Accounting Policies of Max Estates Ltd. Company

Mar 31, 2025

2. Material Accounting policies

2A Basis of preparation

These standalone financial statements of the Company
have been prepared in accordance with Indian Accounting
Standards (IND AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended from
time to time) and presentation requirements of division
II of Schedule III to the Companies Act 2013 (Ind AS
Compliant Schedule III), as applicable to these standalone
financial statements.

Further, the standalone financial statements have been
prepared on historical cost basis except for certain
financial assets and financial liabilities and share based
payments which are measured at fair values as explained
in relevant accounting policies.

The standalone financial statements are presented in INR
and all values are rounded to nearest lakhs (INR 00,000)
except when otherwise indicated.

The Company has prepared the financial statements on
the basis that it will continue to operate as a going concern.

2B Summary of accounting policies
a. Current versus non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification. An asset is treated as current when
it is:

a) Expected to be realized or intended to be sold
or consumed in normal operating cycle;

b) Held primarily for the purpose of trading;

c) Expected to be realized within twelve months
after the reporting period; or

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

All other assets are classified as non-current.

A liability is current when:

a) It is expected to be settled in normal
operating cycle;

b) It is held primarily for the purpose of trading;

c) It is due to settled within twelve months after
the reporting period; or

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

The terms of the liability that could, at the option of
the counterparty, result in its settlement by the issue
of equity instruments do not affect its classification.

The Company classifies all other liabilities as non¬
current.

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

The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents. The
Company has identified twelve months as its
operating cycle.

b. Property, Plant and Equipment

Property, Plant and equipment are stated at cost,
less accumulated depreciation and accumulated
impairment losses, if any. The cost comprises of
purchase price, taxes, duties, freight and other
incidental expenses directly attributable and related
to acquisition and installation of the concerned
assets and are further adjusted by the amount of GST
credit availed wherever applicable. When significant
parts of plant and equipment are required to be
replaced at intervals, the Company depreciates them
separately based on their respective useful lives.
Likewise, when a major inspection is performed,
its cost is recognized in the carrying amount of
the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and
maintenance costs are recognized in profit or loss
as incurred.

An item of property, plant and equipment and any
significant part initially recognized is derecognized
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated
as the difference between the net disposal
proceeds and the carrying amount of the asset) is

included in the income statement when the asset
is derecognized.

The Company identifies and determines cost of
each component/ part of the asset separately, if the
component/ part has a cost which is significant to
the total cost of the asset and has useful life that is
materially different from that of the remaining asset.

Capital work- in- progress includes cost of property,
plant and equipment under installation / under
development as at the balance sheet date.

The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

Depreciation on property, plant and equipment is
provided on pro rata basis on straight-line method
using the useful lives of the assets estimated by
management and in the manner prescribed in
Schedule II of the Companies Act 2013. The useful
life is as follows:

Leasehold improvements are amortised over the
period of lease.

d. Investment Property

Recognition and initial measurement:

Investment properties are properties held to
earn rentals or for capital appreciation or both.
Investment properties are measured initially at
their cost of acquisition including transaction costs
The cost comprises purchase price, borrowing
cost, if capitalization criteria are met and directly
attributable cost of bringing the asset to its working
condition for the intended use. Any trade discount
and rebates are deducted in arriving at the purchase
price When significant parts of the investment

property are required to be replaced at intervals,
the Company depreciates them separately based
on their specific useful lives.

Property held under lease is classified as investment
property when it is held to earn rentals or for capital
appreciation or for both, rather than for sale in the
ordinary course of business or for use in production
or administrative functions. Subsequent costs
are included in the asset’s carrying amount or
recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits
associated with the item will flow to the Company All
other repair and maintenance costs are recognised
in statement of profit and loss as incurred The cost
includes the cost of replacing parts and borrowing
costs for long-term construction projects if the
recognition criteria are met When significant parts of
the investment property are required to be replaced
at intervals, the Group depreciates them separately
based on their specific useful lives All other repair
and maintenance costs are recognised in profit or
loss as incurred.

Depreciation on investment properties is provided
on the straight-line method, over the useful lives of
the assets are as follows:

The Company based on technical assessment made
by technical expert and management estimate,
depreciates plant & machinery & other equipment
over estimated useful lives which are different
from the useful life prescribed in Schedule II to the
Companies Act, 2013. The management believes
that these estimated useful lives are realistic and
reflect fair approximation of the period over which
the assets are likely to be used.

Estimated useful life of Leasehold land is the period
of lease or useful life whichever is lower.

Though the Company measures investment
property using cost-based measurement, the fair
value of investment properly is disclosed in the
notes Fair values are determined based on an annual

evaluation performed by the company applying a
valuation model acceptable.

De-recognition

I nvestment properties are de-recognised either
when they have been disposed of or when they are
permanently withdrawn from use and no future
economic benefit is expected from their disposal.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognised
in statement of profit and loss in the period of de¬
recognition.

e. Intangible assets

Intangible assets acquired separately are measured
on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost
less accumulated amortization and accumulated
impairment losses, if any. Internally generated
intangibles, excluding capitalized development
cost, are not capitalized and the related expenditure
is reflected in statement of Profit and Loss in the
period in which the expenditure is incurred. Cost
comprises the purchase price and any attributable
cost of bringing the asset to its working condition
for its intended use.

The useful lives of intangible assets are assessed
as either finite or indefinite. Intangible assets with
finite lives are amortized over their useful economic
lives and assessed for impairment whenever there
is an indication that the intangible asset may
be impaired. The amortization period and the
amortization method for an intangible asset with
a finite useful life is reviewed at least at the end of
each reporting period. Changes in the expected
useful life or the expected pattern of consumption
of future economic benefits embodied in the asset
is accounted for by changing the amortization
period or method, as appropriate and are treated as
changes in accounting estimates. The amortization
expense on intangible assets with finite lives is
recognized in the statement of profit and loss in the
expense category consistent with the function of the
intangible assets.

Intangible assets with indefinite useful lives are not
amortized, but are tested for impairment annually,
either individually or at the cash-generating unit
level. The assessment of indefinite life is reviewed
annually to determine whether the indefinite life
continues to be supportable. If not, the change
in useful life from indefinite to finite is made on a
prospective basis.

Gains or losses arising from disposal of the intangible
assets are measured as the difference between the
net disposal proceeds and the carrying amount of
the asset and are recognized in the statement of
profit and loss when the assets are disposed-off.

f. Impairment of non-financial assets

The Company assesses at each reporting date
whether there is an indication that an asset may
be impaired. If any indication exists, or when
annual impairment testing for an asset is required,
the Company estimates the asset''s, recoverable
amount. An asset’s recoverable amount is the higher
of an asset’s or cash-generating unit’s (CGU) net fair
value less cost of disposal and its value in use. The
recoverable amount is determined for an individual
asset, unless the asset does not generate cash
inflows that are largely independent of those from
other assets or groups of assets. Where the carrying
amount of asset or CGU exceeds its recoverable
amount, the asset is considered impaired and
is written down to its recoverable amount. In
assessing value in use, the estimated future
cash flows are discounted to their present value
using a pre-tax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset. In determining
net fair value less cost of disposal, recent market
transactions are taken into account, if available. If no
such transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, quoted share
prices for publicly traded companies or other
available fair value indicators.

The Company bases its impairment calculation on
detailed budgets and forecast calculations which
are prepared separately for each of the Company’s
cash-generating units to which the individual
assets are allocated. These budgets and forecast
calculations are generally covering a period of five
years. For the remaining economic life of the asset or
cash-generating unit (CGU), a long term growth rate
is calculated and applied to project future cash flows
after the fifth year. To estimate cash flow projections
beyond periods covered by the most recent
budgets/forecasts, the Company extrapolates cash
flow projections in the budget using a steady or
declining growth rate for subsequent years, unless
an increasing rate can be justified. In this case, the
growth rate does not exceed the long-term average
growth rate for the products, industries, or country
or countries in which the entity operates, or for the
market in which the asset is used.

