL REPORT 2023/2024 (2080/2081)

5. Sustainable Garden:
We are proud to cultivate a sustainable garden on our premises, employing organic fertilizers to grow a
variety of vegetables and herbs. This initiative not only promotes local sourcing of fresh produce but also
helps us reduce the carbon footprint associated with transporting food from distant suppliers. By integrating
this garden into our kitchen operations, we enhance the quality and sustainability of the food we serve while
demonstrating our commitment to eco-friendly practices.

6. EV and Charging Station:

To promote eco-friendly transportation options, we have installed electric vehicle (EV) charging stations
throughout the hotel. This initiative encourages the use of electric vehicles over traditional petroleum-
powered ones, thereby contributing to reduced greenhouse gas emissions. By providing convenient charging
facilities, we support our guests in making environmentally conscious choices during their stay.

7. Support for Local Vendors:

We actively promote local vendors and prioritize Nepal-made products in our offerings, ensuring that we
maintain high standards of quality while supporting the local economy. By sourcing products locally, we
not only minimize our environmental impact but also contribute to the livelihoods of local artisans and
businesses.
Through these multifaceted initiatives, The Soaltee Kathmandu exemplifies how luxury hospitality can
coexist with responsible and sustainable practices. We are dedicated to inspiring others in the industry
while actively contributing to a brighter, greener future for our community and the environment.
Commitment to Sustainable Luxury and Community Engagement
As we move forward, our goal remains steadfast: to integrate these eco-conscious practices into every aspect of
our operations and redefine luxury hospitality through sustainability. We recognize that our efforts are just the
beginning, and we are committed to continuous improvement and innovation in our sustainability initiatives. By
prioritizing environmental stewardship and community engagement, we aim to create a lasting positive impact
that benefits not only our guests but also the planet we all share. Together, we can embrace a future where
luxury and sustainability thrive hand in hand.

industrial and Business or Professional relations of the Company

The Board of Directors is pleased to report that the Company’s relations with employees have been very cordial
and excellent throughout the year. Both the Management and employees work in close harmony with a common
goal to provide high standard services to the guests of the hotel and to offer the best place to meet.
We would like to place on record our commendation and appreciation to our Soaltee family of employees and
are confident that all our employees would demonstrate the greatest level of commitment and understanding,
extending further cooperation to the Management team to help your Company to succeed in the future challenges
for the professional growth and excellency.
Your Company maintains a good professional relationship with its customers, suppliers, service providers,
banks and other agencies, contractors and consultants, travel agencies and airlines, government authorities,
and regulators.
Your Company is a Hospitality Member of the internationally acclaimed travel and tourism Pacific Asia Travel
Association (PATA). The Company is an Associate member of the Federation of Nepalese Chambers of Commerce
& Industry (FNCCI), a Member of the Hotel Association of Nepal (HAN), Nepal India Chamber of Commerce &
Industry (NICCI), Nepal- China Chamber of Commerce & Industry (NCCCI), Nepal Britain Chamber of Commerce
& Industry (NBCCI), and Nepal Institute of Company Secretaries (NICS).
Employee Connect and Management Team
The Company has been conducting regular town hall meetings to encourage interaction and work on the areas
of action for better performance at work. The hotel has been consistently providing training, communicating
guidelines on safety, and maintaining health protocols and practices for the employees to ensure safe working
habits and working safely.

11
 50th ANNUAL REPORT 2023/2024 (2080/2081)

The Board of Directors is pleased to inform our valuable Shareholders that our employee’s contributions to the
Company have been immense and always set a high standard for the working environment. The Board wishes to
keep on record its great appreciation that the Company has been receiving full support and cooperation during
the difficult time from each Employee of the Company.
The Board and Changes in the Board of Directors
Structure of the Board
The structure of the Board consists of nine members of the Board of Directors. However, currently, there are nine
members on the Board of Directors including one female Director and one Independent Director in compliance
with the Company Act, 2063. All the Board members are non-executive Directors except the Executive Chairman
and thus they do not take part in the day-to-day operation of the hotel. The Board of Directors are from diverse
backgrounds and possess specialization and expertise in various fields like Tourism, Trade and Commerce,
Insurance, Banking, and Industries.
The Board sets the strategic direction for the Company, reviews the hotel’s performance and approves strategic
hotel operation plans, sets quarterly and annual performance targets, quarterly operational budgets, and annual
financial statements, and provides regular guidance to the hotel and Corporate Management for achieving the
targeted goals and its objectives.
The Board exercises its authority within the framework of regulatory provisions, Companies Act, Securities
Acts and Regulations, Memorandum and Articles of Association of the Company and other relevant Laws and
Regulations of Nepal.
Changes in the Board of Directors
There has been no change in the composition of the Board of Directors of your company during the fiscal year
2023-24 ended on 15th July 2024, under review.
Further, Mr Deepak Raj Joshi, Independent Director of The Company has resigned from the Board of the
Company with effect from the 8th September 2024 (BS 2081 Bhadra 23) citing personal reasons.
The Board places on record its appreciation for the assistance and guidance provided by Mr Deepak Raj Joshi,
Independent Director during his tenure as Independent Director of the Company.
Meeting of the Board of Directors
The Meeting of the Board of Directors of the Company is conducted in accordance with the Companies Act,
2006 (with amendments) of Nepal, and the Memorandum and Articles of Association of the Company. The Vice
President of the company and the General Manager of The Soaltee Kathmandu (Hotel) are permanent invitees to
the performance meetings of the Board of Directors of the Company.
A total of six (6) Board Meetings were held during the fiscal year 2023/24 (2080/81). A total Rs. 1,794,132 has
been paid against Board Meeting sitting fees to the Board of Directors of the Company excluding the Executive
Chairman who does not take the meeting fee.
Board of Director’s Reaction to Remarks made, if any, in the Audit
The Auditors’ Report shows that the Company’s operation, profitability, and financial position during the fiscal
year under review were outstanding. The Management has been advised to implement recommendations and
suggestions to the observations of the Statutory Auditors to further improve the operating efficiency of the Company.
The amount Recommended for distribution as a Dividend
Taking into consideration that the company had posted a Net Profit for the fiscal year 2023/24 (2080/81) the
Board of Directors of the Company has recommended a Cash Dividend distribution at the rate of 26.84210526%
of the Subscribed and Paid-up Share Capital aggregating Rs. 249,350,730 and Bonus Shares at the rate of 10%
of Subscribed and Paid up Share Capital held in the Company.
Subsidiary company
Soaltee Hospitality Limited
Soaltee Hospitality Limited, a fully owned Subsidiary of the Company had already been in the hospitality
business.

12
 50th ANNUAL REPORT 2023/2024 (2080/2081)

The Audited Financial Statements of the subsidiary Company comprising the Statement of Financial Position,
the Statement of Profit or Loss and Other Comprehensive Income as of 15th July 2024 (31st Ashadh, 2081),
and the Statement of Cash Flow for the year ended 15th July 2024 (31st Ashadh, 2081) along with the Auditors’
Report are reflected under the Consolidated Financial Statement as a part of this Annual Report 2023/24 for the
information of the shareholders in compliance with section 143 and other applicable provisions, if any, of the
Companies Act, 2063 (2006) and in accordance with Nepal Financial Reporting Standard (NFRS).
Statutory Auditors
The Statutory Auditors of the Company Messrs J. B. Rajbhandary & DiBins, Chartered Accountants, Kathmandu,
will be completing their one-year tenure with the Company at the conclusion of the ensuing 50th Annual General
Meeting of the Company.
In terms of the provisions of the Companies Act, 2063 (2006), Statutory auditors need to be rotated on completion
of three consecutive terms. The current statutory auditors, J. B. Rajbhandary & DiBins, Chartered Accountants
have completed one year and are eligible for re-appointment pursuant to subsection 3 of section 111 of the
Companies Act, 2006 (BS 2063).
Based on due consideration and recommendation of the Audit Committee of the Board, respected shareholders
are requested to approve the appointment of Statutory Auditors for the Fiscal Year 2024/25 (2081/82) and fix
their remuneration.
On your behalf and on behalf of the Board of Directors of the Company, we place on record our sincere appreciation
for the services rendered by M/s. J. B. Rajbhandary & DiBins, Chartered Accountants during the fiscal year
2023/24 (2080/81).
Board level Committees
The Board has delegated the authority to make decisions to Board Committees in line with the Companies
Act, 2063 (2006), other prevailing Rules and Regulations and practiced corporate governance. The major Sub
Committees of the Board are as follows: -

Audit Committee
The Audit Committee is constituted in accordance with the provisions of section 164 of the Companies Act,
2063 (2006). The primary objective of the Audit Committee is to review the accounts and financial statements
of the Company and ascertain the truth of the facts mentioned in such statements, to review the internal
financial control system and risk management system, to monitor, provide effective supervision and review the
internal auditing activity, to recommend the names of auditor, fix the remuneration, terms, and conditions of
appointment of the statutory auditor and present the same in the general meeting for the ratification thereof
and to perform such other terms as prescribed by the Board of Directors in respect of the accounts, financial
management, and audit of the Company.
The Committee comprises Mr. Ravi Bhakta Shrestha (Chairman), Mr. Sashi Raj Pandey (Member), and Mr.
Niranjan Kumar Tibrewala (Member). The internal auditor reports functionally to the Audit Committee. The
Committee met five times during the fiscal year 2080/81 (2023/24).
A total of Rs. 4,41,180 has been paid against Meeting sitting fees to the Members of the Audit Committee of the Company.
The Company Secretary acts as the Secretary of the Committee.
Casino Property Lease Committee
The Casino Property Lease Committee consists of four Board Members comprising of Mr. Dinesh Bahadur Bista,
Mr. Niranjan Kumar Tibrewala, Mr. Rajesh Kazi Shrestha, and Mr. Prakash Bikram Khatri. Mr. Dinesh Bahadur
Bista is the Chairman of the Casino Property Lease Committee. The Committee reports to the Board of Directors
of the Company.
The main function of the Casino Property Lease Committee is to decide and review the Casino lease related
matters of the Company and report to the Board of Directors with its recommendations. The Committee met one
time during the fiscal year 2080/81 (2023/24).
A total of Rs. 88,236 has been paid against Meeting sitting fees to the Members of the Audit Committee of the
Company.
The Company Secretary acts as the Secretary to the Committee.

13
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Remuneration Revision Committee

The Remuneration Revision Committee consists of four non-executive Board Members comprising Mr. Ravi
Bhakta Shrestha, Convenor, Mr. Sashi Raj Pandey, Mr. Niranjan Kumar Tibrewala, and Mr. Prakash Bikram
Khatri as Members of the Committee. The Committee reports to the Board of Directors of the Company.
The Remuneration Revision Committee was constituted with the objective to determine remunerations and
perquisites of the Executive Chairman of the Company and report to the Board of Directors for the recommendations
to the Annual General Meeting of the shareholders for its approval.
The Company Secretary acts as the Secretary to the Committee.
Investment Committee
The Investment Committee consists of four Board Members comprising of Mr Dinesh Bahadur Bista, Mr Sashi
Raj Pandey, Mr. Rajesh Kazi Shrestha, Mr. Niranjan Kumar Tibrewala, and Mr. Prakash Bikram Khatri. Mr.
Dinesh Bahadur Bista is the Chairman of the Committee. The Committee reports to the Board of Directors of
the Company.
The Investment Committee was constituted with the objective to explore and identify the possibility of investing
in and operating hotels of different categories outside the valley.
The Company Secretary acts as the Secretary to the Committee.
Industrial Relations Committee
The Industrial Relations Committee consists of four Board Members comprising of Mr. Dinesh Bahadur Bista,
Mr. Rajesh Kazi Shrestha, Mr. Niranjan Kumar Tibrewala, and Mr. Prakash Bikram Khatri. Mr. Dinesh Bahadur
Bista is the Chairman of the Committee. The Committee reports to the Board of Directors of the Company.
The main function of the Industrial Relations Committee is to review the industrial relations of the Company
such as human resource relations and related sectors of the Company and report to the Board of Directors with
its recommendations.
The Company Secretary acts as the Secretary to the Committee.
Management level Committees
Corporate Social Responsibility (CSR) Management Committee
The Board has delegated authority to the Executive Chairman to constitute a Management Level Committee for
Corporate Social Responsibility pursuant to the Industrial Enterprises Act, 2076, and Industrial Enterprises
Rules, 2078.
The Company has set up a Corporate Social Responsibility (CSR) Management Committee with the Convenorship
of the Executive Chairman. The composition of the Committee consists of the Executive Chairman, Vice
President, General Manager – The Soaltee Kathmandu, Director of Finance, Director of Human Resources, Chief
of Corporate Affairs & Company Secretary, Manager - Projects, and Senior Manager - Administration and Public
Relations.
The Company Secretary acts as the Member Secretary of the CSR Management Committee.
The main function of the CSR Management Committee is to conduct the various corporate social activities on
behalf of the Company within the CSR fund provision made by the Company as per the Industrial Enterprises
Act, 2076, and utilized such funds in compliance with the Industrial Enterprises Rules, 2078 and other relevant
prevailing laws of Nepal. The CSR Management Committee of the Company reports to the Board of Directors.
Corporate Social Responsibility Allocation
The Company allocated one per cent of Net Profit to CSR Fund in the form of a statutory reserve in the fiscal year
under review in compliance with the Industrial Enterprises Act, 2076 which is to be utilised in the Corporate
Social Responsibility (CSR) initiatives pursuant to the Industrial Enterprises Rules, 2078 and Directives as may
be issued by the Department of Industries, Ministry of Industries, Government of Nepal.
ADDITIONAL DISCLOSURE UNDER SECTION 109 (4) OF THE COMPANIES ACT, 2063
In the event of forfeiture of shares, details regarding the number of forfeited shares, face
value of such shares, total amount received by the company for such shares prior to the
forfeiture thereof, proceeds of the sale of such shares after the forfeiture thereof, and
refund of the amount, if any, made for such forfeited shares;

The Company has not forfeited any shares during the fiscal year 2080/81 (2023/24).

14
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Progress of transactions of the Company and its subsidiary Company in the previous fiscal
year and review of the situation existing at the end of that fiscal year.

The Company has one subsidiary Company, Soaltee Hospitality Limited, the subsidiary company. The financial
statements of the subsidiary company have been incorporated under the Consolidated Financial Statement of
the Company.
Major transactions Carried out by the Company and its subsidiary company during the fiscal
year and any material change in the Business of the company

The hospitality business as envisaged in the Memorandum of Association of the Company remained the core
business of the Company; there was no change in business activities during the year, nor was there any change
in the core objectives of the subsidiary Company.
Information furnished to the Company by its Substantial Shareholders during the Fiscal
year under Review

There has been no information received or disclosure made by the substantial shareholders of the Company to
the Company during the fiscal year 2080/81 (2023/24).
Particulars of the ownership of shares taken by the directors and office-bearers of the
company during the previous fiscal year, and in the event of their involvement in share
transactions of the company, information received by the company from them about their
involvement;

To the knowledge of the Company, the Directors, and the Office Bearers of the Company had not taken any
ownership of shares or acquired or relinquished shares (sold) of the company during the period of the Fiscal Year
2080/81 (2023/24) under review.
To the knowledge of the Company, the Directors, and the Office Bearers of the Company had not been involved
in the share transactions of the Company, nor do they have any information regarding any involvement in the
share transactions of the Company’s shares in contravention of the prevailing laws of Nepal during the fiscal
year 2080/81 (2023/24).
Particulars of disclosures furnished by any Director or any of his /her close relatives
about his personal interest in any agreement connected with the company during the previous
fiscal year;

There is no such information furnished by the Directors and any of their close relatives in any agreements/contracts
related to the Company during the fiscal year 2080/81 (2023/24).
In the event that the company has bought its own shares (buy-back), the reasons for such
buyback, the number and face value of such shares, and the amount paid by the company for
such buy-back;

The Company has not purchased its own shares during the fiscal year 2080/81 (2023/24). The Company does
not have the policy to buy back its own shares.
Whether or not there is an internal control system in place, if there are any such system
details thereof;

The hotel followed the guidelines and system prescribed by the hotel manager for its Internal Control System.
The Company is also guided by detailed financial procedures for the Internal Control System. The following
Internal Control Systems are in practice in the Company:-
(a) Operation Manuals, Procedures, and Guidelines for systematic conduct of Operations of the Hotel
(b) Financial Policies and Accounting Guidelines
(c) Monthly Reporting on Internal Checks and Control System
(d) Internal Audit Unit of the hotel to exercise adequate control of financial transactions
(e) Internal Audit carried out by outside Independent Certified Auditors.
(f) Periodic review of the Internal Control System by the Management and Audit Committee
(g) Computerized system of operation for the Front Office, Reservations, Accounting, and Inventory
(h) Control Self-Assessment conducted by the hotel manager every six months.

15
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Particulars of the total management expenses during the previous fiscal year

Amount Rs.
Sin Particulars Increase /
This Year This Year (Decrease) %
2023/24 (2080/81) 2022/23 (2079/80)
1 Staff Expenses 563,383,728 502,368,131 12.15%
2 Operating (Management) Expenses 337,967,880 277,343,565 21.86.%
Total 901,351,608 779,711,696 15.60%
The total Management Expenses for the fiscal year 2080/81 (2023/24) have increased by 15.60% due to a
significant increase in the business and revenue of the Company.
A list of the members of the audit committee, remunerations, allowances, and facilities
being received by them, particulars of functions discharged by the Committee, and details of
suggestions, if any, made by that committee;

The Company has an Audit Committee comprising the following members of the Board of Directors:-
Sin Particulars Capacity / Position

1 Mr. Ravi Bhakta Shrestha Chairperson

2 Mr. Sashi Raj Pandey Member
3 Mr. Niranjan Kumar Tibrewala Member
All other members of the Audit Committee are non-executive Directors thus ensuring complete independence.
The Audit Committee meets on a quarterly basis and reviews internal and external audit reports, control and
compliance issues, the Company’s financial condition, outstanding receivables, etc. The Audit Committee
provides feedback to the Board of Directors by tabling Audit Committee meeting minutes at the subsequent
Board meeting for review.
During the fiscal year under review, th e Audit Committee invited the Independent Statutory Auditors, the
Independent Internal Auditors, the Executive Chairman, the Vice President, the General Manager, the Financial
Controller, the Director of Finance, Credit Manager to its Meetings. The Management Letter (Preliminary Audit
Report) of the Statutory Audit Report for the fiscal year 2080/81 (2023/24) was presented before the Audit
Committee by the Independent Statutory Auditors.
During the fiscal year, 2080/81 (2023/24) Audit Committee performed the following tasks: -
(a) Quarterly reviews were conducted on outstanding receivables of the hotel and appropriate measures were
advised to the Management to recover the old pending receivables and to deal properly with debtors, and
necessary instructions were also given to the management to keep receivables under control.
(b) The Audit Committee reviewed the Preliminary Statutory Audit Report of the Statutory Auditors along with
the Annual Financial Statements for the fiscal year 2080/81 (2023/24) of the Company and recommended
the Audited Financial Statements, the Abbreviated Abstract Financial Statement, the Report under section
78 and Corporate Governance Compliance Report, and Financial Highlights for the Fiscal Year ended on
15th July 2024 (31 Ashadh 2081) to the Board for adoption and approval.
(c) Quarterly reviewed the Internal Audit reports and discussions made on the issues raised in the reports
and directed the management for resolution.
(d) The Audit Committee reviewed the performance of the Internal Auditors and made the recommendations
for the appointment of the independent Internal Auditors of the Company and their remuneration for the
fiscal year 2080/81 (2023/24).
(e) The Committee informed the Board of Directors that the Management had taken all possible necessary
actions to recover the old outstanding receivables and that the status of recovery of the old receivables
had been satisfactory.
(f) The Committee reported to the Board of Directors about its meeting and various recommendations and
directions issued to the Management to be implemented quarterly.
(g) The Audit Committee had recommended the appointment of Statutory Auditors and their remunerations
to the ensuing 50th Annual General Meeting of the shareholders of the Company.

16
 50th ANNUAL REPORT 2023/2024 (2080/2081)

The Board of Directors is pleased to report that the Management has implemented or is in the process of
implementing most of the recommendations, and its status is found to be satisfactory.
The Committee Members are glad to report that during the fiscal year 2080/81 (2023/24) no major issues have
been reported in the Internal Audit Reports of the Company. The Internal Control System of the Company has
been reported to be satisfactory.
The Company Secretary acts as the Secretary to the Audit Committee.
Payments due, if any, to the
Company from any director, managing director chief executive,
or substantial shareholder of the Company or any of their close relatives, or from any firm,
Company, or corporate body in which he/she is involved;
A sum of Rs. 44.19 million (previous year Rs. 50.44 million) is outstanding receivable to be received from Nepal
Airlines Corporation (NAC) which has corporate share ownership of the Company. The amount pertains to dues
receivables against catering to NAC on board flights by The Soaltee Gate Gourmet – Flight Catering Division of
the Company. The Company has had a business relationship with NAC for many years in the past.
Amount of Remunerations, Allowances, and Facilities paid to the Directors, the Managing
Director, the Chief Executive, and Office-bearers;
The Directors have not been paid any remuneration, allowances, and facilities except meeting fees of Rs. 25,000/-
net of taxes per sitting.
The total meeting fees paid during the financial year 2080/81(2023/24) to the Non-Executive Board of Directors
was Rs. 1,794,132.
The remuneration, allowances, and other facilities paid to the Executive Chairman, the Vice President, General
Manager, and the Managers of the Company during the fiscal year 2080/81 (2023/24) was Rs. 162,018,738/-
(Previous fiscal year Rs. 143,646,377 /-).
The Company also provides an office car to the Executive Chairman, the Vice President, and the General
Managers with a driver, fuel, and maintenance as other facilities.
Amount of dividends remaining unclaimed by the shareholders;

The dividend yet to be collected by the Shareholders amounts to a total of Rs. 17,936,251/-(previous year Rs.
13,539,009/-) as on 15 July 2024 (31 Ashadh 2081) for the fiscal year which includes dividends not collected
from fiscal year 1992/93 to 2022/23 (2049/50 to 2079/80). Out of the above-mentioned unclaimed dividends,
Rs. 4,862,735/- (previous year Rs. 3,281,979/-) pertains to the fiscal years from 1992/93 to 2016/17 (2049/50
to 2073/74) - periods more than five years from the dates of declaration.
Under the Companies Law, the dividend not claimed/received by any shareholder even after a period of five years
from the date of the resolution adopted by the Company in its Annual General Meeting to distribute the dividend
should be deposited to the Investor Protection Fund to be established by the Government of Nepal. Therefore,
shareholders who have not yet collected their Dividends relating to the above fiscal years are requested to kindly
contact the Share Registrar of the Company, NIMB Ace Capital Market Limited, Lazimpat, Kathmandu, Nepal to
collect such unclaimed dividends.
Details of sale and purchase of properties pursuant to Section 141;
No Acquisition and Sales of properties pursuant to section 141 of the Companies Act, 2063 (2006) took place
during the Fiscal Year 2080/81 (2023/24).
Details of the transactions carried on between the associated companies pursuant to Section
175 of the Companies Act, 2063 (2006);
No transaction between associated Companies pursuant to section 175 of the Companies Act, 2063 (2006) took
place during the fiscal year 2080/81 (2023/24).
Any other matters required to be set out in the report of the board of directors under the
Companies Act, 2063 (2006) and the prevailing laws of Nepal;
There are no other matters to be disclosed in the Director’s Report of the Board of Directors pursuant to the
Companies Act, 2063 (2006) and the prevailing law of Nepal during the fiscal year 2080/81 (2023/24).

17
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Other necessary matters;

There are no other necessary matters to be disclosed by the Board of Directors.

Disclosures Related to Sub Rule (2) of Rule 26 of Securities Registration and Issuance
Regulation, 2073 (2016) (Schedule 15):
Report of Board of Directors:
Report of the Board of Directors is included in the Annual Report 2080/81 (2023/24) under the Director’s
Report section heading.
Auditor’s Report:
The Auditor’s Report is included in the Annual Report 2080/81 (2023/24) under the Auditors Report section
heading.
Audited Financial Reports:
The Audited Financial Reports for the Fiscal Year 2080/81 (2023/24), comprising the Statement of Financial
Position (Balance Sheet) as on 15th July 2024, Statement of Profit or Loss and Other Comprehensive Income
(Profit and Loss Account), and Statement Cash Flow, and Statement of Changes in Equity for the year ended 15th
July 2024 and Notes to the Financial Statement of the Company appended under the respective section heading
of the Annual Report 2080/81 (2023/24).
Legal Proceedings:
(a) Lawsuit filed by or against the corporate body during the quarterly period.
• The Company filed a writ petition before the High Court Patan against the respondent Labour Office
Kathmandu and 11 laborers during the year under review. The writ was dismissed by the Honourable
High Court.
• The Company filed a petition before the Labour Court Kathmandu against the respondent 11 labour during
the year under review. This case is sub judice in the Honourable Labour Court Kathmandu/Supreme
Court.
• The Company has filed writ petitions with the District Court of Nepal against the Civil Aviation Authority
of Nepal & TIA for the continuation of the Lease Agreement as per the Contract renewal provision for a
further period of three years. The District Court has awarded a stay order until the final verdict of the
Court during this fiscal year.
• The Company has filed a writ petition with the Honorable High Court against additional demand of
Tax deducted at source (Income Tax) by Large Tax Office relating to Fiscal Year 2073/74. The Matter is
sub-judice in the Honorable High Court.
• The Company had filed the appeal petitions at the Appellate Revenue Tribunal Kathmandu against
the Ministry of Finance, Large Tax Payers’ Office challenging the disallowance of expenses on Self-
Assessment Income Tax Return orders for the Fiscal Year 2067-68, 2069-70, 2070-71, and 2071-72.
The Tax case is under litigation and sub judice with the Appellate Court Revenue Tribunal.
(b) Lawsuit filed by or against the promoter or director of the corporate body involving violations of statutory
regulations or criminal offences.
The Company has not received any such information during the fiscal year 2080/81 (2023/24).
(c) Law-suit filed against any promoters or directors for committing economic crimes;
The Company has not received any such information during the fiscal year 2080/81 (2023/24).
Analysis of Stock transaction Performance of the corporate body:
(a) Management’s view on the performance of the stocks of the corporate body in the Stock
Exchange:-
Since the price and transactions of the shares of the Company are, being determined by the open share
market operations through Nepal Stock Exchange Ltd. (NEPSE) Management’s view on the performance of
the stocks of the Company is neutral.

18
 50th ANNUAL REPORT 2023/2024 (2080/2081)

(b) Maximum, minimum and Closing price of the stocks of the corporate body during each
quarter of the preceding year along with the total volume of trading of shares and
number of days traded:-

Maximum, Minimum, and Closing price of the stocks of the Company, the total volume of transacted
shares, and the total number of transactions and days transacted during each quarter of the Fiscal year
2080/81 (2023/24) are undermentioned: -

Share Price (Rs.) 2080/81 (2023/24) The fiscal Year 2080/81 (2023/24)
Share Price
Quarters of FY (Face value of Rs. 10 for each Share) Total Number of
2080/81 (2023/24)
Trading
Maximum Minimum Closing Transactions Transacted Shares
Days
1st Quarter
506.00 390.00 393.00 61 24,253 7,450,754
(End of Ashwin 2080)
2nd Quarter
533.00 382.20 478.00 49 19,085 6,612,574
(End of Poush 2080)
3rd Quarter
494.00 426.00 439.00 58 11,017 3,516,192
(End of Chaitra 2080)
4th Quarter
470.20 416.50 442.00 61 12,937 3,763,396
(End of Ashadh 2081)
Total 229 67,292 21,342,916
(Source: Nepal Stock Exchange Ltd.)
Problems and Challenges:-
(A) Internal
The Company has got no internal problems.
(B) External
(i) Rise in cost of operation, scarcity of potable water, increasing cost of human resources, goods and
services, energy, and cost of products and services;
(ii) Over supply rooms due to new properties coming into operation, however, demand is not growing
accordingly. The gap between the supply and demand of rooms is ever widening.
(iii) Adverse effects on tourism because of unfavourable global incidents;

(iv) Political instability and disturbances, and lack of tourism infrastructures and Government policy;

(v) Natural disasters such as earthquakes, the spreading of Coronavirus Covid -19 and other catastrophes;

Strategy:
(i) Develop a customer oriented services culture – emphasis on customer care and convenience;
(ii) Increase market share by following a disciplined growth strategy;
(iii) Develop innovative products and services that attract customers and market segments;
(iv) Upgrade the infrastructures of the hotel and continue to develop products and services that reduce
the cost of funds and explore new avenues for growth and profitability;
(v) Explore the possibility of investing in or operating hotels outside Kathmandu;
(vi) Achieve service excellence and continue enhancement in products and services to exceed customer
expectations;

Corporate Governance:
Management’s initiatives towards good corporate governance:

Transparency and accountability are the two basic tenets of Corporate Governance. The Board of Directors are
committed to sound principles of Corporate Governance in the Company. The Board of Directors of the Company
are pleased to report that during the year ended 15th July 2024, the Company had complied and followed the
corporate governance, which includes: -
(a) The Company has been complying with the Acts, Directives, Guidelines, Regulations and Byelaws issued
19
 50th ANNUAL REPORT 2023/2024 (2080/2081)

by the Government of Nepal, Security Board of Nepal, Nepal Stock Exchange Ltd., and CDS & Clearing Ltd.
regarding Corporate Governance.

