Accounting Policies of Kalpataru Ltd. Company

Mar 31, 2025

2 Significant accounting policies

(a) Basis of preparation

The financial Statements have been prepared to
comply in all material respects with the Indian
Accounting Standards notified under Section 133 of
Companies Act, 2013 [the Act) read with Companies
[Indian Accounting Standards [Ind AS) Rules, 2015)
and other relevant provisions of the Act and rules
framed thereunder.

The financial statements have been prepared under
the historical cost convention and on accrual basis,
except for certain financial assets and liabilities
measured at fair value as explained in accounting
policies below.

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, regardless of whether
that price is directly observable or estimated using
another valuation technique. In estimating the fair
value of an asset or a liability, the Company takes
into account the characteristics of the asset or
liability if market participants would take those
characteristics into account when pricing the asset
or liability at the measurement date.

The financial statements are presented in '' lakhs,
except when otherwise indicated.

(b) Current and non-current classification

The Company is engaged in the business of
real estate activities where the operating cycle
commences with the acquisition of land/ project,
statutory approvals, construction activities and
ends with sales which is always more than twelve
months. Accordingly, classification of project assets
and liabilities into current and non-current has
been done considering the relevant operating cycle
of the project. All other assets and liabilities are
classified into current and non-current based on

period of twelve months. Deferred tax assets and

liabilities are classified as non-current assets and

liabilities.

(c) Property, plant and equipment

i) All property, plant and equipment are stated
at original cost of acquisition/installation [net
of input credits availed) less accumulated
depreciation and impairment loss, if any,
except freehold land which is carried at cost.
Cost includes cost of acquisition, construction
and installation, taxes, duties, freight and
other incidental expenses that are directly
attributable to bringing the asset to its working
condition for the intended use and estimated
cost for decommissioning of an asset.

ii) Subsequent expenditure is capitalised only if
it is probable that the future economic benefit
associated with the expenditure will flow to the
Company.

iii) Property, plant and equipment is derecognised
from financial statements, either on disposal
or when no future economic benefits are
expected from its use or disposal. Any gain or
loss arising on derecognition of the property
[calculated as the difference between the net
disposal proceeds and the carrying amount of
the asset) is included in the statement of profit
and loss in the period in which the property,
plant and equipment is derecognised.

iv) Capital work-in-progress comprises cost of
property, plant and equipment and related
expenses that are not yet ready for their
intended use at the reporting date.

v) Depreciation on property, plant and equipment
is provided on written down value method
based on the useful life specified in Schedule
II of the Companies Act, 2013.

vi) Leasehold improvements are depreciated over
the period of lease on straight line basis.

vii) Sales office cost at site is amortized on
straight line basis over the period of useful life
as estimated by the management based on life
of the project.

(d) Intangible assets

i) Intangible assets are carried at cost, net off
accumulated amortization and impairment
loss, if any.

ii) Intangible assets [Softwares) are amortized on
straight line basis over a period of three years.

e) Investment properties

i) Investment properties are properties held to
earn rentals and/or for capital appreciation
[including property under construction for
such purposes). Investment properties are
measured initially at cost, including transaction
costs. Subsequent to initial recognition,
investment properties are measured in
accordance with the requirements of cost
model as per Ind AS 16.

ii) An investment property is derecognised
from financial statements, either on disposal
or when no future economic benefits are
expected from its use or disposal. Any gain or
loss arising on derecognition of the property
[calculated as the difference between the net
disposal proceeds and the carrying amount of
the asset) is included in the statement of profit
and loss in the period in which the property is
derecognised.

iii) Depreciation on investment property is
provided on written down value method based
on the useful life specified in Schedule II of the
Companies Act, 2013.

(f) Inventories

Inventories are valued at lower of cost and net
realisable value. The cost of raw materials
[construction materials) is determined on the basis
of weighted average method. Cost of work-in¬
progress and finished stock includes cost of land
/ development rights, construction costs, allocated
borrowing costs and expenses incidental to the
projects undertaken by the Company.

(g) Fair value measurement

The Company''s accounting policies and disclosures
require the measurement of fair values for financial
instruments.

The Company has an established control framework
with respect to the measurement of fair values.
The management regularly reviews significant
unobservable inputs and valuation adjustments.

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

• Level 1 — Quoted [unadjusted) market prices
in active markets for identical assets or
liabilities;

• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable, or

• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair

value measurement is unobservable.

The Company recognises transfers between levels
of the fair value hierarchy at the end of the reporting
period during which the change has occurred.

(h) Equity investments in subsidiaries, joint
ventures and associates

Investments in subsidiaries, joint ventures and
associates are accounted at cost in accordance with
Ind AS 27 "Separate financial statements". Refer
note 7 and 32 for the list of significant investments.

