Accounting Policies of Indiabulls Enterprises Ltd. Company

Mar 31, 2025

3. Summary of material accounting policies

The standalone financial statements have been prepared using the material accounting policies and measurement bases
summarised below. These were used throughout all periods presented in the standalone financial statements.

3.1. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instruments.

I. Financial assets

i) Initial recognition and measurement

All financial assets are recognized initially at fair value plus transaction costs that are attributable to the acquisition of
the financial assets. However, trade receivables that do not contain a significant financing component are measured
at transaction price.

ii) Classification and subsequent measurement

The Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income (FVTOCI) or fair value through profit or loss (FVTPL) on the basis of both:

a) business model for managing the financial assets, and

b) The contractual cash flow characteristics of the financial asset.

A financial Asset is measured at amortised cost if both of the following conditions are met:

a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows, and

b) the 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.

A financial asset is measured at fair value through other comprehensive income (FVTOCI) if both of the following
conditions are met:

a) the financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets, and

b) the 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.

A financial Asset shall be classified and measured at fair value through profit or loss (FVTPL) unless it is measured at
amortised cost or at fair value through OCI.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.

II. Financial Liabilities and Equity Instruments

Classification as Debt or Equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an
equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct
issue costs.

Financial liabilities

i) Initial recognition and measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions
of the instrument. All financial liabilities are initially measured at fair value minus, in the case of financial
liabilities not recorded at fair value through profit or loss, transaction costs that are attributable to the liability.

ii) Classification and subsequent measurement

Financial liabilities are classified, as subsequently measured, at amortised cost.

Financial liabilities, other than classified as FVTPL, are subsequently measured at amortised cost using the
effective interest method. Interest expenses are recognised in Statement of Profit and Loss. Any gain or loss on
de-recognition is also recognised in the Statement of Profit and Loss.

Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost

using the Effective Interest Rate (EIR) method. Gains and losses are recognised in the Statement of Profit and
Loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit
and Loss.

III. Reclassification of financial assets and financial liabilities

The Company doesn''t reclassify its financial assets subsequent to their initial recognition, apart from
the exceptional circumstances in which the Company acquires, disposes of, or terminates a business line.
Financial liabilities are never reclassified.

IV. De-recognition of Financial Assets and Financial Liabilities

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is de-recognised when the rights to receive cash flows from the financial asset have expired. The
Company also de-recognised the financial asset if it has transferred the financial asset and the transfer qualifies
for de recognition.

The Company has transferred the financial asset if and only if, either:

â¢ It has transferred its contractual rights to receive cash flows from the financial asset or

â¢ It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full
without material delay to a third party under a ''pass-through'' arrangement

A transfer only qualifies for de-recognition if either:

â¢ The Company has transferred substantially all the risks and rewards of the asset or

â¢ The Company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

The Company considers control to be transferred if and only if, the transferee has the practical ability to sell
the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without
imposing additional restrictions on the transfer.

When the Company has neither transferred nor retained substantially all the risks and rewards and has retained
control of the asset, the asset continues to be recognised only to the extent of the Company''s continuing
involvement, in which case, the Company also recognises an associated liability. The transferred asset and
the associated liability are measured on a basis that reflects the rights and obligations that the Company has
retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration the Company could be
required to pay.

Impairment of Financial Assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting
period. In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 -
Financial Instruments- for recognition of impairment loss allowance. The application of simplified approach
does not require the Company to track changes in credit risk of trade receivable. The Company calculates the
expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss
experience. At every reporting date, the historically observed default is observed and changes in the forward
looking estimates are done.

Write-offs

Financial assets are written off either partially or in their entirety only when the Company has stopped

pursuing the recovery. If the amount to be written off is greater than the accumulated loss allowance, the

difference is first treated as an addition to the allowance that is then applied against the gross carrying

amount. Any subsequent recoveries are credited to profit and loss account.

V. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when,
and only when, the Company has a legally enforceable right to set off the amounts and it intends either to settle
them on a net basis or to realise the assets and settle the liabilities simultaneously

3.2. Fair value Measurement

All assets and liabilities for which fair value is measured and disclosed in the standalone financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level inputs that is significant to the fair value
measurement as a whole:

a) Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either

directly (i.e. as prices) or indirectly (i.e. derived from prices)

c) Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each
reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.3. Functional and presentation currency

The management has determined the currency of the primary economic environment in which the Company operates i.e.,
functional currency, to be Indian Rupees (^). The standalone financial statements are presented in Indian Rupees, which is the
Company''s functional and presentation currency. All amounts have been rounded to nearest crores upto two decimal places,
unless otherwise stated.

Transactions and Balances

Foreign currency transactions are recorded in the functional currency, by applying the exchange rate between the functional
currency and the foreign currency at the date of the transaction to the foreign currency account.

Monetary foreign currency assets and liabilities remained unsettled on reporting date are translated at the rates of exchange
prevailing on reporting date. Gains/(losses) arising on account of realisation/settlement of foreign exchange transactions and
on translation of monetary foreign currency assets and liabilities are recognised in the Statement of Profit and Loss.

Foreign exchange gains / (losses) arising on translation of foreign currency monetary loans are presented in the Statement of
Profit and Loss on net basis.

3.4. Revenue Recognition

The Company earns revenue primarily from providing equipment renting services.

Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration
which the Company expects to receive in exchange for those services.

â¢ Revenue is recognised either at a point in time (when the customer obtains control over the promised product or service)
or over a period of time (as the customer obtains control over the promised product or service). Control refers to the
customer''s ability to direct the use of and obtain necessary benefits from the product or service sold.

satisfied over time, then an entity defers revenue and recognises revenue at the point in time at which it transfer controls
of the good or service to the customer.

â¢ Revenue is recognised based on the transaction price, which is the consideration, adjusted for volume discounts, service
level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer.
Revenue also excludes taxes collected from customers.

Use of significant judgements in revenue recognition

â¢ The Company''s contracts with customers could include promises to transfer multiple products and services to a customer.
The Company assesses the products/services promised in a contract and identifies distinct performance obligations in
the contract. Identification of distinct performance obligation involves judgement to determine the deliverables and the
ability of the customer to benefit independently from such deliverables.

â¢ Judgement is also required to determine the transaction price for the contract. The transaction price could be either a
fixed amount of customer consideration or variable consideration with elements such as discounts, price concessions etc.

â¢ The Company uses judgement to determine an appropriate standalone selling price for a performance obligation. The
Company allocates the transaction price to each performance obligation on the basis of the relative standalone selling
price of each distinct product or service promised in the contract. Where standalone selling price is not observable, the
Company uses the expected cost plus margin approach to allocate the transaction price to each distinct performance
obligation.

Revenues in excess of invoicing are classified as unbilled revenue (contract assets), while invoicing in excess of revenues are
classified as unearned revenues (contract liabilities).

Unbilled Revenue

Unbilled revenue refers to the revenue that has been earned by providing services but has not yet been billed to the customer
as of the reporting date. Unbilled revenue is recognized against which invoicing is pending due to timing difference i.e. month
end cut offs.

Others

â¢ Profit on sale of property, plant & equipment is recognized on the date the recipient obtains control of the sold asset.

â¢ Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

â¢ Profit on sale of investment is recognized on the date of its sale and is computed as excess of sale proceeds over its
carrying amount as on date of sale.

3.5. Investments in subsidiaries

Investment in equity instruments of subsidiaries are stated at cost or in accordance with IND-AS 109 as per Ind AS 27 ''Separate
Financial Statements''.

3.6. Property, Plant and Equipment
Recognition and measurement

Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment
losses, if any.

The cost of an item of property, plant and equipment comprises: (a) its purchase price, including import duties and nonÂ¬
refundable purchase taxes, after deducting trade discounts and rebates; (b) any costs directly attributable to bringing the asset
to the location and condition necessary for it to be capable of operating in the manner intended by management.