After impairment, depreciation is provided on
the revised carrying amount of the asset over its
remaining economic life.

An assessment is made at each reporting date as
to whether there is any indication that previously
recognized impairment losses no longer exist or
may have decreased. If such indication exists, the
Company estimates the asset’s or cash-generating
unit’s recoverable amount. A previously recognized
impairment loss is reversed only if there has been
a change in the assumptions used to determine
the asset’s recoverable amount since the last
impairment loss was recognized. The reversal is
limited so that the carrying amount of the asset does
not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined,
net of depreciation, had no impairment loss been
recognized for the asset in prior years. Such reversal is
recognized in the statement of profit and loss unless
the asset is carried at a revalued amount, in which
case the reversal is treated as a revaluation increase.

g. Investment Property in an Unincorporated
Joint Venture

The Company is a party to joint arrangements
which are not structured through separate legal
entities and are classified as joint operations in
accordance with Ind AS 111 - Joint Arrangements.
These arrangements are governed by contractual
agreements that confer joint control and
enforceable rights and obligations over specific
assets and liabilities.

The Company recognizes in relation to its interest
in a joint operation its share of the joint assets, joint
liabilities, revenue from the joint operation, and
expenses incurred jointly or individually.

h. 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.

(i) Financial assets

The Company classified its financial assets in the
following measurement categories: -

- Those to be measured subsequently at fair value
(either through other comprehensive income or
through profit & loss)

- Those measured at amortized cost

Initial recognition and measurement

All financial assets (other than equity in subsidiaries)
are recognized initially at fair value plus, in the case
of financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable
to the acquisition of the financial asset. Equity
investment in subsidiaries are recognised at cost.
Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the market place (regular
way trades) are recognized on the trade date, i.e., the
date that the Company commits to purchase or sell
the asset. The difference between the transaction
amount and amortised cost in case of interest free
loan to subsidiaries based on expected repayment
period is considered as deemed investment.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in following categories:

a) Debt instruments at amortized cost

b) Debt instruments and equity instruments at fair
value through profit or loss (FVTPL)

Debt instruments at amortized cost

A ''debt instrument'' is measured at the amortized
cost if both the following conditions are met:

(i) Business model test: The asset is held within
a business model whose objective is to hold
assets for collecting contractual cash flows
(rather than to sell the instrument prior to its
contractual maturity to released its fair value
change), and

(ii) Cash flow characteristics test: Contractual
terms of the asset give rise on specified dates
to cash flows that are solely payments of
principal and interest (SPPI) on the principal
amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortized cost using the

effective interest rate (EIR) method. Amortized 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. EIR is the rate that
exactly discount the estimated future cash receipts
over the expected life of the financial instrument
or a shorter period, where appropriate to the
gross carrying amount of financial assets. When
calculating the effective interest rate the company
estimate the expected cash flow by considering all
contractual terms of the financial instruments. The
EIR amortization is included in finance income in
the statement of profit or loss. The losses arising
from impairment are recognized in the profit or
loss. This category generally applies to trade and
other receivables.

Debt instruments at Fair value through profit
and loss

FVTPL is a residual category for financial instruments.
Any financial instrument, which does not meet the
criteria for amortized cost or FVTOCI, is classified as
at FVTPL. gain or loss on a Debt instrument that is
subsequently measured at FVTPL and is not a part
of a hedging relationship is recognized in statement
of profit or loss and presented net in the statement
of profit and loss within other gains or losses in the
period in which it arises. Interest income from these
Debt instruments is included in other income.

Equity investments of other than Subsidiaries

All equity investments in scope of IND AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognized by an acquirer in a business combination
to which IND AS103 applies are classified as at FVTPL.
For all other equity instruments, the Company may
make an irrevocable election to present in other
comprehensive income all subsequent changes in
the fair value. The Company makes such election
on an instrument-by-instrument basis. The
classification is made on initial recognition and
is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are
recognized in the OCI. There is no recycling of the
amounts from OCI to profit and loss, even on sale
of investment. However, the Company may transfer
the cumulative gain or loss within equity. Equity
instruments included within the FVTPL category are
measured at fair value with all changes recognized
in the Profit and loss.

Investment in Compound Financial Instruments
issued by subsidiaries

Company considers issuance of Zero Coupon Non¬
Convertible Debentures by subsidiary as compound
instrument comprising a loan with market terms
and a capital injection and hence treat the difference
between the cash paid and fair value on initial
recognition as an addition to the investment in
the subsidiary and presented separately as ''Equity
component of Zero Coupon Non-Convertible
Debentures under ''Non-Current Investments’.
Equity Component is not subsequently remeasured.

Derecognition

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily derecognized (i.e.,
removed from the Company''s statement of financial
position) when:

- the rights to receive cash flows from the asset
have expired, or

- the Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
"pass through" arrangement and either;

a) the Company has transferred the rights to
receive cash flows from the financial assets or

b) the Company has retained the contractual right
to receive the cash flows of the financial asset,
but assumes a contractual obligation to pay the
cash flows to one or more recipients.

Where the Company has transferred its right to
receive cash flows from an asset or has entered into
a pass-through agreement, the Company evaluates
whether it has transferred substantially all the risks
and rewards of the ownership of the financial assets.
In such cases, the financial asset is derecognized.
Where the entity has not transferred substantially all
the risks and rewards of the ownership of the financial
assets, the financial asset is not derecognized.

Where the Company has transferred an asset, the
Company evaluates whether it has transferred
substantially all the risks and rewards of the
ownership of the financial assets. In such cases, the
financial asset is derecognized. Where the entity has
not transferred substantially all the risks and rewards

of the ownership of the financial assets, the financial
asset is not derecognized.

Impairment of financial assets

In accordance with IND AS 109, the Company applies
expected credit losses (ECL) model for measurement
and recognition of impairment loss on the following
financial asset and credit risk exposure.

- Financial assets measured at amortised cost;
e.g. Loans, Security deposits, trade receivable,
bank balance, other financial assets etc;

- Financial assets measured at fair value through
other comprehensive income (FVTOCI);

- Financial guarantee contracts are which are not
measured at fair value through profit or loss
(FVTPL)

The Company follows “simplified approach” for
recognition of impairment loss allowance on trade
receivables. Under the simplified approach, the
Company does not track changes in credit risk.
Rather, it recognizes impairment loss allowance
based on lifetime ECLs at each reporting date,
right from its initial recognition. The Company uses
a provision matrix to determine impairment loss
allowance on the portfolio of trade receivables.
The provision matrix is based on its historically
observed default rates over the expected life of
trade receivable and is adjusted for estimates. At
every reporting date, the historical observed default
rates are updated and changes in the estimates
are analysed.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the
credit risk since initial recognition. If

credit risk has not increased significantly, 12-month
ECL is used to provide for impairment loss.

However, if credit risk has increased significantly,
lifetime ECL is used. If, in subsequent period, credit
quality of the instrument improves such that there
is no longer a significant increase in credit risk since
initial recognition, then the Company reverts to
recognizing impairment loss allowance based on
12- months ECL.

Reclassification of financial assets

The Company determines classification of financial
assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial
assets which are equity instruments and financial
liabilities. For financial assets which are debt
instruments, a reclassification is made only if there
is a change in the business model for managing
those assets. Changes to the business model are
expected to be infrequent. The Company''s senior
management determines change in the business
model as a result of external or internal changes which
are significant to its operations. Such changes are
evident to external parties. A change in the business
model occurs when the Company either begins or
ceases to perform an activity that is significant to
its operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The Company does
not restate any previously recognized gains, losses
(including impairment gains or losses) or interest.

(ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified at initial recognition
as financial liabilities at fair value through profit or
loss, loans and borrowings, and payables, net of
directly attributable transaction costs. The Company
financial liabilities include loans and borrowings
including bank overdraft, trade payable, trade
deposits, retention money and other payables.

Subsequent measurement

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

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 statement of profit
and loss. Financial liabilities designated upon initial
recognition at fair value through profit or loss are
designated as such at the initial date of recognition,
and only if the criteria in IND AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognised in OCI. These gains/ losses are not

subsequently transferred to profit and loss. However,
the Company may transfer the cumulative gain or
loss within equity. All other changes in fair value
of such liability are recognised in the statement
of profit or loss. The Company has not designated
any financial liability as at fair value through profit
and loss.

Financial liabilities at amortised cost (Loans and
borrowings)

Borrowings are initially recognised at fair value,
net of transaction cost incurred. After initial
recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in
profit or loss when the liabilities are derecognised
as well as through the EIR amortization 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
amortization is included as finance costs in the
statement of profit and loss.

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.

Derecognition

A financial liability is derecognised 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 derecognition 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 and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if

there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle
the liabilities simultaneously.

i. Investment in subsidiaries

The investment in subsidiaries are carried at cost as
per IND AS 27. Investment carried at cost is tested for
impairment as per IND AS 36. An investor, regardless
of the nature of its involvement with an entity (the
investee), shall determine whether it is a parent by
assessing whether it controls the investee.

On disposal of investment, the difference between
it carrying amount and net disposal proceeds is
charged or credited to the statement of profit
and loss.

j. Revenue recognition

Revenue comprises the consideration received or
receivable for providing buildings on operating
lease, rendering of maintenance service, sale
of constructed properties, income from shared
services, income from asset and development
management fees and other operating income in
the ordinary course of the Company’s activities.

Revenue from contracts with customers is
recognised when control of the goods or services
are transferred to the customer at an amount that
reflects the consideration to which the Company
expects to be entitled in exchange for those goods
or services. The Company has generally concluded
that it is the principal in its revenue arrangements
because it typically controls the goods or services
before transferring them to the customer. Revenue
is presented, net of taxes, rebates and discounts (if
any).

Revenue from shared services, maintenance
services and development and asset management
fees

Revenue is recognised over period of time in respect
of services on an accrual basis, in accordance with
the terms of the respective contract as and when
the Company satisfies performance obligations
by delivering the services as per contractually
agreed terms.

Revenue from sale of constructed properties

Revenue is recognised at the point in time w.r.t. sale
of real estate units, including land, plots, commercial
units, as and when the control passes on to the
customer which coincides with handing over of the
possession to the customer.

Revenue from rental income from leased asset

Rental income is recognised on a straight-line basis
over the term of the lease, except for contingent
rental income which is recognised when it arises.
Refer note 2.2 (k) for policy relating to recognition
of rental income. Parking income and fit out rental
income is recognised in statement of profit and loss
on accrual basis.

Interest income on loans to subsidiary companies

Income from interest on loans is recognized using
the effective interest method.

Gain on sale of investments

On disposal of an investment, the difference between
the carrying amount and net disposal proceeds is
recognised to the profit and loss statement.

All other incomes and expenditures are accounted
for on accrual basis.

k. Taxes

Current income tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities in accordance with the
Income Tax Act, 1961 and the income computation
and disclosure standards (ICDS) enacted in India
by using tax rates and tax laws that are enacted or
substantively enacted, at the reporting date.

Current income tax relating to items recognized
outside profit or loss is recognized outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognized in
correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with
respect to situations in which applicable tax
regulations are subject to interpretation and
establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method
on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences except:

- When the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss and does not give rise to equal
taxable and deductible temporary differences;

- I n respect of taxable temporary differences
associated with investments in subsidiaries,
when the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse
in the foreseeable future.

Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognized to the extent that it is probable
that taxable profit will be available against which the
deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilized except:

- When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable profit
or loss and does not give rise to equal taxable
and deductible temporary differences;

- In respect of deductible temporary differences
associated with investments in subsidiaries,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable future
and taxable profit will be available against which
the temporary differences can be utilised.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilized. Unrecognized
deferred tax assets are re-assessed at each reporting
date and are recognized to the extent that it has
become probable that future taxable profits will
allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realized or the liability is settled, based
on tax rates (and tax laws) that have been enacted
or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside
profit or loss is recognized outside the statement of
profit or loss (either in other comprehensive income
or in equity). Deferred tax items are recognized in
correlation to the underlying transaction either in
OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and
the deferred taxes relate to the same taxable entity
and the same taxation authority.

l. Borrowing costs

Borrowing cost includes interest expense as
per effective interest rate [EIR]. Borrowing costs
directly attributable to the acquisition, construction
or production of an asset that necessarily takes
a substantial period of time to get ready for its
intended use or sale are capitalized as part of the
cost of the asset until such time that the asset is
substantially ready for their intended use. 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. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs.

m. Leases

The Company assesses at contract inception
whether a contract is, or contains, a lease. That is, if
the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities
recognised, initial direct costs incurred,
and lease payments made at or before the

commencement date less any lease incentives
received. Right-of-use assets are depreciated
on a straight-line basis over the shorter of the
lease term and the estimated useful lives of
the assets.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset.

The right-of-use assets are also subject to
impairment. Refer to the accounting policies in
section (d) Impairment of non-financial assets.

ii) Lease Liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured
at the present value of lease payments to be
made over the lease term. The lease payments
include fixed payments (including in substance
fixed payments) less any lease incentives
receivable, variable lease payments that depend
on an index or a rate, and amounts expected
to be paid under residual value guarantees.
The lease payments also include the exercise
price of a purchase option reasonably certain
to be exercised by the Company and payments
of penalties for terminating the lease, if the
lease term reflects the Company exercising the
option to terminate. Variable lease payments
that do not depend on an index or a rate
are recognised as expenses (unless they are
incurred to produce inventories) in the period
in which the event or condition that triggers the
payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the com mencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change
in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a
change in an index or rate used to determine such
lease payments) or a change in the assessment of
an option to purchase the underlying asset.

The Company’s lease liabilities are included in
Interest-bearing loans and borrowings.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease
recognition exemption to its short-term leases
of equipment (i.e., those leases that have a
lease term of 12 months or less from the
commencement date and do not contain a
purchase option). It also applies the lease of low-
value assets recognition exemption to leases of
office equipment that are considered to be low
value. Lease payments on short-term leases
and leases of low-value assets are recognised
as expense on a straight-line basis over the
lease term.

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. The
respective leased assets are included in the balance
sheet based on their nature. Rental income is
recognized on straight line basis over the lease term
and is included in revenue in the Statement of profit
or loss due to its operating nature. Initial direct costs
incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased
asset and recognised over the lease term on the
same basis as rental income.

Leases which effectively transfer to the lessee
substantially all the risks and benefits incidental
to ownership of the leased item are classified and
accounted for as finance lease. Lease rental receipts
are apportioned between the finance income
and capital repayment based on the implicit rate
of return.

Company as a sub lessor

The Company is intermediate lessor as it subleases
an asset leased from another lessor (the ‘head
lessor’). The Company classifies the sublease as a
finance lease or as an operating lease with reference
to the right-of-use asset arising from the head lease.
That is, the Company treats the right-of-use asset
as the underlying asset in the sublease, not the
underlying asset that it leases from the head lessor.
At the commencement date of the sublease, if the
Company cannot readily determine the interest rate
implicit in the sublease, then it uses the discount
rate that it uses for the head lease to account for
the sublease, adjusted for any initial direct costs
associated with the sublease. However, if the head
lease is a short-term lease for which the company, as
a lessee, has elected the short-term lease exemption,
then the company classifies the sublease as an
operating lease.

---

Mar 31, 2024

2. Accounting policies 2A Basis of preparation

This note provides a list of summary of accounting policies adopted in the preparation of these Standalone Financial Statements.