(i) Financial instruments

I Financial assets

i) Classification

The Company classifies its financial
assets either at Fair Value through Profit
or Loss [FVTPL), Fair Value through
Other Comprehensive Income [FVTOCI)
or at amortised Cost, based on the
Company''s business model for managing
the financial assets and their contractual
cash flows.

ii) Initial recognition and measurement

The Company at initial recognition
measures a financial asset at its fair
value plus transaction costs that are
directly attributable to it''s acquisition.
However, transaction costs relating
to financial assets designated at fair
value through profit or loss (FVTPL) are
expensed in the statement of profit and
loss for the year.

iii) Subsequent measurement

For the purpose of subsequent
measurement, the financial asset are
classified in four categories:

a) Debt instrument at amortised cost

b) Debt instrument at fair value
through other comprehensive
Income

c) Debt instrument at fair value
through profit or loss

d) Equity investments

Debt instruments
• Amortised cost:

Assets that are held for collection
of contractual cash flows where
those cash flows represent solely
payments of principal and interest
are measured at amortised cost. A
gain or loss on such instruments

is recognised in profit or loss
when the asset is derecognised
or impaired. Interest income from
these financial assets is calculated
using the effective interest rate
method and is included under the
head "Finance income".

• Fair value through other
comprehensive income (FVTOCI):

Assets that are held for collection
of contractual cash flows and for
selling the financial assets, where
the assets'' cash flows represent
solely payments of principal and
interest, are measured at fair value
through other comprehensive
income (FVTOCI). Movements in the
carrying amount are taken through
OCI, except for the recognition of
impairment gains or losses, interest
revenue and foreign exchange gains
and losses which are recognised
in the statement of profit and
loss. When the financial asset is
derecognised, the cumulative gain
or loss previously recognised in
OCI is reclassified from equity to
statement of profit and loss. Interest
income from these financial assets
is calculated using the effective
interest rate method and is included
under the head "Finance income".

• Fair value through profit or loss:

Assets that do not meet the criteria
for amortised cost or fair value
through other comprehensive
income (FVTOCI) are measured at
fair value through profit or loss.
Gain and losses on fair value of
such instruments are recognised
in statement of profit and loss.
Interest income from these
financial assets is included in other
income.

Equity investments other than
investments in subsidiaries, joint
ventures and associates

The Company subsequently
measures all equity investments
other than investments in
subsidiaries, joint ventures and
associates at fair value. Where
the Company''s management has
elected to present fair value gains
and losses on equity investments in
other comprehensive income, there
is no subsequent reclassification

of fair value gains and losses to
the statement of profit and loss
in the event of de-recognition.
Dividends from such investments
are recognised in the statement
of profit and loss as other income
when the Company''s right to receive
payments is established. Changes
in the fair value of financial assets
at fair value through profit or loss
are recognised in the statement of
profit and loss. Impairment losses
(and reversal of impairment losses)
on equity investments measured at
FVTOCI are not reported separately
from other changes in fair value.

iv) Impairment of financial assets

The Company assesses, on
historical credit experience and
forward looking basis, the expected
credit losses associated with its
assets carried at amortised cost
and FVOCI debt instruments.
The impairment methodology
applied depends on whether there
has been a significant increase
in credit risk. As per simplified
approach, loss allowances on trade
receivables are measured using
provision matrix at an amount
equal to life time expected losses

i.e. expected cash shortfall. The
impairment losses and reversals
are recognised in Statement of
Profit and Loss.

The Company continuously
monitors defaults of customers,
identified either individually or by
the Company, and incorporates
this information into its credit risk
controls. The Company''s policy
is to deal only with creditworthy
counterparties.

In respect of trade and other
receivables, the Company is
not exposed to any significant
credit risk exposure to any single
counterparty or any company of
counterparties having similar
characteristics. Trade receivables
consist of a large number of
customers. The Company has very
limited history of customer default,
and considers the credit quality of
trade receivables that are not past
due or impaired to be good.

v) De-recognition of financial assets

A financial asset is derecognised
only when:

• The rights to receive cash
flows from the financial asset
have expired

• The Company has transferred
substantially all the risks and
rewards of the financial asset
or

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

II Financial liabilities

i) Classification

The Company classifies all
financial liabilities at amortised
cost or fair value through profit or
loss.

ii) Initial recognition and
measurement

Financial liabilities are classified,
at initial recognition, as financial
liabilities at fair value through profit
or loss, loans and borrowings,
deposits or as payables, as
appropriate. All financial liabilities
are recognised initially at fair
value and, in the case of loans
and borrowings and payables, net
of directly attributable transaction
costs.