The cost of improvements to assets, if recognition criteria are met, has been capitalised.

plant and equipment) is included in the Statement of Profit and Loss when property, plant and equipment is derecognised.
The carrying amount of any component accounted as a separate component is derecognised, when replaced or when the
property, plant and equipment to which the component relates gets derecognised.

Subsequent costs

Subsequent costs are included in the asset''s carrying amount or recognised as separate assets, as appropriate, only when it is
probable that the future economic benefits associated with expenditure will flow to the Company and the cost of the item can
be measured reliably.

All other repairs and maintenance are charged to Statement of Profit and Loss at the time of incurrence.

Capital work-in-progress

Cost of property, plant and equipment not ready for use as at the reporting date are disclosed as capital work-in-progress.
Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values and is charged
to Statement of Profit and Loss. The residual values are not more than 5% of the original cost of the asset.Depreciation on all
tangible assets is provided on straight line method at the rates computed on the basis of useful life provided in Schedule II of
the Companies Act, 2013. Depreciation is calculated on a pro-rata basis for assets purchased/sold during the year.

Impairment

Property, plant and equipment are evaluated for recoverability whenever events or change in circumstances indicated at their
carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e the higher of the
fair value less cost to sell and the value-in-use) is determined on an individual''s asset basis unless the asset does not generate
cash flow that are largely independent of those from other assets. In such cases, there recoverable amount determined for the
Cash Generating unit (CGU) to which the asset belongs. An Impairment loss to be recognized in the Statement of Profit and
Loss is measured by the amount by which carrying value of the assets exceeds the estimated recoverable amount of the asset.
The impairment loss is reversed in the statement of profit and loss if there has been change in the estimate used to determine
the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount provided that this
amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had
no impairment loss been recognized for the asset in prior years.

3.7. Intangible Assets:

Recognition and measurement

Intangible assets that are acquired are recognised only if it is probable that the expected future economic benefits that are
attributable to the asset will flow to the Company and the cost of assets can be measured reliably. The other intangible assets
are recorded at cost of acquisition including incidental costs related to acquisition and installation and are carried at cost less
accumulated amortisation and impairment losses, if any.

Gain or losses arising from de-recognition of an other intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the other intangible asset and are recognised in the Statement of Profit and Loss when
the asset is derecognised.

Subsequent costs

Subsequent costs is capitalised only when it increases the future economic benefits embodied in the specific asset to which it
relates. All other expenditure on other intangible assets is recognised in the Statement of Profit and Loss, as incurred.

Amortisation

Intangible assets are amortized over the expected useful life from the date the assets are available for use, as mentioned
below:

Description of asset : Estimated life

Computer software : 4 years

3.8. Inventories

Inventories are valued at the lower of cost (including non-refundable taxes and duties and other overheads incurred in bringing
the inventories to their present location and condition) and estimated net realisable value, after providing for obsolescence,
where appropriate

Cost of inventories is determined using the weighted average cost method and includes purchase price, and all direct costs
incurred in bringing the inventories to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make
the sale.

3.9. Employee benefits
Short-term employee benefits

Employee benefit liabilities such as salaries, wages and bonus, etc. that are expected to be settled wholly within twelve
months after the end of the period in which the employees render the related service are recognised in respect of employees''
services up to the end of the reporting period and are measured at an undiscounted amount expected to be paid when the
liabilities are settled.

Post-employment benefit plans

Defined contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered services entitling them
to such benefits.

Defined benefit plans- Gratuity

The Company has unfunded gratuity as defined benefit plan where the amount that an employee will receive on retirement
is defined by reference to the employee''s length of service and final salary. The liability recognised in the balance sheet for
defined benefit plans is the present value of the defined benefit obligation (DBO) at the reporting date. Management estimates
the DBO annually with the assistance of independent actuaries. Actuarial gains/losses resulting from re-measurements of the
liability are included in other comprehensive income.