These standalone Ind AS financial statements of the Company have been prepared in accordance with Indian Accounting Standards (IND AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of division II of Schedule

III to the Companies Act 2013 (Ind AS Compliant Schedule III), as applicable to these separate standalone Ind AS financial statements.

The standalone Ind AS financial statements have been prepared on a historical cost basis, except for certain assets and liabilities which have been measured at fair value (refer accounting policy regarding financial instruments).

The standalone Ind AS financial statements are presented in INR and all values are rounded to nearest Lakhs (INR 00,000) except when otherwise indicated.

The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.

2B Summary of accounting policies

a. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

a) Expected to be realized or intended to be sold or consumed in normal operating cycle;

b) Held primarily for the purpose of trading;

c) Expected to be realized within twelve months after the reporting period; or

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

All other assets are classified as non-current.

A liability is current when:

a) It is expected to be settled in normal operating cycle;

b) It is held primarily for the purpose of trading;

c) It is due to settled within twelve months after the reporting period; or

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

The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

b. Business Combinations

Common control business combinations include transactions, such as transfer of subsidiaries or businesses, between entities within a Company. Business combinations involving entities or businesses under common control are accounted for using the pooling of interests method. The pooling of interest method is considered to involve the following:

(i) The assets and liabilities of the combining entities are reflected at their carrying amounts.

(ii) No adjustments are made to reflect fair values, or recognise any new assets or liabilities. The only adjustments that are made are to harmonise accounting policies.

(iii) The financial information in the financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. However, if business combination had occurred after that date, the prior period information shall be restated only from that date.

(iv) The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the corresponding balance appearing in the financial statements of the transferee.

c. Property, Plant and Equipment

Property, Plant and equipment including capital work in progress are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. The cost comprises of purchase price, taxes, duties, freight and other incidental expenses directly attributable and related to acquisition and installation of the concerned assets and are further adjusted by the amount of GST credit availed wherever applicable. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their respective useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition

criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

An item ofproperty, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

The Company identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost which is significant to the total cost of the asset and has useful life that is materially different from that of the remaining asset.

Capital work- in- progress includes cost of property, plant and equipment under installation / under development as at the balance sheet date.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Depreciation on property, plant and equipment is provided on pro rata basis on straight-line method using the useful lives of the assets estimated by management and in the manner prescribed in Schedule II of the Companies Act 2013. The useful life is as follows:

Leasehold improvements are amortised over the period of lease.

d. investment Property

Recognition and initial measurement:

Investment properties are properties held to earn rentals or for capital appreciation or both. Investment properties are measured initially at their cost of acquisition including transaction costs The cost comprises purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price When significant parts of the investment property are required to

be replaced at intervals, the Company depreciates them separately based on their specific useful lives.

Property held under lease is classified as investment property when it is held to earn rentals or for capital appreciation or for both, rather than for sale in the ordinary course of business or for use in production or administrative functions. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group All other repair and maintenance costs are recognised in statement of profit and loss as incurred The cost includes the cost of replacing parts and borrowing costs for longterm construction projects if the recognition criteria are met When significant parts of the investment property are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives All other repair and maintenance costs are recognised in profit or loss as incurred.

Depreciation on investment properties is provided on the straight-line method, over the useful lives of the assets are as follows:

Estimated useful life of Leasehold land is over the period of lease.

Though the Company measures investment property using cost-based measurement, the fair value of investment properly is disclosed in the notes Fair values are determined based on an annual evaluation performed by the company applying a valuation model acceptable.

De-recognition

Investment properties are de-recognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in statement of profit and loss in the period of de-recognition.

Depreciation on investment property has been provided on straight line method over the useful life of assets Useful life of assets are as under:

e. intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Internally generated intangibles, excluding capitalized development cost, are not capitalized and the related expenditure is reflected in statement of Profit and Loss in the period in which the expenditure is incurred. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life is reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss in the expense category consistent with the function of the intangible assets.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from disposal of the intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the assets are disposed-off.

Intangible assets with finite useful life are amortized on a straight-line basis over their estimated useful life of 3-6 years.

f. impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s, recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) net fair value less cost of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net fair value less cost of disposal, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Company''s cash-generating units to which the individual assets are allocated. These budgets and forecast calculations are generally covering a period of five years. For the remaining economic life of the asset or cash-generating unit (CGU), a long term growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In this case, the growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which the entity operates, or for the market in which the asset is used.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining economic life.

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses no longer exist or may have decreased. If such indication exists, the Company estimates the asset''s

or cash-generating unit''s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

g. 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.

(i) Financial assets

The Company classified its financial assets in the following measurement categories: -

- Those to be measured subsequently at fair value (either through other comprehensive income or through profit & loss)

- Those measured at amortized cost

initial recognition and measurement

All financial assets (other than equity in subsidiaries) are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Equity investment in subsidiaries are recognised at cost. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. The difference between the transaction amount and amortised cost in case of interest free loan to subsidiaries based on expected repayment period is considered as deemed investment.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) Debt instruments at amortized cost

b) Debt instruments and equity instruments at fair value through profit or loss (FVTPL)

Debt instruments at amortized cost

A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

(i) Business model test: The asset is held within a

business model whose objective is to hold assets for collecting contractual cash flows (rather than to sell the instrument prior to its contractual maturity to released its fair value change), and

(ii) Cash flow characteristics test: Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized 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. EIR is the rate that exactly discount the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate to the gross carrying amount of financial assets. When calculating the effective interest rate the company estimate the expected cash flow by considering all contractual terms of the financial instruments. The EIR amortization is included in finance income in the statement of profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade and other receivables.

Debt instruments at Fair value through profit and loss

FVTPL is a residual category for financial instruments. Any financial instrument, which does not meet the criteria for amortized cost or FVTOCI, is classified as at FVTPL. gain or loss on a Debt instrument that is subsequently measured at FVTPL and is not a part of a hedging relationship is recognized in statement of profit or loss and presented net in the statement of profit and loss within other gains or losses in the period in which it arises. Interest income from these Debt instruments is included in other income.

Equity investments of other entities

All equity investments in scope of IND AS 109 are

measured at fair value. Equity instruments which are held for trading and contingent consideration recognized by an acquirer in a business combination to which IND AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income all subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Profit and loss.

investment in Compound Financial instruments issued by subsidiaries

Company considers issuance of Zero Coupon NonConvertible Debentures by subsidiary as compound instrument comprising a loan with market terms and a capital injection and hence treat the difference between the cash paid and fair value on initial recognition as an addition to the investment in the subsidiary and presented separately as ''Equity component of Zero Coupon Non-Convertible Debentures under ''Non-Current Investments''. Equity Component is not subsequently remeasured.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e., removed from the Company''s statement of financial position) when:

- the rights to receive cash flows from the asset have expired, or

- the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass through" arrangement and either;

a) the Company has transferred the rights to receive cash flows from the financial assets or

b) the Company has retained the contractual right to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred its right to receive cash flows from an asset or has entered into a passthrough agreement, the Company evaluates whether it has transferred substantially all the risks and rewards of the ownership of the financial assets. In such cases, the financial asset is derecognized. Where the entity has not transferred substantially all the risks and rewards of the ownership of the financial assets, the financial asset is not derecognized.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all the risks and rewards of the ownership of the financial assets. In such cases, the financial asset is derecognized. Where the entity has not transferred substantially all the risks and rewards of the ownership of the financial assets, the financial asset is not derecognized.

impairment of financial assets

In accordance with IND AS 109, the Company applies expected credit losses (ECL) model for measurement and recognition of impairment loss on the following financial asset and credit risk exposure.

