Accounting Policies of Samor Reality Ltd. Company

Mar 31, 2025

1. Corporate information:

Samor Reality Limited( the "Company") was originally formed and registered as a partnership firm under the Partnership
Act, 1932 ("Partnership Act") in the name and style of M/s. Samor Reality (the "Firm") pursuant to a deed of partnership
dated 2nd December, 2014. The constitution and capital of the firm was changed pursuant to supplementary agreement
modifying the partnership deed dated 15th September, 2020. The Firm was there after converted from a partnership firm
to a public limited company under Part I chapter XXI of the Companies Act, 2013 with the name of Samor Reality Limited
and received a fresh certificate of incorporation from the Registrar of Companies, Ahmedabad on 1st December, 2020.

The Firm was carrying on the business of contractor, builder, developer, organizer and supervisor of all types of real estate
constructions and also buying and selling of constructed house, complexes, shopping offices, holiday resorts etc.

The Company is registered to carry on the business of builders, developers, buying and selling of real estate units and
trading of materials used in the business of real estate constructions. Its Shares are listed on one recognised stock
exchanges in India. The registered office is situated at 4th Floor, 401, Venus Atlantis, Nr. Shell Petrol Pump, Prahladnagar
Road, Anandnagar, Satellite, Jodhpur char rasta, Ahmedabad, Gujarat, India -380015

2. Statement of compliance:

These financial statements of the Company have been prepared in accordance with the Indian Accounting Standards
(hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs (''MCA'') under Section 133 of the
Companies Act, 2013 (''the Act'') read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from
time to time and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during
the periods presented. The financial statements for the year ended 31 March 2025 were authorized and approved for issue
by the Board of Directors on 15th May 2025.

3. Basis of preparation:

The financial statements have been prepared on going concern basis in accordance with accounting principles generally
accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain financial
assets and financial liabilities which are measured at fair values as explained in relevant accounting policies.

4. Summary of significant accounting policies:

a) Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and
other criteria set-out in the Act. Deferred tax assets and liabilities are classified as non-current assets and non-current
liabilities, as the case may be.

b) Property, plant and equipment
Recognition and initial measurement

Property, plant and equipment at their initial recognition are stated at their cost of acquisition. 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.
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. When significant parts of
plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their
specific useful lives. Likewise, when a major inspection is performed, its cost is recognised 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
recognised in statement of profit and loss as incurred. The Company identifies and determines cost of each component/
part of the asset separately, if the component/ part have 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.

Subsequent measurement (depreciation and useful lives)

Depreciation on each part of an item of property, plant and equipment is provided on Straight-line basis overthe useful life
of the asset as prescribed in Schedule II of the Companies Act, 2013.

De-recognition

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

c) Capital work-in-progress and intangible assets under development

Capital Work-in-progress and Intangible assets under development represents expenditure incurred in respect of capital
projects/intangible assets under development and are carried at cost less accumulated impairment loss, if any. Cost
includes land, related acquisition expenses, development/construction costs, borrowing costs and other direct
expenditure.

d) Investment properties
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, cost of
replacing parts, 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. All other repair and maintenance costs are recognised in statement of profit
and loss as incurred.

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.

Transfers are made to (or from) investment property only when there is a change in use. For a transfer from investment
property to owner-occupied property, the deemed cost for subsequent accounting is the carrying value at the date of
change in use.

Subsequent measurement (depreciation and useful lives)

Investment properties are subsequently measured at cost less accumulated depreciation and accumulated impairment
losses, if any. Depreciation on investment properties is provided on the straight-line method overthe useful lives of the
assets.

The residual values, useful lives and method of depreciation are reviewed at the end of each financial year and adjusted
prospectively. Though the Company measures investment property using cost based measurement, the fair value of
investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an
accredited external independent valuer applying valuation model acceptable internationally.