Other long-term employee benefits- Compensated absences

The benefits under compensated expenses are accounted as other long-term employee benefits. The Company''s net obligation
in respect of compensated absences is the amount of benefit to be settled in future, that employees have earned in return
for their service in the current and previous years. The benefit is discounted to determine its present value. The obligation is
measured on the basis of an actuarial valuation using the projected unit credit method. Re-measurements are recognised in

^tatpmpnt nf Profit anrl I ncc in th<= nprinrl in \A/hirh th<=\/ aricp

Mar 31, 2024

1. Corporate information

Indiabulls Enterprises Limited ("the Company") having CIN: U71290HR2019PLC077579 was incorporated on 02 January 2019 with the main objects of carrying on the business equipment renting services, management and maintenance services and certain other businesses. The company discontinued the led lighting sales during the previous reporting period.

The company is domiciled in India and its registered office is situated at 5th Floor, Plot No.108, Udyog Vihar, Phase I, Gurugram, and Haryana-122016.

2. Basis preparation of standalone financial statementsa) Statement of compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time.

The Board of Directors approved the standalone financial statements for the year ended 31 March 2024 and authorised for issue on 17 May 2024.

b) Basis of preparation

The standalone financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, these standalone financial statements have been prepared on historical cost basis, except for certain financial instruments which are measured at fair value or amortised cost at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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.

These financials comply with the Composite Scheme of Amalgamation and Arrangement filed by Albasta Wholesale Services Limited ("Transferor Company 1"), Sentia Properties Limited ("Transferor Company 2"), Lucina Infrastructure Limited ("Transferor Company 3"), Ashva Stud and Agricultural Farms Limited ("Transferor Company 4"), Mahabala Infracon Private Limited ("Transferor Company 5"), SORIL Infra Resources Limited ("Transferor Company 6"), Store One Infra Resources Limited ("Transferor Company 7"), Yaari Digital Integrated Services Limited ("the Company/Transferee Company/Demerging Company 1"), Indiabulls Enterprises Limited ("Resulting Company 1"), Indiabulls Pharmaceuticals Limited ("Demerging Company 2") and Indiabulls Pharmacare Limited (" Resulting Company 2").

The said Scheme was approved by the Hon''ble National Company Law Tribunal (NCLT), Chandigarh Bench on 01 August 2022, approved by the Board of Directors on 3rd August, 2022. The appointed date is 01 April 2019 as per the scheme. Accordingly accounts are reconstructed /restated as per the scheme.

Pursuant to the above approved scheme, various entities stands merged with Yaari Digital Integrated Services Limited and the Infrastructure solutions business of the demerging company-1 stands demerged into Indiabulls Enterprises Limited with effect from the appointed dated of 01 April 2019.

The Board of Directors of the companies had made the Scheme effective on 03 August 2022.

c) Current and Non-Current classification

The company presents assets and liabilities in the Balance sheet on Current/ Non-current classification.

For the purpose of Current / Non-Current classification, the Company has reckoned its normal operating cycle as twelve months based on the nature of products and the time between the acquisition of assets or inventories for processing and their realisation in cash and cash equivalents.

d) Significant management judgments in applying accounting policies and estimates and assumptions

The preparation of the Company''s standalone financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, related disclosures, and the disclosure of contingent liabilities.

Significant management judgements Provisions

At each balance sheet date on the basis of management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

Impairment loss on financial assets

The measurement of impairment losses across all categories of financial assets except assets valued at FVTPL requires judgement, in particular, the estimation of the amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of a significant increase in credit risk. The company calculate Expected Credit Loss ("ECL") on Trade receivable using a provision matrix on the basis of its credit loss experience.

Effective interest rate method

The Company''s EIR methodology recognises interest income using a rate of return that represents the best estimate of a constant rate of return over the expected behavioural life of loans and recognises the effect of potentially different interest rates charged at various stages and other characteristics of the product life cycle. This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the instruments, as well expected changes to the Company''s base rate and other fee income/expense that are integral parts of the instrument.

Impairment of non-Financial assets

The Company uses judgment for impairment testing at the end of each reporting period.

Significant estimatesDefined employee benefit assets and liabilities

The cost of defined benefit pension plans is determined by using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and standard rates of inflation. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Useful lives of depreciable/amortisable assets

Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utilisation of assets.

Fair value measurement of financial instrument

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

3. Summary of material accounting policies

The standalone financial statements have been prepared using the material accounting policies and measurement bases summarised below. These were used throughout all periods presented in the standalone financial statements.

3.1. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

I. Financial assetsi) Initial recognition and measurement

All financial assets are recognized initially at fair value plus transaction costs that are attributable to the acquisition of the financial assets. However, trade receivables that do not contain a significant financing component are measured at transaction price.

ii) Classification and subsequent measurement

The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income (FVTOCI) or fair value through profit or loss (FVTPL) on the basis of both:

a) business model for managing the financial assets, and

b) The contractual cash flow characteristics of the financial asset.

A financial Asset is measured at amortised cost if both of the following conditions are met:

a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and

b) the 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.

A financial asset is measured at fair value through other comprehensive income (FVTOCI) if both of the following conditions are met:

a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and

b) the 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.

A financial Asset shall be classified and measured at fair value through profit or loss (FVTPL) unless it is measured at amortised cost or at fair value through OCI.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

II. Financial Liabilities and Equity Instruments Classification as Debt or Equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

Financial liabilitiesi) Initial recognition and measurement

liabilities not recorded at fair value through profit or loss, transaction costs that are attributable to the liability. ii) Classification and subsequent measurement

Financial liabilities are classified, as subsequently measured, at amortised cost.

Financial liabilities, other than classified as FVTPL, are subsequently measured at amortised cost using the effective interest method. Interest expenses are recognised in Statement of Profit and Loss. Any gain or loss on de-recognition is also recognised in the Statement of Profit and Loss.

Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are recognised in the Statement of Profit and Loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

III. Reclassification of financial assets and financial liabilities

The Company doesn''t reclassify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances in which the Company acquires, disposes of, or terminates a business line. Financial liabilities are never reclassified.

IV. De-recognition of Financial Assets and Financial Liabilities

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is de-recognised when the rights to receive cash flows from the financial asset have expired. The Company also derecognised the financial asset if it has transferred the financial asset and the transfer qualifies for de recognition.

The Company has transferred the financial asset if and only if, either:

â¢ It has transferred its contractual rights to receive cash flows from the financial asset or

â¢ It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full

without material delay to a third party under a ''pass-through'' arrangement

A transfer only qualifies for de-recognition if either:

â¢ The Company has transferred substantially all the risks and rewards of the asset or

â¢ The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has

transferred control of the asset.

The Company considers control to be transferred if and only if, the transferee has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the transfer.

When the Company has neither transferred nor retained substantially all the risks and rewards and has retained control of the asset, the asset continues to be recognised only to the extent of the Company''s continuing involvement, in which case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration the Company could be required to pay.

Impairment of Financial Assets

Instruments- for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk of trade receivable. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience. At every reporting date, the historically observed default is observed and changes in the forward looking estimates are done.

Write-offs

Financial assets are written off either partially or in their entirety only when the Company has stopped pursuing the recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to profit and loss account.

V. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when, and only when, the Company has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously

3.2. Fair value Measurement

All assets and liabilities for which fair value is measured and disclosed in the standalone financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level inputs that is significant to the fair value measurement as a whole:

a) Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

c) Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.3. Functional and presentation currency

The management has determined the currency of the primary economic environment in which the Company operates i.e., functional currency, to be Indian Rupees (^). The Standalone financial statements are presented in Indian Rupees, which is the Company''s functional and presentation currency. All amounts have been rounded to nearest crores upto two decimal places, unless otherwise stated.