(b) Board of Directors and its Committees’ (Audit Committee of the Board) meeting are held on a regular basis.

(c) Adequately experienced core Management team

(d) Regular Executive Committee meetings to review the operational activities and progress in various areas
of hotel operation

(e) Adequate Internal Control System, policies, procedures, manuals of the Company and compliance with
the relevant laws

(f) The Company has an external independent Internal Auditors who carries out an internal audit for the
review, checking the compliances and internal control system, procedures and policies of the Company
and provide independent information on the internal control. The independent Internal Auditors reports
directly to the Audit Committee. The Company also has its own Internal Audit unit, which carries out
internal reviews of the hotel.

(g) Adequate compliance with the regulatory requirement of the Company to the Office of Company Registrar,
SEBON, NEPSE, CDS & Clearing, Nepal Rastra Bank, and Ministry of Tourism and Civil Aviation etc.

SUMMARY OF THE COMPLIANCE REPORT CONTAINING MAJOR POINTS OF REPORT UNDER CLAUSE
20(4) OF THE CORPORATE GOOD GOVERNANCE DIRECTIVES ISSUED FOR LISTED INSTITUTION, 2074
TO BE PLACED IN THE ANNUAL REPORT

The Company Secretary acts as a Compliance Officer, who oversees the overall compliance function in the
Company. For the period under review, the compliance status of the Company with respect to the Companies
Act, 2063, Securities Act, 2063, its rules, and Corporate Governance Directives issued for listed Institutions,
2074 has been found at a good level.

A glimpse of compliance status as per the compliance report is furnished below:

• The Company did not make any public offering or right issue in the FY 2080/81, hence the provisions to
be fulfilled in those respects are not applicable.
• The bonus share issued by the Company is listed with SEBON.
• The Compa ny has submitted requisite reports to the concerned regulatory bodies within the specified
timelines and in the manner as prescribed in the relevant directives, laws, rules, and regulations. The
Company has maintained proper recording of the transactions as per the prevailing laws.
• The Company has disclosed all the information with regulators which supplements and requires assessment
of the financial position of the Company.
• None of the Directors, employees, shareholders, or professional service providers to the Company or any
other person having direct or indirect contact with them has been found involved in insider trading.
• The Company has published quarterly financial statements along with the information required to be
disclosed.

• Provisions regarding the election, the nomination of directors/independent directors, and their tenure have
been found as per the provisions of prevailing laws applicable for the Company and Articles Association
and Memorandum of Association of the Company.

• Compliance with the Directions and Directives issued by the regulatory body from time to time and all the
requirements of prevailing acts and regulations including directions have duly complied.

(Note: This is only the executive summary of the report approved by the Board and Certified by the
Statuary Auditor. The detailed report will be submitted to SEBON pursuant to the Corporate Good
Governance Directives.)

20
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Appreciations and Acknowledgements

The Board of Directors places on record their deep appreciation to employees at all levels for their work,
dedication, and commitment. The Board wishes to thank the Executive Chairman and his leadership team
for their excellence and for leading the team during the difficult time of post-pandemic with the outstanding
financial performance of the Company.

The Board of Directors wishes to express its gratitude to the respected shareholders at large for their valuable
insight, guidance, cooperation, and support through their personal inputs and their active participation in our
Annual General Meetings.

The Board of Directors places to record its sincere appreciation and gratitude for the support and cooperation
the Company has received from all our valued customers, travel agencies, airlines, vendors, consultants,
contractors, suppliers, service providers, banks, business associates, and other agencies.

The Board of Directors would like to express its gratitude to the Government of Nepal, Nepal Rastra Bank, and
other Government agencies and regulatory authorities for their support, guidance, and cooperation and look
forward to their continued support in the future.
__________________________
DINESH BAHADUR BISTA
EXECUTIVE CHAIRMAN

UBARAJ ADHIKARI
PRAKASH BIKRAM KHATRI
SASHI RAJ PANDEY
JAYA RAJYA LAXMI SHAH
RAVI BHAKTA SHRESTHA
RAJESH KAZI SHRESTHA
NIRANJAN KUMAR TIBREWALA
DIRECTORS
Date: 29th October 2024
(13th Kartik 2081)
Place: Kathmandu

21
 50th ANNUAL REPORT 2023/2024 (2080/2081)
SOALTEE
SOALTEE HOTEL
HOTEL LIMITED
LIMITED
F
Financial
INANCIAL HIGHLIGHTS
highlights

The
The major
major performance
performanceindicators
indicatorscomparative
comparativefigures
figuresofofthe
theCompany
Companyfor
forthe last
the five
last years
five areare
years summarized as
summarized
under:
as under:

Rupees inINmillion
RUPEES MILLION

FINANCIAL YYEAR
FINANCIAL EAR
PARTICULARS
PARTICULARS
2023/24 2022/23 2021/22
2021/22 2020/21
2020/21 2019/20
2019/20

TOTAL
TOTAL RREVENUE
EVENUE 2,498.42
2,498.42 2,254.63
2,254.63 1,369.12
1,369.12 453.93
453.93 1,264.01
1,264.01
TOTAL
TOTAL EEXPENDITURE
XPENDITURE 1,747.47
1,747.47 1,558.84
1,558.84 1,035.41
1,035.41 626.42
626.42 1,123.51
1,123.51
PROFIT FROM
PROFIT FROM OPERATIONS
OPERATIONS 750.95
750.95 695.79
695.79 333.71
333.71 (172.49)
(172.49) 140.50
140.50
LESS: FINANCE COST 3.60 8.66 18.54 2.87 0.58
LESS: FINANCE COST 3.60 8.66 18.54 2.87 0.58
PROFIT BEFORE TAXES 747.35 687.13 315.17 (175.36) 139.92
PROFIT BEFORE TAXES 747.35 687.13 315.17 (175.36) 139.92
LESS: PROVISION FOR INCOME TAX 137.46 124.61 - - 15.90
LESS: PROVISION FOR INCOME TAX 137.46 124.61 - - 15.90
LESS: DEFERRED TAX EXPENSES/(IN-
9.84 7.54 17.93 49.57 11.98
COME)
LESS: DEFERRED TAX EXPENSES/(INCOME) 9.84 7.54 17.93 49.57 11.98
NET PROFIT
NET P AFTER
ROFIT AFTER TAXATION
TAXATION 600.04
600.04 554.98
554.98 297.24
297.24 (224.93)
(224.93) 112.04
112.04
NET TRANSFER TO RESERVES FOR THE
NET TRANSFER TO RESERVES FOR THE YEAR 600.04
600.04 554.98
554.98 297.24
297.24 (224.93)
(224.93) 112.04
112.04
YEAR

G : Total Revenue (Total Income) G

Graph
RAPH: TOTAL REVENUE (TOTAL INCOME)
RUPEES IN MILLION

TOTAL REVENUE

2,500.00

2,000.00
RUPEES IN MILLION

1,500.00

1,000.00

500.00 G

-
2019/20 2020/21 2021/22 2022/23 2023/24

FISCAL YEAR

22
 GRAPH: PROFIT FROM OPERATIONS 50th ANNUAL REPORT 2023/2024 (2080/2081)
GRAPH: PROFIT FROM OPERATIONS
Graph: Profit From Operations RUPEES IN MILLION G
N RUPEES IN MILLION
PROFIT FROM OPERATIONS
PROFIT FROM OPERATIONS
695.79 750.95
695.79 750.95
800.00
RR

800.00
UPEES
UPEESININM

600.00
600.00 333.71
333.71
400.00
400.00 140.50
140.50
200.00
MILLION

200.00
ILLION

--
2019/20
2019/20 2020/21
2020/21 2021/22
2021/22 2022/23
2022/23 2023/24
2023/24
(200.00)
(200.00)
(172.49)
(172.49)
FISCAL
F YEAR
ISCAL Y EAR

G
G RAPH::: N
GRAPH
raph NET
N etP
ET PP rofit
ROFIT
ROFIT
N RUPEES
R UPEES IN
IN MILLION
MILLION R

NET
N PROFIT
ET P ROFIT 600.04
600.04
554.98
554.98
600.00
600.00
500.00
500.00
R
RUPEES

297.24
297.24
UPEES IN

400.00
400.00
300.00
300.00 112.04
112.04
200.00
200.00
IN M

100.00
100.00
--
MILLION

(100.00) 2019/20 2020/21 2021/22 2022/23 2023/24

ILLION

(100.00) 2019/20 2020/21 2021/22 2022/23 2023/24

(200.00)
(200.00)
(300.00) (224.93)
(300.00) (224.93)

FISCAL YEAR
FISCAL YEAR

ROOM
Room R evenue,, O
REVENUE ccupancy,,AA
OCCUPANCY verageRR
VERAGE OOM
oomRATE
Rate(ARR)
(ARR) REVR
ANDand Pev
ARPar
N ROOM REVENUE, OCCUPANCY, AVERAGE ROOM RATE (ARR) AND REVPAR
INCREASE /
Financial YearYEAR
FINANCIAL INCREASE
INCREASE /
(D ECREASE/
FINANCIAL YEAR (DECREASE) %)
PParticulars
ARTICULARS %(D (
ECREASE
THIS
(THIS FY VS LAST FY)
PARTICULARS 2023/24
2023/242022/23 2021/22
2022/23 2020/21
2021/22 2019/20
2020/21 V%S (LTHIS
2019/20FY 2022/23)AST FY
2023/24 2022/23 2021/22 2020/21 2019/20 VS LAST FY
2022/23)
Room Count
ROOM COUNT
285
285
285
285
285
285
161
161
260
260 2022/23)- -
RRoom
OOMRC OUNT (Rs. in millions)
evenue 591.43285 551.09285 246.99 285 57.43 161311.35 260 -
7.32%
ROOM REVENUE (RS. IN MILLIONS) 591.43 551.09 246.99 57.43 311.35 7.32%
RRoom
OOMAR EVENUE (RS. IN MILLIONS)
vailable 104,025
591.43 104,025
551.09104,355
246.99 58,60457.4394,785
311.35 7.32%-
ROOM AVAILABLE 104,025 104,025 104,355 58,604 94,785 -
SRaleable Room
OOM AVAILABLE
104,025
104,025 104,025
104,025104,355
104,355 58,60458,60494,785
94,785 --
SALEABLE ROOM 104,025 104,025 104,355 58,604 94,785 -
Room Occupied 60,524 63,290 36,982 9,736 32,088 (4.37%)
SALEABLE ROOM 104,025 104,025 104,355 58,604 94,785 -
ROOM OCCUPIED 60,524 63,290 36,982 9,736 32,088 (4.37%)
Occupancy Percentage 58.18% 60.84% 35.44% 16.61% 33.85% (2.66%)
RCCUPANCY
OOM OCCUPIED 60,524 63,290 36,982 9,736 32,088 (4.37%)
(2.66%)
AOverage PERCENTAGE
Room Rate (ARR) Rs. 58.18%
9,772 60.84%
8,707 35.44%
6,679 16.61%
5,899 33.85%
9,703 12.22%
Oev
RA PERCENTAGE
PAR (RRevenue
CCUPANCY Per(ARR)
OOM RATE Available
RS. 58.18%
9,772 60.84%
8,707 35.44%
6,679 16.61% 33.85% (2.66%)
12.22%
VERAGE
5,685 5,298 2,367 9805,899 3,2859,703 7.32%
RRoom ) Rs.
AEV PAR (R
VERAGE REVENUE PER
OOM RATE (ARR) RS. 9,772
5,685 8,707
5,298 6,679
2,367 5,899
980 9,703
3,285 12.22%
7.32%
AVAILABLE ROOM) RS.
REVPAR (REVENUE PER
5,685 5,298 2,367 980 3,285 7.32%
AVAILABLE ROOM) RS.
23
 8,000 9,703
ARR AND REVPAR
6,679 9,772

RUPEES
10,000 5,899 8,707 5,298 5,685
6,000
8,000 6,679
3,285 5,899
RUPEES
4,000 REPORT 2023/2024 (2080/2081) 2,367
50 ANNUAL th 5,298 5,685
6,000
IN RUPEES
3,285 980 IN RUPEES
Graph– 2,000
Average Room Revenue (ARR)
4,000 and RevPar
ARR AND REV2,367
PAR
9,703
9,703
ARR
980AND REVPAR
9,772
9,772 IIN RUPEES
2,000-
10,000 8,707 N RUPEES
10,000 2019/20
2020/21 2021/22 8,707
2022/23 2023/24
- ARR
FISCALARR AND
YEAR AND A
9,703
R EV P
RVERAGE AR
EVPAR ROOM RATE9,772 (ARR)
8,000 9,703 6,679 9,772
8,000
10,000 2019/20 2020/21 2021/22
6,679 2022/23 2023/24 IN RUPEES
RUPEES

10,000 5,899 8,707

AVERAGE 8,707
ROOM 5,298
R ATE (ARR)5,685
RUPEES

FISCAL YEAR
5,899 5,298 5,685
GRAPH – 6,000
O6,000
CCUPANCY PERCENTAGE
ARR AND REVPAR
8,000 9,703 6,679 9,772
3,285 IN PERCENTAGE
RUPEES

GRAPH – OCCUPANCY PERCENTAGE

10,000 3,285 5,899 8,707 5,298 5,685
4,000
UPEESRUPEES

4,000
6,000 2,367
2,367 IN PERCENTAGE
8,000 OCCUPANCY 6,679
3,285 5,899 980
PERCENTAGE IN RUPEES
2,000 3,285 980
2,000
4,000
4,000 OCCUPANCY PERCENTAGE 2,367
2,367
5,298 5,685
6,000
70.00% 9,7033,285
ARR 980 AND REVPAR 60.84% 9,772
IN RUPEES
2,000 -- 980 58.18%
PERCENTAGE

2,000 60.84%
70.00% 2019/20
4,000
10,000 2020/21 2021/22 2,367 8,707
2022/23 2023/2458.18%
PERCENTAGE

60.00% 2019/20 2020/21 2021/22 2022/23 2023/24

60.00%- 9,703 FF
ISCAL
ISCALARR
Y Y
EAR
EAR
980 ANDAA R EVPARRR
VERAGE
VERAGE OOM
OOM R RATE
ATE(ARR)
(ARR)
9,772
2,000-
8,000
50.00%
10,000 2019/20 2020/21 2021/22
6,679 2022/23
8,707 2023/24
50.00% 2019/20 2020/21
YEAR 2021/22 A35.44% 2022/23
VERAGE ROOM R
2023/24
ATE (ARR) 5,685
RUPEES

FISCAL
5,899
GG RAPH– –OO
RAPH -
CCUPANCY
CCUPANCY P P 33.85%
33.85%
ERCENTAGE
ERCENTAGE FISCAL YEAR A35.44%
VERAGE ROOM R 5,298
ATE (ARR) REVPAR
40.00%
6,000
8,000
40.00% 2019/20 2020/21 2021/22
6,679 2022/23 2023/24
GRAPH
raph––OO Percentage AVERAGE ROOM R ATE (ARR)ININP5,685
P ERCENTAGE
ERCENTAGE
RUPEES

G ccupancy
CCUPANCY PERCENTAGE FISCAL
3,285 YEAR
5,899 5,298
30.00%
GRAPH – O30.00%
CCUPANCY PERCENTAGE
4,000
6,000 16.61% 2,367 IN PERCENTAGE
GRAPH – O 20.00%
CCUPANCY PERCENTAGE
3,285
O O CCUPANCY
CCUPANCY P P ERCENTAGE
ERCENTAGE IN PERCENTAGE
980
2,000
4,000
10.00%
OCCUPANCY PERCENTAGE 2,367 IN PERCENTAGE
10.00%
70.00%
O CCUPANCY PERCENTAGE60.84% 60.84%
70.00% OCCUPANCY 980
PERCENTAGE60.84% 58.18%
PERCENTAGE

2,000
0.00% - 58.18%
PERCENTAGE

0.00%
70.00% 58.18%
PERCENTAGE

60.00% 2019/20
60.00%
2019/20 2020/21
2020/21 2021/22
2021/22 2022/23
60.84% 2023/24
2022/23 2023/24
70.00% 2019/20 2020/21ISCAL Y2021/22 2022/23 2023/24
58.18%
- F ISCAL YFEAR A R R (ARR)
PERCENTAGE

60.00% EAR VERAGE OOM

60.84% ATE
70.00%
50.00% F ISCAL Y EAR 58.18%
PERCENTAGE

50.00%
60.00% 2019/20 2020/21 2021/2235.44% 2022/23 2023/24
GRAPH – R
50.00% 33.85%
OOM REVENUE 33.85%FISCAL YEAR
60.00% 35.44%
AVERAGE ROOM RATE (ARR)
35.44%
O40.00%
GRAPH –40.00%
CCUPANCY PERCENTAGE
33.85%
GRAPH – R OOM REVENUE
50.00%
40.00%
50.00% 35.44% RUPEES
30.00% 33.85% 35.44% IN PIN MILLION
ERCENTAGE
GRAPH –40.00%
O CCUPANCY PERCENTAGE
30.00% 33.85% 16.61% R UPEES IN MILLION
30.00%
40.00%
20.00% R
16.61%
OOM R EVENUE
OCCUPANCY PERCENTAGE551.09
I N PERCENTAGE
591.43
30.00%
20.00%
30.00%
600.00 ROOM REVENUE
16.61% 591.43
10.00%
10.00%
20.00%
10.00%
O CCUPANCY PERCENTAGE551.09
RUPEES

600.00
500.00 60.84%
70.00%
0.00% 58.18%
PERCENTAGE

10.00%
0.00%
10.00%
RUPEES

0.00% 311.35
2019/20 2020/21 2021/22 60.84%
2022/23 2023/24
70.00%
400.00
500.00
60.00% 2019/20 2020/21 2021/22 2022/23 2023/24
58.18%
PERCENTAGE

0.00% 2019/20 2020/21

0.00% F F ISCALY2021/22
ISCAL Y 246.99
EAR
EAR 2022/23 2023/24
IN MILLION

60.00%
300.00
50.00% 2019/20 311.35
2019/20 2020/21
FISCAL Y2021/22
EAR 2022/23 2023/24
400.00 2020/21
FISCAL Y2021/22
EAR 35.44% 2022/23 2023/24
GGGRAPH––
raph
RAPH –RR
R50.00%
oom
200.00
OOM
OOM RRR evenue 33.85%
EVENUE
EVENUE FISCAL YEAR 246.99
IN MILLION

40.00%
300.00 57.43 35.44%
GRAPH
G RAPH – –RROOM R
OOM REVENUE
EVENUE 33.85%
RRUPEES
40.00%
100.00 UPEESIN INMILLION
MILLION
GRAPH – R 30.00%
OOM
200.00 REVENUE
16.61% R UPEES IN MILLION
30.00%
- 57.43
RROOM RREVENUE 591.43
20.00% OOM
16.61% EVENUE2022/23 551.09
RUPEES591.43IN MILLION
100.00 2019/20 R
2020/21 R
2021/22 551.09 2023/24
20.00%
600.00
10.00%
600.00
R
FR
OOM REVENUE
OOM
ISCAL YEAR
EVENUE
551.09
591.43
591.43
600.00 - OOM REVENUE 551.09 591.43
RUPEES

10.00%
600.00 551.09
RUPEES IN MILLION

500.00
0.00% 2019/20 2020/21 2021/22 2022/23 2023/24
RUPEES

500.00
600.00
500.00
RUPEES

0.00% 311.35
2019/20 2020/21 2021/22 2022/23 2023/24
400.00
500.00 311.35 FISCAL YEAR
RUPEES

400.00 311.35
2019/20 2020/21
400.00
500.00 FISCAL Y2021/22
246.99
EAR 2022/23 2023/24
ININ

300.00 311.35 FISCAL YEAR 246.99

246.99
400.00 311.35
300.00
300.00
MILLION

400.00 246.99
MILLION

GRAPH –200.00
ROOM REVENUE
ININMILLION

300.00
GRAPH –200.00
R OOM REVENUE 57.43 246.99
200.00
300.00
100.00 57.43
57.43 RUPEES IN MILLION
RUPEES IN MILLION
MILLION

100.00
200.00
100.00
200.00 57.43
-
100.00
-
2019/20 2020/21RROOM
57.43 OOM RREVENUE
EVENUE2022/23
2021/22
591.43
591.43
2023/24
100.00- 2019/20 2020/21 2021/22 551.09
2022/23 2023/24
551.09
600.00
600.00 2019/20 FISCAL
F ISCAL YEAR
2020/21 2021/22
YEAR 2022/23 2023/24
--
RRUPEES

500.00
FINANCIAL HIGHLIGHTS 2019/20 2020/21F ISCAL Y EAR
2021/22 2022/23 2023/24
500.00 2019/20 2020/21 2021/22 2022/23 2023/24
UPEES IN

400.00
The following are the comparative
311.35
311.35 FISCAL
F
figures which
ISCAL Y YEAR
EAR
highlight the Company's performance for last five years: -
24 400.00
246.99
246.99
RUPEES IN MILLION
IN MILL

300.00
300.00
INCREASE /
MILL

200.00 FINANCIAL YEAR (DECREASE)

FINANCIAL HIGHLIGHTS

The following are the comparative figures which highlight the Company's performance for last five years: -

RUPEES IN MILLION
50th ANNUAL REPORT 2023/2024 (2080/2081)
INCREASE /
(DECREASE) FINANCIAL YEAR
PARTICULARS % (THIS FY
financial highlights 2023/24 2022/23 2021/22 2020/21 2019/20 VS LAST FY
2022/23)
The
S following
HARE C are
APITAL the
FINANCIAL HIGHLIGHTS
comparative figures which
928.95 highlight
884.72 the Company's
842.58 performance
842.58 for last
842.58 five years: -
5.00%
FIXED ASSETS GROSS BLOCK 3,789.47 3,281.28 2,909.57 2,826.83 2,722.99 15.49%
The following
TOTAL are the comparative figures
REVENUE which highlight
2,498.42 2,254.63the 1,369.12
Company's performance
453.93
Rupees
for last
1,264.01
in million
five years: -
10.81%
FINANCIAL HIGHLIGHTS
PROFIT FROM OPERATIONS 750.95 695.79 333.71 (172.49) R140.50 7.93%
UPEES INIncrease
MILLION /
NETfollowing
PROFIT/ (L ) comparative figures
600.04 Financial
554.98 the 297.24Year (224.93) 112.04 8.12%
The OSSthe
are which highlight Company's performance for last five I(D
years: - /
NCREASE
ecrease ) FINANCIAL YEAR (DECREASE)
Particulars % (this FY
PARTICULARS
GRAPH: FINANCIAL HIGHLIGHTS SHARE CAPITAL2022/23 RUPEES IN% MILLION
(THIS FY
2023/24 2021/22 2020/21 2019/20 VINCREASE
s Last FY
/
2023/24 2022/23 FINANCIAL
2021/22 V LAST FY
YEAR2020/21 2019/20
RUPEES IN(DS
MILLION
2022/23)
ECREASE)
2022/23)
SShare PARTICULARS % (THIS FY
HAREC 928.95 884.72 842.58 842.58 842.58 5.00%
Capital
APITAL
2023/24 SHARE
928.95 CAPITAL
884.72
2022/23
842.58
2021/22
842.58
2020/21
842.58
2019/20
5.00%
VS LAST FY
Fixed
IXED A SSETSGG
Assets ross
ROSS BB
lock
LOCK 3,789.47 3,281.28
3,789.47 3,281.28 2,909.57
2,909.57 2,826.83
2,826.83928.95
2,722.99 2022/23)
2,722.99 15.49%
15.49%
S
Total
OTALR
HARE 940.00
C
Revenue
APITAL
EVENUE 928.95
2,498.42 884.72
2,498.42 2,254.63 842.58
2,254.63 1,369.12
1,369.12 842.58 842.58
453.93 1,264.01
453.93 1,264.01 5.00%
10.81%
10.81%
RUPEES IN MILLION

FINANCIAL 920.00
HIGHLIGHTS
PFrofit
IXED A
ROFIT SSETSOG
FROM
from
ROSS BLOCK
Operations
PERATIONS 3,789.47
750.95
750.95 3,281.28
695.79
695.79 2,909.57
884.72 2,826.83
333.71
333.71 (172.49) 2,722.99
(172.49) 140.50
140.50 15.49%
7.93%
7.93%
T OTAL 900.00
R EVENUE 2,498.42 2,254.63 1,369.12 453.93 1,264.01 10.81%
Net
N
The PProfit
ETfollowing
ROFIT //(L(L OSS
are
oss ) comparative figures
)the 600.04
600.04 554.98
which highlight 297.24
554.98the Company's (224.93)
297.24 performance
(224.93) 112.04
112.04
for 8.12%
8.12%
last five years: -
PROFIT880.00
FROM OPERATIONS
842.58 750.95
842.58 695.79
842.58 333.71 (172.49) 140.50 7.93%
GNRAPH
raph ::860.00
ET PROFITFINANCIAL
F inancial highlightsSS
/ (LOSS) HIGHLIGHTS HARE
hare CC
600.04
apital 554.98
APITAL 297.24 (224.93) R112.04
UPEES IN MILLION8.12%
840.00 INCREASE /
FINANCIAL YEAR RUPEES IN(DMILLION
ECREASE)
GRAPH820.00 : FINANCIAL HIGHLIGHTS SHARE CAPITAL
PARTICULARS % (THIS FY
800.00
2023/24SHARE CAPITAL
2022/23 2021/22 2020/21
RUPEES INVSMILLION
2019/20 LAST FY
780.00 928.95 2022/23)
SHARE940.00CAPITAL 2019/20 2020/21 SHARE
928.95 CAPITAL
2021/22
884.72 2022/23 842.58
842.58 2023/24842.58 5.00%
928.95
RUPEES

920.00
FIXED A940.00
SSETS GROSS BLOCK 3,789.47 3,281.28
FISCAL 2,909.57
YEAR884.72 2,826.83 2,722.99 15.49%
TOTAL 900.00
RUPEES

R920.00
EVENUE 2,498.42 2,254.63 1,369.12 453.93 1,264.01 10.81%
880.00 884.72
GRAPH:900.00
PROFIT FROM OPERATIONS842.58 750.95
842.58 695.79
842.58 333.71 (172.49) 140.50 7.93%
FINANCIAL HIGHLIGHTS – FIXED ASSETS GROSS BLOCK
IN M

NET PROFIT860.00
880.00
/ (LOSS) 600.04 554.98 297.24 (224.93) 112.04 IN MILLION
8.12%
842.58 842.58 842.58 RUPEES
840.00
IN ILLION

860.00
GRAPH820.00 :840.00
FINANCIAL HIGHLIGHTS SHARE CAPITAL GROSS BLOCK
MILLION

800.00
820.00 RUPEES IN MILLION
3,789.47
780.00
800.00
4,000.00 3,281.28
780.00 2019/20 2020/21 SHARE CAPITAL
2021/22
2,909.57 2022/23 2023/24
3,500.00 2,826.83 928.95
2,722.99
RUPEES IN MILLION

2019/20 2020/21 2021/22 2022/23 2023/24

940.00
3,000.00 F ISCAL Y EAR
RUPEES IN MILLION RUPEES IN MILLION

FISCAL YEAR 920.00

2,500.00
884.72
GRAPH ::900.00
FFINANCIAL
2,000.00
raph highlights––FF
inancial HIGHLIGHTS AssetsGROSS
ixedASSETS
IXED Gross Block
BLOCK
GRAPH:880.00
FINANCIAL HIGHLIGHTS – FIXED ASSETS GROSS BLOCK
1,500.00 842.58 842.58 842.58 RUPEES IN MILLION
860.00 RUPEES IN MILLION
1,000.00
840.00 GROSS BLOCK
500.00
820.00
GROSS BLOCK
3,789.47
0.00
800.00
4,000.00 3,789.47
4,000.00 3,281.28
780.00 2019/20 2020/21 2021/22 2022/23
3,281.28 2023/24
3,500.00 2,909.57
3,500.00 2,826.83
2,722.99 2020/21 2,909.57
RUPEES IN MILLION

2019/20 2021/22
FISCAL YEAR
2,826.83 2022/23 2023/24
FINANCIAL HIGHLIGHTS2,722.99
3,000.00 – TOTAL EXPENDITURE DISTRIBUTION BREAK UP
3,000.00
The following FISCAL
are the break up for Total Expenses made: - YEAR
2,500.00 2,500.00
2,000.00 CURRENT YEAR (2023/24)
2,000.00
GRAPH: FINANCIAL HIGHLIGHTS – FIXED ASSETS GROSS BLOCK
PARTICULARS
1,500.00
1,500.00 RUPEES PERCENTAGE (%)
IN
RUPEES
MILLION
IN MILLION
IN BREAK UP
1,000.00
1,000.00
SALARY,500.00
500.00 ROSS
ALLOWANCES, WAGES & OTHER EMPLOYEES RELATEDLOCK
EXPENSES G B 563.38 29.83%

0.00
0.00
CONSUMPTION OF FOOD, PROVISIONS AND BEVERAGES 3,789.47
405.15 21.45%
4,000.00 2019/20
2019/20 2020/21
2020/21 2021/22
2021/22 2022/23
2022/23 2023/24
2023/24
3,281.28 303.46
OPERATING EXPENSES 16.07%
3,500.00 FISCAL 2,909.57
YEAR
2,722.99 F ISCAL Y
2,826.83 EAR
RUPEES IN MIL