iii) Subsequent measurement

The measurement of financial
liabilities depends on their
classification, as described below:

a Financial liabilities at fair
value through profit or loss

Financial liabilities at fair
value through profit or loss
include financial liabilities
held for trading and financial
liabilities designated upon
initial recognition as at
fair value through profit or
loss. Financial liabilities are
classified as held for trading
if they are incurred for the

purpose of repurchasing in
the near term. Gains or losses
on liabilities held for trading
are recognised in the profit or
loss.

b Loans, borrowings and
deposits

After initial recognition, loans,
borrowings and deposits
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
amortization process. The EIR
amortisation is included in
finance costs in the statement
of profit and loss.

c Trade and other payables

These amounts represent
liabilities for goods and
services provided to the
Company prior to the end
of financial year which are
unpaid. For trade and other
payables maturing within one
year from the balance sheet
date, the carrying amounts
approximate fair value due
to the short-term maturity of
these instruments.

d Financial guarantee contracts

Financial guarantee contracts
issued by the Company are
those contracts that require
a payment to be made to
reimburse the holder for
a loss it incurs because
the specified debtor fails
to make a payment when
due in accordance with the
terms of a debt instrument.
Financial guarantee contracts
are recognised initially as a
liability at fair value, adjusted
for transaction costs that are
directly attributable to the
issuance of the guarantee.
Subsequently, the liability
is measured at the higher
of the amount of loss
allowance determined as per
impairment requirements of
Ind AS 109 and the amount

recognised less cumulative
amortisation.

iv) De-recognition of financial
liabilities

A financial liability is de-recognised
when the obligation under the
liability is discharged or cancelled
or expires. When an existing
financial liability is replaced by
another from the same lender on
substantially different terms, or
the terms of an existing liability
are substantially modified, such
an exchange or modification is
treated as the de-recognition of the
original liability and the recognition
of a new liability. The difference in
the respective carrying amounts
is recognised in the statement of
profit or loss.

(j) Cash and cash equivalents

(i) Cash and cash equivalents in the balance sheet
comprise cash at bank and on hand and short¬
term deposit with original maturity upto three
months, which are subject to insignificant risk
of changes in value.

(ii) For the purpose of presentation in the
statement of cash flows, cash and cash
equivalents consists of cash and short-term
deposit, as defined above, net of outstanding
bank overdraft as they are considered as an
integral part of Company''s cash management.

(k) Revenue recognition

i) Revenue from real estate activity

a) In case of under construction units,
revenue from real estate activity is
recognised in accordance with Ind AS 115
''Revenue from Contracts with Customers''
on satisfaction of performance obligation
on the basis of Company''s binding
contracts with customers, upon transfer
of control of promised products or
services to customers for a consideration
the Company expects to receive in
exchange for those products or services.
The Company satisfies the performance
obligation at a "point in time" OR
"overtime" depending on the fulfilment
of the criteria as prescribed in para 35 of
the said standard.

As such there being no objective criteria
prescribed by the said Standard for
recognition of revenue "over time",
the Company recognises the revenue
based on fulfilment of part obligation on
following criteria:

i. For revenue recognition, only
those units are considered where
agreement / contract with buyers is
executed.

ii. In case, where stage of completion
of the project reaches a reasonable
level of development i.e. 25% or
more as supported by physical
work report, revenue is recognised
on units mentioned in point no
(i) above based on actual cost
incurred to the proportion of
total estimated cost i.e. "project
cost method". (Input Method). In
case where units have received
occupancy certificate, full revenue
is recognized.

iii. In case, where stage of completion
has not reached a reasonable
level of development mentioned
in point no (ii) above, the revenue
is recognised only to the extent
of actual cost incurred subject to
fulfilment of point no (i) above.

b) In case of contracts with customers where
performance obligations are satisfied
"point in time", the Company recognises
the revenue when the customer obtains
control of the promised assets which
is linked to occupancy certificate on
those units where binding agreement/
contracts with the buyers are executed.

Revenue is recognised net of indirect taxes
and comprises the aggregate amounts of
sale price as per the documents entered
into. The total saleable area and estimate
of costs are reviewed periodically by the
management and any effect of changes
therein is recognized in the period in
which such changes are determined.
However, if and when the total project
cost is estimated to exceed the total
revenue from the project, the loss is
recognized in the same financial year.

c) Revenue from sale of land and
development rights

Revenue from sale of land and
developments rights is recognised
upon transfer of all significant risks
and rewards of ownership of such real
estate / property, as per the terms of the
contracts entered into with buyers.

d) Revenue from Joint Development
Agreements

Projects executed through joint
development arrangements not being

jointly controlled operations, wherein
the land owner/possessor provides land/
development rights and the Company
undertakes to develop properties on such
land and in lieu of land owner providing
land/ rights, the Company has agreed to
transfer certain percentage of constructed
area or certain percentage of the
revenue proceeds, the revenue from the
development and transfer of constructed
area/revenue sharing arrangement
in exchange of such development
rights/land is being accounted on
gross basis on launch of the project.
Revenue is recognised over time
using input method, in proportion
of the inputs to the satisfaction of a
performance obligation relative to
the total estimated/expected inputs
for the area share arrangement.
The revenue is measured at the fair value
of the land received, adjusted by the
amount of any cash or cash equivalents
transferred. When the fair value of the
land received cannot be measured
reliably, the revenue is measured at the
fair value of the estimated construction
service rendered to the land owner,
adjusted by the amount of any cash or
cash equivalents transferred. The fair
value so estimated is considered as
the cost of land in the computation of
percentage of completion for the purpose
of revenue recognition as mentioned
above.

ii) Revenue from project management fees
is recognised on accrual basis as per the
terms of agreement.

iii) Revenue from license fee and other
charges earned by way of leasing
residential and commercial premises
is recognized in the statement of profit
and loss on a straight-line basis over the
lease term.

iv) Revenue from service charges is
recognized as per the terms of the lease
agreement.

v) Profit / loss from partnership firms and
LLPs

The Company''s share in profits/(loss)
from a firm where the Company is a
partner, is recognised on the basis of
such firm''s audited financial statements/
management certified financial results,
as per terms of the partnership deed.

vi) Dividend income

Dividend income is recognized when the
Company''s right to receive the dividend is
established.

vii) Interest income

Interest income for all debt instruments,
measured at amortised cost or fair value
through other comprehensive income, is
recognised using the effective interest
rate method.

(l) Foreign currency transactions

i) Foreign currency transactions are recorded
in the reporting currency (Indian rupee) by
applying to the foreign currency amount, the
exchange rate between the reporting currency
and the foreign currency on the date of the
transaction.

ii) All monetary items denominated in foreign
currency are converted into Indian rupees at
the year-end exchange rate. The exchange
differences arising on such conversion
and on settlement of the transactions are
recognised in the statement of profit and loss.
Non-monetary items in terms of historical
cost denominated in a foreign currency are
reported using the exchange rate prevailing on
the date of the transaction.

(m) Income taxes

The income tax expenses comprises current and
deferred tax. It is recognised in the statement of
profit and loss except to the extent that it relates
to items recognised directly in equity or in other
comprehensive income.

Current tax:

The current tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the
end of the reporting period.

Deferred tax:

Deferred tax is recognised in respect of temporary
differences between the carrying amount of assets
and liabilities for financial reporting purposes and
the amount used for taxation purposes.

Deferred tax assets are recognised for unused
tax losses, unused tax credits and deductible
temporary differences to the extent that is probable
that future taxable profits will be available against
which they can be used. Deferred tax assets are
reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the
related tax benefit will be realised, such reductions
are reversed when the probability of future taxable
profits improves.

Unrecognised deferred tax assets are measured at
each reporting date and recognised to the extent
that it has become probable that future taxable
profits will be available against which they can be
used.

Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences
when they reverse, using tax rates enacted or

substantively enacted at the reporting date.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner
in which the Company expects at the reporting
date to recover or settle the carrying amount of its
assets and liabilities.

Minimum Alternate Tax (MAT) credit is recognised
as deferred tax asset only when and to the extent
there is convincing evidence that the Company will
pay normal income tax during the specified period.
Such asset is reviewed at each balance sheet date
and the carrying amount of the MAT credit asset
is written down to the extent there is no longer a
convincing evidence to the effect that the Company
will pay normal income tax during the specified
period.

(n) Employee benefits

(i) Short-term benefits

Short-term employee benefits are recognized
as an expense at the undiscounted amount in
the statement of profit and loss for the year in
which the related services are rendered.

(ii) Defined contribution plans

Payments to defined contribution retirement
benefit schemes are charged to the statement
of profit and loss of the year when the
contribution to the respective funds are due.
There are no other obligations other than the
contribution payable to the fund.

(iii) Defined benefit plans

Defined benefits plans is recognized as
an expense in the statement of profit and
loss for the year in which the employee has
rendered services. The expense is recognized
at the present value of the amount payable
determined using actuarial valuation
techniques.

Re-measurement of the net defined benefit
liability, which comprises of actuarial gains and
losses, are recognised in other comprehensive
income in the period in which they occur.

(iv) Other long-term employee benefits

Other long-term benefits are recognised as
an expense in the statement of profit and
loss at the present value of the amounts
payable determined using actuarial valuation
techniques in the year in which the employee
renders services. Re-measurements are
recognised in the statement of profit and loss
in the period in which they arise.

(o) Impairment of non-financial assets

The carrying amounts of non financial assets are
reviewed at each balance sheet date if there is any
indication of impairment based on internal/external
factors. An asset is treated as impaired when the
carrying amount exceeds its recoverable value. The

recoverable amount is the greater of an asset''s or
cash generating unit''s, net selling price and value in
use. In assessing value in use, the estimated future
cash flows are discounted to the present value
using a pre-tax discount rate that reflects current
market assessment of the time value of money and
risks specific to the assets. An impairment loss is
charged to the statement of profit and loss in the
year in which an asset is identified as impaired. After
impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining
useful life. The impairment loss recognized in
prior accounting periods is reversed by crediting
the statement of profit and loss if there has been a
change in the estimate of recoverable amount.

(p) Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting preference
dividends and attributable taxes) by the weighted
average number of equity shares outstanding
during the year. For the purpose of calculating
diluted earnings per share, the net profit or loss
for the period attributable to equity shareholders
and the weighted average number of shares
outstanding during the period are adjusted for the
effects of all dilutive potential equity shares except
when the results would be anti-dilutive.

(q) Borrowing costs

Borrowing costs attributable to the acquisition or
construction of qualifying assets are capitalised
as part of cost of such assets. All other borrowing
costs are expensed in the period in which they
occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds and is measured with reference
to the effective interest rate applicable to the
respective borrowings.

(r) Leases

At the inception of a contract, the Company assesses
whether a contract is or contains, a lease. A contract
is, or contains a lease if the contract conveys the
right to control the use of an identified asset for
a period of time in exchange of consideration. To
assess whether a contract conveys the right to
control the use of an asset, the Company assesses
whether :

- the contract contains an identified asset, which
is either explicitly identified in the contract
or implicitly specified by being identified at
the time the asset is made available to the
Company.

- The Company has the right to obtain
substantially all of the economic benefits from
use of the identified asset throughout the
period of use, considering its rights within the
defined scope of the contracts and

- the Company has the right to direct the
use of the identified asset throughout the
period of use. The Company assesses
whether it has the right to direct ''how
and for what purpose'' the asset is used
throughout the period of use.

Company as a lessor

Leases in which the Company does not
transfer substantially all the risks and rewards
of ownership of an asset are classified
as operating leases. Rental income from
operating lease is recognised on a straight¬
line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and
arranging an operating lease are recognised
over the lease term on the same basis as rental
income. Contingent rents are recognised as
revenue in the period in which they are earned.

Company as a lessee
Right of use Asset-

The Company recognises a right-of-use asset
and a lease liability at the lease commencement
date. At the commencement date, a lessee
shall measure the right-of-use asset at cost
which comprises initial measurement of
the lease liability, any lease payments made
at or before the commencement date, less
any lease incentives received, any initial
direct costs incurred by the lessee; and an
estimate of costs to be incurred by the lessee
in dismantling and removing the underlying
asset, restoring the site on which it is located
or restoring the underlying asset to the
condition required by the terms and conditions
of the lease.

Lease Liability-

At the commencement date, a lessee shall
measure the lease liability at the present value
of the lease payments that are not paid at that
date. The lease payments shall be discounted
using the interest rate implicit in the lease, if
that rate can be readily determined. If that rate
cannot be readily determined, the lessee shall
use the lessee''s incremental borrowing rate.

Short-term lease and leases of low-value
assets-

The Company has elected not to recognise
right-of-use assets and lease liabilities for
short- term leases that have a lease term
of less than 12 months or less and leases of
low-value assets, including IT Equipment.
The Company recognises the lease payments
associated with these leases as an expense on
a straight-line basis over the lease term. The
election for short-term leases shall be made
by class of underlying asset to which the right
of use relates. A class of underlying asset is
a grouping of underlying assets of a similar
nature and use in Company''s operations. The

election for leases for which the underlying
asset is of low value can be made on a lease-
by-lease basis.

---

Mar 31, 2024

(II) Material accounting policies (MAP)

(a) Current and non-current classification

The Company is engaged in the business of real estate activities where the operating cycle commences with the acquisition of land/
project, statutory approvals, construction activities and ends with sales which is always niore than twelve months. Accordingly,
classification of project assets and liabilities into current and non-current has been done considering the relevant operating cycle of
the project. All other assets and liabilities are classified into current and non-current based on period of twelve months. Deferred tax
assets and liabilities are classified as non-current assets and liabilities.

(b) Property, plant and equipment

i) All property, plant and equipment are stated at original cost of acquisition/installation (net of input credits availed) less
accumulated depreciation and impairment loss, if any, except freehold land which is carried at cost. Cost includes cost of
acquisition, construction and installation, taxes, duties, freight and other incidental expenses that are directly attributable to
bringing the asset to its working condition for the intended use and estimated cost for decommissioning of an asset.

ii) Subsequent expenditure is capitalised only if it is probable that the future economic benefit associated with the expenditure will
flow to the Company.

iii) Property, plant and equipment is derecognised from financial statements, either on disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the property (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and
loss in the period in which the property, plant and equipment is derecognised.

iv) Capital work-in-progress comprises cost of property, plant and equipment and related expenses that are not yet ready for their
intended use at the reporting date.

v) Depreciation on property, plant and equipment is provided on written down value method based on the useful life specified in
Schedule II of the Companies Act, 2013.

vi) Leasehold improvements are depreciated over the period of lease on straight line basis.

vii) Sales office cost at site is amortized on straight line basis over the period of useful life as estimated by the management based
on life of the project.