- Financial assets measured at amortised cost; e.g. Loans, Security deposits, trade receivable, bank balance, other financial assets etc;

- Financial assets measured at fair value through other comprehensive income (FVTOCI);

- Financial guarantee contracts are which are not measured at fair value through profit or loss (FVTPL)

The Company follows "simplified approach" for recognition of impairment loss allowance on trade receivables. Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of trade receivable and is adjusted for estimates. At every reporting date, the historical observed default

rates are updated and changes in the estimates are analysed.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.

However, if credit risk has increased significantly, lifetime ECL is used. If, in subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12- months ECL.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to its operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

(ii) Financial liabilities

initial recognition and measurement

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss, loans and borrowings, and payables, net of directly attributable transaction costs. The Company financial liabilities include loans and borrowings including bank overdraft, trade payable, trade deposits, retention money and other payables.

Subsequent measurement

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

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 statement of profit and loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in IND AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognised in OCI. These gains/ losses are not subsequently transferred to profit and loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Financial liabilities at amortised cost (Loans and borrowings)

Borrowings are initially recognised at fair value, net of transaction cost incurred. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortization 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 amortization is included as finance costs in the statement of profit and loss.

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.

Derecognition

A financial liability is derecognised 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 derecognition 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 and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

h. investment in subsidiaries

The investment in subsidiaries are carried at cost as per IND AS 27. Investment carried at cost is tested for impairment as per IND AS 36. An investor, regardless of the nature of its involvement with an entity (the investee), shall determine whether it is a parent by assessing whether it controls the investee.

On disposal of investment, the difference between it carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

i. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Revenue is recognised over time if either of the following conditions is met:

a. Buyers take all the benefits of the property as real estate company construct the property.

b. Buyers obtain physical possession of the property.

c. The property unit to be delivered is specified in the contract and real estate entity does not have an alternative use of the unit, the buyer does not have the discretion to terminate the contract and the entity has right to payment for work completed to date Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

In case none of these conditions is met, revenue would be recognised at a point in time when the control of the property is passed on to the customer.

Revenue from shared services

Revenue is recognised over period of time in respect of shares services on an accrual basis, in accordance with the terms of the respective contract as and when the Company satisfies performance obligations by delivering the services as per contractually agreed terms.

Revenue from project management consultancy/ secondment

Revenue from project management consultancy/ secondment is recognized as per the terms of the agreement on the basis of services rendered

Gain on sale of investments

On disposal of an investment, the difference between the carrying amount and net disposal proceeds is recognised to the profit and loss statement.

Interest and direct expenditure attributable to specific projects are capitalized in the cost of project,

other interest and indirect costs are treated as ''Period Cost'' and charged to Profit & Loss account in the period in which it is incurred.

All other incomes and expenditures are accounted for on accrual basis.

j. Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities in accordance with the Income Tax Act, 1961 and the income computation and disclosure standards (ICDS) enacted in India by using tax rates and tax laws that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences except:

- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

- In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized except:

- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

- In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized outside the statement of profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

k. Borrowing costs

Borrowing cost includes interest expense as per effective interest rate [EIR]. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset until such time that the asset is substantially ready for their intended use. 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. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

l. Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section (d) Impairment of non-financial assets.

ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

The Company''s lease liabilities are included in Interestbearing loans and borrowings.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Company as a sub lessor

The Company is intermediate lessor as it subleases an asset leased from another lessor (the ''head lessor''). The Company classifies the sublease as a finance lease or as an operating lease with reference to the right-of-use asset arising from the head lease. That is, the Company treats the right-of-use asset as the underlying asset in the sublease, not the underlying asset that it leases from the head lessor. At the commencement date of the sublease, if the Company cannot readily determine the interest rate implicit in the sublease, then it uses the discount rate that it uses for the head lease to account for the sublease, adjusted for any initial direct costs associated with the sublease. However, if the head lease is a short-term lease for which the company, as a lessee, has elected the short-term lease exemption, then the company classifies the sublease as an operating lease.

---

Mar 31, 2023

Significant accounting policies

2A Basis of preparation

These standalone Ind AS financial statements of the
Company have been prepared in accordance
with Indian Accounting Standards (IND AS)
notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to
time) and presentation requirements of division II
of Schedule III to the Companies Act 2013 (Ind AS
Compliant Schedule III), as applicable to these
separate standalone Ind AS financial statements.

The standalone Ind AS financial statements have
been prepared on a historical cost basis, except
for certain assets and liabilities which have been
measured at fair value (refer accounting policy
regarding financial instruments).

The standalone Ind AS financial statements are
presented in INR and all values are rounded
to nearest Lakhs (INR 00,000) except when
otherwise indicated.

The Company has prepared the financial
statements on the basis that it will continue to
operate as a going concern.

2B Summary of significant accounting policies

a. Current versus non-current classification

The Company presents assets and liabilities

in the balance sheet based on current/ non¬
current classification. An asset is treated as

current when it is:

a) Expected to be realized or intended
to be sold or consumed in normal
operating cycle;

b) Held primarily for the purpose of trading;

c) Expected to be realized within twelve
months after the reporting period; or

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

All other assets are classified as non-current.

A liability is current when:

a) It is expected to be settled in normal
operating cycle;

b) It is held primarily for the purpose of
trading;

c) It is due to settled within twelve months
after the reporting period; or

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

The terms of the liability that could, at the

option of the counterparty, result
in its settlement by the issue of
equity instruments do not affect its
classification.

The Company classifies all other
liabilities as non-current.

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

The operating cycle is the time between
the acquisition of assets for processing
and their realization in cash and cash
equivalents. The Company has identified
twelve months as its operating cycle.

b. Business Combinations

Common control business combinations
include transactions, such as transfer of
subsidiaries or businesses, between entities
within a Company. Business combinations
involving entities or businesses under
common control are accounted for using the
pooling of interests method. The pooling of
interest method is considered to involve the
following:

(i) The assets and liabilities of the
combining entities are reflected at their
carrying amounts.

(ii) No adjustments are made to reflect fair
values, or recognise any new assets
or liabilities. The only adjustments that
are made are to harmonise accounting
policies.

(iii) The financial information in the
financial statements in respect of prior
periods is restated as if the business
combination had occurred from the
beginning of the preceding period in
the financial statements, irrespective
of the actual date of the combination.
However, if business combination had
occurred after that date, the prior period

information shall be restated only from
that date.

(iv) The balance of the retained earnings
appearing in the financial statements
of the transferor is aggregated with the
corresponding balance appearing in the
financial statements of the transferee.

c. Property, Plant and Equipment

Property, Plant and equipment including
capital work in progress are stated at
cost, less accumulated depreciation and
accumulated impairment losses, if any.
The cost comprises of purchase price,
taxes, duties, freight and other incidental
expenses directly attributable and related to
acquisition and installation of the concerned
assets and are further adjusted by the
amount of GST credit availed wherever
applicable. When significant parts of plant
and equipment are required to be replaced
at intervals, the Company depreciates them
separately based on their respective useful
lives. Likewise, when a major inspection
is performed, its cost is recognized in the
carrying amount of the plant and equipment
as a replacement if the recognition
criteria are satisfied. All other repair and
maintenance costs are recognized in profit
or loss as incurred.

An item of property, plant and equipment
and any significant part initially recognized
is derecognized upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising
on derecognition of the asset (calculated
as the difference between the net disposal
proceeds and the carrying amount of the
asset) is included in the income statement
when the asset is derecognized.

The Company identifies and determines
cost of each component/ part of the asset
separately, if the component/ part has a cost
which is significant to the total cost of the

asset and has useful life that is materially
different from that of the remaining asset.

Capital work- in- progress includes cost
of property, plant and equipment under
installation / under development as at the
balance sheet date.

The residual values, useful lives and methods
of depreciation of property, plant and
equipment are reviewed at each financial
year end and adjusted prospectively, if
appropriate.

Depreciation on property, plant and
equipment is provided on pro rata basis on
straight-line method using the useful lives of
the assets estimated by management and
in the manner prescribed in Schedule II of
the Companies Act 2013. The useful life is as
follows:

are required to be replaced at intervals,
the Company depreciates them separately
based on their specific useful lives.