OTHER EXPENSES 337.97 17.90%

3,000.00
FINANCE COST 3.60 0.19%
2,500.00 25
DEPRECIATION & AMORTIZATION 137.50 7.28%
PROVISION FOR TAXATION
2,000.00 137.46 7.28%
1,500.00
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Financial highlights – Total Expenditure Distribution Break up

The following are the break up for Total Expenses made: -

FINANCIAL HIGHLIGHTS – TOTAL EXPENDITURE DISTRIBUTION BREAK UP Current Year (2023/24)

Particulars Rupees in Percentage (%) In
The following are the break up for Total Expenses made: -
Million Break Up
CURRENT YEAR (2023/24)
Salary, Allowances, Wages & Other Employees Related Expenses 563.38 29.83%
PARTICULARS RUPEES PERCENTAGE (%)
Consumption of Food, Provisions and Beverages IN M405.15
ILLION 21.45%
IN BREAK UP

OSperating
ALARY, AE xpenses
LLOWANCES , WAGES & OTHER EMPLOYEES RELATED EXPENSES 303.46
563.38 16.07%
29.83%

OCther ExpensesOF FOOD, PROVISIONS AND BEVERAGES

ONSUMPTION 337.97
405.15 17.90%
21.45%

FO PERATING EXPENSES
inance Cost
303.46
3.60 16.07%
0.19%
OTHER EXPENSES 337.97 17.90%
Depreciation & Amortization 137.50 7.28%
FINANCE COST 3.60 0.19%
PD
rovision for Taxation
EPRECIATION & AMORTIZATION
137.46
137.50
7.28%
7.28%
TPotal Expenditure
ROVISION FOR TAXATION 1,888.53
137.46 100.00%
7.28%
TOTAL EXPENDITURE 1,888.53 100.00%
Graph: Financial highlights –Distribution Break up of Total Expenses
GRAPH: FINANCIAL HIGHLIGHTS –DISTRIBUTION BREAK UP OF TOTAL EXPENSES
IN PERCENTAGE
TOTAL EXPENDITURE DISTRIBUTION
[CATEGORY NAME]
PROVISION FOR TAXATION
7.28%
BREAK UP
DEPRECIATION & AMORTIZATION
[CATEGORY NAME] SALARY, ALLOWANCES,
7.28% WAGES & OTHER EMPLOYEES
[CATEGORY NAME]
RELATED EXPENSES
29.83%
Finance
FINANCE CCost
OST

0.19%

OTHER EXPENSES
17.90%

MAJOR FINANCIAL INDICATORS

The following are the comparative figures for major Financial Indicators which show the performance of the
MAJOR FINANCIAL
Company INDICATORS
for last five years: -

The following are the comparative figures for major Financial Indicators which show
FINANCIAL YEARthe performance of the
Company for lastPfive
ARTICULARS
years: -
2023/24 2022/23 2021/22 2020/21 2019/20
DEBT EQUITY RATIO 0.01 0.01 F INANCIAL
0.04YEAR 0.07 0.01
PARTICULARS
RETURN ON EQUITY SHAREHOLDERS FUND 2023/24
0.25 2022/23
0.26 2021/22
0.17 2020/21
(0.16) 2019/20
0.07
D E R
EARNINGS PER SHARE (RS)
EBT QUITY ATIO
0.01 0.01 0.04 0.07 0.01
6.46 6.27 3.53 (2.67) 1.33 CONSUMPTION OF FOOD,
NRET
ETURN EQUITY
ONPER
WORTH SHAREHOLDERS
SHARE (RS) FUND [CATEGORY NAME]
PROVISIONS AND BEVERAGES
0.25
25.48 0.26
23.81 0.17
20.52 (0.16)
17.00 21.45% 19.67 0.07
GEROSS PERVALUE
ASSETS
ARNINGS SHAREPER
(RSSHARE
) (RS) 33.92
6.46 31.96
6.27 29.07
3.53 26.06
(2.67) 29.83
1.33
[CATEGORY NAME]
OPERATING EXPENSES
MNARKET VALUE
ET WORTH PSHARE
ER SHARE
16.07%
PER (RS) 25.48
442.00 23.81
485.00 20.52
202.50 17.00
262.00 19.67
154.00
(SHARE OF RS.10 EACH)
GROSS ASSETS VALUE PER SHARE (RS)
PRICE EARNINGS RATIO (TIMES) FISCAL YEAR33.92
2023/24
31.96 29.07 26.06 29.83
68.43 77.32 57.40 (98.14) 115.81
MARKET VALUE PER SHARE
CURRENT RATIO 442.00
1.07 485.00
1.11 202.50
0.90 262.00
0.62 154.00
1.33
(SHARE OF RS.10 EACH)
DPEBTS /CAPITAL EMPLOYED RATIO (TIMES)
RICE EARNINGS RATIO (TIMES) 0.34 0.44 3.51 6.26 0.23
68.43 77.32 57.40 (98.14) 115.81
26
C URRENT RATIO
GRAPH: FINANCIAL HIGHLIGHTS - LIQUIDITY AND CASH1.07 1.11
POSITION: C 0.90
URRENT RATIO 0.62 1.33
DEBTS/CAPITAL EMPLOYED RATIO (TIMES) 0.34 0.44 3.51 6.26 IN TIMES
0.23
The following are the comparative figures for major Financial Indicators which show the performance of the
MAJOR FINANCIAL
Company INDICATORS
for last five years: -
17.90%
The following are the comparative figures for major Financial Indicators which show
FINANCIAL YEARthe performance of the
Company for lastPfive ARTICULARS
years: -
2023/24 2022/23 2021/22 2020/21 2019/20
50 th
ANNUAL REPORT 2023/2024 (2080/2081)
DEBT EQUITY RATIO 0.01 0.01 FINANCIAL
0.04YEAR 0.07 0.01
PARTICULARS
MAJOR FINANCIAL INDICATORS
MAJOR
RETURN ONFINANCIAL INDICATORS
EQUITY SHAREHOLDERS FUND 2023/24
0.25 2022/23
0.26 2021/22
0.17 2020/21
(0.16) 2019/20
0.07
The following are the comparative figures for major Financial Indicators which show the performance of the
D
EARNINGSE R
PERlast
SHARE
the(R S)
EBT QUITY ATIO
MAJOR
Company
The FINANCIAL
for
following are five INDICATORS
years: -
comparative 0.01
6.46
figures for major Financial 0.01 which
6.27
Indicators 0.04
3.53 0.07
show the(2.67)
performance 0.01
1.33
of the
R
N
Company
ETURN
ET WORTHfor
ON Elast
PER SHARES
five
QUITY (R S) -
years:
HAREHOLDERS FUND
0.25 Indicators
25.48
The following are the comparative figures for major Financial 0.26 which
23.81 0.17
20.52 (0.16)
show the 17.00
performance 0.07
19.67
of the
FINANCIAL YEAR
Company for Pfive
ARTICULARS
GEROSS
ARNINGS PERlast
ASSETS SHARE
VALUE years:
(R
PER ) - (RS)
SSHARE 33.92 31.96
6.46 2022/23
Financial Year
29.07
6.27 2021/22 26.06
3.53 2020/21 29.83
(2.67) 2019/20
1.33
Particulars 2023/24
M ARKET VALUE PSHARE
ER SHARE 2023/24 2022/23 2021/22 2020/21 2019/20
DNEBT EQUITY
ET WORTH RATIO
PER (RS) 25.48
0.01 0.01 FINANCIAL
23.81 YEAR
20.52
0.04 17.00
0.07 19.67
0.01
D(Sebt Equity
HARE OF RS R.10 PARTICULARS
atioEACH ) 442.00
0.01 485.000.01 202.50
0.04 262.00
0.07 154.00
0.01
RGETURN ON EQUITY SHAREHOLDERS FUND
ROSS ASSETS VALUE PER SHARE (RS) 2023/24
0.25 2022/23
0.26 2021/22
0.17 2020/21
(0.16) 2019/20
0.07
RPeturn
RICE Eon Equity
ARNINGS RSATIO (TIMES) Fund
hareholders 33.92
0.25 31.96
0.26 29.07
0.17 26.06
(0.16) 29.83
0.07
DARNINGS
EM EBT EQUITY
P ER RS HARE (RS)
ATIO 68.43 77.32 57.40 (98.14) 115.81
ARKET V ALUE P
Earnings Per Share (Rs)ER S HARE 0.01
6.46
6.46 0.01
6.27
6.27 0.04
3.53
3.53 0.07
(2.67)
(2.67) 0.01
1.33
1.33
CRURRENT RATIO
ESQUITY S(R FUND 442.00
1.07 485.00
1.11 202.50
0.90 262.00
[CATEGORY
0.62 154.00
NAME]
1.33
NN(SETURN
etHARE
ET
worth
ONR
OF
WORTH PER
per .10
shareEACH
SHARE (R
s) )S)
HAREHOLDERS
0.25
25.48
25.48 0.26
23.81
23.81 0.17
20.52
20.52 (0.16)
17.00
17.00 0.07
19.67
21.45% 19.67
D
GP
EEBTS /C
E APITAL
PER SEHARE
RMPLOYED ) RATIO
(TSSHARE
(R ) s(R(TIMES) 0.34 0.44 3.51 6.26 0.23
G RICE
ROSS
ARNINGS
ross ARNINGS
ASSETS
assets VALUE
value ATIO
PER
per
[CATEGORY NAME]
IMES
share (R ) S) 33.92
33.92
68.43
6.46 31.96
31.96
77.32
6.27 29.07
29.07
57.40
3.53 26.06
26.06
(98.14)
(2.67) 29.83
29.83
115.81
1.33
M
MC ARKET
Narket V
Value
ALUE P
Per
ER S
16.07%
Share
HARE
(RS)
ET WORTH
URRENT RATIO
PER SHARE
25.48
442.00
1.07
442.00 23.81
485.00
1.11
485.00 20.52
202.50
0.90
202.50 17.00
262.00
0.62
262.00 19.67
154.00
1.33
154.00
G(S
(Share :of
RAPH
HARE OF
RRsS.10
.10each
FINANCIAL ))
HIGHLIGHTS
EACH - LIQUIDITY AND CASH POSITION :C URRENT RATIO
G
D ROSS ASSETS VALUE PER SHARE (RS)
/C E R (T F) ISCAL Y EAR 2023/24
33.92 31.96 29.07 26.06
EBTS
PPrice
APITAL MPLOYED
RICE EARNINGS RATIO (TIMES)
Earnings Ratio (Times)
MARKET VALUE PER SHARE
ATIO IMES
0.34
68.43
68.43 0.44
77.32
77.32 3.51
57.40
57.40 6.26
(98.14)
(98.14) T29.83
IN115.81
0.23
IMES
115.81
CC(S
URRENTRR
urrent
HARE OF
ATIO
atio
RS.10 EACH) 1.07
442.00
1.07 1.11
485.00
1.11 0.90
202.50
0.90 0.62
262.00
0.62 1.33
154.00
1.33
G
DD RAPH
EBTS
Pebts
RICE
: ARNINGS
/C
/C FINANCIAL
APITAL
Eapital EE R
HIGHLIGHTS
ATIO (TR
MPLOYED
mployed RATIO
atio
1.33
IMES
(T-IMES
) (Times
L) IQUIDITY
) AND CASH
URRENT POSITION
0.34
0.34
68.43
ATIO
77.32
C
:0.44
C URRENT RATIO
0.44 3.51
3.51
57.40
R 6.26
6.26
(98.14)
0.23
0.23
115.81
IN TIMES
CURRENT

G 1.40
:: FINANCIAL highlights - Liquidity and Cash Position:URRENT
Current Ratio
CURRENT
raph RATIO
financial
GRAPH HIGHLIGHTS - LIQUIDITY AND CASH1.07
POSITION 1.11
:C 0.90
1.11
RATIO 0.62
1.07
1.33
DEBTS/CAPITAL EMPLOYED RATIO (TIMES)
1.20
1.33
CURRENT
0.34 RATIO
0.90
0.44 3.51 6.26 IN TIMES
0.23

1.00
CURRENT

1.40 0.62CURRENT RATIO

GRAPH: FINANCIAL HIGHLIGHTS - LIQUIDITY AND CASH POSITION: CURRENT RATIO
0.80 1.33 1.11 1.07IN TIMES
RCATIO

1.20
1.40
1.11
URRENT

0.60 0.90 1.07

1.20
1.00 C URRENT 0.90R ATIO
0.40 1.33
1.00 0.62
0.80
(CR

1.40
TIMES

0.20 0.62 1.11

URRENT

0.80 1.07
ATIO
RATIO

0.60
1.20
-
0.60 0.90
1.00
0.40
) (TIMES

2019/20 2020/21 2021/22 2022/23 2023/24

0.40 0.62
0.80 FISCAL YEAR
(R

0.20
TIMES

0.20
ATIO)) (TIMES)

0.60
--
GRAPH: FINANCIAL HIGHLIGHTS – DEBTS / TOTAL CAPITAL RATIO
0.40 2019/20
2019/20 2020/21
2020/21 2021/22
2021/22 2022/23
2022/23 2023/24 IN TIMES
2023/24
0.20 F ISCAL Y
FISCAL YEAR
EAR

- D EBTS / TOTAL CAPITAL RATIOS

GRAPH
Graph:: FINANCIAL highlights––DD
financial HIGHLIGHTS EBTS //
ebts TOTAL
T CAPITAL
otal RATIO
Capital Ratio
GRAPH: FINANCIAL HIGHLIGHTS
2019/20 – DEBTS / TOTAL
2020/21 CAPITAL
2021/22RATIO 2022/23 2023/24 IN TIMES
8.00 FISCAL YEAR IN TIMES
6.26
DEBTS / TOTAL CAPITAL RATIOS
6.00 HIGHLIGHTS – DEBTS / TD
GRAPH: FINANCIAL EBTS / TOTAL
CAPITAL RATIOCAPITAL RATIOS
RATIO T

OTAL

8.00 3.51 IN TIMES

6.26
4.00
8.00
6.00 DEBTS / TOTAL CAPITAL RATIOS
6.26
RIME
ATIO

2.00 3.51 0.44

6.00 0.23 0.34
RATIO

4.00
8.00
TIMERT

- 6.26 3.51
2.00
4.00 0.44
6.00 2019/20
0.23 2020/21 2021/22 2022/23 2023/24
0.34
FISCAL Y3.51
ATIO

- EAR
IME TIME

2.00
4.00 0.44
0.23
2019/20 2020/21 2021/22 2022/23 0.34
2023/24
FISCAL YEAR
-
2.00 0.44
0.23 0.34
2019/20 2020/21 2021/22 2022/23 2023/24
- FISCAL YEAR
2019/20 2020/21 2021/22 2022/23 2023/24
FISCAL YEAR
27
 50th ANNUAL REPORT 2023/2024 (2080/2081)

GGraph: :financial
RAPH FINANCIAL highlights –P
HIGHLIGHTS – rice E
PRICE arningsRR
EARNINGS ATIO
atio
GRAPH: FINANCIAL HIGHLIGHTS – PRICE EARNINGS RATIO
GRAPH: FINANCIAL HIGHLIGHTS – PRICE EARNINGS RATIO
IN TIMES
IN TIMES
IN TIMES
PRICE EARNING RATIO (TIMES)
150.00 115.81 PRICE EARNING RATIO (TIMES)
115.81
PRICE EARNING RATIO (TIMES)
150.00 77.32
150.00 115.81 68.43
100.00 57.40 77.32
100.00 57.40 77.32 68.43
TIMES

100.00 57.40 68.43

TIMES

50.00
TIMES

50.00
50.00
-
-
- 2019/20 2020/21 2021/22 2022/23 2023/24
2019/20 2020/21 2021/22 2022/23 2023/24
(50.00) 2019/20 2020/21 2021/22 2022/23 2023/24
(50.00)
(50.00)
(100.00)
(100.00)
(100.00) (98.14)
(98.14)
(98.14)
FISCAL Y
FISCAL YEAR
EAR PRICE E
PRICE ARNING R
EARNING (TIMES
ATIO (T
RATIO IMES))
FISCAL YEAR PRICE EARNING RATIO (TIMES)

GGraph: :financial
RAPH FINANCIAL highlights –E
HIGHLIGHTS – arnings PPER
EARNINGS erSS
HARE
hare
GRAPH: FINANCIAL HIGHLIGHTS – EARNINGS PER SHARE
IIN RUPEES
N RUPEES
E
E ARNING P ER S (RS))
ARNING P ER S
HARE (R
EARNING PER SHARE
HARE (RSS)
8.00 6.27 6.46
8.00 6.27
6.27 6.46
6.46
8.00
6.00
6.00 3.53
RR

6.00 3.53
R
UPEES

4.00
UPEES

1.33
UPEES

4.00 1.33
2.00
2.00
-
-- 2019/20 2020/21 2021/22 2022/23 2023/24
(2.00) 2019/20 2020/21 2021/22 2022/23 2023/24
(2.00) 2019/20 2020/21 2021/22 2022/23 2023/24
(2.00) (2.67)
(4.00)
(4.00) (2.67)
(4.00) (2.67)
FIISCAL YEAR EARNING PER SHARE (RS)
FIISCAL YEAR EARNING PER SHARE (RS)
FIISCAL YEAR EARNING PER SHARE (RS)
GRAPH: FINANCIAL HIGHLIGHTS – NET WORTH PER SHARE
GGraph: :financial
RAPH HIGHLIGHTS – N
FINANCIAL highlights NET WORTH
et W orthPP
ER Share
erSHARE
GRAPH: FINANCIAL HIGHLIGHTS – NET WORTH PER SHARE IN RUPEES
IN RUPEES
NET WORTH PER SHARE (RS) IN RUPEES
NET WORTH PER SHARE (RS)
30.00
30.00
NET WORTH PER SHARE23.81
(RS) 25.48
25.48
19.67 20.52 23.81
25.00
30.00 25.48
25.00 19.67 17.00 20.52 23.81
RR

17.00
UPEES

20.00 19.67 20.52

25.00
UPEES

20.00
17.00
RUPEES

15.00
20.00
15.00
10.00
15.00
10.00
5.00
5.00
10.00
-
-
5.00 2019/20 2020/21 2021/22 2022/23 2023/24
2019/20 2020/21 2021/22
FISCAL YEAR 2022/23 2023/24
NET WORTH PER SHARE…
- FISCAL YEAR NET WORTH PER SHARE…

2019/20 2020/21 2021/22 2022/23 2023/24

28 FISCAL YEAR NET WORTH PER SHARE…
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Financial Highlights - Gearing Ratio, Current Assets, Liabilities and Capital Employed

The Debts and total capital employed in the Company for last five years are enlisted below with a comparison on
FINANCIAL
current Hwhich
ratio IGHLIGHTS - GEARING RATIO, CURRENT ASSETS, LIABILITIES AND CAPITAL EMPLOYED
shows the Company's ability to meet its current obligations: -
The Debts and total capital employed in the Company for last five years are enlisted below with a comparison
on current ratio which shows the Company's ability to meet its current obligations: - Rupees in million
RUPEES IN MILLION
FINANCIAL YEAR
Particulars
PARTICULARS 2023/24 2022/23 FINANCIAL
2021/22 YEAR
2020/21 2019/20
Current Assets 2023/24
564.02 2022/23
538.97 2021/22
445.74 2020/21
349.00 2019/20
591.47
CURRENT ASSETS 564.02 538.97 445.74 349.00 591.47
Current Liability 525.67 485.78 496.42 561.36 443.41
CURRENT LIABILITY 525.67 485.78 496.42 561.36 443.41

D
Debts
EBTS 8.00
8.00 9.24
9.24 62.99
62.99 95.70
95.70 3.82
3.82
TTotal Equity
OTAL EQUITY
2,366.82
2,366.82 2,106.41
2,106.41 1,729.32
1,729.32 1,432.24
1,432.24 1,657.18
1,657.18
C apital Employed (CE)
CAPITAL EMPLOYED (CE) 2,374.81
2,374.81
2,115.65
2,115.65
1,792.32
1,792.32
1,527.95
1,527.95
1,661.00
1,661.00
(S HAREC
(Share Capital
APITAL+ +RR
eserves +D
ESERVES + ebts
DEBTS) )

Graph:: FINANCIAL
GRAPH highlights --CC
financial HIGHLIGHTS urrentAA
URRENT ssetsAND
SSETS CurrentLIABILITIES
andCURRENT Liabilities
RUPEES IN MILLION

591.47 CURRENT ASSETS AND LIABILITIES

600.00 561.36 564.02
538.97 525.67
496.42 485.78
500.00 443.41 445.74
RUPEES IN MILLION

400.00 349.00

300.00

200.00

100.00

-
2019/20 2020/21 2021/22 2022/23 2023/24
CURRENT ASSETS
FISCAL YEAR
CURRENT LIABILITY
GRAPH: FINANCIAL HIGHLIGHTS – TOTAL CAPITAL EMPLOYED (SHARE CAPITAL, RESERVE & DEBTS)
Graph: – Total
TOTAL
financial highlights Capital
CAPITAL Employed
EMPLOYED (Share, C
(CAPITAL Rapital
ESERVE,R DEBTS)& Debts)
&eserve
RUPEES IN 2,374.81
2,366.82 MILLION
2,500
2,115.65
TOTAL CAPITAL EMPLOYED (CAPITAL, RESERVE
2,106.41
& DEBTS)
RUPEES IN MILLION

2,000 1,792.32 2,366.82 2,374.81

2,500 1,729.32
1,657.18 1,661.00
1,527.95 2,106.41 2,115.65
RUPEES IN MILLION

1,432.24
1,500
2,000 1,729.32 1,792.32
1,657.18 1,661.00
1,527.95
1,432.24
1,500
1,000
1,000
500
500 95.70 62.99
3.82 95.70 62.99 9.24 8.00
3.82 9.24 8.00
-
-
2019/20
2019/20 2020/21
2020/21 2021/22
2021/22 2022/23
2022/23 2023/24
2023/24
F
FISCAL YEAR
ISCAL YEAR
DEBT EQUITY CAPITAL EMPLOYED (CE)

ANALYSIS OF SHARE TRANSACTIONS

29
Maximum, Minimum and Closing price of the stocks of the Company, Total volume of transacted shares,
Total number of transactions and Trading days during each quarter of the financial year are: -
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Analysis of share transactions

Maximum, Minimum and Closing price of the stocks of the Company, Total volume of
transacted shares, Total number of transactions and Trading days during each quarter
of the financial year are: -

Share Price
(Face value ofRs. 10 each Total Number of
Quarters of FY 2023/24 Share)
Trading Transacted
Maximum Minimum Closing Transactions
Days Shares

1ST QUARTER (END OF ASHWIN 2080) 506.00 390.00 393.00 61 24,253 7,450,754

2ND QUARTER (END OF POUSH 2080) 533.00 382.20 478.00 49 19,085 6,612,574

3RD QUARTER(END OF CHAITRA 2080) 494.00 426.00 439.00 58 11,017 3,516,192

4TH QUARTER (END OF ASHADH 2081) 470.20 416.50 442.00 61 12,937 3,763,396

Total 229 67,292 21,342,916

Graph: The Company's Share Price vis-à-vis NEPSE

THE COMPANY'S SHARE PRICE vis-a'-vis NEPSE

600
533
506
494
500 478 470.2
439 442 SHARE
(FACE VALUE OF RS. 10 EACH SHARE)

426 416.5 PRICE

390 393 382.2
(RUPEES)
400 MAXIMUM
SHARE PRICE

SHARE
300 PRICE
(RUPEES)
MINIMUM
200
SHARE
PRICE
100 (RUPEES)
CLOSING

0
1ST QUARTER END 2ND QUARTER END 3RD QUARTER END 4TH QUARTER END
OF ASHWIN 2080 OF POUSH 2080 OF CHAITRA 2080 OF ASHADH 2081

FISCAL YEAR 2023/24

STOCK MARKET VALUE PER SHARE FOR LAST FIVE YEARS AT THE END OF FINANCIAL YEAR

FINANCIAL YEAR MARKET VALUE PER SHARE (RS)

30 2019/20 154.00
2020/21 262.00
2021/22 202.50
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Stock Market Value per Share for last five years at the end of Financial Year

Financial Year Market Value Per Share (Rs)

2019/20 154.00
2020/21 262.00
2021/22 202.50
2022/23 485.00
2023/24 442.00

Graph: financial highlights – Market Value Per Share (Share of Rs.10 each)

STOCK MARKET VALUE FOR LAST FIVE YEARS AT THE END OF EACH FISCAL YEAR
(FACE VALUE OF RS. 10 EACH SHARE)

485.00

500.00 442.00

450.00

400.00
SHARE PRICE

350.00 262.00

300.00
202.50

250.00
154.00
IN
RUPEES

200.00

150.00

100.00

50.00

-
2019/20 2020/21 2021/22 2022/23 2023/24

FISCAL YEAR

31
50th ANNUAL REPORT 2023/2024 (2080/2081)

32
50th ANNUAL REPORT 2023/2024 (2080/2081)

33
50th ANNUAL REPORT 2023/2024 (2080/2081)

34
50th ANNUAL REPORT 2023/2024 (2080/2081)

35
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

Statement of Financial Position
As at 31 Ashad 2081 (15 July 2024)
Amount in Rs.
As At As At
Particulars Note Ashad 31, 2081 Ashad 31, 2080
(July 15, 2024) (July 16, 2023)
ASSETS
Non-Current Assets:
Property, Plant and Equipment 3.1 2,193,754,170 1,902,297,989
Intangible Assets 3.2 49,612 426,854
Investment Property 3.3 89,383,825 87,197,495
Investments 3.5 281,276,188 275,487,563
Trade and Other Receivables 3.6 22,899,490 23,389,414
Total Non-Current Assets 2,587,363,285 2,288,799,315
Current Assets:
Inventories 3.7 131,237,015 122,203,519
Trade and Other Receivables 3.6 307,900,732 325,843,505
Prepayments 22,968,794 21,379,704
Cash and Cash Equivalent 3.8 101,915,371 69,543,690
Total Current Assets 564,021,912 538,970,418
Total Assets 3,151,385,197 2,827,769,733
EQUITY AND LIABILITIES
Equity and Reserves and Surplus:
Share Capital 3.9 928,953,700 884,715,060
Retained Earnings and Reserves 3.10 1,437,862,264 1,221,697,677
Total Equity 2,366,815,964 2,106,412,737
Liabilities
Non-Current Liabilities:
Loans and Borrowings 3.11 6,636,303 7,931,571
Employee Benefits 3.12 125,414,473 125,674,212
Deferred Tax Liabilities 3.4 34,169,877 24,328,458
Trade and Other Payables 3.14 92,675,392 77,646,019
Total Non-Current Liabilities 258,896,045 235,580,260
Current Liabilities:
Loans and Borrowings 3.11 1,360,289 1,308,207
Employee Benefits 3.12 87,595,759 81,741,340
Income Tax Payable 3.13 5,826,327 14,883,487
Trade and Other Payables 3.14 430,890,813 387,843,702
Total Current Liabilities 525,673,188 485,776,736
Total Liabilities 784,569,233 721,356,996
Total Equity and Liabilities 3,151,385,197 2,827,769,733

Notes 1 to 4.21 form an integral part of this statement As per our report of even date
For and on behalf of Soaltee Hotel Limited

Mukti Nath Shrestha Sudarshan Chapagain Dinesh Bahadur Bista CA. Jitendra B. Rajbhandary
DIRECTOR OF FINANCE VICE PRESIDENT EXECUTIVE CHAIRMAN Senior Partner
J.B. Rajbhandary & DiBins
Chartered Accountants
Lil Bahadur Khatri Ubaraj Adhikari
CHIEF OF CORPORATE AFFAIRS Prakash Bikram Khatri
& COMPANY SECRETARY Sashi Raj Pandey
Jaya Rajya Laxmi Shah
Ravi Bhakta Shrestha
Date: 29 October 2024 Rajesh Kazi Shrestha
(13 Kartik 2081) Niranjan Kumar Tibrewala
Place: Kathmandu, Nepal DIRECTORS

36
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

Statement of Profit or Loss and Other Comprehensive Income
For the period ended on 31 Ashad 2081 (15 July 2024)
Amount in Rs.
Year Ended Year Ended
Particulars Note Ashad 31, 2081 Ashad 31, 2080
(July 15, 2024) (July 16, 2023)
Revenue from Operation 3.15 2,390,449,411 2,156,216,621
Other Income 3.16 107,969,056 98,409,640
Total Revenue 2,498,418,467 2,254,626,261
Consumption of Foods and Beverage 3.17 405,153,476 380,083,406
Employee Benefit Expenses 3.18 563,383,728 502,368,131
Operating Expenses 3.19 303,460,367 285,399,823
Depreciation and Amortization Expense 3.1/3.2/3.3 137,503,255 113,641,170
Other Expenses 3.20 337,967,880 277,343,565
Total Expenditures 1,747,468,706 1,558,836,095
Profit/(Loss) from Operations 750,949,761 695,790,166
Finance Cost 3,602,880 8,660,738
Profit/(Loss) Before Tax 747,346,881 687,129,428
Income Tax 147,304,418 132,149,833
Current Tax 137,462,999 124,608,113
Deferred Tax Expenses/(Income) 3.4 9,841,419 7,541,720
Profit/(Loss) from Continuing Operations 600,042,463 554,979,595
Profit /(Loss) on Discontinued Operations
- -
(Net of tax)
Net Profit/(Loss) for the Year 600,042,463 554,979,595
Other Comprehensive Income
Change in Fair Value of Equity Shares 5,788,625 1,704,821
Total Other Comprehensive Income 5,788,625 1,704,821
Total Comprehensive Income 605,831,088 556,684,416