Transactions and Balances

Foreign currency transactions are recorded in the functional currency, by applying the exchange rate between the functional currency and the foreign currency at the date of the transaction to the foreign currency account.

Monetary foreign currency assets and liabilities remained unsettled on reporting date are translated at the rates of exchange prevailing on reporting date. Gains/(losses) arising on account of realisation/settlement of foreign exchange transactions and on translation of monetary foreign currency assets and liabilities are recognised in the Statement of Profit and Loss.

Foreign exchange gains / (losses) arising on translation of foreign currency monetary loans are presented in the Statement of Profit and Loss on net basis.

3.4. Revenue Recognition

The Company earns revenue primarily from providing equipment renting services.

Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those services.

â¢ Revenue is recognised either at a point in time (when the customer obtains control over the promised product or service) or over a period of time (as the customer obtains control over the promised product or service). Control refers to the customer''s ability to direct the use of and obtain necessary benefits from the product or service sold.

â¢ At the end of each reporting period, for each performance obligation satisfied over time, revenue is recognised by measuring the progress towards complete satisfaction of that performance obligation. If a performance obligation is not satisfied over time, then an entity defers revenue and recognises revenue at the point in time at which it transfer controls of the good or service to the customer.

â¢ Revenue is recognised based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.

Use of significant judgements in revenue recognition

â¢ The Company''s contracts with customers could include promises to transfer multiple products and services to a customer. The Company assesses the products/services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligation involves judgement to determine the deliverables and the ability of the customer to benefit independently from such deliverables.

â¢ Judgement is also required to determine the transaction price for the contract. The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as discounts, price concessions etc.

â¢ The Company uses judgement to determine an appropriate standalone selling price for a performance obligation. The Company allocates the transaction price to each performance obligation on the basis of the relative standalone selling price of each distinct product or service promised in the contract. Where standalone selling price is not observable, the Company uses the expected cost plus margin approach to allocate the transaction price to each distinct performance obligation.

Revenues in excess of invoicing are classified as unbilled revenue (contract assets), while invoicing in excess of revenues are classified as unearned revenues (contract liabilities).

Others

â¢ Profit on sale of property, plant & equipment is recognized on the date the recipient obtains control of the sold asset.

â¢ Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

â¢ Profit on sale of investment is recognized on the date of its sale and is computed as excess of sale proceeds over its carrying amount as on date of sale.

3.5. Investments in subsidiaries

Investment in equity instruments of subsidiaries are stated at cost or in accordance with IND-AS 109 as per Ind AS 27 ''Separate Standalone financial statements''.

3.6. Property, Plant and Equipment

Recognition and measurement

Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses, if any.

The cost of an item of property, plant and equipment comprises: (a) its purchase price, including import duties and nonrefundable purchase taxes, after deducting trade discounts and rebates; (b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The cost of improvements to assets, if recognition criteria are met, has been capitalised.

An item of property, plant and equipment and any significant part initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of property, plant and equipment (calculated as the difference between the net disposal proceeds and the carrying amount of property, plant and equipment) is included in the Statement of Profit and Loss when property, plant and equipment is derecognised. The carrying amount of any component accounted as a separate component is derecognised, when replaced or when the property, plant and equipment to which the component relates gets derecognised.

Subsequent costs

Subsequent costs are included in the asset''s carrying amount or recognised as separate assets, as appropriate, only when it is probable that the future economic benefits associated with expenditure will flow to the Company and the cost of the item can be measured reliably.

All other repairs and maintenance are charged to Statement of Profit and Loss at the time of incurrence.

Capital work-in-progress

Cost of property, plant and equipment not ready for use as at the reporting date are disclosed as capital work-in-progress. Depreciation

Depreciation on all tangible assets is provided on straight line method at the rates computed on the basis of useful life provided in Schedule II of the Companies Act, 2013. Depreciation is calculated on a pro-rata basis for assets purchased/ sold during the year.

Impairment

Property, plant and equipment are evaluated for recoverability whenever events or change in circumstances indicated at their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e the higher of the fair value less cost to sell and the value-in-use) is determined on an individual''s asset basis unless the asset does not generate cash flow that are largely independent of those from other assets. In such cases, there recoverable amount determined for the Cash Generating unit (CGU) to which the asset belongs. An Impairment loss to be recognized in the Statement of Profit and Loss is measured by the amount by which carrying value of the assets exceeds the estimated recoverable amount of the asset. The impairment loss is reversed in the statement of profit and loss if there has been change in the estimate used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized for the asset in prior years.

3.7. Intangible Assets:Recognition and measurement

Intangible assets that are acquired are recognised only if it is probable that the expected future economic benefits that are attributable to the asset will flow to the Company and the cost of assets can be measured reliably. The other intangible assets are recorded at cost of acquisition including incidental costs related to acquisition and installation and are carried at cost less accumulated amortisation and impairment losses, if any.

Gain or losses arising from de-recognition of an other intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the other intangible asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.

Subsequent costs

Subsequent costs is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure on other intangible assets is recognised in the Statement of Profit and Loss, as

incurred.

Amortisation

Intangible assets are amortized over the expected useful life from the date the assets are available for use, as mentioned below:

Description of asset : Estimated life

Computer software : 4 years

Land - Leasehold : 11 years (as per terms of agreement)

3.8. Inventories

Inventories are valued at the lower of cost (including non-refundable taxes and duties and other overheads incurred in bringing the inventories to their present location and condition) and estimated net realisable value, after providing for obsolescence, where appropriate

Cost of inventories is determined using the weighted average cost method and includes purchase price, and all direct costs incurred in bringing the inventories to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

3.9. Employee benefits Short-term employee benefits

Employee benefit liabilities such as salaries, wages and bonus, etc. that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at an undiscounted amount expected to be paid when the liabilities are settled.

Post-employment benefit plansDefined contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered services entitling them to such benefits.

Defined benefit plans- Gratuity

The Company has unfunded gratuity as defined benefit plan where the amount that an employee will receive on retirement is defined by reference to the employee''s length of service and final salary. The liability recognised in the balance sheet for defined benefit plans is the present value of the defined benefit obligation (DBO) at the reporting date. Management estimates the DBO annually with the assistance of independent actuaries. Actuarial gains/losses resulting from re-measurements of the liability are included in other comprehensive income.

Other long-term employee benefits- Compensated absences

The benefits under compensated expenses are accounted as other long-term employee benefits. The Company''s net obligation in respect of compensated absences is the amount of benefit to be settled in future, that employees have earned in return for their service in the current and previous years. The benefit is discounted to determine its present value. The obligation is measured on the basis of an actuarial valuation using the projected unit credit method. Remeasurements are recognised in Statement of Profit and Loss in the period in which they arise.

3.10. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of

money is material.

Led product warranties: The Company gave warranties on certain products and services, undertaking to repair / replace products, which fail to perform satisfactorily during the warranty period. Provision made against warranties represents the amount of the expected cost of meeting such obligation on account of repair / replacement. The timing of outflows is expected to be within a period of two years from the date of balance sheet. Led lighting sales are reported as discontinued operations.

Contingent liability is disclosed for:

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are neither recognized nor disclosed. However, when realization of income is virtually certain, related asset is recognized.

3.11. Discontinued operations and non-current assets held for sale

Discontinued operation is a component of the Company that has been disposed of or classified as held for sale and represents a major line of business.

Non-current assets are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use.

Such assets are generally measured at the lower of their carrying amount and fair value less cost to sell. Losses on initial classification as held for sale and subsequent gains and losses on re-measurement are recognised in the Statement of Profit and Loss.

Once classified as held for sale, property, plant and equipment and intangible assets are no longer depreciated or amortised.

3.12. Business Combination

Business Combination Common control business combination is accounted using the pooling of interest method where the Company is transferee. Assets and liabilities of the combining entities are reflected at their carrying amounts and no new asset or liability is recognised. Identity of reserves of the transferor company is preserved by reflecting them in the same form in the Company''s financial statements in which they appeared in the financial statement of the transferor company. The excess between the amount of consideration paid over the share capital of the transferor company is recognised as a negative amount and the same is disclosed as capital reserve on business combination. The financial information in the financial statements in respect of prior periods is restated from the beginning of the preceding period in the financial statements if the business combination date is prior to that date. However, if business combination date is after that date, the financial information in the financial statements is restated from the date of business combination.

Mar 31, 2023

1. CORPORATE INFORMATION

Indiabulls Enterprises Limited (the Company) was incorporated on 02 January 2019 with the main objects of carrying on the business equipment renting services, management and maintenance services and certain other businesses. The company discontinued the Led lighting sales during the reporting period.

The company is domiciled in India and its registered office is situated at 5th Floor, Plot No.108, Udyog Vihar, Phase I, Gurugram, and Haryana-122016.

The Board of Directors approved the standalone financial statements for the year ended 31 March 2023 and authorised for issue on 26 May 2023.

2. BASIS PREPARATION OF STANDALONE FINANCIAL STATEMENTS

a) Statement of compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time.

b) Basis of preparation

These financials comply with the Composite Scheme of Amalgamation and Arrangement filed by Albasta Wholesale Services Limited (Transferor Company 1), Sentia Properties Limited (Transferor Company 2), Lucina Infrastructure Limited (Transferor Company 3), Ashva Stud and Agricultural Farms Limited (Transferor Company 4), Mahabala Infracon Private Limited (Transferor Company 5), SORIL Infra Resources Limited (Transferor Company 6), Store One Infra Resources Limited (Transferor Company 7), Yaari Digital Integrated Services Limited (the Company/Transferee Company/Demerging Company 1), Indiabulls Enterprises Limited (Resulting Company 1), Indiabulls Pharmaceuticals Limited (Demerging Company 2) and Indiabulls Pharmacare Limited ( Resulting Company 2).

The Board of Directors of the companies had made the Scheme effective on 03 August 2022.

c) Current and Non-Current classification

The company presents assets and liabilities in the Balance sheet on Current/ Non-current classification.

As asset is treated as Current when it is- Expected to be realised or intended to be sold or consumed in the normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised with twelve months after the reporting period, or

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

All others assets are classifies as non- current.

A liability is 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 are no unconditional rights 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 deferred tax liabilities are classified as non-current assets and liabilities.

All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 12 months.

d) Significant management judgments in applying accounting policies and estimates and assumptions

Significant management judgements

Provisions

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized.

Impairment loss on financial assets

The measurement of impairment losses across all categories of financial assets except assets valued at FVTPL requires judgement, in particular, the estimation of the amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of a significant increase in credit risk. The company calculate Expected Credit Loss (ECL) on Trade receivable using a provision matrix on the basis of its credit loss experience.

Effective interest rate method

Impairment of non-Financial assets

The Company uses judgment for impairment testing at the end of each reporting period.

Share based payments

Estimating fair value for share based payments transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield making assumptions about them. However presently the company has no active share based payment scheme.

Significant estimates

Defined employee benefit assets and liabilities

Useful lives of depreciable/amortisable assets

Fair value measurement of financial instrument

Warranty

The Company periodically assesses and provides for the estimated liability on warranty given on sale of its products based on past performance of such products.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The standalone financial statements have been prepared using the significant accounting policies and measurement bases summarised below. These were used throughout all periods presented in the standalone financial statements.

3.1. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

I. Financial assets

i) Initial recognition and measurement

All financial assets are recognized initially at fair value plus transaction costs that are attributable to the acquisition of the financial assets. However, trade receivables that do not contain a significant financing

component are measured at transaction price. ii) Classification and subsequent measurement