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 the statement of profit and loss in the period of de
recognition.

e) Intangible assets

Recognition and initial measurement

Intangible assets acquired separately are measured on initial recognition at cost. 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. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the
related expenditure is reflected in the statement of profit and loss in the period in which the expenditure is incurred.

Subsequent measurement (amortisation)

Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated
impairment losses, if any.

De-recognition

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is de¬
recognised.

f) Inventories

Inventories are valued as under:

• Inventories are measured at lower of cost or net realisable value. The cost of inventory include cost incurred in acquiring
the inventories, conversion costs and other costs incurred in bringing them to their present location or condition.

• Construction Work-in-Progress/Finished Goods includes cost of land, premium for development rights, construction
costs, allocated interest and expenses incidental to the projects undertaken by the Company.

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

g) Revenue from Contracts with Customers

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 and services before transferring them to the customers.

1. Revenue from Contracts with Customers:

Revenue is recognised in the Statement of Profit and Loss to the extent that it is probable that the economic benefits will
flow to the Company and the revenue and costs, if applicable, can be measured reliably.

The Company has applied five step model as per Ind AS 115 ''Revenue from contracts with customers'' to recognise revenue
in the financial statements. The Company satisfies a performance obligation and recognises revenue overtime, if one of
the following criteria is met:

a) The customer simultaneously receives and consumes the benefits provided by the Company''s performance as the
Company performs; or

b) The Company''s performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or

c) The Company''s performance does not create an asset with an alternative use to the Company and the entity has an
enforceable right to payment for performance completed to date.

For performance obligations where any of the above conditions are not met, revenue is recognised at the point in time at
which the performance obligation is satisfied.

Revenue is recognised either at point of time or over a period of time based on various conditions as included in the
contracts with customers.

Point of Time:

Revenue from real-estate projects

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

Incremental cost of obtaining contract

The incremental cost of obtaining a contract with a customer is recognised as an asset if company expects to recover those
costs subject to other conditions of the standard are met. These costs are charged to statement of profit and loss in
accordance with the transfer of the property to the customer

2. Contract balances
Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company
performs by transferring goods or services to a customer before the customer pays consideration or before payment is
due, a contract asset is recognised for the earned consideration that is conditional.

Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e. only the passage of
time is required before payment of the consideration is due).

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the
payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs underthe
contract.

3. Other Revenue

Other incomes are accounted as and when the right to receive such income arises and it is probable that the economic
benefits will flow to the company and the amount of income can be measured reliably.

h) Cost of revenue

Cost of real estate projects

Cost of constructed properties other than SEZ projects, includes cost of land (including cost of development rights/ land
under agreements to purchase), estimated internal development costs, external development charges, borrowing costs,
overheads, construction costs and development/ construction materials, which is charged to the statement of profit and
loss based on the revenue recognized as explained in accounting policy for revenue from real estate projects above, in
consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the specific
project.

Cost of land and plots

Cost of land and plots includes land (including development rights), acquisition cost, estimated internal development costs
and external development charges, which is charged to the statement of profit and loss based on the percentage of land/
plotted area in respect of which revenue is recognised as explained in accounting policy for revenue from ''Sale of land and
plots'', in consonance with the concept of matching cost and revenue. Final adjustment is made on completion of the
specific project.

Cost of development rights

Cost of development rights includes proportionate development rights cost, borrowing costs and other related cost, which
is charged to statement of profit and loss as explained in accounting policy for revenue, in consonance with the concept of
matching cost and revenue.

i) Borrowing costs

Borrowing costs directly attributable to the acquisition and/ or construction/ production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are charged to the statement of profit and loss as incurred. Borrowing costs consist of interest and other
costs that the Company 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.

j) Income Taxes

Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the
provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. Significant
management judgement is also required to determine the amount of deferred tax assets that can be recognised, based
upon the likely timing and the level of future taxable profits together with future tax planning strategies, including
estimates of temporary differences reversing on account of available benefits from the Income Tax Act, 1961.

k) Impairment of Non Financial Assets

At each reporting date, the company assesses whether there is any indication based on internal/external factors, that an
asset may be impaired. Impairment exists when the carrying value of an asset or cash generating unit exceeds its
recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs
of disposal calculation is based on available data for similar assets or observable market prices less incremental costs for
disposing of the asset. The value in use calculation is based on a discounted future cashflows model. The recoverable
amount is sensitive to the discount rate used for the discounted future cashflows model as well as the expected future
cash-inflows and the growth rate used.