Basic Earnings per Share (Rs.) 6.46 5.97

3.21
Diluted Earnings per Share (Rs.) 6.46 5.97

Notes 1 to 4.21 form an integral part of this statement As per our report of even date
For and on behalf of Soaltee Hotel Limited

Mukti Nath Shrestha Sudarshan Chapagain Dinesh Bahadur Bista CA. Jitendra B. Rajbhandary
DIRECTOR OF FINANCE VICE PRESIDENT EXECUTIVE CHAIRMAN Senior Partner
J.B. Rajbhandary & DiBins
Chartered Accountants
Lil Bahadur Khatri Ubaraj Adhikari
CHIEF OF CORPORATE AFFAIRS Prakash Bikram Khatri
& COMPANY SECRETARY Sashi Raj Pandey
Jaya Rajya Laxmi Shah
Ravi Bhakta Shrestha
Date: 29 October 2024 Rajesh Kazi Shrestha
(13 Kartik 2081) Niranjan Kumar Tibrewala
Place: Kathmandu, Nepal DIRECTORS

37
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

Statement of Cash Flows
For the year ended on 31 Ashad 2081 (15 July 2024)
Amount in Rs.
Year Ended Year Ended
Particulars Ashad 31, 2081 Ashad 31, 2080
(July 15, 2024) (July 16, 2023)
Cash Flows from Operating Activities
Profit/(Loss) Before Tax for the Year 747,346,881 687,129,428
Adjustment for:
Dividend Income (2,700,000) (19,271,347)
Loss/(Gain) on Sale of Property, Plant and Equipment (179,281) (4,506,502)
Interest Income on Term and Call Deposits (503,776) (147,395)
Impairment Allowance on Trade Receivable 5,000,000 5,000,061
Provision for Bonus 74,734,688 68,712,943
Depreciation/Amortization on PPE, Investment Property & Intangible
137,503,255 113,641,170
Assets
Finance Cost 3,602,880 8,660,738
Operating Cash Flow before changes in Working Capital 964,804,647 859,219,096
(Increase) / Decrease in Trade and Other Receivables 13,432,697 (44,297,143)
(Increase) / Decrease in Inventories (9,033,496) (37,259,559)
(Increase) / Decrease in Prepayment (1,589,090) (6,973,834)
Increase / (Decrease) in Trade and Other Payables 53,679,242 (12,425,112)
Increase/ (Decrease) in Employee Benefits (427,065) 4,479,864
Cash generated from Operations 1,020,866,935 762,743,312
Bonus Paid (68,712,943) (31,517,125)
Income Tax Paid (256,802,957) (76,188,557)
Net Cash Flows from Operating Activities (A) 695,351,035 655,037,630
Cash Flow from Investing Activities
Proceeds from Sale of Property, Plant and Equipment 4,638,540 7,081,771
Acquisition of Property, Plant and Equipment, Investment Property
(435,227,783) (421,780,458)
and Intangible Assets
(Increase)/Decrease in Investments - 16,906,928
Dividend Income 2,700,000 19,271,347
Interest Income on Term and Call Deposits 503,776 147,395
Net Cash Flows from Investing Activities (B) (427,385,467) (378,373,017)
Cash Flow from Financing Activities
Finance Cost (3,602,880) (8,660,738)
Increase/(Repayment) of Borrowings (1,243,186) (53,751,817)
Recovery/(Paid) of Cash for Fractional Bonus Shares 2,887 6,344
Dividend Paid Net (230,750,708) (176,578,128)
Net Cash Flows from Financing Activities (C ) (235,593,887) (238,984,339)
Net Increase in Cash and Cash Equivalents (A+B+C) 32,371,681 37,680,274
Cash and Cash Equivalents at the Beginning 69,543,690 31,863,416
Cash and Cash Equivalents at the End 101,915,371 69,543,690
For and on behalf of Soaltee Hotel Limited As per our report of even date

Mukti Nath Shrestha Sudarshan Chapagain Dinesh Bahadur Bista CA. Jitendra B. Rajbhandary
DIRECTOR OF FINANCE VICE PRESIDENT EXECUTIVE CHAIRMAN Senior Partner
J.B. Rajbhandary & DiBins
Chartered Accountants
Lil Bahadur Khatri Ubaraj Adhikari
CHIEF OF CORPORATE AFFAIRS Prakash Bikram Khatri
& COMPANY SECRETARY Sashi Raj Pandey
Jaya Rajya Laxmi Shah
Ravi Bhakta Shrestha
Date: 29 October 2024 Rajesh Kazi Shrestha
(13 Kartik 2081) Niranjan Kumar Tibrewala
Place: Kathmandu, Nepal DIRECTORS

38
 SOALTEE HOTEL LIMITED
Statement of Changes in Equity
For the period ended on 31 Ashad 2081 (15 July 2024)
Amount in Rs.
Fair Value
Share Share Revaluation Other Retained
Particulars Reserve Total
Capital Premium Reserve Reserve Earning
(OCI)
Closing Balance as at 32.03.2079 842,579,730 16,000,000 35,198,427 7,288,761 827,114,838 1,142,742 1,729,324,498
Change in Fair Value of Investment through OCI - - - - - 1,704,821 1,704,821
Net Profit/(Loss) for Year 2079-80 - - - - 554,979,595 - 554,979,595
Payment of Dividend for 2078-79 - - - - (179,602,521) - (179,602,521)
Issue of Bonus Shares 42,135,330 - - - (42,135,330) - -
Adjustment of Fractional Bonus Shares - - - - 6,344 - 6,344
Received/(Paid)
Closing Balance as at 31.03.2080 884,715,060 16,000,000 35,198,427 7,288,761 1,160,362,926 2,847,563 2,106,412,737
Change in Fair Value of Investment through OCI - - - - - 5,788,625 5,788,625
Net Profit/(Loss) for Year 2080-81 - - - - 600,042,463 - 600,042,463
Payment of Dividend for 2079-80 - - - - (235,147,950) - (235,147,950)
Issue of Bonus Shares 44,238,640 - - - (44,238,640) - -
Adjustment of Fractional Bonus Shares - - - - 2,887 - 2,887
Received/(Paid)
Tax payments of earlier year - - - - (110,282,798) - (110,282,798)
Closing Balance as at 31.03.2081 928,953,700 16,000,000 35,198,427 7,288,761 1,370,738,888 8,636,188 2,366,815,964
For and on behalf of Soaltee Hotel Limited As per our report of even date

Mukti Nath Shrestha Sudarshan Chapagain Dinesh Bahadur Bista CA. Jitendra B. Rajbhandary
DIRECTOR OF FINANCE VICE PRESIDENT EXECUTIVE CHAIRMAN Senior Partner
J.B. Rajbhandary & DiBins
Chartered Accountants
Lil Bahadur Khatri Ubaraj Adhikari
CHIEF OF CORPORATE AFFAIRS Prakash Bikram Khatri
& COMPANY SECRETARY Sashi Raj Pandey
Jaya Rajya Laxmi Shah
Ravi Bhakta Shrestha
Date: 29 October 2024 Rajesh Kazi Shrestha
(13 Kartik 2081) Niranjan Kumar Tibrewala
Place: Kathmandu, Nepal DIRECTORS

39
50th ANNUAL REPORT 2023/2024 (2080/2081)
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

For the period ended on 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

1. General Information
Soaltee Hotel Limited (the Company or SHL) is a limited liability company registered with Office of Company
Registrar as per erstwhile Company Act. Its shares are enlisted with Security Board of Nepal (SEBON)
and listed and traded at Nepal Stock Exchange Ltd. (NEPSE). The registered office of the Company and
the principal place of business is located at Tahachal, Kathmandu, Nepal. Since its incorporation more
than 57 years, SHL has been catering the Tourism sector services with five-star quality hotel facilities
and flight catering kitchen since its commercial operation. SHL has invested in subsidiary Company
Soaltee Hospitality Ltd. for expanding its hotel business. Through Soaltee Hospitality Ltd., wholly owned
subsidiary, it has also invested in Soaltee Sibkrim Hotels and Resorts Pvt. Ltd.

The Company owns and operates a deluxe luxurious property classified under Five Star Deluxe
category by the Government of Nepal with business name and brand "The Soaltee Kathmandu" hotel at
Tahachal, Kathmandu Metropolitan City ward No 13, Kathmandu, Nepal. The property (hotel) is owned
and operated by the Company. The Soaltee Kathmandu has 285 saleable rooms ranging from Deluxe,
Club to Suites. Further, the Company also owns and operates The Soaltee Gate Gourmet, an Inflight
Catering Division under a Technical Assistance Agreement with Gate Gourmet Singapore Pte. Limited,
Singapore.

The Financial Statements were authorized for issue by the meeting of the Board of Directors on 29
October 2024 (13 Kartik 2081) and has recommended for approval by shareholders in the Annual
General Meeting.

2. Significant Accounting Policies

2.1. Basis of Preparation
2.1.1. Statement of Compliance
The financial statements are prepared in accordance with Nepal Financial Reporting Standards (NFRS) as
issued by Accounting Standard Board Nepal and pronounced by The Institute of Chartered Accountants
of Nepal.
2.1.2. Basis of Measurement
These financial statements are prepared under historical cost convention except for the following material
items:
– Investment in shares of entities other than subsidiaries, which have been measured at fair value
– Staff loans provided at subsidized interest rate, which have been measured at amortized cost.
– Other long term liabilities (leave liability), which has been measured at present value of the obligation.
2.1.3. Critical Accounting Estimates
The preparation of the financial statements in conformity with Nepal Financial Reporting Standards
(NFRS) requires the use of certain critical accounting estimates and judgements. It also requires
management to exercise judgement in the process of applying the company’s accounting policies.
The company makes certain estimates and assumptions regarding the future events. Estimates and
judgements are continuously evaluated based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. In the future,
actual result may differ from these estimates and assumptions. The estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are:
a) Useful life of Property, Plant and Equipment
Management reviews the useful life and residual values of property, plant and equipment at the end of
each reporting period. Such life is dependent upon an assessment of both the technical life of the assets
and also their likely economic life, based on various internal and external factors including relative
efficiency and operating costs.

40
 50th ANNUAL REPORT 2023/2024 (2080/2081)

b) Impairment of Property, Plant and Equipment

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and
equipment to d etermine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs to
sell and value in use. Value in use is usually determined on the basis of discounted estimated future
cash flows. This involves management estimates on anticipated commodity prices, market demand and
supply, economic and regulatory environment, discount rates and other factors. Any subsequent changes
to cash flow due to changes in the above mentioned factors could impact on the carrying value of assets.
c) Recognition of Deferred Tax
Significant management judgement is required to determine the amount of deferred tax assets that can
be recognized, based upon the likely timing and the level of future taxable profits together with future
tax planning strategies. The Company based its assumptions and estimates on parameters available
when the financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising beyond the control
of the Company.

Deferred tax is calculated on temporary differences using a known future tax rate 21.25% (Previous Year
21.25%). Deferred tax assets are recognized in respect of all temporary differences giving rise to deferred
tax assets where the management believes it is probable that these assets will be recovered.

d) Other long term employee benefits

Significant judgement is required to determine the estimated liability that shall arise on part of
unused/accumulated leave by the staff and which is generally paid out on retirement or termination
of employment. Valuation of such is done by qualified actuary using assumption like interest rate,
rate of increase in annual compensation, remaining service period etc. Factors considered may change
depending on market changes or legal changes which are beyond the control of the company.

2.1.4. Functional and Presentation Currency

The financial statements are prepared and presented in Nepalese Rupees (Rs.), which is also the
company’s functional currency.

2.2. Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are set out
below. The policies have been consistently applied to all the years presented, unless otherwise stated.
The preparation of financial statements requires the use of certain accounting estimates. The areas
where significant judgements and estimates have been made in preparing the financial statements and
their effects are disclosed in relevant areas.

2.2.1. Standalone financial statements

This financial statement is the standalone financial statement of the company. Consolidated financial
statement as per NFRS 10 is prepared separately.

2.2.2 Associates
Profits or losses arising on transactions between the company and its associates are recognized only
to the extent of unrelated investors' interests in the associate. The investor's share in the associate's
profits and losses resulting from these transactions is eliminated against the carrying value of the
associate.
Any premium paid for an associate above the fair value of the company's share of the identifiable assets,
liabilities and contingent liabilities acquired is capitalized and included in the carrying amount of the
associate. Where there is objective evidence that the investment in an associate has been impaired the
carrying amount of the investment is tested for impairment in the same way as other non-financial
assets.

41
 50th ANNUAL REPORT 2023/2024 (2080/2081)

2.2.3 Financial Assets and Financial Liabilities

i. Recognition
The company initially recognizes financial assets on trade date which is the date on which the company
becomes a party to the contractual provisions of the instruments.

A financial asset or financial liability is measured initially at fair value plus, or an item not at fair value
through profit or loss, transactions costs that are directly attributable to its acquisition or issue.

ii. Classification and Measurement

Financial Assets
The classification and measurement of financial assets depend on how these are managed (the entity’s
business model) and their contractual cash-flows characteristics. These factors determine whether
the financial assets are measured at amortized cost, fair value through other comprehensive income
(‘FVOCI’) or fair value through profit or loss (‘FVPL’).
– At amortized cost: Financial assets at amortized cost are non-derivative financial assets with fixed
or determinable payments for which the Company has intent and ability to hold till maturity. They
are initially recognized at fair value plus any directly attributable transaction cost. Subsequent to
initial recognition, such financial assets are measured at amortized cost using effective interest rate
method less any impairment losses.
– At fair value through profit or loss: Financial assets are classified at fair value through profit or
loss if the company manages such instruments and makes purchases and sales decisions based on
its fair value. Attributable transaction costs and changes in fair value are taken to revenue.
– At fair value through other comprehensive income: Financial assets at FVOCI are non-derivative
financial assets that are not classified in any of the above category. Financial assets at FVOCI are
recognized initially at fair value plus any directly attributable transaction cost. Subsequent to initial
recognition, financial assets are measured at fair value, as far as such fair value is available, and
changes therein, which are recognized in other comprehensive income and presented in the fair
value reserve in equity. When an investment is derecognized, gain or loss accumulated in equity is
reclassified to retained earnings.

Financial Liabilities
All financial liabilities are recognized initially on the trade date, which is the date that the Company
becomes a party to the contractual provisions of the instrument. Subsequent to initial recognition, these
financial liabilities are measured at amortized costs using effective interest rate method.

iii. Derecognition
Financial Assets
The Company derecognizes a financial asset when the contractual rights to the cash flow from the
financial assets expire, or it transfers the rights to receive the contractual cash flows in a transaction in
which substantially all of the risk and rewards of the ownership of the financial assets are transferred
or in which the Company neither transfer nor retains substantially all of the risk and rewards of the
ownership and it does not retain control of the financial assets.
On derecognition of a financial asset, the difference between the carrying amount of the assets (or the
carrying amount allocated to the portion of the assets derecognized) and the sum of (i) the consideration
received (including any new assets obtained less any new liability assumed) and (ii) any cumulative
gain or loss that had been recognized in Other Comprehensive Income (OCI) is recognized in retained
earnings.
Financial Liabilities
The Company derecognizes a financial liability when its contractual obligations are discharged or
cancelled or expired.
iv. Offsetting
The financial assets and financial liabilities are offset and the net amount presented in the statement
of financial position when and only when, the Company has a legal right to set off the amounts and it
intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

42
 50th ANNUAL REPORT 2023/2024 (2080/2081)

v. Amortized cost measurement

The 'amortized cost' of a financial asset and financial liability is the amount at which the financial asset
or financial liability is measured at initial recognition, minus principal repayments, plus or minus the
cumulative amortization using the effective interest method of any difference between initial amount
recognized and the maturity amount minus any reduction for impairment.
vi. Fair value measurement
Fair value of a financial instrument is the amount for which an asset could be exchanged, or a liability
settled, between knowledgeable, willing parties at an arm’s length transaction. Quoted market values
represent fair value when a financial instrument is traded in an organized and liquid market. Where
quoted market values are not available, fair values are estimated by other techniques.
vii. Identification and measurement of impairment
Financial assets
At each reporting date the Company assesses the objective evidence that a financial asset or group
of financial assets is impaired or not. A financial asset or a group of financial assets is impaired and
impairment losses are incurred only if there is objective evidence of impairment as a result of one or
more events that occurred after the initial recognition of the asset and that loss event has an impact on
the estimated future cash flows of the financial assets or group of financial assets that can be reliably
estimated.
Objective evidence that financial assets are impaired includes:
– significant fina ncial difficulty of the debtor
– breach of contract, such as default or delinquency by a debtor
– observable data relating to a group of assets such as adverse changes in the payment status of debtor
The amount of loss is measured as the difference between the asset's carrying amount and amount the
management considers it as recoverable on the basis of financial position of the party and appropriate
estimation made by the management. Receivables considered as less likely to be received are provided
allowance for loss and charged to Statement of Profit or Loss.
In addition, for an investment in an unquoted equity security, a significant or prolonged decline in its
net worth is objective evidence of impairment.
Impairment losses are recognized in Statement of Profit or Loss and reflected in an allowance account
against debtors. Impairment losses on equity investment are routed through Statement of OCI. Interest
on the impaired assets continues to be recognized through the unwinding of the discount. If an event
occurring after the impairment was recognized causes the amount of impairment loss to decrease, then
the decrease in impairment loss is reversed through income statement (OCI in case of available for sale
investment).
If, in a subsequent period, the fair value of an equity investments increases and the increase can be
related objectively to an event occurring after the impairment loss was recognized, then the impairing
loss is reversed through profit or loss; otherwise, any increase in fair value is recognized through OCI.
2.2.4 Impairment of Non-Financial Assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by
which the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset's fair value less cost and value in use. An impairment loss is recognized in Statement of
Profit or Loss. Provisions against impairment are reviewed at each reporting date and adjusted to reflect
the current best estimates. Impairment charges are included in profit or loss except to the extent they
reverse gains previously recognized in Other Comprehensive Income.

2.2.5 Foreign Currency

Transactions entered into by the company entities in a currency other than the currency of the primary
economic environment in which they operate (the "functional currency" is Rs.) are recorded at the rates
ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at
the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled
monetary assets and liabilities are recognized immediately in profit or loss.

43
 50th ANNUAL REPORT 2023/2024 (2080/2081)

2.2.6 Property, Plant and Equipment

Items of property, plant and equipment are initially recognized at cost. Cost includes the purchase price
and other directly attributable costs as well as the estimated present value of any future unavoidable
costs of dismantling and removing items. The corresponding liability is recognized within provisions.
Subsequent expenditure is capitalized only when it is probable that future economic benefits associated
with the expenditure will flow in to the Company. Ongoing repair and maintenance are expensed as
incurred.
The Company identifies and determines cost of each component/ part of the asset separately, if the
component/ part has cost which is significant to the total cost of the asset having useful life that is
materially different from that of the remaining asset. These components are depreciated over their useful
lives; the remaining asset is depreciated over the life of the principal asset.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each reporting date and adjusted prospectively.
An item of property, plant and equipment and any significant part initially recognized is derecognized
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the statement of profit or loss when the asset is
derecognized.
Capital Work in Progress
Assets in the course of construction are capitalized in the assets under capital work in progress (CWIP).
At the point when an asset is operating at management’s intended use, the cost of construction is
transferred to the appropriate category of property, plant and equipment and depreciation commences.

Salvage Value
Company has assessed the salvage value of all its property, plant and equipment to be 5% of its original cost.

Depreciation
Freehold land is not depreciated. Depreciation on assets under construction does not commence until
they are complete and available for use. Depreciation is provided on all other items of property, plant and
equipment so as to write-off their carrying value over the expected useful economic lives.

Items of property, plant and equipment are depreciated on Straight Line Method over their useful life.

Management of the company has assessed useful life of the following category of assets as mentioned.

Category of Assets Estimated useful life

Building 35 - 70 years
Other civil structures 20 - 35 years
Plant and machinery 10 - 30 years
Vehicle 10 - 20 years
Computer and accessories 7 years
Office Equipment 10 years
Furniture, fixture and furnishing 10 years
Leasehold Development 3 years
2.2.7 Intangible Assets
Computer Software
Purchased computer software licenses are capitalized on the basis of the costs incurred to acquire and
bring to use the software. These costs are amortized over the estimated useful lives.
2.2.8 Investment Property
The Company holds certain assets (land and building) for purpose other than its core operating function.
Such assets are classified as investment property.
Items of investment property are initially recognized at cost. Cost includes the purchase price and other
directly attributable costs as well as the estimated present value of any future unavoidable costs of
dismantling and removing items. The corresponding liability is recognized within provisions. Subsequent

44
 50th ANNUAL REPORT 2023/2024 (2080/2081)

expenditure is capitalized only when it is probable that future economic benefits associated with the
expenditure will flow in to the company. Ongoing repair and maintenance are expensed as incurred.
When an item of property, plant and equipment becomes an investment property following a change in
its use, any difference arising at the date of transfer between the carrying amount of the item and its fair
value is recognized directly in equity if it is a gain. Upon disposal of the item, the gain is transferred to
retained earnings. Any loss is recognized in statement of profit or loss.
Incomes arising from use of investment property by third parties are recognized as lease income from
operating lease. The lease rental is adjusted for inflation rate periodically and the same amount is
booked as operating lease income, which the Company believes is more representative than the straight
line method, in line with NFRS 16: Leases.
Salvage Value
Company has assessed the salvage value of its depreciable investment property to be 5% of its original cost.
Depreciation
Land that form part of investment property is not depreciated. Depreciation is provided on other items
of investment property so as to write-off their carrying value over the expected useful economic lives.
Depreciable investment properties are depreciated on Straight Line Method over their useful life.
Management considered the useful life of investment property to be of 55 years.
2.2.9 Investments
Investments in shares of the companies are classified as either at amortized cost or at fair value. The
classification of investment and its subsequent measurement is dependent on the business model for
managing such investments and contractual cash flow characteristics.
Investments are measured at fair value unless measured at amortized cost. Investments are measured at
amortized cost if such investment is held with in order to collect contractual cash flows and contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Subsequent changes in the investments measured at amortized cost are charged to Profit or Loss.
Investments measured at fair value opting the routing through Other Comprehensive Income, at initial
recognition, for adjusting the changes in fair value are charged through Other Comprehensive Income
that forms part of the equity of the Company. Changes in fair value of other investments are charged to
Profit or Loss.
2.2.10 Inventories
Stock of food, beverages, store and operating supplies are initially recognized at cost and subsequently
at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the
ordinary course of business, less the variable selling expenses.
The cost is determined on weighted average method and includes expenditure incurred directly in
acquiring the inventories and bringing them to their present location and condition.
2.2.11 Cash and cash equivalents
Cash and cash equivalents comprises cash balances, call deposits and other short term highly liquid
investments. For the purpose, any cash placement deposits, call deposit or other highly liquid items with
the maturity period of 90 days from the date of transaction is considered as cash equivalent.
2.2.12 Trade and other receivables
Trade and other receivables are stated at transaction value less allowance for impairment.
Staff loan are measured at amortized cost. Discounting rate has been arrived by considering comparable
market rates of similar types of loan. Difference of amortized value and book value of loan is charged to
profit or loss for the period of staff loan.
2.2.13 Share capital
Financial instruments issued by the company are classified as equity only to the extent that they do not
meet the definition of a financial liability or financial asset. The company’s equity shares are classified
as equity instruments.

45
 50th ANNUAL REPORT 2023/2024 (2080/2081)

2.2.14 Employee Benefits

Employee benefits are either defined benefit plan or defined contribution plan. Employee benefits of the
company comprise of gratuity, provident fund and accumulated leave. These benefits are provided as
per the Employee Service Manual and Collective Bargaining Agreement between Employee Union and
the Company.
Provident Fund-Defined Contribution Plan
The Company pays pre-defined provident fund benefit to Social Security Fund (SSF) and the company
does not have any legal or constructive obligation to pay additional amount in future. Contributions to
Provident fund are charged to the statement of profit or loss in the year to which they relate.
Gratuity-Defined Contribution Plan
The Company is required to pay pre-defined amount to Social Security Fund as gratuity to employees.
The Company accrues 8.33% of basic salary of staff as gratuity benefits in accordance with Labor Law
of Nepal and the Company has deposited Employee Gratuity in SSF. The amount presented in financial
statements is the actual liability of gratuity at each reporting date.

Short term and long-term employment benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave
and sick leave in the period the related service is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service.

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.

Accumulated leaves, encashment of which are not expected to occur within twelve months after the
end of the period in which the employee renders the related services are recognized as a liability at the
present value of the obligation as at the reporting date determined based on an actuarial valuation.

2.2.15 Income Tax

Deferred Tax
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilized. The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. The amount of deferred tax provided is based on the expected realization or
settlement of the carrying amount of assets and liabilities using tax rates that are expected to apply in
subsequent periods.

Current Tax
Current tax is the expected tax payable on the taxable income for the year using tax rates at the
reporting date and any adjustment to tax payable in respect of previous years. Current tax is calculated
reasonably in accordance with the provisions of Income Tax Act as per management assumption and
best judgement.

General corporate tax rate is 25%. The Company is entitled to a rebate of 15% on the General tax rate
as per the provisions of Income Tax Act 2058 Sec. 11(2Chha). Accordingly, tax rate applicable to the
company for current fiscal year is 21.25% (previous year rate was 21.25%).

2.2.16 Revenue
Revenue is recognized only when it is probable that the future economic benefits will flow to the Company
and that revenue and associated costs incurred or to be incurred can be reliably measured. Revenue
is measured at the fair value of the consideration received or receivable net of Value Added Taxes, Civil
Aviation Fee and Luxury Tax where applicable.

46
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Revenue from Sale of Services

Revenue is recognized at the time of delivery of services and is stated net of Value Added Tax (VAT) and
Luxury Tax. Revenue from The Soaltee Gate Gourmet -Flight Catering Division sales is stated net of Civil
Aviation Fee.

Revenue from package sales is disclosed net of credits and refunds, included as part of the package.

Dividend
Dividend income from investment in shares is recognized when the right to receive the payment is
established.

Other Income
Other income is recognized on accrual basis when there is reasonable basis to ascertain the amount and
there is reasonable basis for recoverability except for certain membership fee, which are insignificant to
the total revenue.

2.2.17 Expenses
Expenses are accounted on accrual basis where there is reasonable basis to estimate ascertain the
obligation and rationality of such obligation.

License Fee
License fees payable in relation to technical assistance to Gate Gourmet Singapore Pte. Ltd, to operate the
Flight Catering Unit under the brand name of ‘The Soaltee Gate Gourmet’ is based on a fixed percentage
of the Net Sales Value as specified in the Technical Assistance Agreement.

Employee Bonus
Employee bonus is provided in line with the provisions of Bonus Act 2030 BS.

2.2.18 Lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly specified in an arrangement.

A lease is classified at the inception date as a finance lease or an operating lease. For arrangements
entered into prior to 1 Shrawan 2074 the Company has determined whether the arrangement contain
lease on the basis of facts and circumstances existing on the date of transition.

The Company has entered into operating lease arrangement for use of property at The Soaltee Gate
Gourmet. The lease rental is adjusted for inflation rate periodically and the same amount is booked
as operating lease expenses, which the Company believes is more representative than the straight line
method, in line with NFRS 16: Leases.

The Company has entered into operating lease arrangement allowing to use its facilities and infrastructures
to third parties. The lease rental is adjusted for inflation rate periodically and the same amount is
booked as operating lease income, which the Company believes is more representative than the straight
line method, in line with NFRS 16: Leases.

2.2.19 Provisions
The Company applies NAS 37 Provisions, Contingent Liabilities and Contingent Assets in accounting for
non-financial liabilities.

Provisions are recognized for present obligations arising as consequences of past events where it is more
likely than not that a transfer of economic benefit will be necessary to settle the obligation, which can be
reliably estimated. Provision is made for the anticipated costs when an obligation exists.

2.2.20 Current versus non-current classification

The Company presents assets and liabilities in statement of financial position based on current/non-
current classification. Based on the nature of products and the time between acquisition of assets for

47
 50th ANNUAL REPORT 2023/2024 (2080/2081)

processing and their realization in cash and cash equivalents, the Company has ascertained its operating
cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

The Company classifies an asset as current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

The Company classifies a liability as current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.2.21 Segment Reporting

The Company’s segmental reporting is in accordance with NFRS 8 Operating Segments. Operating
segments are reported in a manner consistent with the internal reporting provided to the Company's
management, which is responsible for allocating resources and assessing performance of the operating
segments. All transactions between business segments are conducted on an arm's length basis, with
intra-segment revenue and costs being eliminated centrally. Income and expenses directly associated
with each segment are included in determining business segment performance.

2.2.22 Government Grant

Government grants, including non-monetary grants at fair value, is recognized when there is reasonable
assurance that the Company will comply with the conditions attaching to grant and the grants will
be received. Government grants is recognized in profit or loss on a systematic basis over the periods
in which the Company recognizes as expenses the related costs for which the grants are intended to
compensate.

2.2.23 Operating Cycle

The Company considers its operating cycle to be of 12 months.