(c) Intangible assets

i) Intangible assets are carried at cost, net off accumulated amortization and impairment loss, if any.

ii) Intangible assets (Softwares) are amortized on straight line basis over a period of three years.

(d) Investment properties

i) Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction
for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are measured in accordance with the requirements of cost model as per Ind AS 16.

ii) An investment property is derecognised from financial statements, either on disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the property (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss in the
period in which the property is derecognised.

iii) Depreciation on investment property is provided on written down value method based on the useful life specified in Schedule II
of the Companies Act, 2013.

(e) Inventories

Inventories are valued at lower of cost and net realisable value. The cost of raw materials (construction materials) is determined on
the basis of weighted average method. Cost of work-in-progress and finished stock includes cost of land / development rights,
construction costs, allocated borrowing costs and expenses incidental to the projects undertaken by the Company.

(f) Fair value measurement

The Company''s accounting policies and disclosures require the measurement of fair values for financial instruments.

The Company has an established control framework with respect to the measurement of fair values. The management regularly
reviews significant unobservable inputs and valuation adjustments.

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

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable, or

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the
change has occurred.

(g) Equity investments in subsidiaries, joint ventures and associates

Investments in subsidiaries, joint ventures and associates are accounted at cost in accordance with Ind AS 27 “Separate financial
statements". Refer note 7 and 32 for the list of significant investments.

(h) Financial instruments

I Financial assets

i) Classification

The Company classifies its financial assets either at Fair Value through Profit or Loss (FVTPL), Fair Value through Other
Comprehensive Income (FVTOCI) or at amortised Cost, based on the Company''s business model for managing the
financial assets and their contractual cash flows.

ii) Initial recognition and measurement

The Company at initial recognition measures a financial asset at its fair value plus transaction costs that are directly
attributable to it''s acquisition. However, transaction costs relating to financial assets designated at fair value through profit or
loss (FVTPL) are expensed in the statement of profit and loss for the year.

iii) Subsequent measurement

For the purpose of subsequent measurement, the financial asset are classified in four categories:

a) Debt instrument at amortised cost

b) Debt instrument at fair value through other comprehensive Income

c) Debt instrument at fair value through profit or loss

d) Equity investments

Debt instruments
• Amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal
and interest are measured at amortised cost. A gain or loss on such instruments is recognised in profit or loss when the
asset is derecognised or impaired. Interest income from these financial assets is calculated using the effective interest rate
method and is included under the head "Finance income", ''

¦ Fair value through other comprehensive income (FVTOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows
represent solely payments of principal and interest, are measured at fair value through other comprehensive income
(FVTOCi). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or
losses, interest revenue and foreign exchange gains and losses which are recognised in the statement of profit and loss.
When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCi is reclassified from
equity to statement of profit and loss. Interest income from these financial assets is calculated using the effective interest
rate method and is included under the head "Finance income".

• Fair value through profit or loss:

Assets that do not meet the criteria for amortised cost or fair value through other comprehensive income (FVTOCI) are
measured at fair value through profit or loss. Gain and losses on fair value of such instruments are recognised in statement
of profit and loss. Interest income from these financial assets is included in other income.

Equity investments other than investments in subsidiaries, joint ventures and associates

The Company subsequently measures all equity investments other than investments in subsidiaries, joint ventures and
associates at fair value. Where the Company’s management has elected to present fair value gains and losses on equity
investments in other comprehensive Income, there is no subsequent reclassification of fair value gains and losses to the
statement of profit and loss in the event of de-recognition. Dividends from such investments are recognised in the statement
of profit and loss as other income when the Company''s right to receive payments is established. Changes in the fair value of
financial assets at fair value through profit or loss are recognised in the statement of profit and loss. Impairment losses (and
reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately from other changes
in fair value.

iv) Impairment of financial assets

The Company assesses, on historical credit experience and forward looking basis, the expected credit losses associated
with its assets carried at amortised cost and FVGCI debt instruments. The impairment methodology applied depends on
whether there has been a significant increase in credit risk. As per simplified approach, loss allowances on trade receivables
are measured using provision matrix at an amount equal to life time expected losses i.e. expected cash shortfall. The
impairment losses and reversals are recognised in Statement of Profit and Loss.