Property held under lease is classified as
investment property when it is held to earn
rentals or for capital appreciation or for
both, rather than for sale in the ordinary
course of business or for use in production
or administrative functions. Subsequent
costs are included in the asset''s carrying
amount or recognised as a separate asset,
as appropriate, only when it is probable that
future economic benefits associated with the
item will flow to the Group All other repair
and maintenance costs are recognised in
statement of profit and loss as incurred The
cost includes the cost of replacing parts and
borrowing costs for long-term construction
projects if the recognition criteria are met
When significant parts of the investment
property are required to be replaced at
intervals, the Group depreciates them
separately based on their specific useful
lives All other repair and maintenance costs
are recognised in profit or loss as incurred.

Depreciation on investment properties is
provided on the straight-line method, over
the useful lives of the assets are as follows:

d. Investment Property

Recognition and initial measurement:

Investment properties are properties held
to earn rentals or for capital appreciation or
both. Investment properties are measured
initially at their cost of acquisition including
transaction costs The cost comprises
purchase price, borrowing cost, if
capitalization criteria are met and directly
attributable cost of bringing the asset to its
working condition for the intended use. Any
trade discount and rebates are deducted
in arriving at the purchase price When
significant parts of the investment property

Estimated useful life of Leasehold land is
over the period of lease

Though the Company measures investment
property using cost-based measurement, the
fair value of investment properly is disclosed
in the notes Fair values are determined
based on an annual evaluation performed
by the company applying a valuation model
acceptable.

De-recognition

Investment properties are de-recognised
either when they have been disposed of
or when they are permanently withdrawn
from use and no future economic benefit is
expected from their disposal. The difference
between the net disposal proceeds and the
carrying amount of the asset is recognised
in statement of profit and loss in the period
of de-recognition.

Depreciation on investment property has
been provided on straight line method over
the useful life of assets Useful life of assets
are as under

e. Intangible assets

Intangible assets acquired separately are
measured on initial recognition at cost.
Following initial recognition, intangible
assets are carried at cost less accumulated
amortization and accumulated impairment
losses, if any. Internally generated intangibles,
excluding capitalized development cost, are
not capitalized and the related expenditure
is reflected in statement of Profit and Loss
in the period in which the expenditure is
incurred. Cost comprises the purchase price
and any attributable cost of bringing the
asset to its working condition for its intended
use.

The useful lives of intangible assets are
assessed as either finite or indefinite.
Intangible assets with finite lives are
amortized over their useful economic lives
and assessed for impairment whenever there
is an indication that the intangible asset may
be impaired. The amortization period and
the amortization method for an intangible
asset with a finite useful life is reviewed at
least at the end of each reporting period.
Changes in the expected useful life or the
expected pattern of consumption of future
economic benefits embodied in the asset is
accounted for by changing the amortization
period or method, as appropriate and are
treated as changes in accounting estimates.
The amortization expense on intangible
assets with finite lives is recognized in the
statement of profit and loss in the expense
category consistent with the function of the
intangible assets.

Intangible assets with indefinite useful
lives are not amortized, but are tested for
impairment annually, either individually
or at the cash-generating unit level. The
assessment of indefinite life is reviewed
annually to determine whether the indefinite
life continues to be supportable. If not, the
change in useful life from indefinite to finite
is made on a prospective basis.

Gains or losses arising from disposal of
the intangible assets are measured as
the difference between the net disposal
proceeds and the carrying amount of the
asset and are recognized in the statement
of profit and loss when the assets are
disposed-off.

Intangible assets with finite useful life are
amortized on a straight-line basis over their
estimated useful life of 3-6 years.

f. Impairment of non-financial assets

The Company assesses at each reporting
date whether there is an indication that an
asset may be impaired. If any indication
exists, or when annual impairment testing
for an asset is required, the Company
estimates the asset''s, recoverable amount.
An asset''s recoverable amount is the higher
of an asset''s or cash-generating unit''s
(CGU) net fair value less cost of disposal
and its value in use. The recoverable amount

is determined for an individual asset, unless
the asset does not generate cash inflows
that are largely independent of those from
other assets or groups of assets. Where
the carrying amount of asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to
its recoverable amount. In assessing value
in use, the estimated future cash flows are
discounted to their present value using a pre¬
tax discount rate that reflects current market
assessments of the time value of money and
the risks specific to the asset. In determining
net fair value less cost of disposal, recent
market transactions are taken into account,
if available. If no such transactions can be
identified, an appropriate valuation model is
used. These calculations are corroborated by
valuation multiples, quoted share prices for
publicly traded companies or other available
fair value indicators.

The Company bases its impairment
calculation on detailed budgets and forecast
calculations which are prepared separately
for each of the Company''s cash-generating
units to which the individual assets are
allocated. These budgets and forecast
calculations are generally covering a period
of five years. For the remaining economic
life of the asset or cash-generating unit
(CGU), a long term growth rate is calculated
and applied to project future cash flows
after the fifth year. To estimate cash flow
projections beyond periods covered by
the most recent budgets/forecasts, the
Company extrapolates cash flow projections
in the budget using a steady or declining
growth rate for subsequent years, unless an
increasing rate can be justified. In this case,
the growth rate does not exceed the long¬
term average growth rate for the products,
industries, or country or countries in which
the entity operates, or for the market in
which the asset is used.

After impairment, depreciation is provided

on the revised carrying amount of the asset
over its remaining economic life.

An assessment is made at each reporting
date as to whether there is any indication that
previously recognized impairment losses
no longer exist or may have decreased.
If such indication exists, the Company
estimates the asset''s or cash-generating
unit''s recoverable amount. A previously
recognized impairment loss is reversed only
if there has been a change in the assumptions
used to determine the asset''s recoverable
amount since the last impairment loss was
recognized. The reversal is limited so that
the carrying amount of the asset does not
exceed its recoverable amount, nor exceed
the carrying amount that would have
been determined, net of depreciation, had
no impairment loss been recognized for
the asset in prior years. Such reversal is
recognized in the statement of profit and
loss unless the asset is carried at a revalued
amount, in which case the reversal is treated
as a revaluation increase.

g. 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.

(i) Financial assets

The Company classified its financial assets
in the following measurement categories: -

- Those to be measured subsequently
at fair value (either through other
comprehensive income or through
profit & loss)

- Those measured at amortized cost

Initial recognition and measurement

All financial assets (other than equity in
subsidiaries) are recognized initially at fair

value plus, in the case of financial assets
not recorded at fair value through profit or
loss, transaction costs that are attributable
to the acquisition of the financial asset.
Equity investment in subsidiaries are
recognised at cost. Purchases or sales of
financial assets that require delivery of
assets within a time frame established by
regulation or convention in the market place
(regular way trades) are recognized on the
trade date, i.e., the date that the Company
commits to purchase or sell the asset. The
difference between the transaction amount
and amortised cost in case of interest free
loan to subsidiaries based on expected
repayment period is considered as deemed
investment.

Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in following
categories:

a) Debt instruments at amortized cost

b) Debt instruments and equity
instruments at fair value through profit
or loss (FVTPL)

Debt instruments at amortized cost

A ''debt instrument'' is measured at the
amortized cost if both the following
conditions are met:

(i) Business model test: The asset is held within
a business model whose objective is to hold
assets for collecting contractual cash flows
(rather than to sell the instrument prior to its
contractual maturity to released its fair value
change), and

(ii) Cash flow characteristics test: Contractual
terms of the asset give rise on specified
dates to cash flows that are solely payments
of principal and interest (SPPI) on the
principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortized
cost using the effective interest rate (EIR)
method. Amortized 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. EIR is
the rate that exactly discount the estimated
future cash receipts over the expected
life of the financial instrument or a shorter
period, where appropriate to the gross
carrying amount of financial assets. When
calculating the effective interest rate the
company estimate the expected cash flow
by considering all contractual terms of the
financial instruments. The EIR amortization
is included in finance income in the
statement of profit or loss. The losses arising
from impairment are recognized in the profit
or loss. This category generally applies to
trade and other receivables.