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Mar 31, 2024

_Statement of Accounting Polities_

1. Corporate information:

Samor Reality Limited) the "Company") was originally formed and registered as a partnership firm under the Partnership Act, 1932 ("Partnership Act") In the name and style of M/s. Samor Reality (the "Firm”) pursuant to a deed of partnership dated 2nd December, 2014. The constitution and capital of the firm was changed pursuant to supplementary agreement modifying the partnership deed dated 15th September, 2020. The Firm was there after converted from a partnership firm to a public limited company under Part I chapter XXI of the Companies Act, 2013 with the name of Samor Reality Limited and received a fresh certificate of incorporation from the Registrar of Companies, Ahmedabad on 1st December, 2020.

The Firm was carrying on the business of contractor, builder, developer, organizer and supervisor of all types of real estate constructions and also buying and selling of constructed house, complexes, shopping offices, holiday resorts etc.

The Company Is registered to carry on the business of builders, developers, buying and selling of real estate units and trading of materials used In the business of real estate constructions. Its Shares are listed on one recognised stock exchanges in India. The registered office Is situated at 4th Floor, 401, Venus Atlantis, Nr. Shell Petrol Pump, Prahladnagar Road, Anandnagar, Satellite, Jodhpur char rasta, Ahmedabad, Gujarat, India -380015

2. Statement of compliance:

These financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs (''MCA’) under Section 133 of the Companies Act, 2013 (''the Act) read with the Companies (Indian Accounting Standards) Rules, 201S, as amended from time to time and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the periods presented. These financial statements for the year ended 31 March 2024 are the first financial statements which the Company has prepared in accordance with Ind AS. For all periods up to and Including the year ended 31 March 2023, the Company had prepared its financial statements in accordance with accounting standards notified under Section 133 of the Act, read together with Rules thereunder (’Indian GAAP’ or ’Previous GAAP’), which have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS. For the purpose of comparatives, financial statements for the year ended 31 March 2023 and opening balance sheet as at 1 April 2022 are also prepared as per Ind AS. The financial statements for the year ended 31 March 2024 were authorized and approved for Issue by the Board of Directors on_. Refer Note 36 for an explanation of the transition from previous GAAP to Ind AS.

3. Basis of preparation:

The financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain financial assets and financial liabilities which are measured at fair values as explained in relevant accounting policies.

4. Summary of significant accounting policies:

a) Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set-out in the Act. Deferred tax assets and liabilities are classified as non-current assets and non-current liabilities, as the case may be.

b) Property, plant and equipment Recognition and initiol measurement

Property, plant and equipment at their initial recognition are stated at their cost of acquisition. On transition to Ind AS, the Company had elected to measure all of its property, plant and equipment at the previous GAAP carrying value (deemed cost). 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. 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. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised 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 recognised in statement of profit and loss as Incurred. The Company Identifies and determines cost of each component/ part of the asset separately, if the component/ part have 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.

Transition to Ind-AS:

For transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as of April 1, 2022 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

Subsequent measurement (depreciation and useful lives)

Depreciation on each part of an item of property, plant and equipment is provided on Straight-line basis over the useful life of the asset as prescribed in Schedule II of the Companies Act, 2013

Nature of Assets	(in Years)
Computer desktops and laptops	3
Office Equipments	S

De-recognition

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

c) Capital work-in-progress and Intangible assets under development

Capital Work-in-progress and Intangible assets under development represents expenditure incurred in respect of capital projects/intangible assets under development and are carried at cost less accumulated impairment loss, if any. Cost includes land, related acquisition expenses, development/construction costs, borrowing costs and other direct expenditure.

d) Investment properties 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. On transition to Ind AS, the Company had elected to measure all of its investment properties at the previous GAAP carrying value (deemed cost). The cost comprises purchase price, cost of replacing parts, 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. All other repair and maintenance costs are recognised in statement of profit and loss as incurred.

