SEBI fined Royal Orchid Hotels ₹24 lakh for inflating profits by 638% by classifying its subsidiary Ksheer Sagar Developers (KSDPL) as an "associate" in FY22. Royal Orchid re-classifying KSDPL allowed it to de-recognise all of KSDPL's assets and liabilities. This helped Royal Orchid increase its consolidated profit from ₹3.62 crore to ₹26.78 crore by excluding KSDPL's loss of ₹23.15 crore.