48
 SOALTEE HOTEL LIMITED
As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements
Note 3.1: Property, Plant & Equipment
Amount in Rs.
Office
Plant and Ma- Furniture and
Particulars Freehold Land Building Equip- Computers Vehicles Leasehold Capital WIP Total
chinery Fixture
ment
Cost
Balance at
149,488,779 914,155,783 1,180,937,429 456,078,979 6,304,391 70,468,468 114,992,907 17,142,913 167,269,984 3,076,839,633
01.04.2079
Addition - 185,269,220 179,422,284 19,550,868 714,940 2,991,597 18,125,664 - 289,357,378 695,431,951
Disposal/Trans-
- (1,262,458) (25,135,424) (1,239,068) (370,000) (5,130,696) (1,225,000) - (273,651,493) (308,014,139)
fer
Balance at
149,488,779 1,098,162,545 1,335,224,289 474,390,779 6,649,331 68,329,369 131,893,571 17,142,913 182,975,869 3,464,257,445
31.03.2080
Addition - 257,197,773 182,174,582 28,305,184 59,900 1,465,120 46,552,428 7,500,084 320,773,231 844,028,302
Disposal/Trans-
- (1,235,738) (4,695,938) (2,165,267) (21,490) (594,100) (6,350,000) - (413,080,649) (428,143,182)
fer
Balance at
149,488,779 1,354,124,580 1,512,702,933 500,530,696 6,687,741 69,200,389 172,095,999 24,642,997 90,668,451 3,880,142,565
31.03.2081
Depreciation and Impairment loss
Balance at
- 323,688,419 741,466,290 313,060,893 5,954,747 51,558,949 41,366,005 5,366,726 - 1,482,462,028
01.04.2079
Charge for the
- 25,436,935 42,363,007 24,711,275 108,195 5,042,022 7,518,353 6,105,018 - 111,284,805
year
Disposal - (802,227) (23,022,084) (1,239,068) (368,302) (5,130,696) (1,225,000) - - (31,787,377)
Balance at
- 348,323,127 760,807,213 336,533,100 5,694,640 51,470,275 47,659,358 11,471,744 - 1,561,959,456
31.03.2080
Charge for the
- 32,006,546 53,699,393 26,530,825 172,180 5,222,756 10,239,895 7,160,618 - 135,032,213
year
Disposal - (929,048) (4,636,579) (2,161,607) (21,490) (555,589) (2,298,961) - - (10,603,274)
Balance at
- 379,400,625 809,870,027 360,902,318 5,845,330 56,137,442 55,600,292 18,632,362 - 1,686,388,395
31.03.2081
Net Book Value
At 01.04.2079 149,488,779 590,467,364 439,471,139 143,018,086 349,644 18,909,519 73,626,902 11,776,187 167,269,984 1,594,377,605
At 31.03.2080 149,488,779 749,839,418 574,417,076 137,857,679 954,691 16,859,094 84,234,213 5,671,169 182,975,869 1,902,297,989
At 31.03.2081 149,488,779 974,723,955 702,832,906 139,628,378 842,411 13,062,947 116,495,707 6,010,635 90,668,451 2,193,754,170

Property, Plant and Equipment under construction

Assets under construction majorly comprises of the works related to Corporate Building Project includes cost of assets Rs. 28.91 million, capital advance Rs.

49
11.06 million and other related costs Rs. 0.3 million. The amount shall be capitalized to respective heads as and when the assets are available for use.
50th ANNUAL REPORT 2023/2024 (2080/2081)
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

Note 3.2: Intangible Assets

Amount in Rs.

Particulars Software Total

Cost
Balance at 01.04.2079 14,937,654 14,937,654
Addition - -
Disposal/Transfer - -
Balance at 31.03.2080 14,937,654 14,937,654
Addition - -
Disposal - -
Balance at 31.03.2081 14,937,654 14,937,654
Amortization
Balance at 01.04.2079 14,133,558 14,133,558
Charge for the year 377,242 377,242
Disposal - -
Balance at 31.03.2080 14,510,800 14,510,800
Charge for the year 377,242 377,242
Disposal - -
Balance at 31.03.2081 14,888,042 14,888,042
Net Book Value
At 01.04.2079 804,096 804,096
At 31.03.2080 426,854 426,854
At 31.03.2081 49,612 49,612

Note 3.3: Investment Property

Amount in Rs.

Particulars Freehold Land Building Total

Cost
Balance at 01.04.2079 4,707,287 166,146,812 170,854,100
Addition - - -
Disposal/Transfer - - -
Balance at 31.03.2080 4,707,287 166,146,812 170,854,100
Addition - 4,280,130 4,280,130
Disposal - - -
Balance at 31.03.2081 4,707,287 170,426,942 175,134,230
Amortization
Balance at 01.04.2079 - 81,677,482 81,677,482
Charge for the year - 1,979,123 1,979,123
Disposal - - -
Balance at 31.03.2080 - 83,656,605 83,656,605
Charge for the year - 2,093,800 2,093,800
Disposal - - -
Balance at 31.03.2081 - 85,750,405 85,750,405
Net Book Value
At 01.04.2079 4,707,287 84,469,330 89,176,618
At 31.03.2080 4,707,287 82,490,207 87,197,495
At 31.03.2081 4,707,287 84,676,537 89,383,825

50
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

Note 3.4: Deferred Tax Assets/(Liabilities)

Deferred tax is calculated on temporary differences using known future tax rate effective to the Company 21.25%
(Previous Year 21.25%). Deferred tax assets are recognized in respect of all temporary differences giving rise to
deferred tax assets where the management believes it is probable that these assets will be recovered.
Amount in Rs.
Credit/(Charge) to Credit/(Charge) to
Particulars 01.04.2080 31.03.2081
SOPL OCI
Fixed Assets (62,270,628) (10,900,967) - (73,171,595)
Gratuity Provision 15,009,798 (921,269) - 14,088,529
Provision for Leave 11,963,694 918,317 - 12,882,011
Trade and Other Receivable 10,968,678 1,062,500 - 12,031,178
Total (24,328,458) (9,841,419) - (34,169,877)

Credit/(Charge) to Credit/(Charge) to
Particulars 01.04.2079 31.03.2080
SOPL OCI
Fixed Assets (53,303,422) (8,967,206) - (62,270,628)
Gratuity Provision 16,203,871 (1,194,073) - 15,009,798
Provision for Leave 10,406,635 1,557,059 - 11,963,694
Trade and Other Receivable 9,906,178 1,062,500 - 10,968,678
Total (16,786,738) (7,541,720) - (24,328,458)

Note 3.5: Investments

Amount in Rs.
Particulars 31.03.2081 31.03.2080
Non-Current
At Amortized Cost
At Fair Value Through Profit or Loss
At Fair Value Through OCI 281,276,188 275,487,563
Total 281,276,188 275,487,563
Current
At Amortized Cost - -
At Fair Value Through Profit or Loss - -
At Fair Value Through OCI - -
Total - -

Investment comprises the following:

At Amortized Cost (A) 31.03.2081 31.03.2080
Term Deposit - -
Total Investment at Amortized Cost - -
At Fair Value Through OCI (B)
Investment in Subsidiaries
Soaltee Hospitality Ltd. (2,500,000 shares of Rs. 100 each) 250,000,000 250,000,000
Advance for Investment in Soaltee Hospitality Ltd. 12,640,000 12,640,000
Sub-Total 262,640,000 262,640,000
Investment in Other Entities
Himal International Power Corp. Pvt. Ltd. (100,000 shares of Rs.
18,636,188 12,847,563
100 each)
Sub-Total 18,636,188 12,847,563
Total Investment through OCI 281,276,188 275,487,563
Proportion of voting rights
Soaltee Hospitality Ltd. 100% 100%
Himal International Power Corp. Pvt. Ltd. 5.97% 5.97%

51
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements
Note 3.6: Trade and Other Receivable

Amount in Rs.

Particulars 31.03.2081 31.03.2080

Non-Current
Other Receivable 7,051,419 7,051,419
Deposit for Appeal 12,289,454 9,299,783
Deposits 6,073,912 7,065,592
Loans and Advances to Employees 4,536,124 6,982,735
Deferred Employee Benefit Expenses - 41,304
Total 29,950,909 30,440,833
Less: Allowance for Impairment (7,051,419) (7,051,419)
Total 22,899,490 23,389,414
Current
Trade Receivable
Trade Receivable 278,565,118 266,725,614
Less: Allowance for Impairment (49,565,887) (44,565,887)
Trade Receivable-Net 228,999,231 222,159,727
Other Receivable
Loans and Advances to Employees 11,679,674 13,814,856
Loans and Advances to Other 33,742,472 28,209,222
Advances to Contractor and Suppliers 27,793,193 54,267,965
VAT Recoverable 1,342,801 3,089,678
Management Fees Recoverable 4,036,281 4,036,281
Deferred Employee Benefit Expenses 307,080 265,776
Total Other Receivable 78,901,501 103,683,778
Total 307,900,732 325,843,505

Additional information on Other receivable included in non-current receivable is provided in Note 4.10.1.

Trade receivables are normally collected as per credit terms with the parties, generally within a period of 90
days. Trade receivable is non-interest bearing. Additional information on Trade Receivable included in Current
Receivable is provided in Note 4.10.2.

Note 3.7: Inventories

Particulars 31.03.2081 31.03.2080

Stores and Spares 22,620,542 21,790,412
Provision, Beverage and Others 43,581,747 37,221,699
Uniform and Linen 39,701,656 42,147,234
Crockery, Cutlery etc. 25,333,070 21,044,174
Total 131,237,015 122,203,519

Note 3.8: Cash and Cash Equivalent

Particulars 31.03.2081 31.03.2080

Cash in Hand 3,287,161 3,889,934
Cheques in Hand - 700,000
Balances with Bank 98,628,210 64,953,756
Total 101,915,371 69,543,690

52
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

Note 3.9: Share Capital

Amount in Rs.

Particulars 31.03.2081 31.03.2080

Authorized Share Capital
150,000,000 Shares of Rs. 10/- each 1,500,000,000 1,500,000,000
Issued Share Capital
100,000,000 Shares of Rs. 10/- each 1,000,000,000 1,000,000,000
Subscribed and Fully Paid up
92,895,370 Shares of Rs.10/- each 928,953,700 884,715,060
Total 928,953,700 884,715,060

Reconciliation of no. of shares outstanding

Particulars 31.03.2081 31.03.2080

Balance at the beginning of the year 88,471,506 84,257,973
Add: Bonus Issue 4,423,864 4,213,533
Balance at the end of year 92,895,370 88,471,506
Details of Shareholding
Major Corporate Shareholders 69% 69%
General Shareholders 31% 31%

Note 3.10: Retained Earning and Reserves

Particulars 31.03.2081 31.03.2080

Share Premium 16,000,000 16,000,000
Other Reserve 7,288,761 7,288,761
Revaluation Reserve 35,198,427 35,198,427
Fair Value Reserve for Equity Investment 8,636,188 2,847,563
Retained Earnings 1,370,738,888 1,160,362,926
Total 1,437,862,264 1,221,697,677

Note 3.11: Loans and Borrowings

Particulars 31.03.2081 31.03.2080

Non-Current
Secured- Hire Purchase 6,636,303 7,931,571
Total 6,636,303 7,931,571
Current
Current Portion of Hire Purchase Loan 1,360,289 1,308,207
Total 1,360,289 1,308,207

Note 3.12: Employee Benefits

Particulars 31.03.2081 31.03.2080

Non-Current
Gratuity 66,298,960 70,634,343
Less: Plan Assets (1,505,714) (1,259,866)
Net Gratuity Liability 64,793,246 69,374,477
Accumulated Leave 60,621,227 56,299,735
Total 125,414,473 125,674,212
Current
Salary and Wages Payable 12,861,071 13,028,397
Bonus Payable 74,734,688 68,712,943
Total 87,595,759 81,741,340

53
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

Note 3.13: Income Tax Receivable/(Payable)

Amount in Rs.

Particulars 31.03.2081 31.03.2080

Advance Income Tax 131,636,672 109,724,626
Income Tax Liability (137,462,999) (124,608,113)
Total (5,826,327) (14,883,487)

Note 3.14: Trade and Other Payable

Particulars 31.03.2081 31.03.2080

Non-Current
Retention and Security Deposit 29,704,246 15,159,071
Advances Received 45,034,895 48,947,939
Unclaimed Dividend 17,936,251 13,539,009
Total 92,675,392 77,646,019
Current
Sundry Creditors 261,023,853 236,545,187
Other Payable
Advances Received 34,999,574 34,999,574
Flight Kitchen Franchise Fee 1,230,305 1,148,430
Service Charge 12,025,508 12,102,566
Housing Fund 26,334,029 26,334,029
Corporate Social Responsibility 10,536,663 8,431,238
Other Liabilities 84,740,881 68,282,678
Total 430,890,813 387,843,702

Trade and other payable are non-interest bearing in nature.

Note 3.15: Revenue from Operation

Particulars 2080-81 2079-80
Room 591,426,885 551,094,425
Food 1,670,573,962 1,496,892,775
Beverage 124,152,256 104,935,519
Cigar and Cigarettes 2,052,476 1,497,714
Laundry Income 2,222,726 1,779,057
Business Centre 21,106 17,131
Total 2,390,449,411 2,156,216,621

Note 3.16: Other Income

Particulars 2080-81 2079-80
Premises Rental Charge 51,910,324 36,463,978
Interest on Loans & Advances at Amortized Cost 901,531 1,108,581
Interest on Call Account/Time Deposit 503,776 147,395
Miscellaneous Receipts 50,953,635 10,644,900
Income from Service Charge - 21,403,302
Dividend Income 2,700,000 19,271,347
Profit on Sale of Assets 179,281 4,506,502
Exchange Gain 708,585 2,548,345
Reversal of Provision for Gratuity - 2,315,290
Unclaimed Balance Written Back 111,924 -
Total 107,969,056 98,409,640

54
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

Note 3.17: Consumption of Food and Beverage

Amount in Rs.

Particulars 2080-81 2079-80

Food 372,362,310 350,648,786
Beverage 32,081,547 28,830,695
Cigarettes 709,619 603,925
Total 405,153,476 380,083,406

Note 3.18: Employee Benefit Expenses

Particulars 2080-81 2079-80

Salary and Wages 281,051,900 250,363,992
Allowances 91,285,848 69,270,703
Festival Allowance 14,721,002 13,042,251
Overtime 9,030,487 8,510,124
Employees Meal 45,212,425 42,212,553
Soaltee Staff Welfare 2,398,228 2,468,229
Gratuity 14,978,588 13,593,805
Leave 8,872,154 11,095,599
Provident Fund 17,982,025 16,315,871
Clinic Expenses 3,116,383 2,806,557
Incentive Exit Scheme - 3,975,504
Bonus 74,734,688 68,712,943
Total 563,383,728 502,368,131

Additional information on Gratuity is provided in Note 4.4.a.

Note 3.19: Operating Expenses

Particulars 2080-81 2079-80

Linen 16,021,984 11,354,900
Laundry Supplies 49,467,434 37,871,510
Crockery & Cutlery 4,513,645 3,913,305
Silverware 1,627,007 529,198
Cleaning Supplies 17,803,578 14,245,204
F & B Paper Supplies 21,476,771 17,328,664
Guest Supplies 35,240,718 32,244,290
Water & Water Treatment 11,331,873 10,413,839
Garden Maintenance 844,886 1,692,064
Pest Control 2,508,000 2,496,000
Waste Removal 1,491,503 1,243,300
Power and Fuel 107,851,520 115,138,899
Repair and Maintenance 33,281,448 36,928,650
Total 303,460,367 285,399,823

55
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

Note 3.20: Other Expenses

Amount in Rs.

Particulars 2080-81 2079-80

Rental Charges 15,997,048 10,367,981
Travelling 22,718,769 24,778,318
Transport and Conveyance 29,927,122 34,364,718
Audit Fee 605,000 605,000
Legal and Professional Fees 9,920,027 9,303,004
Directors' Meeting Fees 1,794,132 1,494,123
Licence & Taxes 87,442,500 33,879,627
Bank Charges 10,827,365 8,794,279
Annual General Meeting Expenses 1,185,640 970,145
Commissions 13,250,510 16,110,637
Insurance 10,959,771 10,071,617
Communication Expenses 4,848,811 5,452,574
Printing and Stationery 9,190,712 7,551,309
Advertisement and Sales Promotion 19,250,117 16,795,825
Marketing and Reservation Expenses 7,818,957 7,717,702
Training and Conference 1,858,882 1,683,173
Books and Newspaper 200,418 186,937
Membership & Subscription 1,996,947 2,281,856
Security Services 15,123,943 15,204,998
Uniform Expenses 7,949,331 7,340,730
Entertainment 5,714,191 4,536,967
Allowance for Impairment 5,000,000 5,000,061
Software Service Charges 8,251,196 6,501,297
Investment Written Off - 3,443,328
Banquet Expenses 7,434,667 9,421,467
Kitchenette Expenses 5,980,553 7,870,198
Corporate Social Responsibility 6,000,425 5,549,796
Miscellaneous 26,720,846 20,065,898
Total 337,967,880 277,343,565

Note 3.21: Earnings per Share

Basic earnings per share is calculated by dividing the total profit or loss attributable to equity shareholders.
Diluted earnings per share is calculated by dividing the profit or loss attributable to equity shareholders by
weighted average number of equity shares for the effects of all dilutive potential equity shares. If the number of
ordinary or potential ordinary shares outstanding increases as a result of a capitalization, bonus issue or share
split, or decreases as a result of a reverse share split, the calculation of basic and diluted earnings per share for
all periods presented is adjusted retrospectively.

Calculation of basic and diluted earnings per shall has been done as stated above.

Particulars 2080-81 2079-80

Basic Earnings per Share
Profit/(Loss) for the year 600,042,463 554,979,595
Number of shares 92,895,370 92,895,370
Basic Earnings per Share (Rs.) 6.46 5.97
Diluted Earnings per Share
Profit for the year 600,042,463 554,979,595
Weighted average number of shares 92,895,370 92,895,370
Diluted Earnings per share (Rs.) 6.46 5.97

56
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

Note 3.22: Financial Instruments Classification and Fair Value Measurement

Financial Instruments are classified in accordance with Note 2.2.3.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair values are determined according to the following
hierarchy:
The Company has used fair value model for measurement of its financial assets and financial liabilities. Fair
value hierarchy levels presented represent the available inputs considered to arriving at the fair value of category
of financial assets/liabilities.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for the asset or liability. The Company has used its own data (accounting
value) and considered if there exist factors that would otherwise result in changes to the book value of assets or
liabilities.
Amount in Rs.
As at 31.03.2081 Carrying Amount Level 1 Level 2 Level 3
Financial Assets
Financial Assets at Amortized Cost
Trade and Other Receivable 330,493,142 330,493,142
Investment - -
Cash and Cash Equivalent 101,915,371 101,915,371
Total At Amortized Cost 432,408,513 432,408,513
Financial Assets at Fair Value through Other Comprehensive Income (FVOCI)
Investment 281,276,188 281,276,188

Total Financial Assets 713,684,701 - - 713,684,701

Financial Liabilities
Financial Liabilities at Amortized Cost
Trade and Other Payable 523,566,205 523,566,205
Loans and Borrowings 7,996,592 7,996,592
Total Financial Liabilities 531,562,797 - - 531,562,797

As at 31.03.2080 Carrying Amount Level 1 Level 2 Level 3

Financial Assets
Financial Assets at Amortized Cost
Trade and Other Receivable 348,925,839 348,925,839
Investment - -
Cash and Cash Equivalent 69,543,690 69,543,690
Total At Amortized Cost 418,469,529 418,469,529
Financial Assets at Fair Value through Other Comprehensive Income (FVOCI)
Investment 275,487,563 275,487,563

Total Financial Assets 693,957,092 - - 693,957,092

Financial Liabilities
Financial Liabilities at Amortized Cost
Trade and Other Payable 465,489,721 465,489,721
Loans and Borrowings 9,239,778 9,239,778
Total Financial Liabilities 474,729,499 - - 474,729,499

57
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

For the period ended on 31 Ashad 2081 (15 July 2024)
Notes to the Financial Statements

4 Additional Information

4.1 Share Capital

The Company has single class of equity shares having face value of Rs. 10 per share. Every member
holding equity shares therein shall have voting rights in proportion to the member’s share of the paid
up equity share capital.

4.2 Dividend
Dividend is proposed by the Board of Directors and approved by shareholders in the Annual General
Meeting.

Board of Directors have proposed 10% bonus shares and 26.84210526% cash dividend for the year
2080-81 (previous year 5% bonus shares and 26.57894737% cash dividend). Accordingly, the total
distribution by the Company from the profits arising from 2080-81 is as follows:

Particulars Bonus Shares Cash Dividend

Proposed for 2080-81 92,895,370 249,350,730

Number of shares 9,289,537

Paid for 2079-80 (Amount) 44,238,640 235,147,950

No. of shares 4,423,864

4.3 Reserves and Retained Earnings

a. Share premium

The Company had issued shares in premium on 1992-93. The amount collected by the company
in excess of its face value is credited to this account. Use of share premium shall be as provided in
Company Act 2063.

b. Other Reserves
The Company had created other reserves out of capital profits on 1995. There is no movement on this
reserve since then.

c. Retained Earning
Net profit for each year is added to this reserve. Company uses this to provide dividend to its
shareholders.

d. Fair Value Reserve

This reserve is created to account for changes in fair value of investments for those investments that
are opted to be measured at fair value through Other Comprehensive Income.

e. Revaluation Reserve

Revaluation Reserve was created in 1986 when the land of the company was revalued. For the first
time adoption of NFRS (1 Shrawan 2074), the revalued amount of land has been considered at
deemed cost which as allowed by NFRS 1 and accordingly, this reserve has remain intact.

4.4 Employee Benefits

a. Gratuity

Up to 19 Bhadra 2074, gratuity was in the form of defined benefit liability in which Company was
required to pay gratuity to staff considering the number of years in service and the recent salary
of the staff. Changes in Labour laws has changed the nature of gratuity and this is now a defined
contribution plan whereby Company is required to provide 8.33% of monthly basic remuneration

58
 50th ANNUAL REPORT 2023/2024 (2080/2081)

as gratuity to employee with effect from 19 Bhadra 2074. The Company has enrolled itself and
its employees in Social Security Fund (SSF) in Chaitra 2076 and thereafter it has started making
contribution towards Employee Gratuity in the fund.

Particulars 2080-81 2079-80

Opening Liability 70,634,343 76,253,510
Payment Made (4,335,383) (3,303,876)
Expenses Booked 14,978,588 13,593,805
Reversal of Excess Provision - (2,315,291)
Deposited in SSF (14,978,588) (13,593,805)
Closing Liability 66,298,960 70,634,343

b. Leave

Leave is classified as other long term employee liability. Liability is measured by way of actuarial
valuation for accumulated leave balance at the end of reporting periods. Changes in value of liability
is as follows:

Particulars 2080-81 2079-80

Opening Liability 56,299,735 48,972,399
Service Cost 8,046,925 8,229,115
Interest Cost 4,827,894 4,022,294
Actuarial Gain/(Loss) (3,715,503) (1,152,677)
Benefit Paid (4,837,824) (3,771,396)
Closing Liability (A) 60,621,227 56,299,735
Liability recognized in the financial statements (B) 60,621,227 56,299,735
Basic assumptions considered for measurement of leave liability related to leave are as follows:
Particulars 2079-80 2078-79
Discount Rate 9.00% 8.50%
Rate of compensation increase 6% 6%
Average expected future service 16 14
Average duration of liabilities 11 10

Plan assets have not been created for funding of payment of leave liability.

Sensitivity Analysis

The following table demonstrates the impact of 1% increase in discount rate considered for calculating
the present value of long term leave liability.

Particulars 2080-81 2079-80

Effect on:
- Service Cost (829,497) (912,634)
- Interest Cost 536,430 473,209
- Leave Liability (11,129,540) (10,883,442)
The following table demonstrates the impact of 1% decrease in discount rate considered for calculating
the present value of long term leave liability.
Particulars 2080-81 2079-80
Effect on:
- Service Cost 1,009,124 1,109,033
- Interest Cost (536,430) (473,209)
- Leave Liability 13,347,626 13,101,212

4.5 Lease
The Company has entered into a lease arrangement of premises for a period of 2-3 years. The future
minimum lease rental payment to be made is as follows:

Period 2080-81 2079-80

Up to one year 11,249,756 13,012,097
One to five years 5,648,627 11,185,354
Total 16,898,383 24,197,451

59
 50th ANNUAL REPORT 2023/2024 (2080/2081)

The Company has entered into operating lease arrangement allowing to use some part of its assets on lease.
Minimum lease amount receivable under such lease is as follows:
Period 2080-81 2079-80
Up to one year 62,221,492 37,607,133
One to five years 303,558,343 291,633,300
Above five years 150,365,219 172,386,540
Total 516,145,054 501,626,973

4.6 Corporate Social Responsibility

During the year, the Company has provided Rs. 6.00 million (previous year Rs. 5.55 million) (1% of net
profit after tax) as Corporate Social Responsibility as per the Section 54 (1) of the Industrial Enterprises
Act 2076.

4.7 Risk Management objectives and policies

The Company’s business activities expose to a variety of risks, namely primarily to fluctuations in foreign
currency exchange rates, liquidity and credit risk, which may adversely impact the fair value of its
financial instruments. The Company's Board and senior management has overall responsibility for the
establishment and oversight of the Company's risk management. The Company's risk management
policies are established to identify and analyses the risks 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.

i. Market Risk
In spite of having a very high potentiality of Tourism Sector and its related to services, it is volatile
to geopolitical and domestic incidents. With stabilization in the geopolitical and domestic issues,
the tourism sector looks for bright future. However, there is risk that any domestic/international or
geopolitical incidents would impact the business of the company. However, the company through
years of operations has sustained through such risks over the years in the past.

ii. Credit Risk

The company provides reasonable level of credit facilities to debtors and so does it enjoy credit facility
from its creditors as well. In impact on tourism sector may have impact of company debtors' ability
to pay the company within reasonable credit period allowed. Accordingly, there exist the credit risks
to that extent. The company through its experience over the many years has been managing such
risk well through proper way of close monitoring and supervising the regular recoverability position
by the management and the Board.

iii. Liquidity Risk

The Company has very less amount of debt funding and will not be impacted significantly. The
Company monitors its liquidity position on regular basis through effective planning and forecasting.

The company current assets aggregate positively against the current liabilities and accordingly, the
liquidity risk or risk that the company may not be able to settle its liabilities as they become, due
does not exist.

iv. Operational Risk

The Company has been in operation since more than 57 years and have prepared and implemented
various Standard Operating Procedures (SOPs) in the form of clear cut delegation of authority for the
activities, guidelines regulations etc. Beside the company is required to also follow specific operating
guidelines issued by its franchise. Company believes that the controls implemented by the company
have minimized the operational risk to acceptably low level. The franchise also carries out Control
Self-Assessment at reasonable interval where the company scored high level marks placing it as one
among better managed hotel among hotels being managed by Franchise.

60
 50th ANNUAL REPORT 2023/2024 (2080/2081)

v. Exchange Rate Fluctuation Risk

The Company's revenue will be impacted coming from any fluctuation of exchange rate fluctuation so
be on the certain level of supplies of the company as such exchange rate fluctuation will contribute
certain level of inflations. Since its tariffs are quoted in USD, any rate fluctuation will have the risk of
impacting the income of the company. It has been the tendency that the exchange rate fluctuation has
generally been upward movement except of occasional down turn movement as well. The Company
has practiced not to hold foreign currency monetary assets and liabilities for substantial period so
as to minimize the risk of exchange rate fluctuation.
4.8 Related Party Transactions
Related parties of the company comprise of key management personnel, organization having significant
influence on the company, subsidiaries of the company and Board of Directors.
a. Subsidiary Company
The Company has one subsidiary company. The Company has presence on the Board of this company
in proportion of its shareholding. Company provides office space to the subsidiary on operating
lease. Other than this, there is no any transaction with subsidiary company.
Holding Rental Charge Outstanding balance
Name of Subsidiary
% This Year Last Year This Year Last Year
Soaltee Hospitality Ltd. 100 66,667 66,667 - -
b. Significant Influence
Entities having significant influence over the Company is as follows:
i. Soaltee Enterprise Pvt. Ltd. (SEPL)
Soaltee Enterprise Pvt. Ltd. is major shareholder of the company. This company has four
representatives in the current Board of Soaltee Hotel Ltd. (SHL). SEPL has paid Rs. 66,667
(previous year Rs. 66,667) to SHL as operating lease rent. SHL has paid Rs. 1,102,500 to SEPL as
operating lease rent. There is no outstanding balance at the year end.
c. Other related entities
i. Nepal Airlines Corporation (NAC)
Nepal Airlines Corporation is institutional shareholder of the company. NAC has one representative
in the Board of SHL.
SHL provides flight catering services to the international flights of Nepal Airlines Corporation.
Transactions and outstanding balance with Nepal Airlines Corporation are as follows:
Revenue (in million) Receivable (in million)
Particulars
This Year Last Year This Year Last Year
Flight Catering Services 338.86 274.49 44.19 50.44

ii. Sibkrim Holdings Pvt. Ltd.

There is no transaction of this company with SHL.
d. Those charged with Governance
Those charged with governance include the Board of Directors of the Company. The composition of
Board on the reporting date is as follows:
Name Position Representative of
Mr. Dinesh Bahadur Bista Executive Chairman Soaltee Enterprises Pvt. Ltd.
Mr. Ravi Bhakta Shrestha Director Soaltee Enterprises Pvt. Ltd.
Mr. Rajesh Kazi Shrestha Director Soaltee Enterprises Pvt. Ltd.
Mrs. Jaya Rajya Laxmi Shah Director Soaltee Enterprises Pvt. Ltd.
Mr. Ubaraj Adhikari Director Nepal Airlines Corporation
Mr. Prakash Bikram Khatri Director Public Shareholder
Mr. Sashi Raj Pandey Director Public Shareholder
Mr. Niranjan Kumar Tibrewala Director Public Shareholder
Mr. Deepak Raj Joshi Director Independent Director

Mr. Lil Bahadur Khatri serves as Company Secretary of the Company.

61
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Board members are paid Rs. 25,000 (net of withholding tax) per meeting as meeting fee for attending
each meeting of Board. Meeting fee paid to members of Board for Board as well as Other Committee
meetings during the year amounts to Rs. 1.79 million (previous year Rs. 1.49 million).

e. Key Management Personnel

The company's key management personnel are Executive Chairman & Vice President of SHL and
General Manager of The Soaltee Kathmandu.

Total compensation to key management personnel during the year is Rs. 47.64 million (previous year
Rs. 31.84 million). The compensation paid to Executive Chairman also includes the performance
incentive paid based on the profit of the Company.

4.9 Unpaid Dividend

Total unpaid dividend amounted to Rs. 17.94 million (previous year Rs. 13.54 million).
4.10 Trade and Other Receivable
4.10.1 Civil Aviation Fee Recoverable from Airlines
Civil Aviation Fees levied on In-flight catering services provided on international flights by the company
to three different airlines have been disputed and not paid by the respective airlines which amounted to
Rs 7.051 million (previous year Rs. 7.051 million) is still pending recovery. This has been reflected under
Non-Current Trade and other receivables.

4.10.2 Trade Receivable from Jet Airways

Trade receivable amounting to Rs. 16,061,418 is pending recoverable from Jet Airways as of the reporting
date which has closed its operation from 17 April 2019 and is undergoing its insolvency proceedings.
In October 2020, a revival takeover plan of potential investors has been approved by the Committee of
Creditors of Airlines. The company has already lodged the outstanding with Jet Airways & confirmed
by Jet Airways in their official website as eligible creditors. However, the outcome of the proceeding and
business revival is not yet known.

4.11 Lien on Company's Assets

The company current and non-current assets where applicable has been pledged hypothecated to
bankers providing the credit facilities. The credit facility as of the reporting date included term loan and
overdraft against a vehicle, movable and immovable properties amounting to Rs. 7.99 million (previous
year Rs. 9.24 million).

4.12 Contingent Liability

The Company recognizes contingent liability when a possible obligation arises from past events and
whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the entity or company as a present obligation as a result
of past events which is not recognized because it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation; or the amount of the obligation cannot be
measured with sufficient reliability. All adjusting events are considered for appropriate reflection in the
current financial year.

4.13 Bank Guarantee

Unexpired bank guarantee issued by the company amounted to Rs. 56.34 million (previous year Rs.
26.04 million).

4.14 Litigations or Legal Cases

i. Income Tax Matters

Appeal Revenue Tribunal

The Inland Revenue Department has filed an appeal to review the verdict of the Revenue Tribunal in
the Honorable Supreme Court for the Fiscal Year 2068-69 which had ruled in favor of the Company.
The Honorable Supreme Court issued its final verdict in favor of the Company during this fiscal year.

62
 50th ANNUAL REPORT 2023/2024 (2080/2081)

The Supreme Court upheld the Revenue Tribunal's verdict and dismissed the appeal by the Inland
Revenue Department. The full text of the verdict of the Supreme Court is yet to be received after
publication by the Supreme Court at a later date.

The Company has filed an appeal with Revenue Tribunal challenging the disallowance of expenses on
Self-Assessment Income Tax Return for the Fiscal Year 2067-68, 2069-70, 2070-71, 2071-72, 2072-
73, 2073-74, 2074-75 & 2075-76. The appeals arise due to an additional income tax demand/claim
as assessed by the Large Taxpayers Office during their administrative review. The Company's
management believes that it should not incur a significant financial obligation to the Company due
to these tax claims. If any tax claim does arise, such charges would be directly charged to Company's
accumulated profit, in accordance with past practice.

The Company has filed a writ petition with High Court against additional demand of Tax deducted
at source (Income Tax) by Large Tax Office relating to FY 2073/74. The Matter is sub-judiced in the
High Court.

ii. Arbitration Suit

The Company has filed a Writ Petition with the Honorable High Court Patan on the issue of Outstanding
Receivable recovery pending settlement by the then Hotel Manager, Holiday Inns (China) Ltd (Manager)
seeking the court's assistance for appointment of an arbitrator on behalf of Holiday Inns (China) Ltd.
as they did not appoint their arbitrator. The High Court has appointed an arbitrator on behalf of
Holiday Inns (China) Ltd. However, Holiday Inns (China) Ltd has challenged the appointment in the
Supreme Court of Nepal stating that they have already appointed their arbitrator. The matter is sub-
judiced in the Supreme Court.

iii. Casino Royalty of the Closed down period

The Company has filed writ petition with the Honorable Supreme Court of Nepal against the demand
of Casino Royalty by Government of Nepal for the period in which the casino was not in operation
from Shrawan 2068 to Kartik 2069 due to the cancellation of Nepal Recreation Centre's Casino
Operation permission. The Supreme Court has dismissed the writ and the Company has settled said
Casino Royalty as per the full text of the verdict from the Honorable Supreme Court of Nepal during
this fiscal year.

iv. Civil Aviation Authority for TIA Lounge contract continuation

The Company has filed writ petitions with the District Court of Nepal against the Civil Aviation
Authority of Nepal & TIA for the continuation of the Lease Agreement as per the Contract renewal
provision for the further period of three years. The District Court has awarded stay order until final
verdict of the Court during this fiscal year.

v. Legal cases

The company has filed a few other cases to recover dues from some debtors and other parties in the
course of its regular business.

4.15 Capital Commitment

Capital contract remaining to be executed on capital accounts net of advances to Rs. 145.85 million
(Previous year Rs. 175.33 million).

4.16 Letter of Credit

There is Rs. 6.68 million (previous year Rs. Nil) outstanding letter of credit as at the reporting date.

4.17 Housing Fund

This fund was created as per the requirement of erstwhile Labor laws. Owing to changes in Labor law,
this fund is no longer required and no provision has been made. The Company has not paid during the
year out of this fund to a separate entity called Employee Housing.

63
 50th ANNUAL REPORT 2023/2024 (2080/2081)

4.18 Operating Segment

Management of the company has considered the total operation to be segregable into three operating
segment based on the nature of operation and services rendered.

i. Room Segment: The Room Segment of a hotel includes reservations, front desk, housekeeping and
guest services.

ii. Food & Beverage Segment: The function of Food & Beverage Segment and Flight Services Division
is to provide food and beverages services to its customers.

iii. Other Segment: Other Segment includes the Corporate Division, Sales & Marketing Department,
Human Resource Department and other services centres except Room and Food & Beverage Segment
of the Hotel.

The financial information about the identified segments are as follows:

(Amount in millions)
Food & Other
Room
Operating Segment Beverage Segment Total
Segment
Segment
- Revenue 591.43 1,794.72 112.27 2,498.42
Total Revenue 591.43 1,794.72 112.27 2,498.42

Expenses
Consumption Cost 133.27 405.15 - 538.42
Employee Benefit Expenses 97.44 292.60 173.34 563.38
Management, Operating and Other Expenses 33.56 279.40 195.20 508.16
Depreciation and Amortization 137.50
Finance Cost 3.60
Total Expenses 264.27 977.15 368.54 1,751.07
Segment Result 327.16 817.57 (256.27) 747.35
Income Tax 147.30
Profit/(Loss) for the Period 600.04
Segment Assets* 3,151.39
Segment Liabilities** 3,151.39

* Segment wise assets has not been prepared due to absence internal reporting system of segment assets.

** Segment wise liabilities has not been prepared due to absence internal reporting system of segment liability.

4.19 Capital Management

Capital includes issued capital and all other reserves attributable to the equity holders of the company.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to
optimize returns to the shareholders. The capital structure of the company is based on management’s
judgement of the appropriate balance of key elements in order to meet its strategic needs. We consider
the amount of capital in proportion to risk and manage the capital structure in light of changes in
economic conditions and the risk characteristics of the underlying assets.
The Company’s aim is to translate profitable growth to superior cash generation through efficient
capital management. The Company's policy is to maintain a stable and strong capital structure with a
focus on total equity so as to maintain investor, creditor, and market confidence and to sustain future
development and growth of its business. The Company's focus is on keeping strong total equity base to
ensure independence, security, as well as a high financial flexibility for potential future borrowings, if
required, without impacting the risk profile of the Company. The Company's will take appropriate steps
in order to maintain, or if necessary adjust, its capital structure. The management monitors the return
on capital as well as the level of dividends to shareholders. The Company’s goal is to continue to be able
to return excess liquidity to shareholders by continuing to distribute dividends in future periods.
No changes were made in the objectives, policies or processes for managing capital during all the years
reported in this financial statement.

64
 50th ANNUAL REPORT 2023/2024 (2080/2081)

4.20 Events after reporting date

Events after the reporting date are those events, favourable and unfavourable, that occur between the
balance sheet date and the date when the financial statement are authorized for issue. There are no
material events that have occurred subsequent to 15 July 2024 till the date of signing of this financial
statements.

4.21 Regrouping and Round off

Figures have been regrouped and rearranged and rounded off to nearest rupee. Insignificant rounding
off differences may exist.

65
50th ANNUAL REPORT 2023/2024 (2080/2081)

66
50th ANNUAL REPORT 2023/2024 (2080/2081)

67
50th ANNUAL REPORT 2023/2024 (2080/2081)

68
50th ANNUAL REPORT 2023/2024 (2080/2081)

69
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

Consolidated Statement of Financial Position
As at 31 Ashad 2081 (15 July 2024)
Amount in Rs.
As At As At
Particulars Note Ashad 31, 2081 Ashad 31, 2080
(July 15, 2024) (July 16, 2023)
ASSETS
Non-Current Assets:
Property, Plant and Equipment 3.1 2,193,754,170 1,902,297,989
Intangible Assets 3.2 49,612 426,854
Investment Property 3.3 89,383,825 87,197,495
Investments 3.5 280,476,188 274,687,563
Trade and Other Receivables 3.6 22,899,490 23,389,414
Total Non-Current Assets 2,586,563,285 2,287,999,315
Current Assets:
Inventories 3.7 131,237,015 122,203,519
Trade and Other Receivables 3.6 310,894,572 326,337,348
Prepayments 22,968,794 21,379,704
Cash and Cash Equivalent 3.8 104,200,164 72,596,935
Total Current Assets 569,300,545 542,517,506
Total Assets 3,155,863,830 2,830,516,821
EQUITY AND LIABILITIES
Equity and Reserves and Surplus:
Share Capital 3.9 928,953,700 884,715,060
Retained Earnings and Reserves 3.10 1,442,613,052 1,224,040,511
Total Equity of Parent 2,371,566,752 2,108,755,571
Non-Controlling Interest 3.11 - -
Total Equity 2,371,566,752 2,108,755,571
Liabilities
Non-Current Liabilities:
Loans and Borrowings 3.12 6,636,303 7,931,571
Employee Benefits 3.13 125,414,473 125,674,212
Deferred Tax Liabilities 3.4 34,169,877 24,328,458
Trade and Other Payables 3.15 92,675,392 77,646,019
Total Non-Current Liabilities 258,896,045 235,580,260
Current Liabilities:
Loans and Borrowings 3.12 1,360,289 1,308,207
Employee Benefits 3.13 87,595,759 81,741,340
Income Tax Payable 3.14 5,201,315 14,970,517
Trade and Other Payables 3.15 431,243,670 388,160,926
Total Current Liabilities 525,401,033 486,180,990
Total Liabilities 784,297,078 721,761,250
Total Equity and Liabilities 3,155,863,830 2,830,516,821
Notes 1 to 4.21 form an integral part of this statement
For and on behalf of Soaltee Hotel Limited As per our report of even date

Mukti Nath Shrestha Sudarshan Chapagain Dinesh Bahadur Bista CA. Jitendra B. Rajbhandary
DIRECTOR OF FINANCE VICE PRESIDENT EXECUTIVE CHAIRMAN Senior Partner
J.B. Rajbhandary & DiBins
Chartered Accountants
Lil Bahadur Khatri Ubaraj Adhikari
CHIEF OF CORPORATE AFFAIRS Prakash Bikram Khatri
& COMPANY SECRETARY Sashi Raj Pandey
Jaya Rajya Laxmi Shah
Ravi Bhakta Shrestha
Date: 29 October 2024 Rajesh Kazi Shrestha
(13 Kartik 2081) Niranjan Kumar Tibrewala
Place: Kathmandu, Nepal DIRECTORS

70
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the period ended on 31 Ashad 2081 (15 July 2024)
Amount in Rs.
Year Ended Year Ended
Particulars Note Ashad 31, 2081 Ashad 31, 2080
(July 15, 2024) (July 16, 2023)
Revenue from Operation 3.16 2,390,449,411 2,156,216,621
Other Income 3.17 111,279,243 100,484,458
Total Revenue 2,501,728,654 2,256,701,079
Consumption of Foods and Beverage 3.18 405,153,476 380,083,406
Employee Benefit Expenses 3.19 563,383,728 502,368,131
Operating Expenses 3.20 303,460,367 285,399,823
Depreciation and Amortization Expense 3.1/3.2/3.3 137,503,255 113,641,170
Other Expenses 3.21 338,063,989 277,399,001
Total Expenditures 1,747,564,815 1,558,891,531
Profit/(Loss) from Operations 754,163,839 697,809,548
Finance Cost 3,602,880 8,660,738
Profit/(Loss) Before Tax 750,560,959 689,148,810
Income Tax 148,110,542 132,662,215
Current Tax 138,269,123 125,120,495
Deferred Tax Expenses/(Income) 3.4 9,841,419 7,541,720
Net Profit/(Loss) for the Year 602,450,417 556,486,595
Other Comprehensive Income
Change in Fair Value of Equity Shares 5,788,625 1,704,821
Total Other Comprehensive Income 5,788,625 1,704,821
Total Comprehensive Income 608,239,042 558,191,416

Net Profit/(Loss) Attributable to:

The Parent 602,450,417 556,486,595
Non-Controlling Interest - -

Other Comprehensive Income Attributable to:

The Parent 5,788,625 1,704,821
Non-Controlling Interest - -

Basic Earnings per Share (Rs.) 6.49 5.99

3.22
Diluted Earnings per Share (Rs.) 6.49 5.99

Notes 1 to 4.21 form an integral part of this statement

For and on behalf of Soaltee Hotel Limited As per our report of even date

Mukti Nath Shrestha Sudarshan Chapagain Dinesh Bahadur Bista CA. Jitendra B. Rajbhandary
DIRECTOR OF FINANCE VICE PRESIDENT EXECUTIVE CHAIRMAN Senior Partner
J.B. Rajbhandary & DiBins
Chartered Accountants
Lil Bahadur Khatri Ubaraj Adhikari
CHIEF OF CORPORATE AFFAIRS Prakash Bikram Khatri
& COMPANY SECRETARY Sashi Raj Pandey
Jaya Rajya Laxmi Shah
Ravi Bhakta Shrestha
Date: 29 October 2024 Rajesh Kazi Shrestha
(13 Kartik 2081) Niranjan Kumar Tibrewala
Place: Kathmandu, Nepal DIRECTORS

71
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

Consolidated Statement of Cash Flows
For the year ended on 31 Ashad 2081 (15 July 2024)
Amount in Rs.
Year Ended Year Ended
Particulars Ashad 31, 2081 Ashad 31, 2080
(July 15, 2024) (July 16, 2023)
Cash Flows from Operating Activities
Profit/(Loss) Before Tax for the Year 750,560,959 689,148,810
Adjustment for:
Dividend Income (2,700,000) (19,271,347)
Loss/ (Gain) on Sale of Property, Plant and Equipment (179,281) (4,506,502)
Interest Income on Call and Term Deposit (563,632) (156,390)
Impairment Allowance on Trade Receivable 5,000,000 5,000,061
Provision for Bonus 74,734,688 68,712,943
Depreciation/Amortization on PPE, Investment Property & Intangible As-
137,503,255 113,641,170
sets
Finance Cost 3,602,880 8,660,738
Operating Cash Flow Before changes in Working Capital 967,958,869 861,229,483
(Increase) / Decrease in Trade and Other Receivables 10,932,700 (43,783,592)
(Increase) / Decrease in Inventories (9,033,496) (37,259,559)
(Increase) / Decrease in Prepayment (1,589,090) (6,973,834)
Increase / (Decrease) in Trade and Other Payables 53,714,875 (12,209,513)
Increase/ (Decrease) in Employee Benefits (427,065) 4,479,864
Cash generated from Operations 1,021,556,793 765,482,849
Bonus Paid (68,712,943) (31,517,125)
Income Tax Paid (258,321,123) (76,266,634)
Net Cash Flows from Operating Activities (A) 694,522,727 657,699,090
Cash Flow from Investing Activities
Proceeds from Sale of Property, Plant and Equipment 4,638,540 7,081,771
Acquisition of Property, Plant and Equipment, Investment Property and
(435,227,783) (421,780,458)
Intangible Assets
(Increase) / Decrease in Investments - 12,374,864
Dividend Income 2,700,000 19,271,347
Interest Income on Term and Call Deposits 563,632 156,390
Net Cash flows from Investing Activities (B) (427,325,611) (382,896,086)
Cash Flow from Financing Activities
Finance Cost (3,602,880) (8,660,738)
Increase/(Repayment) of Borrowings (1,243,186) (53,751,817)
Recovery of Cash for Fractional Bonus Shares 2,887 6,344
Dividend Paid Net (230,750,708) (176,578,128)
Net Cash Flows from Financing Activities (C ) (235,593,887) (238,984,339)
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) 31,603,229 35,818,665
Cash and Cash Equivalents at the Beginning 72,596,935 36,778,270
Cash and Cash Equivalents at the End 104,200,164 72,596,935

For and on behalf of Soaltee Hotel Limited As per our report of even date

Mukti Nath Shrestha Sudarshan Chapagain Dinesh Bahadur Bista CA. Jitendra B. Rajbhandary
DIRECTOR OF FINANCE VICE PRESIDENT EXECUTIVE CHAIRMAN Senior Partner
J.B. Rajbhandary & DiBins
Chartered Accountants
Lil Bahadur Khatri Ubaraj Adhikari
CHIEF OF CORPORATE AFFAIRS Prakash Bikram Khatri
& COMPANY SECRETARY Sashi Raj Pandey
Jaya Rajya Laxmi Shah
Ravi Bhakta Shrestha
Date: 29 October 2024 Rajesh Kazi Shrestha
(13 Kartik 2081) Niranjan Kumar Tibrewala
Place: Kathmandu, Nepal DIRECTORS

72
 SOALTEE HOTEL LIMITED
Consolidated Statement of Changes in Equity
For the period ended on 31 Ashad 2081 (15 July 2024)
Amount in Rs.

Fair Value Non-

Share Revaluation Other Retained Total Equity of
Particulars Share Capital Reserve Controlling Total Equity
Premium Reserve Reserve Earning Parent
(OCI) Interest
Closing Balance as at 32.03.2079
842,579,730 16,000,000 35,198,427 7,288,761 846,400,371 1,142,742 1,748,610,031 (3,324,563) 1,745,285,468
Change in Fair Value of Investment
- - - - - 1,704,821 1,704,821 - 1,704,821
through OCI
Net Profit/(Loss) for Year 2079-80 - - - - 556,486,595 - 556,486,595 - 556,486,595
Liquidation of Subsidiary - - - - (18,449,699) - (18,449,699) 3,324,563 (15,125,136)
Payment of Dividend for 2078-79
- - - - (179,602,521) - (179,602,521) - (179,602,521)
Issue of Bonus Shares 42,135,330 - - - (42,135,330) - - - -
Adjustment of Fractional bonus shares
received (paid) - - - - 6,344 - 6,344 - 6,344

Closing Balance as at 31.03.2080

884,715,060 16,000,000 35,198,427 7,288,761 1,162,705,760 2,847,563 2,108,755,571 - 2,108,755,571
Change in Fair Value of Investment
- - - - - 5,788,625 5,788,625 - 5,788,625
through OCI
Net Profit/(Loss) for Year 2080-81 - - - - 602,450,417 - 602,450,417 - 602,450,417
Payment of Dividend for 2079-80 - - - - (235,147,950) - (235,147,950) - (235,147,950)
Issue of Bonus Shares 44,238,640 - - - (44,238,640) - - - -
Adjustment of fractional bonus share
- - - - 2,887 - 2,887 - 2,887
received (paid)
Tax payments of earlier year - - - - (110,282,798) - (110,282,798) - (110,282,798)
Closing Balance as at 31.03.2081
928,953,700 16,000,000 35,198,427 7,288,761 1,375,489,676 8,636,188 2,371,566,752 - 2,371,566,752

For and on behalf of Soaltee Hotel Limited As per our report of even date

Mukti Nath Shrestha Sudarshan Chapagain Dinesh Bahadur Bista CA. Jitendra B. Rajbhandary
DIRECTOR OF FINANCE VICE PRESIDENT EXECUTIVE CHAIRMAN Senior Partner
J.B. Rajbhandary & DiBins
Chartered Accountants
Lil Bahadur Khatri Ubaraj Adhikari
CHIEF OF CORPORATE AFFAIRS Prakash Bikram Khatri
& COMPANY SECRETARY Sashi Raj Pandey
Jaya Rajya Laxmi Shah
Ravi Bhakta Shrestha
Date: 29 October 2024 Rajesh Kazi Shrestha

73
(13 Kartik 2081) Niranjan Kumar Tibrewala
50th ANNUAL REPORT 2023/2024 (2080/2081)

Place: Kathmandu, Nepal DIRECTORS

 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

For the period ended on 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements
1. General Information
Soaltee Hotel Limited (the Company or SHL) is a limited liability company registered with Office of
Company Registrar as per erstwhile Company Act. Its shares are enlisted with Security Board of Nepal
(SEBON) and listed and traded at Nepal Stock Exchange Ltd. (NEPSE). The registered office of the
Company and the principal place of business is located at Tahachal, Kathmandu, Nepal. Since its
incorporation more than 57 years, SHL has been catering the Tourism sector services with five-star
quality hotel facilities and flight catering kitchen since its commercial operation. SHL has invested in
subsidiary company namely Soaltee Hospitality Ltd. for expanding its hotel business. Through Soaltee
Hospitality Ltd., a wholly owned subsidiary, it has also invested in Soaltee Sibkrim Hotels and Resorts
Pvt. Ltd.
SHL owns and operates a luxurious property classified under Five Star Deluxe category by the
Government of Nepal with business name and brand "The Soaltee Kathmandu" hotel at Tahachal,
Kathmandu Metropolitan City ward No 13, Kathmandu, Nepal. The property (hotel) is owned and
operated by the SHL. The Soaltee Kathmandu has 285 saleable rooms ranging from Deluxe, Club to
Suites. Further, the Company also owns and operates The Soaltee Gate Gourmet, an Inflight Catering
Division under a Technical Assistance Agreement with Gate Gourmet Singapore Pte. Limited, Singapore.
The consolidated financial statements are prepared by consolidating the financial statements of Soaltee
Hotel Limited (the Parent or SHL) and Soaltee Hospitality Ltd. (100% subsidiary), collectively stated as
"the Group" hereinafter. The Group's principal activity is to invest in hotel industry. The Group has
invested in hotels in Kathmandu and Nepalgunj.
The Consolidated Financial Statements were authorized for issue by the meeting of the Board of Directors
on 29 October 2024 (13 Kartik 2081) and has recommended for approval by shareholders in the Annual
General Meeting.
2. Significant Accounting Policies
2.1. Basis of Preparation
2.1.1. Statement of Compliance
The consolidated financial statements are prepared in accordance with Nepal Financial Reporting
Standards (NFRS) as issued by Accounting Standard Board Nepal and pronounced by The Institute of
Chartered Accountants of Nepal.
2.1.2. Basis of Measurement
The consolidated financial statements are prepared under historical cost convention except for t he
following material items:

– Investment in shares of entities other than subsidiaries, which have been measured at fair value
– Staff loans provided at subsidized interest rate, which have been measured at amortized cost.
– Other long-term liabilities (leave liability), which has been measured at present value of the
obligation
2.1.3. Critical Accounting Estimates
The preparation of the consolidated financial statements in conformity with Nepal Financial Reporting
Standards (NFRS) requires the use of certain critical accounting estimates and judgments. It also requires
management to exercise judgment in the process of applying the Group’s accounting policies. The Group
makes certain estimates and assumptions regarding the future events. Estimates and judgments are
continuously evaluated based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. In the future, actual result may differ
from these estimates and assumptions. The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial

74
 50th ANNUAL REPORT 2023/2024 (2080/2081)

year are:

a) Useful life of Property, Plant and Equipment

Management of each company reviews the useful life and residual values of property, plant and
equipment in each year. Such life is dependent upon an assessment of both the technical life of the
assets and also their likely economic life, based on various internal and external factors including
relative efficiency and operating costs.
b) Impairment of Property, Plant and Equipment
At the end of each reporting period, the Group reviews the carrying amounts of its property, plant
and equipment to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair
value less costs to sell and value in use. Value in use is usually determined on the basis of discounted
estimated future cash flows. This involves management estimates on anticipated commodity prices,
market demand and supply, economic and regulatory environment, discount rates and other factors.
Any subsequent changes to cash flow due to changes in the above mentioned factors could impact
on the carrying value of assets.

c) Recognition of deferred tax

Significant management judgment is required to determine the amount of deferred tax assets that
can be recognized, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies. The Group based its assumptions and estimates on parameters
available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising
beyond the control of the Group.
Deferred tax is calculated on temporary differences using a known future tax rate. Deferred tax
assets are recognized in respect of all temporary differences giving rise to deferred tax assets where
the management believes it is probable that these assets will be recovered.

d) Other long term employee benefits

Significant judgment is required to determine the estimated liability that shall arise on part of
unused/accumulated leave by the staff and which is generally paid out on retirement or termination
of employment. Valuation of such is done by qualified actuary using assumption like interest rate,
rate of increase in annual compensation, remaining service period etc. Factors considered may
change depending on market changes or legal changes which are beyond the control of the Group.
2.1.4. Functional and Presentation Currency
The financial statements are prepared in Nepalese Rupees (Rs.), which is also the Group’s functional
currency.
2.2. Accounting Policies
The principal accounting policies adopted in the preparation of the consolidated financial statements are
set out below. The policies have been consistently applied to all the years presented, unless otherwise
stated. The preparation of financial statements requires the use of certain accounting estimates. The
areas where significant judgments and estimates have been made in preparing the financial statements
and their effects are disclosed in relevant areas.
2.2.1. Basis of Consolidation
Where the Group has the power, either directly or indirectly, to govern the financial and operating
policies of another entity or business so as to obtain benefits from its activities, it is classified as a
subsidiary. The consolidated financial statements present the results of the Group and its subsidiaries
(“the Group”) as if they formed a single entity.
Consolidation of financial statements of subsidiaries has been done in line with NFRS 10: Consolidated
Financial Statements. In preparing the consolidated financial statements, the financial statements are

75
 50th ANNUAL REPORT 2023/2024 (2080/2081)

combined line by line by adding the like items of assets, liabilities, equity, income, expenses and cash
flows of the parent with those of its subsidiaries. The carrying amount of the parent’s investment in
subsidiary and the parent’s portion of equity of subsidiary are eliminated. All intra group assets and
liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group
are eliminated in preparation of the consolidated financial statements. SHL has opted for carve out
alternative accounting treatment issued by ICAN relation to use uniform accounting policies for like
transactions in consolidation of financial statement. Under the carve out alternative treatment, the
investment made in associate by SHL’s fully owned subsidiary is measured at cost instead of measuring
it using equity method.
2.2.2 Associates
Profits or losses arising on transactions between the Group and its associates are recognized only to the
extent of unrelated investors' interests in the associate. The investor's share in the associate's profits and
losses resulting from these transactions is eliminated against the carrying value of the associate.
Any premium paid for an associate above the fair value of the Group's share of the identifiable assets,
liabilities and contingent liabilities acquired is capitalized and included in the carrying amount of the
associate. Where there is objective evidence that the investment in an associate has been impaired the
carrying amount of the investment is tested for impairment in the same way as other non-financial
assets.
Investment in associates of the subsidiaries are recorded at cost in line with the carve out issued by
ICAN for alternative accounting treatment as described in note 2.2.1.
2.2.3 Financial Assets and Financial Liabilities

i. Recognition
The Group initially recognizes financial assets on trade date which is the date on which the Group
becomes a party to the contractual provisions of the instruments.
A financial asset or financial liability is measured initially at fair value plus, or an item not at fair
value through profit or loss, transactions costs that are directly attributable to its acquisition or
issue.

ii. Classification and Measurement

Financial Assets
The classification and measurement of financial assets depend on how these are managed (the
entity’s business model) and their contractual cash-flows characteristics. These factors determine
whether the financial assets are measured at amortized cost, fair value through other comprehensive
income (‘FVOCI’) or fair value through profit or loss (‘FVPL’).