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.

Transfers are made to (or from) investment property only when there is a change in use. For a transfer from Investment property to owner-occupied property, the deemed cost for subsequent accounting is the carrying value at the date of change in use.

Subsequent measurement (depreciation and useful lives)

Investment properties are subsequently measured at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation on investment properties is provided on the straight-line method over the useful lives of the assets.

The residual values, useful lives and method of depreciation are reviewed at the end of each financial year and adjusted prospectively. Though the Company measures Investment property using cost based measurement, the fair value of Investment property is disclosed In the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer applying valuation model acceptable internationally.

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 the statement of profit and loss in the period of de recognition.

e) Intangible assets

Recognition and Initial measurement

Intangible assets acquired separately are measured on Initial recognition at cost. On transition to Ind AS, the Company had elected to measure all of Its intangible assets at the previous GAAP carrying value (deemed cost). 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. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in the statement of profit and loss In the period in which the expenditure is incurred.

Subsequent measurement (amortisation)

Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any.

De-recognition

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised In the statement of profit and loss when the asset is derecognised.

f) Inventories

Inventories are valued as under:

• Inventories are measured at lower of cost or net realisable value. The cost of Inventory include cost incurred in acquiring the inventories, conversion costs and other costs incurred In bringing them to their present location or condition.

• Construction Work-in-Progress/Finished Goods includes cost of land, premium for development rights, construction costs, allocated interest and expenses Incidental to the projects undertaken by the Company.

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

g) Revenue from Contracts with Customers

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 and services before transferring them to the customers,

1 Revenue from Contracts with Customers:

Revenue is recognised in the Statement of Profit and Loss to the extent that it is probable that the economic benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably.

The Company has applied five step model as per Ind AS 115 ''Revenue from contracts with customers''to recognise revenue in the financial statements. The Company satisfies a performance obligation and recognises revenue over time, if one of the following criteria Is met:

a) The customer simultaneously receives and consumes the benefits provided by the Company''s performance as the Company performs; or

b) The Company''s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

c) The Company''s performance does not create an asset with an alternative use to the Company and the entity has an enforceable right to payment for performance completed to date.

For performance obligations where any of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied.

Revenue is recognised either at point of time or over a period of time based on various conditions as included in the contracts with customers.

Point of Time:

Revenue from real-estate projects

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

Incremental cost of obtaining contract

The incremental cost of obtaining a contract with a customer is recognised as an asset if company expects to recover those costs subject to other conditions of the standard are met. These costs are charged to statement of profit and loss in accordance with the transfer of the property to the customer

2. Contract balances Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional

Trode receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e. only the passage of time is required before payment of the consideration is due).

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

3. Other Revenue

Other incomes are accounted as and when the right to receive such income arises and it Is probable that the economic benefits will flow to the company and the amount of Income can be measured reliably.

h) Cost of revenue

Cost of real estate projects

Cost of constructed properties other than SEZ projects, includes cost of land (Including cost of development rights/ land under agreements to purchase), estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profit and loss based on the revenue recognized as explained in accounting policy for revenue from real estate projects above, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the specific project.

Cost o//onand plots

Cost of land and plots Includes land (including development rights), acquisition cost, estimated internal development costs and external development charges, which is charged to the statement of profit and loss based on the percentage of land/ plotted area m respect of which revenue is recognised as explained In accounting policy for revenue from ''Sale of land and plots'', in consonance with the concept of matching cost and revenue. Final adjustment is made on completion of the specific project.