The Company continuously monitors defaults of customers, identified either individually or by the Company, and
incorporates this information into its credit risk controls. The Company’s policy is to deal only with creditworthy
counterparties.

In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to any single
counterparty or any company of counterparties having similar characteristics. Trade receivables consist of a large number of
customers. The Company has very limited history of customer default, and considers the credit quality of trade receivables
that are not past due or impaired to be good.

v) De-recognition of financial assets

A financial asset is derecognised only when:

• The rights to receive cash flows from the financial asset have expired

• The Company has transferred substantially all the risks and rewards of the financial asset or

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

II Financial liabilities

i) Classification

The Company classifies all financial liabilities at amortised cost or fair value through profit or loss.

ii) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, deposits or as payables, as appropriate. All financial liabilities are recognised initially at fair value and, in the
case of loans and borrowings and payables, net of directly attributable transaction costs.

iii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:
a Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are
recognised in the profit or loss.

b Loans, borrowings and deposits

After initial recognition, loans, borrowings and deposits 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 amortization process. The EIR amortisation is included in finance costs in the
statement of profit and loss.

c Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which
are unpaid. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short-term maturity of these instruments.

d Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse
the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms
of a debt instrument. Financial guarantee contracts are recognised Initially as a liability at fair value, adjusted for transaction
costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of
the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less
cumulative amortisation.

iv) De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the
statement of profit or loss.

(i) Cash and cash equivalents

(i) Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short-term deposit with original
maturity upto three months, which are subject to insignificant risk of changes in value.

(ii) For the purpose of presentation in the statement of cash flows, cash and cash equivalents consists of cash and short-term
deposit, as defined above, net of outstanding bank overdraft as they are considered as an integral part of Company''s cash
management.

(j) Revenue recognition

i) Revenue from real estate activity

a) In case of under construction units, revenue from real estate activity is recognised in accordance with Ind AS 115 ''Revenue
from Contracts with Customers'' on satisfaction of performance obligation on the basis of Company''s binding contracts with
customers, upon transfer of control of promised products or services to customers fora consideration the Company expects
to receive in exchange for those products or services. The Company satisfies the performance obligation at a “point in time"
OR ''''overtime” depending on the fulfilment of the criteria as prescribed in para 35 of the said standard.

As such there being no objective criteria prescribed by the said Standard for recognition of revenue “over time”, the
Company recognises the revenue based on fulfilment of part obligation on following criteria:

i. For revenue recognition, only those units are considered where agreement / contract with buyers is executed.

ii. In case, where stage of completion of the project reaches a reasonable level of development i.e. 25% or more as supported
by physical work report, revenue is recognised on units mentioned in point no (i) above based on actual cost incurred to the
proportion of total estimated cost i.e. "project cost method", (input Method). In case where units have received occupancy
certificate, full revenue is recognized.

iii. In case, where stage of completion has not reached a reasonable level of development mentioned in point no (ii) above, the
revenue is recognised only to the extent of actual cost incurred subject to fulfillment of point no (i) above.

b) In case of contracts with customers where performance obligations are satisfied “point in time", the Company recognises the
revenue when the customer obtains control of the promised assets which is linked to occupancy certificate on those units
where binding agreement/ contracts with the buyers are executed.

Revenue is recognised net of indirect taxes and comprises the aggregate amounts of sale price as per the documents
entered into. The total saleable area and estimate of costs are reviewed periodically by the management and any effect of
changes therein is recognized in the period in which siich changes are determined. However, if and when the total project
cost is estimated to exceed the total revenue from the project, the loss is recognized in the same financial year.

ii) Revenue from Joint Development Agreement

Projects executed through joint development arrangements not being jointly controlled operations, wherein the land owner/
possessor provides land/development rights and the Company undertakes to develop properties on such land and in lieu of
land owner providing land/ rights, the Company has agreed to transfer certain percentage of constructed area or certain
percentage of the revenue proceeds, the revenue from the development and transfer of constructed area/revenue sharing
arrangement in exchange of such development rights/land is being accounted on gross basis on launch of the project.

Revenue is recognised over time using input method, in proportion of the inputs to the satisfaction of a performance
obligation relative to the total estimated/expected inputs.

The revenue is measured at the fair value of the land received, adjusted by the amount of any cash or cash equivalents
transferred. When the fair value of the land received cannot be measured reliably, the revenue is measured at the fair value
of the estimated construction service rendered to the land owner, adjusted by the amount of any cash or cash equivalents
transferred. The fair value so estimated is considered as the cost of land in the computation of percentage of completion for
the purpose of revenue recognition as mentioned above.

iii) Revenue from project management fees is recognised on accrual basis as per the terms of agreement.

iv) Revenue from license fee and other charges earned by way of leasing residential and commercial premises is recognized in the
statement of profit and loss on a straight-line basis over the lease term.

v) Revenue from service charges is recognized as per the terms of the lease agreement.

vi) Profit / loss from partnership firms and LLPs

The Company''s share in profits/(loss) from a firm where the Company is a partner, is recognised oh the basis of such firm’s
audited financial statements or management certified financial results, as per terms of the partnership deed.

vii) Interest income

Interest income for all debt instruments, measured at amortised cost or fair value through other comprehensive income, is
recognised using the effective interest rate method.

viii) Dividend Income

Dividend income is recognized when the Company''s right to receive the dividend is established.

(k) Income taxes

The income tax expenses comprises current and deferred tax. It is recognised in the statement of profit and loss except to the extent
that it relates to items recognised directly in equity or in other comprehensive income.

Current tax:

The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.
Deferred tax:

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the amount used for taxation purposes.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that
is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised, such reductions
are reversed when the probability of future taxable profits improves.

Unrecognised deferred tax assets are measured at each reporting date and recognised to the extent that it has become probable that
future taxable profits will be available against which they can be used.

Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, using tax
rates enacted or substantively enacted at the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects at
the reporting date to recover or settle the carrying amount of its assets and liabilities.

Minimum Alternate Tax (MAT) credit is recognised as deferred tax asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the
carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the
Company will pay normal income tax during the specified period.

(I) Impairment of non-financial assets

The carrying amounts of non financial assets are reviewed at each balance sheet date if there is any indication of impairment based
on internal/external factors, An asset is treated as impaired when the carrying amount exceeds its recoverable value. The
recoverable amount is the greater of an asset''s or cash generating unit''s, net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to the present value using a pre-tax discount rate that reflects current market
assessment of the time value of money and risks specific to the assets. An impairment loss is charged to the statement of profit and
loss in the year in which an asset is identified as impaired. After impairment, depreciation is provided on the revised carrying amount
of the asset over its remaining useful life. The impairment loss recognized in prior accounting periods is reversed by crediting the
statement of profit and loss if there has been a change in the estimate of recoverable amount.

(m) Employee benefits

(i) Short-term benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for
the year in which the related services are rendered.

(ii) Defined contribution plans

Payments to defined contribution retirement benefit schemes are charged to the statement of profit and loss of the year when
the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the fund.

(iii) Defined benefit plans

Defined benefits plans is recognized as an expense in the statement of profit and loss for the year in which the employee has
rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation
techniques.

Re-measurement of the net defined benefit liability, which comprises of actuarial gains and losses, are recognised in other
comprehensive income in the period in which they occur.

(iv) Other long-term employee benefits

Other long-term benefits are recognised as an expense in the statement of profit and loss at the present value of the amounts
payable determined using actuarial valuation techniques in the year in which the employee renders services. Re-measurements
are recognised in the statement of profit and loss in the period in which they arise.

(n) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the
period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares except when the results would be anti-dilutive.

(o) Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets. All
other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate applicable to the
respective borrowings.

(p) Leases

At the inception of a contract, the Company assesses whether a contract is or contains, a lease. A contract is, or contains a lease if
the contract conveys the right to control the use of an identified asset for a period of time in exchange of consideration. To assess
whether a contract conveys the right to control the use of an asset, the Company assesses whether:

- the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified
at the time the asset is made available to the Company.

- The Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period
of use, considering its rights within the defined scope of the contracts and

- the Company has the right to direct the use of the identified asset throughout the period of use, The Company assesses whether it
has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as
operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial
direct costs incurred in negotiating and arranging an operating lease are recognised over the lease term on the same basis as rental
income, Contingent rents are recognised as revenue in the period in which they are earned.

Company as a lessee
Right of use Asset-

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. At the commencement date, a
lessee shall measure the right-of-use asset at cost which comprises initial measurement of the lease liability, any lease payments
made at or before the commencement date, less any lease incentives received, any initial direct costs incurred by the lessee; and an
estimate of costs to be incurred by the lessee in dismantling and removifig the underlying asset, restoring the site on which it is
located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

Lease Liability-

At the commencement date, a lessee shall measure the lease liability at the present value of the lease payments that are not paid at
that date. The lease payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily determined. If
that rate cannot be readily determined, the lessee shall use the lessee’s incremental borrowing rate.

Short-term lease and leases of low-value assets-

The Company has elected not to recognise right-of-use assets and lease liabilities for short- term leases that have a lease term of
less than 12 months or less and leases of low-value assets, including IT Equipment. The Company recognises the lease payments
associated with these leases as an expense on a straight-line basis over the lease term. The election for short-term leases shall be
made by class of underlying asset to which the right of use relates. A class of underlying asset is a grouping of underlying assets of a
similar nature and use in Company’s operations. The election for leases for which the underlying asset is of low value can be made
on a lease-by-lease basis.