– At amortized cost:
Financial assets at amortized cost are non-derivative financial assets with fixed or determinable
payments for which the Group has intent and ability to hold till maturity. They are initially
recognized at fair value plus any directly attributable transaction cost. Subsequent to initial
recognition, such financial assets are measured at amortized cost using effective interest rate
method less any impairment losses.
– At fair value through profit or loss:
Financial assets are classified at fair value through profit or loss if the Group manages such
instruments and makes purchases and sales decisions based on its fair value. Attributable
transaction costs and changes in fair value are taken to revenue.
– At fair value through other comprehensive income:
Financial assets at FVOCI are non-derivative financial assets that are not classified in any of the
above category. Financial assets at FVOCI are recognized initially at fair value plus any directly
attributable transaction cost. Subsequent to initial recognition, financial assets are measured at
fair value, as far as such fair value is available, and changes therein, which are recognized in other
comprehensive income and presented in the fair value reserve in equity. When an investment is
76
 50th ANNUAL REPORT 2023/2024 (2080/2081)

derecognized, gain or loss accumulated in equity is reclassified to retained earnings.

Financial Liabilities
All financial liabilities are recognized initially on the trade date, which is the date that the Group
becomes a party to the contractual provisions of the instrument. Subsequent to initial recognition,
these financial liabilities are measured at amortized costs using effective interest rate method.

iii. Derecognition
Financial Assets
The Group derecognizes a financial asset when the contractual rights to the cash flow from the
financial assets expire, or it transfers the rights to receive the contractual cash flows in a transaction
in which substantially all of the risk and rewards of the ownership of the financial assets are
transferred or in which the Group neither transfer nor retains substantially all of the risk and
rewards of the ownership and it does not retain control of the financial assets.
On derecognition of a financial asset, the difference between the carrying amount of the assets
(or the carrying amount allocated to the portion of the assets derecognized) and the sum of (i) the
consideration received (including any new assets obtained less any new liability assumed) and (ii)
any cumulative gain or loss that had been recognized in Other Comprehensive Income (OCI) is
recognized in retained earnings.
Financial Liabilities
The Group derecognizes a financial liability when its contractual obligations are discharged or
cancelled or expired.

iv. Offsetting
The financial assets and financial liabilities are offset and the net amount presented in the statement
of financial position when and only when, the Group has a legal right to set off the amounts and it
intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

v. Amortized cost measurement

The 'amortized cost' of a financial asset and financial liability is the amount at which the financial
asset or financial liability is measured at initial recognition, minus principal repayments, plus or
minus the cumulative amortization using the effective interest method of any difference between
initial amount recognized and the maturity amount minus any reduction for impairment.

vi. Fair value measurement

Fair value of a financial instrument is the amount for which an asset could be exchanged, or a liability
settled, between knowledgeable, willing parties at an arm’s length transaction. Quoted market values
represent fair value when a financial instrument is traded in an organized and liquid market. Where
quoted market values are not available, fair values are estimated by other techniques.

vii. Identification and measurement of impairment

Financial assets
At each reporting date the Group assesses the objective evidence that a financial asset or group of
financial assets is impaired or not. A financial asset or a group of financial assets is impaired and
impairment losses are incurred only if there is objective evidence of impairment as a result of one or
more events that occurred after the initial recognition of the asset and that loss event has an impact
on the estimated future cash flows of the financial assets or group of financial assets that can be
reliably estimated.
Objective evidence that financial assets are impaired includes:
– significant financial difficulty of the debtor
– breach of contract, such as default or delinquency by a debtor
– observable data relating to a group of assets such as adverse changes in the payment status of debtor

77
 50th ANNUAL REPORT 2023/2024 (2080/2081)

The amount of loss is measured as the difference between the asset's carrying amount and amount
the management considers it as recoverable on the basis of financial position of the party and
appropriate estimation made by the management. Receivables considered as less likely to be received
are provided allowance for loss and charged to Statement of Profit or Loss.
In addition, for an investment in an unquoted equity security, a significant or prolonged decline in
its net worth is objective evidence of impairment.
Impairment losses are recognized in Statement of Profit or Loss and reflected in an allowance account
against debtors. Impairment losses on equity investment are routed through Statement of OCI.
Interest on the impaired assets continues to be recognized through the unwinding of the discount.
If an event occurring after the impairment was recognized causes the amount of impairment loss to
decrease, then the decrease in impairment loss is reversed through income statement (OCI in case
of available for sale investment).
If, in a subsequent period, the fair value of an equity investments increases and the increase can
be related objectively to an event occurring after the impairment loss was recognized, then the
impairing loss is reversed through profit or loss; otherwise, any increase in fair value is recognized
through OCI.
2.2.4 Impairment of Non-Financial Assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by
which the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset's fair value less cost and value in use. An impairment loss is recognized in Statement of
Profit or Loss. Provisions against impairment are reviewed at each reporting date and adjusted to reflect
the current best estimates. Impairment charges are included in profit or loss except to the extent they
reverse gains previously recognized in Other Comprehensive Income.
2.2.5 Foreign Currency
Transactions entered into by the Group entities in a currency other than the currency of the primary
economic environment in which they operate (the "functional currency" is Rs.) are recorded at the rates
ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at
the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled
monetary assets and liabilities are recognized immediately in profit or loss.
2.2.6 Property, Plant and Equipment
Items of property, plant and equipment are initially recognized at cost. Cost includes the purchase price
and other directly attributable costs as well as the estimated present value of any future unavoidable
costs of dismantling and removing items. The corresponding liability is recognized within provisions.
Subsequent expenditure is capitalized only when it is probable that future economic benefits associated
with the expenditure will flow in to the Group. Ongoing repair and maintenance are expensed as
incurred.
The Group identifies and determines cost of each component/ part of the asset separately, if the
component/ part has cost which is significant to the total cost of the asset having useful life that is
materially different from that of the remaining asset. These components are depreciated over their useful
lives; the remaining asset is depreciated over the life of the principal asset.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each reporting date and adjusted prospectively.
An item of property, plant and equipment and any significant part initially recognized is derecognized
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the statement of profit or loss when the asset is
derecognized.

78
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Capital Work in Progress

Assets in the course of construction are capitalized in the assets under capital work in progress (CWIP).
At the point when an asset is operating at management’s intended use, the cost of construction is
transferred to the appropriate category of property, plant and equipment and depreciation commences.
Salvage Value
The Group has assessed the salvage value of all its property, plant and equipment to be 5% of its original
cost.
Depreciation
Freehold land is not depreciated. Depreciation on assets under construction does not commence until
they are complete and available for use. Depreciation is provided on all other items of property, plant and
equipment so as to write-off their carrying value over the expected useful economic lives.
Items of property, plant and equipment are depreciated on Straight Line Method over their useful life.
Management of the Group has assessed useful life of the following category of assets as mentioned.
Category of Assets Estimated useful life
Building 35 - 70 years
Other civil structures 20 - 35 years
Plant and machinery 10 - 30 years
Vehicle 10 - 20 years
Computer and accessories 7 years
Office Equipment 10 years
Furniture, fixture and furnishing 10 years
Leasehold Development 3 years
2.2.7 Intangible Assets
Computer Software
Purchased computer software licenses are capitalized on the basis of the costs incurred to acquire and
bring to use the software. These costs are amortized over the estimated useful lives.
2.2.8 Investment Property
The Group holds certain assets (land and building) for purpose other than its core operating function.
Such assets are classified as investment property.
Items of investment property are initially recognized at cost. Cost includes the purchase price and other
directly attributable costs as well as the estimated present value of any future unavoidable costs of
dismantling and removing items. The corresponding liability is recognized within provisions. Subsequent
expenditure is capitalized only when it is probable that future economic benefits associated with the
expenditure will flow in to the Group. Ongoing repair and maintenance are expensed as incurred.
When an item of property, plant and equipment becomes an investment property following a change in
its use, any difference arising at the date of transfer between the carrying amount of the item and its fair
value is recognized directly in equity if it is a gain. Upon disposal of the item, the gain is transferred to
retained earnings. Any loss is recognized in statement of profit or loss.
Incomes arising from use of investment property by third parties are recognized as lease income from
operating lease. The lease rental is adjusted for inflation rate periodically and the same amount is
booked as operating lease income, which the Group believes is more representative than the straight line
method, in line NFRS 16: Leases.
Salvage Value
Group has assessed the salvage value of its depreciable investment property to be 5% of its original cost.
Depreciation
Land that form part of investment property is not depreciated. Depreciation is provided on other items

79
 50th ANNUAL REPORT 2023/2024 (2080/2081)

of investment property so as to write-off their carrying value over the expected useful economic lives.
Depreciable investment properties are depreciated on Straight Line Method over their useful life.
Management considered the useful life of investment property to be of 55 years.
2.2.9 Investments
Investments in shares of the companies are classified as either at amortized cost or at fair value. The
classification of investment and its subsequent measurement is dependent on the business model for
managing such investments and contractual cash flow characteristics.
Investments are measured at fair value unless measured at amortized cost. Investments are measured at
amortized cost if such investment is held with in order to collect contractual cash flows and contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Subsequent changes in the investments measured at amortized cost are charged to Profit or Loss.
Investments measured at fair value opting the routing through Other Comprehensive Income, at initial
recognition, for adjusting the changes in fair value are charged through Other Comprehensive Income
that forms part of the equity of the Company. Changes in fair value of other investments are charged to
Profit or Loss.
2.2.10 Inventories
Stock of food, beverages, store and operating supplies are initially recognized at cost and subsequently
at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the
ordinary course of business, less the variable selling expenses.
The cost is determined on weighted average method and includes expenditure incurred directly in
acquiring the inventories and bringing them to their present location and condition.
2.2.11 Cash and cash equivalents
Cash and cash equivalents comprises cash balances, call deposits and other short term highly liquid
investments. For the purpose, any cash placement deposits, call deposit or other highly liquid items with
the maturity period of 90 days from the date of transaction is considered as cash equivalent.
2.2.12 Trade and other receivables
Trade and other receivables are stated at transaction value less allowance for impairment.
Staff loan are measured at amortized cost. Discounting rate has been arrived by considering comparable
market rates of similar types of loan. Difference of amortized value and book value of loan is charged to
profit or loss for the period of staff loan.
2.2.13 Share capital
Financial instruments issued by the Group are classified as equity only to the extent that they do not
meet the definition of a financial liability or financial asset. The Group’s equity shares are classified as
equity instruments.
2.2.14 Employee Benefits
Employee benefits are either defined benefit plan or defined contribution plan. Employee benefits of
SHL comprise of gratuity, provident fund and accumulated leave. These benefits are provided as per
the Employee Service Manual and Collective Bargaining Agreement between Employee Union and the
Company.
Provident Fund-Defined Contribution Plan
SHL pays pre-defined Provident Fund benefit to Social Security Fund (SSF) and SHL does not have any
legal or constructive obligation to pay additional amount in future. Contributions to Provident fund are
charged to the statement of profit or loss in the year to which they relate.
Gratuity-Defined Contribution Plan
SHL is required to pay pre-defined amount to Social Security Fund as gratuity to employees. SHL accrues
8.33% of basic salary of staff as gratuity benefits in accordance with the Labor Law of Nepal till Falgun

80
 50th ANNUAL REPORT 2023/2024 (2080/2081)

2076 while SHL has deposited Employee Gratuity in SSF from Chaitra 2076. The amount presented in
financial statements is the actual liability of gratuity at each reporting date.
Short term and long-term employment benefits
A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave
and sick leave in the period the related service is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service.
Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.
Accumulated leaves, encashment of which are not expected to occur within twelve months after the
end of the period in which the employee renders the related services are recognized as a liability at the
present value of the obligation as at the reporting date determined based on an actuarial valuation.
2.2.15 Income Tax
Deferred Tax
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilized. The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. The amount of deferred tax provided is based on the expected realization or
settlement of the carrying amount of assets and liabilities using tax rates that are expected to apply in
subsequent periods.
Current Tax
Current tax is the expected tax payable on the taxable income for the year using tax rates at the
reporting date and any adjustment to tax payable in respect of previous years. Current tax is calculated
reasonably in accordance with the provisions of Income Tax Act as per management assumption and
best judgment.
General corporate tax rate is 25%. SHL is entitled to a rebate of 15% on the General tax rate as per
the provisions of Income Tax Act 2058 Sec. 11(3Chha). Accordingly, tax rate applicable to the SHL for
current fiscal year is 21.25% (previous year rate was 21.25%).
2.2.16 Revenue
Revenue is recognized only when it is probable that the future economic benefits will flow to the group
and that revenue and associated costs incurred or to be incurred can be reliably measured. Revenue
is measured at the fair value of the consideration received or receivable net of Value Added Taxes, Civil
Aviation Fee and Luxury Tax where applicable.

Revenue from Sale of Services

Revenue is recognized at the time of delivery of services and is stated net of Value Added Tax (VAT) and
Luxury Tax. Revenue from The Soaltee Gate Gourmet -Flight Catering Division sales is stated net of Civil
Aviation Fee.
Revenue from package sales is disclosed net of credits and refunds, included as part of the package.
Dividend
Dividend income from investment in shares is recognized when the right to receive the payment is
established.
Other Income
Other income is recognized on accrual basis when there is reasonable basis to ascertain the amount and
there is reasonable basis for recoverability except for certain membership fee, which are insignificant to
the total revenue.

81
 50th ANNUAL REPORT 2023/2024 (2080/2081)

2.2.17 Expenses
Expenses are accounted on accrual basis where there is reasonable basis to estimate ascertain the
obligation and rationality of such obligation.
License Fee
License fees payable in relation to technical assistance to Gate Gourmet Singapore Pte. Ltd, to operate the
Flight Catering Unit under the brand name of ‘The Soaltee Gate Gourmet’ is based on a fixed percentage
of the Net Sales Value as specified in the Technical Assistance Agreement.
Employee Bonus
Employee bonus is provided in line with the provisions of Bonus Act 2030 BS.
2.2.18 Lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly specified in an arrangement.
A lease is classified at the inception date as a finance lease or an operating lease. For arrangements
entered into prior to 1 Shrawan 2074 the group has determined whether the arrangement contain lease
on the basis of facts and circumstances existing on the date of transition.
SHL has entered into operating lease arrangement for use of property at The Soaltee Gate Gourmet. The
lease rental is adjusted for inflation rate periodically and the same amount is booked as operating lease
expenses, which the Group believes is more representative than the straight line method, in line with
NFRS 16: Leases.
Group has entered into operating lease arrangement allowing to use its facilities and infrastructures to
third parties. The lease rental is adjusted for inflation rate periodically and the same amount is booked
as operating lease income, which the Company believes is more representative than the straight line
method, in line with NFRS 16: Leases.

2.2.19 Provisions
The Group applies NAS 37 Provisions, Contingent Liabilities and Contingent Assets in accounting for
non-financial liabilities.
Provisions are recognized for present obligations arising as consequences of past events where it is more
likely than not that a transfer of economic benefit will be necessary to settle the obligation, which can be
reliably estimated. Provision is made for the anticipated costs when an obligation exists.
2.2.20 Current versus non-current classification
The Group presents assets and liabilities in statement of financial position based on current/non-current
classification. Based on the nature of products and the time between acquisition of assets for processing
and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as
12 months for the purpose of current/non-current classification of assets and liabilities.
The Group classifies an asset as current when it is:
- Expected to be realized or intended to sold or consumed in normal operating cycle
- Held primarily for the purpose of trading
- Expected to be realized within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current.

The Group classifies a liability as current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

82
 50th ANNUAL REPORT 2023/2024 (2080/2081)

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period.
The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.
2.2.21 Segment Reporting
The Group’s segmental reporting is in accordance with NFRS 8 Operating Segments. Operating segments
are reported in a manner consistent with the internal reporting provided to the Company's management
of the Group, which is responsible for allocating resources and assessing performance of the operating
segments. All transactions between business segments are conducted on an arm's length basis, with
intra-segment revenue and costs being eliminated centrally. Income and expenses directly associated
with each segment are included in determining business segment performance.
2.2.22 Government Grant
Government grants, including non-monetary grants at fair value, is recognized when there is reasonable
assurance that the Group will comply with the conditions attaching to grant and the grants will be
received. Government grants is recognized in profit or loss on a systematic basis over the periods in which
the Group recognizes as expenses the related costs for which the grants are intended to compensate.

2.2.23 Operating Cycle

The Company considers its operating cycle to be of 12 months.

83
 SOALTEE HOTEL LIMITED
As at 31 Ashad 2081 (15 July 2024)

84
Notes to the Consolidated Financial Statements
Note 3.1: Property, Plant & Equipment
Amount in Rs.

Freehold Plant and Furniture and Office

Particulars Building Computers Vehicles Leasehold Capital WIP Total
Land Machinery Fixture Equipment
Cost
Balance at 149,488,779 914,155,783 1,180,937,429 456,078,979 6,304,391 70,468,468 114,992,907 17,142,913 167,269,984 3,076,839,633
01.04.2079
Addition - 185,269,220 179,422,284 19,550,868 714,940 2,991,597 18,125,664 - 289,357,378 695,431,951
- (1,262,458) (25,135,424) (1,239,068) (370,000) (5,130,696) (1,225,000) - (273,651,493) (308,014,139)
Disposal/Transfer
Balance at 149,488,779 1,098,162,545 1,335,224,289 474,390,779 6,649,331 68,329,369 131,893,571 17,142,913 182,975,869 3,464,257,445
31.03.2080
Addition - 257,197,773 182,174,582 28,305,184 59,900 1,465,120 46,552,428 7,500,084 320,773,231 844,028,302
- (1,235,738) (4,695,938) (2,165,267) (21,490) (594,100) (6,350,000) - (413,080,649) (428,143,182)
Disposal/Transfer
Balance at 149,488,779 1,354,124,580 1,512,702,933 500,530,696 6,687,741 69,200,389 172,095,999 24,642,997 90,668,451 3,880,142,565
31.03.2081
Depreciation and Impairment Loss
Balance at - 323,688,419 741,466,290 313,060,893 5,954,747 51,558,949 41,366,005 5,366,726 - 1,482,462,028
01.04.2079
Charge for the - 25,436,935 42,363,007 24,711,275 108,195 5,042,022 7,518,353 6,105,018 - 111,284,805
50th ANNUAL REPORT 2023/2024 (2080/2081)

year
Disposal - (802,227) (23,022,084) (1,239,068) (368,302) (5,130,696) (1,225,000) - - (31,787,377)
Balance at - 348,323,127 760,807,213 336,533,100 5,694,640 51,470,275 47,659,358 11,471,744 - 1,561,959,456
31.03.2080
Charge for the - 32,006,546 53,699,393 26,530,825 172,180 5,222,756 10,239,895 7,160,618 - 135,032,213
year
Disposal - (929,048) (4,636,579) (2,161,607) (21,490) (555,589) (2,298,961) - - (10,603,274)
Balance at - 379,400,625 809,870,027 360,902,318 5,845,330 56,137,442 55,600,292 18,632,362 - 1,686,388,395
31.03.2081
Net Book Value
At 01.04.2079 149,488,779 590,467,364 439,471,139 143,018,086 349,644 18,909,519 73,626,902 11,776,187 167,269,984 1,594,377,605
At 31.03.2080 149,488,779 749,839,418 574,417,076 137,857,679 954,691 16,859,094 84,234,213 5,671,169 182,975,869 1,902,297,989
At 31.03.2081 149,488,779 974,723,955 702,832,906 139,628,378 842,411 13,062,947 116,495,707 6,010,635 90,668,451 2,193,754,170

Property, Plant and Equipment under construction

Assets under construction majorly comprises of the works related to Corporate Building Project includes cost of assets Rs. 28.91 million, capital advance
Rs. 11.06 million and other related costs Rs. 0.3 million. The amount shall be capitalized to respective heads as and when the assets are available for use.
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements
Note 3.2: Intangible Assets
Amount in Rs.
Particulars Software Total
Cost
Balance at 01.04.2079 14,937,654 14,937,654
Addition - -
Disposal/Transfer - -
Balance at 31.03.2080 14,937,654 14,937,654
Addition - -
Disposal - -
Balance at 31.03.2081 14,937,654 14,937,654
Amortization
Balance at 01.04.2079 14,133,558 14,133,558
Charge for the year 377,242 377,242
Disposal - -
Balance at 31.03.2080 14,510,800 14,510,800
Charge for the year 377,242 377,242
Disposal - -
Balance at 31.03.2081 14,888,042 14,888,042
Net Book Value
At 01.04.2079 804,096 804,096
At 31.03.2080 426,854 426,854
At 31.03.2081 49,612 49,612

Note 3.3: Investment Property

Amount in Rs.
Particulars Freehold Land Building Total
Cost
Balance at 01.04.2079 4,707,287 166,146,812 170,854,100
Addition - - -
Disposal/Transfer - - -
Balance at 31.03.2080 4,707,287 166,146,812 170,854,100
Addition - 4,280,130 4,280,130
Disposal - - -
Balance at 31.03.2081 4,707,287 170,426,942 175,134,230
Amortization
Balance at 01.04.2079 - 81,677,482 81,677,482
Charge for the year - 1,979,123 1,979,123
Disposal - - -
Balance at 31.03.2080 - 83,656,605 83,656,605
Charge for the year - 2,093,800 2,093,800
Disposal - - -
Balance at 31.03.2081 - 85,750,405 85,750,405
Net Book Value
At 01.04.2079 4,707,287 84,469,330 89,176,618
At 31.03.2080 4,707,287 82,490,207 87,197,495
At 31.03.2081 4,707,287 84,676,537 89,383,825

85
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements
Note 3.4: Deferred Tax Assets/(Liabilities)
Deferred tax is calculated on temporary differences using known future tax rate. Deferred tax assets are
recognized in respect of all temporary differences giving rise to deferred tax assets where the management
believes it is probable that these assets will be recovered.
Amount in Rs.
Credit/(Charge) to Credit/(Charge) to
Particulars 01.04.2080 31.03.2081
SOPL OCI
Fixed Assets (62,270,628) (10,900,967) - (73,171,595)
Gratuity Provision 15,009,798 (921,269) - 14,088,529
Provision for Leave 11,963,694 918,317 - 12,882,011
Trade and Other Receivable 10,968,678 1,062,500 - 12,031,178
Total (24,328,458) (9,841,419) - (34,169,877)

Credit/(Charge) to Credit/(Charge) to
Particulars 01.04.2079 31.03.2080
SOPL OCI
Fixed Assets (53,303,422) (8,967,206) - (62,270,628)
Gratuity Provision 16,203,871 (1,194,073) - 15,009,798
Provision for Leave 10,406,635 1,557,059 - 11,963,694
Trade and Other Receivable 9,906,178 1,062,500 - 10,968,678
Total (16,786,738) (7,541,720) - (24,328,458)

Note 3.5: Investments

Amount in Rs.
Particulars 31.03.2081 31.03.2080
Non-Current
At Amortized Cost - -
At Fair Value Through Profit or Loss - -
At Fair Value Through OCI 280,476,188 274,687,563
Total 280,476,188 274,687,563
Current
At Amortized Cost - -
At Fair Value Through Profit or Loss - -
At Fair Value Through OCI - -
Total - -
Investment comprises the following:
At Amortized Cost (A) 31.03.2081 31.03.2080
Term Deposit - -
Total Investment at Amortized Cost - -
At Fair Value Through OCI (B)
Investment in Associates
Soaltee Sibkrim Hotels and Resorts Pvt. Ltd. 261,840,000 261,840,000
Sub-total 261,840,000 261,840,000
Investment in other Entities
Himal International Power Corp. Pvt. Ltd.
18,636,188 12,847,563
(100,000 shares of Rs. 100 each)
Sub-total 18,636,188 12,847,563
Total Investment through OCI 280,476,188 274,687,563
Proportion of voting rights
Soaltee Sibkrim Hotels and Resorts Pvt. Ltd. 24% 24%
Himal International Power Corp. Pvt. Ltd. 5.97% 5.97%

86
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2080 (16 July 2023)
Notes to the Consolidated Financial Statements

Note 3.6: Trade and Other Receivable

Amount in Rs.
Particulars 31.03.2081 31.03.2080
Non-Current
Other Receivable 7,051,419 7,051,419
Deposit for Appeal 12,289,454 9,299,783
Deposits 6,073,912 7,065,592
Loans and Advances to Employees 4,536,124 6,982,735
Deferred Employee Benefit Expenses - 41,304
Total 29,950,909 30,440,833
Less: Allowance for Impairment (7,051,419) (7,051,419)
Total 22,899,490 23,389,414
Current

Trade Receivable
Trade Receivable 278,565,118 266,725,614
Less: Allowance for Impairment (49,565,887) (44,565,887)
Trade Receivable-Net 228,999,231 222,159,727
Other Receivable
Loans and Advances to Employees 11,679,674 13,814,856
Loans and Advances to Other 33,742,472 28,209,222
Advances to Contractor and Suppliers 27,793,193 54,267,965
VAT Recoverable 1,342,801 3,089,678
Management Fees Recoverable 4,036,281 4,036,281
Others 2,993,840 493,843
Deferred Employee Benefit Expenses 307,080 265,776
Total Other Receivable 81,895,341 104,177,621
Total 310,894,572 326,337,348
Additional information on other receivable included in non-current receivable is provided in Note 4.10.1.
Trade receivables are normally collected as per credit terms with the parties, generally within a period of 90
days. Trade receivable is non-interest bearing. Additional information on Trade receivable included in Current
receivable is provided in Note 4.10.2.
Note 3.7: Inventories
Particulars 31.03.2081 31.03.2080
Stores and Spares 22,620,542 21,790,412
Provision, Beverage and Others 43,581,747 37,221,699
Uniform and Linen 39,701,656 42,147,234
Crockery, Cutlery etc. 25,333,070 21,044,174
Total 131,237,015 122,203,519

Note 3.8: Cash and Cash Equivalent

Particulars 31.03.2081 31.03.2080
Cash in Hand 3,287,161 3,889,934
Cheques in Hand - 700,000
Balances with Bank 100,913,003 68,007,001
Total 104,200,164 72,596,935

87
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements

Note 3.9: Share Capital

Amount in Rs.
Particulars 31.03.2081 31.03.2080
Authorized
150,000,000 Shares of Rs. 10/- each 1,500,000,000 1,500,000,000
Issued
100,000,000 Shares of Rs. 10/- each 1,000,000,000 1,000,000,000
Subscribed
92,895,370 Shares of Rs.10/- each (Fully Paid Up) 928,953,700 884,715,060
Total 928,953,700 884,715,060
Reconciliation of no. of shares outstanding
Particulars 31.03.2081 31.03.2080
Balance at the beginning of the year 88,471,506 84,257,973
Add: Bonus Issue 4,423,864 4,213,533
Balance at the end of year 92,895,370 88,471,506
Details of Shareholding
Major Corporate Shareholders 69% 69%
General Shareholders 31% 31%
Note 3.10: Retained Earning and Reserves
Particulars 31.03.2081 31.03.2080
Share Premium 16,000,000 16,000,000
Other Reserve 7,288,761 7,288,761
Revaluation Reserve 35,198,427 35,198,427
Fair Value Reserve for Equity Investment 8,636,188 2,847,563
Retained Earnings 1,375,489,676 1,162,705,760
Total 1,442,613,052 1,224,040,511
Note 3.11: Non-Controlling Interest
Particulars 31.03.2081 31.03.2080
Share Capital - -
Retained Earnings - -
Total - -
Note 3.12: Loans and Borrowings
Particulars 31.03.2081 31.03.2080
Non-Current
Secured- Hire Purchase 6,636,303 7,931,571
Total 6,636,303 7,931,571
Current
Current portion of Hire Purchase Loan 1,360,289 1,308,207
Total 1,360,289 1,308,207
Note 3.13: Employee Benefits
Particulars 31.03.2081 31.03.2080
Non-Current
Gratuity 66,298,960 70,634,343
Less: Plan Assets (1,505,714) (1,259,866)
Net Gratuity Liability 64,793,246 69,374,477
Accumulated Leave 60,621,227 56,299,735
Total 125,414,473 125,674,212
Current
Salary and Wages Payable 12,861,071 13,028,397
Bonus Payable 74,734,688 68,712,943
Total 87,595,759 81,741,340

88
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements

Note 3.14: Income Tax Receivable/(Payable)

Amount in Rs.
Particulars 31.03.2081 31.03.2080
Advance Income Tax 133,068,430 110,149,978
Income Tax Liability (138,269,745) (125,120,495)
Total (5,201,315) (14,970,517)
Note 3.15: Trade and Other Payable
Particulars 31.03.2081 31.03.2080
Non-Current
Retention and Security Deposit 29,704,246 15,159,071
Advances Received 45,034,895 48,947,939
Unclaimed Dividend 17,936,251 13,539,009
Total 92,675,392 77,646,019
Current
Sundry Creditors 261,073,103 236,584,587
Other Payable
Advances Received 34,999,574 34,999,574
Flight Kitchen Franchise Fee 1,230,305 1,148,430
VAT Payable 302,857 277,224
Service Charge 12,025,508 12,102,566
Housing Fund 26,334,029 26,334,029
Corporate Social Responsibility 10,536,663 8,431,238
Other Liabilities 84,741,631 68,283,278
Total 431,243,670 388,160,926
Trade and other payable are non-interest bearing in nature.
Note 3.16: Revenue from Operation
Particulars 2080-81 2079-80
Room 591,426,885 551,094,425
Food 1,670,573,962 1,496,892,775
Beverage 124,152,256 104,935,519
Cigar and Cigarettes 2,052,476 1,497,714
Laundry Income 2,222,726 1,779,057
Business Centre 21,106 17,131
Total 2,390,449,411 2,156,216,621
Note 3.17: Other Income
Particulars 2080-81 2079-80
Premises Rental Charge 51,843,657 36,397,311
Interest on Loans & Advances at Amortized Cost 901,531 1,108,581
Interest on Call Account/Time Deposit 563,632 156,390
Miscellaneous Receipts 50,953,635 10,644,900
Income from Service Charge - 21,403,302
Dividend Income 2,700,000 19,271,347
Profit on Sale of Assets 179,281 4,506,502
Exchange Gain 708,585 2,548,345
Others 3,316,998 2,132,490
Reversal of Provision for Gratuity - 2,315,290
Unclaimed Balance Written Back 111,924 -
Total 111,279,243 100,484,458

89
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements

Note 3.18: Consumption of Food and Beverage

Amount in Rs.
Particulars 2080-81 2079-80
Food 372,362,310 350,648,786
Beverage 32,081,547 28,830,695
Cigarettes 709,619 603,925
Total 405,153,476 380,083,406
Note 3.19: Employee Benefit Expenses
Particulars 2080-81 2079-80
Salary and Wages 281,051,900 250,363,992
Allowances 91,285,848 69,270,703
Festival Allowance 14,721,002 13,042,251
Overtime 9,030,487 8,510,124
Employees Meal 45,212,425 42,212,553
Soaltee Staff Welfare 2,398,228 2,468,229
Gratuity 14,978,588 13,593,805
Leave 8,872,154 11,095,599
Provident Fund 17,982,025 16,315,871
Clinic Expenses 3,116,383 2,806,557
Incentive Exit Scheme - 3,975,504
Bonus 74,734,688 68,712,943
Total 563,383,728 502,368,131
Additional information on Gratuity is provided in Note 4.4.a.
Note 3.20: Operating Expenses

Particulars 2080-81 2079-80

Linen 16,021,984 11,354,900
Laundry Supplies 49,467,434 37,871,510
Crockery & Cutlery 4,513,645 3,913,305
Silverware 1,627,007 529,198
Cleaning Supplies 17,803,578 14,245,204
F & B Paper Supplies 21,476,771 17,328,664
Guest Supplies 35,240,718 32,244,290
Water & Water Treatment 11,331,873 10,413,839
Garden Maintenance 844,886 1,692,064
Pest Control 2,508,000 2,496,000
Waste Removal 1,491,503 1,243,300
Power and Fuel 107,851,520 115,138,899
Repair and Maintenance 33,281,448 36,928,650
Total 303,460,367 285,399,823

90
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements

Note 3.21: Other Expenses

Amount in Rs.
Particulars 2080-81 2079-80
Rental Charges 15,997,048 10,367,981
Travelling 22,718,769 24,778,318
Transport and Conveyance 29,927,122 34,364,718
Audit Fee 655,000 645,000
Legal and Professional Fees 9,935,027 9,303,004
Directors' Meeting Fees 1,794,132 1,494,123
Licence & Taxes 87,444,500 33,879,627
Bank Charges 10,827,365 8,794,279
Annual General Meeting Expenses 1,185,640 970,145
Commissions 13,250,510 16,110,637
Insurance 10,959,771 10,071,617
Communication Expenses 4,851,071 5,454,834
Printing and Stationery 9,193,262 7,551,309
Advertisement and Sales Promotion 19,250,117 16,795,825
Marketing and Reservation Expenses 7,818,957 7,717,702
Training and Conference 1,858,882 1,683,173
Books and Newspaper 200,418 186,937
Membership & Subscription 1,996,947 2,281,856
Security Services 15,123,943 15,204,998
Uniform Expenses 7,949,331 7,340,730
Entertainment 5,714,191 4,536,967
Allowance for Impairment 5,000,000 5,000,061
Software Service Charges 8,251,196 6,501,297
Investment Written Off - 3,443,328
Banquet Expenses 7,434,667 9,421,467
Kitchenette Expenses 5,980,553 7,870,198
Corporate Social Responsibility 6,000,425 5,549,796
Miscellaneous 26,745,145 20,079,074
Total 338,063,989 277,399,001

Note 3.22: Earnings per Share

Basic earnings per share is calculated by dividing the total profit or loss attributable to equity shareholders.
Diluted earnings per share is calculated by dividing the profit or loss attributable to equity shareholders by
weighted average number of equity shares for the effects of all dilutive potential equity shares. If the number of
ordinary or potential ordinary shares outstanding increases as a result of a capitalization, bonus issue or share
split, or decreases as a result of a reverse share split, the calculation of basic and diluted earnings per share for
all periods presented is adjusted retrospectively.

Calculation of basic and diluted earnings per share has been done as stated above.
Particulars 2080-81 2079-80
Basic Earnings per Share
Profit/(Loss) for the year 602,450,417 556,486,595
Number of shares 92,895,370 92,895,370
Basic Earnings per Share (Rs.) 6.49 5.99
Diluted Earnings per Share
Profit/(Loss) for the year 602,450,417 556,486,595
Weighted average number of shares 92,895,370 92,895,370
Diluted Earnings per share (Rs.) 6.49 5.99

91
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

As at 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements

Note 3.23: Financial Instruments Classification and Fair Value Measurement

Financial Instruments are classified in accordance with Note 2.2.3. Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair values are determined according to the following hierarchy:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for the asset or liability. Company has used its own data (accounting
value) and considered if there exist factors that would otherwise result in changes to the book value of assets
or liabilities. Such factors did not exist as per management evaluation and accordingly, book value has been
considered as fair value.
Amount in Rs.
As at 31.03.2081 Carrying Amount Level 1 Level 2 Level 3
Financial Assets
Financial Assets at Amortized Cost
Trade and Other Receivable 333,486,982 333,486,982
Investment - -
Cash and Cash Equivalent 104,200,164 104,200,164
Total At Amortized Cost 437,687,146 437,687,146
Financial Assets at Fair Value through Other Comprehensive Income (FVOCI)

Investment 280,476,188 280,476,188

Total Financial Assets 718,163,334 - - 718,163,334
Financial Liabilities
Financial Liabilities at Amortized Cost
Trade and Other Payable 523,919,062 523,919,062
Loans and Borrowings 7,996,592 7,996,592
Total Financial Liabilities 531,915,654 - - 531,915,654

As at 31.03.2080 Carrying Amount Level 1 Level 2 Level 3

Financial Assets
Financial Assets at Amortized Cost
Trade and Other Receivable 349,419,682 349,419,682
Investment - -
Cash and Cash Equivalent 72,596,935 72,596,935
Total At Amortized Cost 422,016,617 422,016,617

Financial Assets at Fair Value through Other Comprehensive Income (FVOCI)

Investment 274,687,563 274,687,563

Total Financial Assets 696,704,180 - - 696,704,180
Financial Liabilities
Financial Liabilities at Amortized Cost
Trade and Other Payable 465,806,945 465,806,945
Loans and Borrowings 9,239,778 9,239,778
Total Financial Liabilities 475,046,723 - - 475,046,723

92
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SOALTEE HOTEL LIMITED

For the period ended on 31 Ashad 2081 (15 July 2024)
Notes to the Consolidated Financial Statements

4 Additional Information
4.1 Share Capital
The Group has single class of equity shares where shares of Soaltee Hotel Limited have face value of Rs.
10 per share and subsidiaries have face value of Rs. 100 per share. Every member holding equity shares
therein shall have voting rights in proportion to the member’s share of the paid up equity share capital.
4.2 Non-Controlling Interest
Soaltee Hotel Ltd. has made investment in one subsidiary where holding is 100%. Upon consolidation
of the financial statements, total portion of financial statements is added by eliminating the portion of
other shareholders by way of non-controlling interest.
4.3 Reserves and Retained Earnings
a. Share premium
SHL had issued shares in premium on 1992-93. The amount collected by SHL in excess of its face
value is credited to this account. Use of share premium shall be as provided in Company Act 2063.
b. Other Reserves
SHL had created other reserves out of capital profits on 1995. There is no movement on this reserve
since then.
c. Retained Earning
Net profit for each year is added to this reserve. Group uses this to provide dividend to its shareholders.
d. Fair Value Reserve
This reserve is created to account for changes in fair value of investments for those investments that
are opted to be measured at fair value through Other Comprehensive Income.
e. Revaluation Reserve
Revaluation Reserve was created in 1986 when the land of SHL was revalued. For the first time
adoption of NFRS (1 Shrawan 2074), the revalued amount of land has been considered at deemed cost
which as allowed by NFRS 1 and accordingly, this reserve has remain intact.
4.4 Employee Benefits
a. Gratuity
Up to 19 Bhadra 2074, gratuity was in the form of defined benefit liability in which SHL was required
to pay gratuity to staff considering the number of years in service and the recent salary of the staff.
Changes in Labor law has changed the nature of gratuity and this is now a defined contribution plan
whereby SHL is required to provide 8.33% of monthly basic remuneration as gratuity to employee
with effect from 19 Bhadra 2074. SHL has enrolled itself and it's employees in Social Security Fund
(SSF) in Chaitra 2076 and thereafter it has started making contribution towards Employee Gratuity
in the fund.
Particulars 2080-81 2079-80
Opening Liability 70,634,343 76,253,510
Payment Made (4,335,383) (3,303,876)
Expenses Booked 14,978,588 13,593,805
Reversal of Excess Provision - (2,315,291)
Deposited in SSF (14,978,588) (13,593,805)
Closing Liability 66,298,960 70,634,343
b. Leave
Leave is classified as other long term employee liability. Liability is measured by way of actuarial
valuation for accumulated leave balance at the end of reporting periods. Changes in value of liability

93
 50th ANNUAL REPORT 2023/2024 (2080/2081)

is as follows:
Particulars 2080-81 2079-80
Opening Liability 56,299,735 48,972,399
Service Cost 8,046,925 8,229,115
Interest Cost 4,827,894 4,022,294
Actuarial Gain/(Loss) (3,715,503) (1,152,677)
Benefit Paid (4,837,824) (3,771,396)
Closing Liability (A) 60,621,227 56,299,735
Liability recognized in the financial statements (B) 60,621,227 56,299,735
Basic assumptions considered for measurement of leave liability related to leave are as follows:
Particulars 2080-81 2079-80
Discount Rate 9.00% 8.50%
Rate of Compensation Increase 6% 6%
Average Expected Future Service 16 14
Average Duration of Liabilities 11 10
Plan assets have not been created for funding of payment of leave liability.
Sensitivity Analysis
The following table demonstrates the impact of 1% increase in discount rate considered for calculating
the present value of long term leave liability.
Particulars 2080-81 2079-80
Effect on:
- Service Cost (829,497) (912,634)
- Interest Cost 536,430 473,209
- Leave Liability (11,129,540) (10,883,442)
The following table demonstrates the impact of 1% decrease in discount rate considered for calculating
the present value of long term leave liability.

Particulars 2080-81 2079-80

Effect on:
- Service Cost 1,009,124 1,109,033
- Interest Cost (536,430) (473,209)
- Leave Liability 13,347,626 13,101,212
4.5 Lease
SHL has entered into a lease arrangement of premises for a period of 2-3 years. The future minimum
lease rental payment to be made is as follows:
Period 2080-81 2079-80
Up to one year 11,249,756 13,012,097
One to five years 5,648,627 11,185,354
Total 16,898,383 24,197,451
SHL has entered into operating lease arrangement allowing to use some part of its assets on lease. Minimum
lease amount receivable under such lease is as follows:
Period 2080-81 2079-80
Up to one year 62,221,492 37,607,133
One to five years 303,558,343 291,633,300
Above five years 150,365,219 172,386,540
Total 516,145,054 501,626,973
4.6 Corporate Social Responsibility
During the year, SHL has provided Rs. 6.00 million (previous year Rs. 5.55 million (1% of net profit after
tax) as Corporate Social Responsibility as per the Section 54 (1) of the Industrial Enterprises Act 2076.

94
 50th ANNUAL REPORT 2023/2024 (2080/2081)

4.7 Risk Management objectives and policies

The Group’s business activities expose to a variety of risks, namely primarily to fluctuations in foreign
currency exchange rates, liquidity and credit risk, which may adversely impact the fair value of its
financial instruments. The Board of each Group and senior management has overall responsibility for
the establishment and oversight of the Group's risk management. The Group's risk management policies
are established to identify and analyses the risks faced by the Group, 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 Group's activities.
i. Market Risk
In spite of having a very high potentiality of Tourism Sector and its related to services, it is volatile
to geopolitical and domestic incidents. With stabilization in the geopolitical and domestic issues,
the tourism sector looks for bright future. However, there is risk that any domestic/international or
geopolitical incidents would impact the business of the company. However, the group through years
of operations has sustained through such risks over the years in the past.
ii. Credit Risk
The Group (SHL, in particular) provides reasonable level of credit facilities to debtors and so does
it enjoy credit facility from its creditors as well. In impact on tourism sector may have impact of
company debtors' ability to pay SHL within reasonable credit period allowed. Accordingly, there
exist the credit risks to that extent. The Group through its experience over the many years has
been managing such risk well through proper way of close monitoring and supervising the regular
recoverability position by the management and the Board.
iii. Liquidity Risk
The Group has very less amount of debt funding and will not be impacted significantly. Group
monitors its liquidity position on regular basis through effective planning and forecasting.
The Group’s current assets aggregate positively against the current liabilities and accordingly, the
liquidity risk or risk that the company may not be able to settle its liabilities as they become, due
does not exist.
iv. Operational Risk
Group has been in operation since more than 57 years and have prepared and implemented various
Standard Operating Procedures (SOPs) in the form of clear cut delegation of authority for the activities,
guidelines regulations etc. Beside the companies of Group is required to also follow specific operating
guidelines issued by its franchise. Group believes that the controls implemented by the company
have minimized the operational risk to acceptably low level. The franchise also carries out Control
Self-Assessment at reasonable interval where the SHL scored high level marks placing it as one
among better managed hotel among hotels being managed by Franchise.
v. Exchange Rate Fluctuation Risk
SHL's revenue will be impacted coming from any fluctuation of exchange rate fluctuation so be on
the certain level of supplies of SHL as such exchange rate fluctuation will contribute certain level of
inflations. Since its tariffs are quoted in USD, any rate fluctuation will have the risk of impacting the
income of the SHL. It has been the tendency that the exchange rate fluctuation has generally been
upward movement except of occasional down turn movement as well. The Group has practiced not
to hold foreign currency monetary assets and liabilities for substantial period so as to minimize the
risk of exchange rate fluctuation.
4.8 Related Party Transactions
Related parties of the Group comprise of key management personnel, organization having significant
influence and Board of Directors.

95
50th ANNUAL REPORT 2023/2024 (2080/2081)

a. Significant Influence
Entities having significant influence over the Group is as follows:
i. Soaltee Enterprise Pvt. Ltd. (SEPL)
Soaltee Enterprise Pvt. Ltd. is major shareholder of SHL. SEPL has four representatives in the
current Board of Soaltee Hotel Ltd. (SHL). SEPL has paid Rs. 66,667 (previous year Rs. 66,667)
to SHL as operating lease rent. SHL has paid Rs. 1,102,500 to SEPL as operating lease rent.
There is no outstanding balance at the year end.
Entity where the Group has significant influence is:
i. Soaltee Sibkrim Hotels and Resorts Pvt. Ltd.
Soaltee Sibkrim Hotels and Resorts Pvt. Ltd. is associate of the Group. One of the subsidiary of
SHL, Soaltee Hospitality Ltd. has 24% shares in this company with investment of Rs. 261.84
million. There is no transaction or outstanding balance of this company with the Group.
b. Other related entities
i. Nepal Airlines Corporation (NAC)
Nepal Airlines Corporation is institutional shareholder of the company. NAC has one representative
in the Board of SHL.
SHL provides flight catering services to the international flights of Nepal Airlines Corporation.
Transactions and outstanding balance with Nepal Airlines Corporation are as follows:
Revenue (in million) Receivable (in million)
Particulars
This Year Last Year This Year Last Year
Flight Catering Services 338.86 274.49 44.19 50.44
ii. Sibkrim Holdings Pvt. Ltd.
There is no transaction of this company with SHL.
c. Those charged with Governance
Those charged with governance include the Board of Directors of each companies. As SHL is the
major shareholder of all subsidiaries, the Board of those companies is ultimately controlled by Board
of SHL. The composition of Board of SHL on the reporting date is as follows:
Name Position Representative of
Mr. Dinesh Bahadur Bista Executive Chairman Soaltee Enterprises Pvt. Ltd.
Mr. Ravi Bhakta Shrestha Director Soaltee Enterprises Pvt. Ltd.
Mr. Rajesh Kazi Shrestha Director Soaltee Enterprises Pvt. Ltd.
Mrs. Jaya Rajya Laxmi Shah Director Soaltee Enterprises Pvt. Ltd.
Mr. Ubaraj Adhikari Director Nepal Airlines Corporation
Mr. Prakash Bikram Khatri Director Public Shareholder
Mr. Sashi Raj Pandey Director Public Shareholder
Mr. Niranjan Kumar Tibrewala Director Public Shareholder
Mr. Deepak Raj Joshi Director Independent Director

Mr. Lil Bahadur Khatri serves as Company Secretary of the Company.

Board members are paid Rs. 25,000 (net of withholding tax) per meeting as meeting fee for attending
each meeting of Board. Meeting fee paid to members of Board for Board as well as Other Committee
meetings during the year amounts to Rs. 1.79 million (previous year Rs. 1.49 million).
d. Key Management Personnel
The Groups' key management personnel include are Executive Chairman & Vice President of SHL
and General Manager of The Soaltee Kathmandu.
Total compensation to key management personnel during the year is Rs. 47.64 million (previous

96
 50th ANNUAL REPORT 2023/2024 (2080/2081)

year Rs. 31.84 million). The compensation paid to Executive Chairman of SHL also includes the
performance incentive paid based on the profit of Hotel.
4.9 Unpaid Dividend
Total unpaid dividend of SHL amounted to Rs. 17.94 million (previous year Rs. 13.54 million).
4.10 Trade and Other Receivable
4.10.1 Civil Aviation Fee recoverable from Airlines
Civil Aviation Fees levied on Inflight catering services provided on international flights by SHL to three
different airlines is disputed and has not been paid by these respective airlines which amounted to Rs
7.051 million (previous year Rs. 7.051 million) is still pending recovery. This has been reflected under
Non-Current Trade and other receivables.
4.10.2 Trade Receivable from Jet Airways
Trade receivable amounting to Rs. 16,061,418 is pending recoverable from Jet Airways as of the reporting
date which has closed its operation from 17 April 2019 and is undergoing its insolvency proceedings.
In October 2020, a revival takeover plan of potential investors has been approved by the Committee of
Creditors of Airlines. The company has already lodged an outstanding with Jet Airways & confirmed by
Jet Airways in their official website as eligible creditors. However, the outcome of the proceeding and
business revival is yet to be known.
4.11 Lien on company's assets
Current and non-current assets of SHL, where applicable has been pledged hypothecated to bankers
providing the credit facilities. The credit facility as of the reporting date included term loan and over draft
against a vehicle, movable and immovable properties amounting to Rs. 7.99 million (previous year Rs.
9.24 million).
4.12 Contingent Liability
Group recognizes contingent liability when a possible obligation arises from past events and whose
existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the entity or company as a present obligation as a result of
past events which is not recognized because it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation; or the amount of the obligation cannot be
measured with sufficient reliability. All adjusting events are considered for appropriate reflection in the
current financial year.
4.13 Bank Guarantee
Unexpired bank guarantee issued by Group amounted to Rs. 56.34 million (previous year Rs. 26.04
million).
4.14 Litigations or legal cases
i. Income tax Matters
Appeal Revenue Tribunal
The Inland Revenue Department has filed an appeal to review the verdict of the Revenue Tribunal
in the Honorable Supreme Court for the Fiscal Year 2068-69 which had ruled in favor of the SHL.
The Honorable Supreme Court issued its final verdict in favor of the SHL during this fiscal year.
The Supreme Court upheld the Revenue Tribunal's verdict and dismissed the appeal by the Inland
Revenue Department. The full text of the verdict of the Supreme Court is yet to be received after
publication by the Supreme Court at a later date.
SHL has filed an appeal with Revenue Tribunal challenging the disallowance of expenses on Self-
Assessment Income Tax Return for the Fiscal Year 2067-68, 2069-70, 2070-71, 2071-72, 2072-73,
2073-74, 2074-75 & 2075-76. The appeals arise due to an additional income tax demand/claim
as assessed by the Large Taxpayers Office during their administrative review. SHL's management
believes that it should not incur a significant financial obligation to the Company due to these tax
claims. If any tax claim does arise, such charges would be directly charged to SHL's accumulated
profit, in accordance with past practice.

97
 50th ANNUAL REPORT 2023/2024 (2080/2081)

SHL has filed a writ petition with High Court against additional demand of Tax deducted at source
(Income Tax) by Large Tax Office relating to FY 2073/74. The Matter is sub-judiced in the High
Court.
ii. Arbitration Suit

SHL has filed a Writ Petition with the Honorable High Court Patan on the issue of Outstanding
Receivable recovery pending settlement by the then Hotel Manager, Holiday Inns (China) Ltd (Manager)
seeking the court's assistance for appointment of an arbitrator on behalf of Holiday Inns (China) Ltd.
as they did not appoint their arbitrator. The High Court has appointed an arbitrator on behalf of
Holiday Inns (China) Ltd. However, Holiday Inns (China) Ltd has challenged the appointment in the
Supreme Court of Nepal stating that they have already appointed their arbitrator. The matter is sub-
judiced in the Supreme Court.
iii. Casino Royalty of the Closed down period
SHL has filed writ petition with the Honorable Supreme Court of Nepal against the demand of
Casino Royalty by Government of Nepal for the period in which the casino was not in operation from
Shrawan 2068 to Kartik 2069 due to the cancellation of Nepal Recreation Centre's Casino Operation
permission. The Supreme Court has dismissed the writ and the SHL has settled said Casino Royalty
as per the full text of the verdict from the Honorable Supreme Court of Nepal during this fiscal year.
iv. Civil Aviation Authority for TIA Lounge contract continuation
SHL had filed writ petitions in the District Court of Nepal against the Civil Aviation Authority of
Nepal, & TIA for the continuation of the Lease Agreement as per the Contract renewal provision for
the further period of three years. The District Court has awarded stay order until final verdict of the
Court during this fiscal year.
v. Legal cases
SHL has filed a few other cases to recover dues from some debtors and other parties as a part of its
regular business operation.
4.15 Capital Commitment
Capital contract of SHL remaining to be executed on capital accounts net of advances to Rs. 145.85
million (Previous year Rs. 175.33 million).
4.16 Letter of Credit
There is Rs. 6.68 million (Previous year Rs. Nil) outstanding letter of credit as at the reporting date.
4.17 Housing Fund
This fund was created as per the requirement of erstwhile Labour laws. Owing to changes in Labour law,
this fund is no longer required and no provision has been made. SHL has not paid during the year out
of the opening balance from this fund to a separate entity called Employee Housing.
4.18 Operating Segment
Management of the companies of the Group has considered the total operation to be segregable into
three operating segment based on the nature of operation and services rendered.

i. Room Segment: The Room Segment of a hotel includes reservations, front desk, housekeeping and
guest services.

ii. Food & Beverage Segment: The function of Food & Beverage Segment and Flight Services Division
is to provide food and beverages services to its customers.

iii. Other Segment: Other Segment includes the Corporate Division, Sales & Marketing Department,
Human Resource Department and other services centres except Room and Food & Beverage
Segment of the Hotel.

98
 50th ANNUAL REPORT 2023/2024 (2080/2081)

The financial information about the identified segments are as follows:

(Amount in millions)
Food &
Room Other
Operating Segment Beverage Total
Segment Segment
Segment
- Revenue 591.43 1,794.72 115.58 2,501.73
Total Revenue 591.43 1,794.72 115.58 2,501.73
Expenses
Consumption cost 133.27 405.15 - 538.42
Employee Benefit Expenses 97.44 292.60 173.34 563.38
Management, Operating and Other Expenses 33.56 279.40 195.29 508.25
Depreciation and Amortization - - - 137.50
Finance Cost - - - 3.60
Total Expenses 264.27 977.15 368.64 1,751.17
Segment Result 327.16 817.57 (253.06) 750.56
Income Tax 148.11
Profit for the period 602.45
Segment Assets* 3,155.86
Segment Liabilities** 3,155.86
* Segment wise assets has not been prepared due to absence internal reporting system of segment assets.
** Segment wise liabilities have not been prepared due to absence internal reporting system of segment liability.
4.19 Capital Management
Capital includes issued capital and all other reserves attributable to the equity holders of the Group.
The Companies of the Group manage their capital so as to safeguard its ability to continue as a going
concern and to optimize returns to the shareholders. The capital structure of the Group is based on
management’s judgement of the appropriate balance of key elements in order to meet its strategic needs.
We consider the amount of capital in proportion to risk and manage the capital structure in light of
changes in economic conditions and the risk characteristics of the underlying assets.
The Group’s aim is to translate profitable growth to superior cash generation through efficient capital
management. The Group's policy is to maintain a stable and strong capital structure with a focus
on total equity so as to maintain investor, creditor, and market confidence and to sustain future
development and growth of its business. The Group's focus is on keeping strong total equity base to
ensure independence, security, as well as a high financial flexibility for potential future borrowings, if
required, without impacting the risk profile of the Group. The Group will take appropriate steps in order
to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital
as well as the level of dividends to shareholders. The Group’s goal is to continue to be able to return
excess liquidity to shareholders by continuing to distribute dividends in future periods.
No changes were made in the objectives, policies or processes for managing capital during all the years
reported in this financial statement.
4.20 Events after reporting date
Events after the reporting date are those events, favourable and unfavourable, that occur between the
balance sheet date and the date when the financial statement are authorized for issue. There are no
material events that have occurred subsequent to 15 July 2024 till the date of signing of this financial
statements.
4.21 Regrouping and Round off
Figures have been regrouped and rearranged and rounded off to nearest rupee. Insignificant rounding
off differences may exist.


99
 50th ANNUAL REPORT 2023/2024 (2080/2081)

Special Resolution
Amendment in the Section 5 of the Memorandum of Association (MOA)

Section Existing Proposed Amendments Remark (Reason)

5 The Authorised Capital of 5 The Authorised Capital of the Company shall to increase the
the Company shall be Rs. be Rs. 2,000,000,000 (Rupees two billion only) Capital Base
1,500,000,000 (Rupees one which shall be divided into Rs. 200,000,000
billion and five hundred million (Rupees two hundred million only) equity
only) which shall be divided into shares of Rs. 10/- (Ten) each. The Company
Rs. 150,000,000 (Rupees one on approval of the General Meeting shall have
hundred fifty million only) equity the power to increase the capital, change the
shares of Rs. 10/- (Ten) each. nature or types or conditions of the share and
The Company on approval of the have the power to raise debentures
General Meeting shall have the
power to increase the capital,
change the nature or types or
conditions of the share and have
the power to raise debentures
The Issued Capital of the Company The Issued Capital of the Company shall be
shall be Rs. 1,000,000,000/- Rs. 1,500,000,000 (Rupees one billion and
(Rupees one billion only) divided five hundred million only) which shall be
into Rs. 100,000,000 (hundred divided into Rs. 150,000,000 (Rupees one
million only) equity shares of Rs. hundred fifty million only) equity shares of Rs.
10 (Ten) each. 10/- (Ten) each.

Amendment in the Article 6 of the Articles of Association (AOA)

Section Existing Proposed Amendments Remark (Reason)

6 The Authorised Capital of 6 The Authorised Capital of the Company to increase the
the Company shall be Rs. shall be Rs. 2,000,000,000 (Rupees two Capital Base
1,500,000,000 (Rupees one billion only) which shall be divided into Rs.
billion and five hundred million 200,000,000 (Rupees two hundred million
only) which shall be divided into only) equity shares of Rs. 10/- (Ten) each.
Rs. 150,000,000 (Rupees one The Company on approval of the General
hundred fifty million only) equity Meeting shall have the power to increase
shares of Rs. 10/- (Ten) each. the capital, change the nature or types or
The Company on approval of the conditions of the share and have the power
General Meeting shall have the to raise debentures
power to increase the capital,
change the nature or types or
conditions of the share and have
the power to raise debentures
The Issued Capital of the The Issued Capital of the Company shall be
Company shall be Rs. Rs. 1,500,000,000 (Rupees one billion and
1,000,000,000/- (Rupees one five hundred million only) which shall be
billion only) divided into Rs. divided into Rs. 150,000,000 (Rupees one
100,000,000 (hundred million hundred fifty million only) equity shares of
only) equity shares of Rs. 10 Rs. 10/- (Ten) each.
(Ten) each.

Further, to authorize the Board of Directors to make any required necessary changes / amendments or adjustments or
alter in proposed amendment as may be received the direction or advise / suggestion from the Office of the Company
Registrar or any other regulatory authorities;

100
50th ANNUAL REPORT 2023/2024 (2080/2081)

101