Cost of development rights

Cost of development rights includes proportionate development rights cost, borrowing costs and other related cost, which is charged to statement of profit and loss as explained in accounting policy for revenue, in consonance with the concept of matching cost and revenue.

i) Borrowing costs

Borrowing costs directly attributable to the acquisition and/ or construction/ production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are charged to the statement of profit and loss as incurred. Borrowing costs consist of interest and other costs that the Company 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.

j) Income Taxes

Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. Significant management judgement is also required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies, including estimates of temporary differences reversing on account of available benefits from the Income Tax Act, 1961.

I) Impairment of Non Financial Assets

At each reporting date, the company assesses whether there is any indication based on intern al/externa I factors, that an asset may be impaired. Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of Its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted future cashflows model. The recoverable amount is sensitive to the discount rate used for the discounted future cashflows model as well as the expected future cash-inflows and the growth rate used.

j) Recognition and measurement of Contingent liabilities, provisions and uncertain tax positions:

There are various legal, direct and Indirect tax matters and other obligations including local and state levies, availing input tax credits etc., which may Impact the Company. Evaluation of uncertain liabilities and contingent liabilities arising out of above matters and recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the figure included in other provisions.

k) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of unrestricted cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management..

l) Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value, except for trade receivables which are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in Statement of Profit and Loss.

The financial assets comprise of trade receivables, cash and cash equivalents, other bank balances and deposits, interest accrued, security deposits, intercorporate deposits, contract assets and other receivables.

These assets are measured subsequently at amortised cost.

The financial liabilities comprise of borrowings, lease liabilities, retention and capital creditors, interest accrued, deposit from customers, trade and other payables.

Financial assets and financial liabilities are offset when the Company has a legally enforceable right (not contingent on future events) to off-set the recognised amounts either to settle on a net basis, or to realise the assets and settle the liabilities simultaneously

1} Financial Assets

Initial recognition and measurement

At initial recognition, the Company measures a financial asset (which are not measured at fair value) through profit or loss at its fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset.

Subsequent measurement

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

I) Financial assets measured at amortised cost;

II) Financial assets at fair value through profit or loss (FVTPL) and

iii) Financial assets at fair value through other comprehensive income (FVTOO).

The Company classifies its financial assets in the above mentioned categories based on;

a) The Company''s business model for managing the financial assets, and

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

1) Financial assets measured at amortised cost:

A Financial asset is measured at amortised cost if both of the following conditions are met:

a) A financial asset is measured at amortised cost if the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the Contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

b) Financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an Integral part of the EIR. The EIR amortisation is Included in finance income in the profit or loss. The losses arising from impairment are recognised In the profit or loss.

ii) Financial assets at fair value through profit or loss (FVTPL):

Financial assets are measured at fair value through profit and loss unless it is measured at amortised cost or at fair value through other comprehensive Income on Initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

Investments in other equity Instruments

Investments in Equity Instruments which are held for trading are classified as at fair value through other comprehensive income (EVOO) or fair value through profit or loss {FVPTL). Amount presented in other comprehensive income are not subsequently transferred to statement of profit and loss. However, the company transfers the cumulative gain or loss within equity. Dividend on such investments are recognised in statement of profit and loss unless the dividend dearly represents a recovery of part of the cost of the investment.

2) . Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and subsequently carried at amortised cost using the effective interest method.

The company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts. Subsequent measurement

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

I) Financial liabilities measured at amortised cost, il) Financial liabilities at fair value through profit or loss.

1} Financial liabilities measured at amortised cost:

All financial liabilities are measured at amortised cost. Any discount or premium on redemption/ settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective Interest method and adjusted to the liability figure disclosed in the Balance Sheet.

iijFInancialliabilitiesatfairvaluethroughprofitorloss (FVTPL):

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

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 recognized in OCI. These gains/ loss are not subsequently transferred to P&L. 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 and loss.