Debt instruments at Fair value through profit
and loss

FVTPL is a residual category for financial
instruments. Any financial instrument, which
does not meet the criteria for amortized
cost or FVTOCI, is classified as at FVTPL.
gain or loss on a Debt instrument that is
subsequently measured at FVTPL and is not
a part of a hedging relationship is recognized
in statement of profit or loss and presented
net in the statement of profit and loss within
other gains or losses in the period in which
it arises. Interest income from these Debt
instruments is included in other income.

Equity investments of other entities

All equity investments in scope of IND AS 109 are
measured at fair value. Equity instruments
which are held for trading and contingent
consideration recognized by an acquirer in
a business combination to which IND AS103
applies are classified as at FVTPL. For all
other equity instruments, the Company may
make an irrevocable election to present in

other comprehensive income all subsequent
changes in the fair value. The Company
makes such election on an instrument-by¬
instrument basis. The classification is made
on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding
dividends, are recognized in the OCI. There
is no recycling of the amounts from OCI to
profit and loss, even on sale of investment.
However, the Company may transfer the
cumulative gain or loss within equity. Equity
instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the Profit and loss.

Investment in Compound Financial
Instruments issued by subsidiaries

Company considers issuance of Zero Coupon
Non-Convertible Debentures by subsidiary
as compound instrument comprising a loan
with market terms and a capital injection
and hence treat the difference between the
cash paid and fair value on initial recognition
as an addition to the investment in the
subsidiary and presented separately as
''Equity component of Zero Coupon Non¬
Convertible Debentures under ''Non-Current
Investments.'' Equity Component is not
subsequently remeasured.

Derecognition

A financial asset (or, where applicable, a part
of a financial asset or part of a Company
of similar financial assets) is primarily
derecognized (i.e., removed from the
Company''s statement of financial position)
when:

- the rights to receive cash flows from the
asset have expired, or

- the Company has transferred its rights
to receive cash flows from the asset
or has assumed an obligation to pay

the received cash flows in full without
material delay to a third party under a
"pass through" arrangement and either;

a) the Company has transferred the rights
to receive cash flows from the financial
assets or

b) the Company has retained the
contractual right to receive the cash
flows of the financial asset, but assumes
a contractual obligation to pay the cash
flows to one or more recipients.

Where the Company has transferred its right
to receive cash flows from an asset or has
entered into a pass-through agreement,
the Company evaluates whether it has
transferred substantially all the risks and
rewards of the ownership of the financial
assets. In such cases, the financial asset
is derecognized. Where the entity has
not transferred substantially all the risks
and rewards of the ownership of the
financial assets, the financial asset is not
derecognized.

Where the Company has transferred an
asset, the Company evaluates whether
it has transferred substantially all the
risks and rewards of the ownership of the
financial assets. In such cases, the financial
asset is derecognized. Where the entity
has not transferred substantially all the
risks and rewards of the ownership of the
financial assets, the financial asset is not
derecognized.

Impairment of financial assets

In accordance with IND AS 109, the Company
applies expected credit losses (ECL)
model for measurement and recognition of
impairment loss on the following financial
asset and credit risk exposure.

- Financial assets measured at amortised
cost; e.g. Loans, Security deposits,
trade receivable, bank balance, other

financial assets etc;

- Financial assets measured at fair value
through other comprehensive income
(FVTOCI);

- Financial guarantee contracts are which
are not measured at fair value through
profit or loss (FVTPL)

The Company follows "simplified approach"
for recognition of impairment loss allowance
on trade receivables. Under the simplified
approach, the Company does not track
changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime
ECLs at each reporting date, right from its
initial recognition. The Company uses a
provision matrix to determine impairment
loss allowance on the portfolio of trade
receivables. The provision matrix is based
on its historically observed default rates over
the expected life of trade receivable and is
adjusted for estimates. At every reporting
date, the historical observed default rates
are updated and changes in the estimates
are analysed.

For recognition of impairment loss on other
financial assets and risk exposure, the
Company

determines whether there has been a
significant increase in the credit risk since
initial recognition. If

credit risk has not increased significantly,
12-month ECL is used to provide for
impairment loss.

However, if credit risk has increased
significantly, lifetime ECL is used. If, in
subsequent period, credit quality of the
instrument improves such that there is no
longer a significant increase in credit risk
since initial recognition, then the Company
reverts to recognizing impairment loss
allowance based on 12- months ECL.

Reclassification of financial assets

The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial assets
which are equity instruments and financial
liabilities. For financial assets which are
debt instruments, a reclassification is made
only if there is a change in the business
model for managing those assets. Changes
to the business model are expected to
be infrequent. The Company''s senior
management determines change in the
business model as a result of external or
internal changes which are significant to the
its operations. Such changes are evident to
external parties. A change in the business
model occurs when the Company either
begins or ceases to perform an activity
that is significant to its operations. If the
Company reclassifies financial assets, it
applies the reclassification prospectively
from the reclassification date which is the
first day of the immediately next reporting
period following the change in business
model. The Company does not restate
any previously recognized gains, losses
(including impairment gains or losses) or
interest.

(ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified at initial
recognition as financial liabilities at fair value
through profit or loss, loans and borrowings,
and payables, net of directly attributable
transaction costs. The Company financial
liabilities include loans and borrowings
including bank overdraft, trade payable,
trade deposits, retention money and other
payables.

Subsequent measurement

The measurement of financial liabilities

depends on their classification, as described
below:

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 statement of profit and
loss. Financial liabilities designated upon
initial recognition at fair value through profit
or loss are designated as such at the initial
date of recognition, and only if the criteria
in IND AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/
losses attributable to changes in own credit
risk are recognised in OCI. These gains/
losses are not subsequently transferred to
profit and loss. However, the Company may
transfer the cumulative gain or loss within
equity. All other changes in fair value of such
liability are recognised in the statement
of profit or loss. The Company has not
designated any financial liability as at fair
value through profit and loss.

Financial liabilities at amortised cost
(Loans and borrowings)

Borrowings are initially recognised at fair
value, net of transaction cost incurred. After
initial recognition, interest-bearing loans
and borrowings are subsequently measured
at amortised cost using the EIR method.
Gains and losses are recognised in profit or
loss when the liabilities are derecognised
as well as through the EIR amortization
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 amortization

is included as finance costs in the statement
of profit and loss.

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.

Derecognition

A financial liability is derecognised 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 derecognition
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 and loss.

Offsetting of financial instruments

Financial assets and financial liabilities
are offset and the net amount is reported
in the balance sheet if there is a currently
enforceable legal right to offset the
recognized amounts and there is an intention
to settle on a net basis, to realize the assets
and settle the liabilities simultaneously.

h. Investment in subsidiaries

The investment in subsidiaries are carried at

cost as per IND AS 27. Investment carried at
cost is tested for impairment as per IND AS
36. An investor, regardless of the nature of
its involvement with an entity (the investee),
shall determine whether it is a parent by
assessing whether it controls the investee.

On disposal of investment, the difference
between it carrying amount and net disposal
proceeds is charged or credited to the
statement of profit and loss.

i. Revenue recognition

Revenue is recognized to the extent that it
is probable that the economic benefits will
flow to the Company and the revenue can
be reliably measured. The following specific
recognition criteria must also be met before
revenue is recognized:

Revenue is recognised over time if either of
the following conditions is met:

a. Buyers take all the benefits of the
property as real estate company
construct the property.

b. Buyers obtain physical possession of
the property.

c. The property unit to be delivered is
specified in the contract and real estate
entity does not have an alternative use
of the unit, the buyer does not have the
discretion to terminate the contract
and the entity has right to payment
for work completed to date Revenue
is recognized to the extent that it is
probable that the economic benefits will
flow to the Company and the revenue
can be reliably measured.

In case none of these conditions is met,
revenue would be recognised at a point
in time when the control of the property is
passed on to the customer.

Revenue from shared services

Revenue is recognised over period of
time in respect of shares services on an
accrual basis, in accordance with the
terms of the respective contract as and
when the Company satisfies performance
obligations by delivering the services as per
contractually agreed terms.

Revenue from project management
consultancy / secondment

Revenue from project management
consultancy / secondment is recognized as
per the terms of the agreement on the basis
of sei vices rendered

Gain on sale of investments

On disposal of an investment, the difference
between the carrying amount and net
disposal proceeds is recognised to the profit
and loss statement.

Interest and direct expenditure attributable
to specific projects are capitalized in the
cost of project,

other interest and indirect costs are treated
as ''Period Cost'' and charged to Profit & Loss
account in the period in which it is incurred.

All other incomes and expenditures are
accounted for on accrual basis.

j. Taxes

Current income tax

Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities in accordance with the Income
Tax Act, 1961 and the income computation
and disclosure standards (ICDS) enacted
in India by using tax rates and tax laws that
are enacted or substantively enacted, at the
reporting date.

Current income tax relating to items

recognized outside profit or loss is recognized
outside profit or loss (either in other
comprehensive income or in equity). Current
tax items are recognized in correlation to
the underlying transaction either in OCI or
directly in equity. Management periodically
evaluates positions taken in the tax
returns with respect to situations in which
applicable tax regulations are subject to
interpretation and establishes provisions
where appropriate.

Deferred tax

Deferred tax is provided using the liability
method on temporary differences between
the tax bases of assets and liabilities and
their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax liabilities are recognised for all
taxable temporary differences except:

- When the deferred tax liability arises
from the initial recognition of goodwill
or an asset or liability in a transaction
that is not a business combination and,
at the time of the transaction, affects
neither the accounting profit nor taxable
profit or loss;

- In respect of taxable temporary
differences associated with investments
in subsidiaries, when the timing of the
reversal of the temporary differences
can be controlled and it is probable
that the temporary differences will not
reverse in the foreseeable future

Deferred tax assets are recognized for all
deductible temporary differences, the carry
forward of unused tax credits and any
unused tax losses. Deferred tax assets are
recognized to the extent that it is probable
that taxable profit will be available against
which the deductible temporary differences,
and the carry forward of unused tax credits
and unused tax losses can be utilized except:

- When the deferred tax asset relating
to the deductible temporary difference
arises from the initial recognition of an
asset or liability in a transaction that is
not a business combination and, at the
time of the transaction, affects neither
the accounting profit nor taxable profit
or loss;

- In respect of deductible temporary
differences associated with investments
in subsidiaries, deferred tax assets are
recognised only to the extent that it is
probable that the temporary differences
will reverse in the foreseeable future and
taxable profit will be available against
which the temporary differences can be
utilised

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable
that sufficient taxable profit will be available
to allow all or part of the deferred tax asset
to be utilized. Unrecognized deferred tax
assets are re-assessed at each reporting
date and are recognized to the extent that
it has become probable that future taxable
profits will allow the deferred tax asset to be
recovered.

Deferred tax assets and liabilities are
measured at the tax rates that are expected
to apply in the year when the asset is realized
or the liability is settled, based on tax rates
(and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognized
outside profit or loss is recognized outside
the statement of profit or loss (either in
other comprehensive income or in equity).
Deferred tax items are recognized in
correlation to the underlying transaction
either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities
are offset if a legally enforceable right exists

to set off current tax assets against current
tax liabilities and the deferred taxes relate
to the same taxable entity and the same
taxation authority.

k. Borrowing costs

Borrowing cost includes interest expense as
per effective interest rate [EIR]. Borrowing
costs directly attributable to the acquisition,
construction or production of an asset that
necessarily takes a substantial period of
time to get ready for its intended use or
sale are capitalized as part of the cost of
the asset until such time that the asset is
substantially ready for their intended use.
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. Borrowing cost also
includes exchange differences to the extent
regarded as an adjustment to the borrowing
costs.

l. Leases

The Company assesses at contract inception
whether a contract is, or contains, a lease.
That is, if the contract conveys the right to
control the use of an identified asset for a
period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition
and measurement approach for all leases,
except for short-term leases and leases of
low-value assets. The Company recognises
lease liabilities to make lease payments and
right-of-use assets representing the right to
use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use
assets at the commencement date of
the lease (i.e., the date the underlying
asset is available for use). Right-of-

use assets are measured at cost, less
any accumulated depreciation and
impairment losses, and adjusted for any
remeasurement of lease liabilities. The
cost of right-of-use assets includes the
amount of lease liabilities recognised,
initial direct costs incurred, and lease
payments made at or before the
commencement date less any lease
incentives received. Right-of-use assets
are depreciated on a straight-line basis
over the shorter of the lease term and
the estimated useful lives of the assets.

If ownership of the leased asset transfers
to the Company at the end of the lease
term or the cost reflects the exercise
of a purchase option, depreciation is
calculated using the estimated useful
life of the asset.

The right-of-use assets are also subject
to impairment. Refer to the accounting
policies in section (d) Impairment of
non-financial assets.

ii) Lease Liabilities

At the commencement date of the lease,
the Company recognises lease liabilities
measured at the present value of lease
payments to be made over the lease
term. The lease payments include fixed
payments (including in substance fixed
payments) less any lease incentives
receivable, variable lease payments
that depend on an index or a rate, and
amounts expected to be paid under
residual value guarantees. The lease
payments also include the exercise price
of a purchase option reasonably certain
to be exercised by the Company and
payments of penalties for terminating
the lease, if the lease term reflects
the Company exercising the option to
terminate. Variable lease payments that
do not depend on an index or a rate are
recognised as expenses (unless they are

incurred to produce inventories) in the
period in which the event or condition
that triggers the payment occurs.

In calculating the present value of
lease payments, the Company uses
its incremental borrowing rate at the
lease commencement date because
the interest rate implicit in the lease
is not readily determinable. After the
commencement date, the amount of
lease liabilities is increased to reflect
the accretion of interest and reduced for
the lease payments made. In addition,
the carrying amount of lease liabilities
is remeasured if there is a modification,
a change in the lease term, a change
in the lease payments (e.g., changes
to future payments resulting from a
change in an index or rate used to
determine such lease payments) or a
change in the assessment of an option
to purchase the underlying asset.

The Company''s lease liabilities are
included in Interest-bearing loans and
borrowings.

iii) Short-term leases and leases of low-
value assets

The Company applies the short-term
lease recognition exemption to its short¬
term leases of equipment (i.e., those
leases that have a lease term of 12 months
or less from the commencement date
and do not contain a purchase option).
It also applies the lease of low-value
assets recognition exemption to leases
of office equipment that are considered
to be low value. Lease payments on
short-term leases and leases of low-
value assets are recognised as expense
on a straight-line basis over the lease
term.

Company as a sub lessor

The Company is intermediate lessor
as it subleases an asset leased from
another lessor (the ''head lessor''). The
Company classifies the sublease as a
finance lease or as an operating lease
with reference to the right-of-use asset
arising from the head lease. That is,
the Company treats the right-of-use
asset as the underlying asset in the
sublease, not the underlying asset that
it leases from the head lessor. At the
commencement date of the sublease, if
the Company cannot readily determine
the interest rate implicit in the sublease,
then it uses the discount rate that it uses
for the head lease to account for the
sublease, adjusted for any initial direct
costs associated with the sublease.
However, if the head lease is a short¬
term lease for which the company, as a
lessee, has elected the short-term lease
exemption, then the company classifies
the sublease as an operating lease.