Derecognition

The Company derecognizes a financial asset when contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable is recognized 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 standalone balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

j) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability In an orderly transaction between market participants at the measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value Into one of three levels depending on the ability to observe inputs employed in their measurement which are described as follows:

(a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b) Level 2 inputs are inputs that are observable, either directly or Indirectly, other than quoted prices included within level 1 for the asset or liability.

(c) Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

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Mar 31, 2023

1. SIGNIFICANT ACCOUNTING POLICIES

1.01 CORPORATE INFORMATION

Samor Reality Limited( the "Company") was originally formed and registered as a partnership firm under the Partnership Act, 1932 ("Partnership Act") in the name and style of M/s. Samor Reality (the "Firm") pursuant to a deed of partnership dated 2nd December, 2014. The constitution and capital of the firm was changed pursuant to supplementary agreement modifying thepartnership deed dated 15th September, 2020. The Firm was there after converted from a partnership firm to a public limited company under Part I chapter XXI of the Companies Act, 2013 with the name of Samor Reality Limited and received a fresh certificate of incorporation from the Registrar of Companies, Ahmedabad on 1st December, 2020.

The Firm was carrying on the business of contractor, builder, developer, organizer and supervisor of all types of real estate constructions and also buying and selling of constructed house, complexes, shopping offices, holiday resorts etc. The Company is registered to carry on the business of builders, developers, buying and selling of real estate units and trading of materials used in the business of real estate constructions.

1.02 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.

1.03 USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.04 PROPERTY, PLANT & EQUIPMENT

Fixed assets are stated at historical cost less accumulated depreciation and impairment losses. Cost includes purchase price and all other attributable cost to bring the assets to its working condition for the intended use.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

1.05 INVESTMENTS

Long term investments are valued at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognize the decline. In the case of Long term Investment by way of capital contribution in a Limited Liability Partnership (LLP), the company''s share of profit / loss in the LLP is accounted in the books of the company as and when the same is credited /debited to the Partners'' Capital /Current Account by the LLP.

Investments include investments in shares of companies registered out side India. They are stated at cost by converting at the rate of exchange prevalent at the time of acquisition thereof. Current investments are valued at cost or fair value, whichever is lower.

1.06 DEPRECIATION / AMORTISATION Tangible Assets:

Depreciable amount of assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Intangible assets

Website & Software is amortised over a period of three years on straight line method.

1.07 INVENTORIES

Inventories comprises of Traded Goods & Cost of Construction of the Project.

Stock - in - Trade is valued at Cost or Net Realisable Value which ever is lower. Cost of Stock - in -Trade comprises of cost of purchase and other costs incurred in bringing them to their respective present location and condition.

Inventory of the project have been calculated at cost less cost of units sold as per Accounting Standard - 7

1.08 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable value.

1.09 BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.1 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

1.11 REVENUE RECOGNITION

Revenue from operations consists of proceeds from sale of goods used in construction and development of buildings. Revenue from sale of goods net of returns is recognized on dispatch or appropriation of goods in accordance with the terms of sale and is inclusive of excse duty as and when applicable, Pricees calation claims are recognized to the extent there is reasonable certainty of its realization.

Revenue for Project have been calculated accordingly to Accounting Standard 7 and recorded revenue in praportion of cost incurred till 31st march, 2023.

1.12 EMPLOYEE BENEFITS

Company does not pay any Contribution towards provident fund & ESIC for regulatory authorities, where the Company has no further obligations.

1.13 OTHER INCOME

Interest income is accounted on accrual basis. Income other than interest income is accounted for when right to receive such income is established.

1.14 TAXES ON INCOME

Income taxes are accounted for in accordance with Accounting Standard (AS-22) - "Accounting for taxes on income", notified under Companies (Accounting Standard) Rules, 2014. Income tax comprises of both current and deferred tax. Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

1.15 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.16 EARNINGS PER SHARE

Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity share outstanding during the year. Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.17 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities"