Accounting Policies of Shriram Properties Ltd. Company

Mar 31, 2025

1.2 Material accounting policies

a. Statement of compliance

The standalone financial statements of the Company have
been prepared in accordance with the Indian Accounting
Standards (Ind-AS) as notified under Section 133 of the
Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules 2015 by Ministry of Corporate
Affairs (‘MCA''). The Company has uniformly applied the
accounting policies during the periods presented.

The standalone financial statements for the year ended
31 March 2025 were authorised and approved for issue by
the Board of Directors on 27 May 2025.

b. Basis of preparation of financial statements

The financial statements have been prepared on accrual
and going concern basis under the historical cost basis
except for certain financial assets and liabilities which are
measured at fair value.

Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date,
regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating
the fair value of an asset or a liability, the Company takes
into account the characteristics of the asset or liability
if market participants would take those characteristics
into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/
or disclosure purposes in these financial statements
is determined on such a basis, except for share-based
payment transactions that are within the scope of Ind
AS 102, ‘Share-based Payment'', leasing transactions
that are within the scope of Ind AS 116, ‘Leases'', and
measurements that have some similarities to fair value

but are not fair value, such as net realisable value in Ind
AS 2 ‘Inventories'', or value in use in Ind AS 36 ‘Impairment
of assets'' etc.

I n addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2, or 3 based
on the degree to which the inputs to the fair value
measurements are observable and the significance of
the inputs to the fair value measurements in its entirety,
which are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for
financial instruments.

Level 2: The fair value of financial instruments that are not
traded in an active market is determined using valuation
techniques which maximise the use of observable market
data rely as little as possible on entity specific estimates.

Level 3: Inputs for the assets or liabilities that are not based
on the observable marked data (unobservable inputs)

. Use of estimates

The preparation of financial statements is in conformity
with generally accepted accounting principles which
require the management of the Company to make
judgements, estimates and assumptions that affect
the reported amount of revenues, expenses, assets and
liabilities and disclosure of contingent liabilities at the end
of the reporting period. Although these estimates are
based upon the management''s best knowledge of current
events and actions, uncertainty about these assumptions
and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets
or liabilities in future period. Appropriate changes in
estimates are made as management becomes aware
of changes in circumstances surrounding the estimates.
Application of accounting policies that require significant
accounting estimates involving complex and subjective
judgements and the use of assumptions in these financial
statements have been disclosed in note 1.3.

I. Recent accounting pronouncements

The Ministry of Corporate Affairs notified new standards
or amendment to existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. The Company applied following amendments for
the first-time during the current year which are effective
from 01 April 2024:

Amendments to Ind AS 116 - Lease liability in a sale
and leaseback The amendments require an entity
to recognise lease liability including variable lease
payments which are not linked to index or a rate in a
way it does not result into gain on Right-of-Use asset
it retains.

Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive standard that
prescribe, recognition, measurement and disclosure
requirements, to avoid diversities in practice for accounting
insurance contracts and it applies to all companies i.e., to
all “insurance contracts” regardless of the issuer. However,
Ind AS 117 is not applicable to the entities which are
insurance companies registered with IRDAI.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that
these amendments do not have any impact on the
financial statements.

e. Current versus non-current classification

The Company presents assets and liabilities in the balance
sheet based on current/ non-current classification.

i. An asset is classified as current when it is:

• Expected to be realised or intended to sold or
consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months
after the reporting period, or

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

ii. All other assets are classified as non-current.

iii. A liability is classified as current when:

• It is expected to be settled in normal
operating cycle

• It is held primarily for the purpose of trading

• I t is due to be settled within twelve months
after the reporting period, or

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

iv. All other liabilities are classified as non-current.

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

Based on the nature of service and the time between
the acquisition of assets for development and their
realisation in cash and cash equivalents, the Company
has ascertained its operating cycle as four years for the
purpose of current and non-current classification of
assets and liabilities which pertain to the project and for
all other assets and liabilities the Company has considered
twelve months.

f. Foreign currency transactions

Functional and presentation currency

The financial statements are presented in Indian Rupee
(‘H'') which is also the functional and presentation currency
of the Company. All amounts have been rounded-off to
the nearest lakhs, unless otherwise indicated.

a) Initial recognition

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

b) Conversion

Foreign currency monetary items are converted
to functional currency using the closing rate. Non¬
monetary items denominated in a foreign currency
which are carried at historical cost are reported using
the exchange rate at the date of the transaction; and
non-monetary items which are carried at fair value or
any other similar valuation denominated in a foreign
currency are reported using the exchange rates that
existed when the values were determined.

Exchange differences arising on monetary items on
settlement, or restatement as at reporting date, at
rates different from those at which they were initially
recorded, are recognised in the statement of profit
and loss in the year in which they arise.

g. Revenue recognition

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. Revenue is measured based on
the transaction price, which is the consideration, adjusted
for discounts and other credits, if any, as specified in
the contract with the customer. The Company presents
revenue from contracts with customers net of indirect
taxes in its statement of profit and loss.

The Company considers whether there are other promises
in the contract that are separate performance obligations
to which a portion of the transaction price needs to be
allocated. In determining the transaction price, the
Company considers the effects of variable consideration,
the existence of significant financing components, non¬
cash consideration, and consideration payable to the
customer (if any).

The Company has applied five step model as per Ind
AS 115 ‘Revenue from contracts with customers'' to
recognise revenue in the standalone 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.

1. Sale of constructed / developed properties

Revenue is recognised over the time from the
financial year in which the control of the asset is
transferred based on the percentage-of-completion
method (‘POC method'') of accounting with cost of
project incurred (input method) for the respective
projects determining the degree of completion of the
performance obligation.

The revenue recognition of real estate property
under development requires forecasts to be made
of total budgeted costs with the outcomes of
underlying construction contracts, which further
require assessments and judgements to be made
on changes in work scopes and other payments to
the extent they are probable and they are capable
of being reliably measured. In case, where the total
project cost is estimated to exceed total revenues
from the project, the loss is recognised immediately
in the Statement of Profit and Loss.

Further, for projects executed through joint
development arrangements not being jointly
controlled operations, wherein the land owner/
possessor provides land and the Company
undertakes to develop properties on such land and in
lieu of land owner providing land, the Company has

agreed to transfer certain percentage of constructed
area or certain percentage of the revenue proceeds,
the revenue from the development and transfer
of constructed area/revenue sharing arrangement
in exchange of such development rights/ land is
being accounted on gross basis on launch of the
project. Revenue is recognised over time using
input method, on the basis of the inputs to the
satisfaction of a performance obligation relative to
the total expected inputs to the satisfaction of that
performance obligation.

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

For contracts involving sale of real estate unit, the
Company receives the consideration in accordance
with the terms of the contract in proportion of the
percentage of completion of such real estate project
and represents payments made by customers to
secure performance obligation of the Company
under the contract enforceable by customers. Such
consideration is received and utilised for specific real
estate projects in accordance with the requirements
of the Real Estate (Regulation and Development)
Act, 2016. Consequently, the Company has
concluded that such contracts with customers do
not involve any financing element since the same
arises for reasons explained above, which is other
than for provision of finance to/from the customer.

2. Sale of services

Development management fees

The Company renders development management
services involving multiple elements such as Sales
and Marketing, Project Management and Consultancy
(PMC) services, Customer Relationship Management
(CRM) Services and financial management services
to other real estate developers. The Company''s
performance obligation is satisfied either over the
period of time or at a point in time, which is evaluated
for each service under development management
contract separately. Revenue is recognised upon
satisfaction of each such performance obligation.

Administrative income

Revenue in respect of administrative services is
recognised 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 contractual agreed terms.

3. Other operating income

Income from transfer/ assignment of
development rights

The revenue from transfer/ assignment of
development right are recognised in the year in
which the legal agreements are duly executed
and the performance obligations thereon are duly
satisfied and there exists no uncertainty in the
ultimate collection of consideration from customers.

Maintenance income

Revenue in respect of maintenance services is
recognised 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 contractual
agreed terms.

Others

Interest on delayed receipts, cancellation/ forfeiture
income and transfer fees etc from customers are
recognised based upon underlying agreements
with customers and when reasonable certainty of
collection is established.

Unbilled revenue disclosed under other financial
assets represents revenue recognised over and
above the amount due as per payment plans agreed
with the customers. Progress billings which exceed
the costs and recognised profits to date on projects
under construction are disclosed under other current
liabilities. Any billed amount that has not been
collected is disclosed under trade receivables and is
net of any provisions for amounts doubtful of recovery.

Contract balances

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 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 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.

4. Interest income

Interest income is accounted on an accrual basis at
effective interest rate, except in cases where ultimate
collection is considered doubtful.

h. Inventories

Properties held for development

Properties held for development represents land acquired
for future development and construction, and is stated
at cost including the cost of land, the related costs of
acquisition and other costs incurred to get the properties
ready for their intended use.

Properties under development

Properties under development represents construction work
in progress which are stated at the lower of cost and net
realisable value. This comprises of cost of land, construction
related overhead expenditure, borrowing costs and other net
costs incurred during the period of development.

Properties held for sale

Completed properties held for sale are stated at the
lower of cost and net realisable value. Cost includes
cost of land, construction related overhead expenditure,
borrowing costs and other costs incurred during the
period of development.

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.

i. Property, plant and equipment (PPE)

Recognition and initial measurement

Properties, plant and equipment are stated at their cost of
acquisition. The cost comprises purchase price, borrowing
cost if capitalisation criteria are met, any expected costs
of decommissioning and any 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 measurement

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.

Depreciation and useful lives

Depreciation on property, plant & equipment is provided
on the straight-line method, based on the useful life of
asset specified in Schedule II to the Companies Act, 2013.
Residual values, useful lives and method of depreciation
are reviewed at each financial year end and adjusted
prospectively, if appropriate.

Cost of assets not ready for use at the balance sheet date
are disclosed under capital work-in-progress.

De-recognition

An item of property, plant and equipment and any
significant part initially recognised is derecognised
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 derecognised.

j. Intangible assets

Recognition and initial measurement

I ntangible assets (software) are stated at their cost of
acquisition. The cost comprises purchase price, borrowing
cost if capitalisation 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 measurement (amortisation)

The cost of capitalised software is amortised over a
period of 10 years from the date of its acquisition on a
straight-line basis.

k. Borrowing cost

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which
are assets that necessarily take a substantial period of
time to get ready for their intended use, are added to
the cost of those assets, until such time as the assets are
substantially ready for their intended use.

All other borrowing costs are recognised in the Statement
of Profit and Loss in the period in which they are incurred.

The Company determines the amount of borrowing
costs eligible for capitalisation as the actual borrowing
costs incurred on that borrowing during the period less
any interest income earned on temporary investment
of specific borrowings pending their expenditure on
qualifying assets, to the extent that an entity borrows
funds specifically for the purpose of obtaining a qualifying
asset. In case if the Company borrows generally and uses
the funds for obtaining a qualifying asset, borrowing costs
eligible for capitalisation are determined by applying a
capitalisation rate to the expenditures on that asset.

The Company suspends capitalisation of borrowing costs
during extended periods in which it suspends active
development of a qualifying asset.

l. Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are
subject to insignificant risk of changes in value.

m. Employee benefits
Defined contribution plan

The Company''s contribution to provident fund is charged
to the statement of profit and loss or inventorised as a
part of project under development, as the case may
be. The Company''s contributions towards provident
fund are deposited with the Regional Provident Fund
Commissioner under a defined contribution plan, in
accordance with Employees'' Provident Funds and
Miscellaneous Provisions Act, 1952.

Defined benefit plan

The Company has funded gratuity as defined benefit
plan where the amount that an employee will receive
on retirement is defined by reference to the employee''s
length of service and final salary. The liability recognised
in the balance sheet for defined benefit plans as the
present value of the defined benefit obligation (DBO)
at the reporting date less the fair value of plan assets.
Management estimates the DBO annually with the

assistance of independent actuaries who use the
projected unit credit method to calculate the defined
benefit obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the statement of
profit and loss or inventorised as a part of project under
development, as the case may be.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss
as past service cost or inventorised as a part of project
under development, as the case may be.

Actuarial gain or loss arising from experience adjustments
and changes in actuarial assumptions are recognised in
other comprehensive income in the year in which such
gain or loss arise.

Vacation pay

The Company also provides benefit of vacation pay to its
employees. Liability in respect of vacation pay becoming
due and expected to be availed more than one year after
the balance sheet date is estimated on the basis of an
actuarial valuation performed by an independent actuary
using the projected unit credit method as on the reporting
date. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recorded in the statement of profit and loss or inventorised
as a part of project under development, as the case may
be in the year in which such gains or losses arise.

The Company presents the leave as a current liability
in the balance sheet, to the extent it does not have
an unconditional right to defer its settlement for 12
months after the reporting date. Where company has
the unconditional legal and contractual right to defer the
settlement for a period beyond 12 months, the same is
presented as non-current liability.

Other short-term benefits

Short-term employee benefits comprising employee
costs including performance bonus is recognised in the
statement of profit and loss on the basis of the amount
paid or payable for the period during which services are
rendered by the employee.

Tax expense
Income taxes

Income tax expense represents the sum of the tax
currently payable and deferred tax.

Current tax

Current tax is the amount of tax payable based on the
taxable profit for the year as determined in accordance
with the applicable tax rates and the provisions of the
Income Tax Act,1961 and other applicable tax laws in the
countries where the Company operates and generates
taxable income.

Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases
used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent
that it is probable that taxable profits will be available
against which those deductible temporary differences can
be utilised.

The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to
be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset is realised, based
on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

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.

Current and deferred tax for the period

Current and deferred tax are recognised in profit or loss,
except when they are related to items that are recognised
in other comprehensive income or directly in equity,
in which case, the current and deferred tax are also
recognised in other comprehensive income or directly in
equity respectively.

o. Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the
weighted average number of equity shares outstanding
during the period. The weighted average number of
equity shares outstanding during the period is adjusted
for events including a bonus issue.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity

shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.

---

Mar 31, 2024

1.2 Material accounting policies

a. Statement of compliance

The standalone financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as notified under section 133 of the Companies Act 2013 read with the Companies (Indian Accounting Standards) Rules 2015 by Ministry of Corporate Affairs (‘MCA''). The Company has uniformly applied the accounting policies during the periods presented.

The standalone financial statements for the year ended 31 March 2024 were authorized and approved for issue by the Board of Directors on 29 May 2024.

b. Basis of preparation of financial statements

The financial statements have been prepared on accrual and going concern basis under the historical cost basis except for certain financial assets and liabilities which are measured at fair value.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes in to account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, except for share based payment transactions that are within the scope of Ind

AS 102, ''Share-based Payment'', leasing transactions that are within the scope of Ind AS 116, ''Leases'', and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 ''Inventories'', or value in use in Ind AS 36 ''Impairment of assets'' etc.

I n addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: Inputs for the assets or liabilities that are not based on the observable marked data (unobservable inputs)

. Use of estimates

The preparation of financial statements is in conformity with generally accepted accounting principles which require the management of the Company to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of the reporting period. Although these estimates are based upon the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Application of accounting policies that require significant accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in note 1.3.

. Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from 1 April 2024.

e. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

(i) An asset is classified as current when it is:

• Expected to be realised or intended to sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

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

(ii) All other assets are classified as non-current.

(iii) A liability is classified as current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

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

(iv) All other liabilities are classified as non-current.

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

Based on the nature of service and the time between the acquisition of assets for development and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as four years for the purpose of current and non-current classification of assets and liabilities which pertain to the project and for all other assets and liabilities the Company has considered twelve months.

f. Foreign currency transactions Functional and presentation currency

The financial statements are presented in Indian Rupee (‘H'') which is also the functional and presentation currency of the Company. All amounts have been rounded-off to the nearest lakhs, unless otherwise indicated.

(a) Initial recognition

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

(b) Conversion

Foreign currency monetary items are converted to functional currency using the closing rate. Nonmonetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or any other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates different from those at which they were initially recorded, are recognised in the statement of profit and loss in the year in which they arise.

;. Revenue recognition

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. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and other credits, if any, as specified in the contract with the customer. The Company presents revenue from contracts with customers net of indirect taxes in its statement of profit and loss.

The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the Company considers the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer (if any).

The Company has applied five step model as per Ind AS 115 ‘Revenue from contracts with customers'' to recognise revenue in the standalone 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.

1) Sale of constructed/developed properties

Revenue is recognised over the time from the financial year in which the registration of sale deed is executed based on the percentage-of-completion method (‘POC method'') of accounting with cost of project incurred (input method) for the respective projects determining the degree of completion of the performance obligation.

The revenue recognition of real estate property under development requires forecasts to be made of total budgeted costs with the outcomes of underlying construction contracts, which further require assessments and judgments to be made on changes in work scopes and other payments to the extent they are probable and they are capable of being reliably measured. In case, where the total project cost is estimated to exceed total revenues from the project, the loss is recognised immediately in the Statement of Profit and Loss.

Further, for projects executed through joint development arrangements not being jointly controlled operations, wherein the land owner/ possessor provides land and the Company undertakes to develop properties on such land and in lieu of land owner providing land, the Company has agreed to transfer certain percentage of constructed area or certain percentage of the revenue proceeds, the revenue from the development and transfer of constructed area/revenue sharing arrangement in exchange of such development rights/land is being accounted on gross basis on launch of the project. Revenue is recognised over time using input method, on the basis of the inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation.

The revenue is measured at the fair value of the land received, adjusted by the amount of any cash or cash equivalents transferred. When the fair value of the land received cannot be measured reliably, the revenue is measured at the fair value of the estimated construction service rendered to the land

owner, adjusted by the amount of any cash or cash equivalents transferred. The fair value so estimated is considered as the cost of land in the computation of percentage of completion for the purpose of revenue recognition as discussed above.

For contracts involving sale of real estate unit, the Company receives the consideration in accordance with the terms of the contract in proportion of the percentage of completion of such real estate project and represents payments made by customers to secure performance obligation of the Company under the contract enforceable by customers. Such consideration is received and utilised for specific real estate projects in accordance with the requirements of the Real Estate (Regulation and Development) Act, 2016. Consequently, the Company has concluded that such contracts with customers do not involve any financing element since the same arises for reasons explained above, which is other than for provision of finance to/from the customer.

2) Sale of services Development management fees

The Company renders development management services involving multiple elements such as Sales and Marketing, Project Management and Consultancy (PMC) services, Customer Relationship Management (CRM) Services and financial management services to other real estate developers. The Company''s performance obligation is satisfied either over the period of time or at a point in time, which is evaluated for each service under development management contract seperately. Revenue is recognised upon satisfaction of each such performance obligation.

Administrative income

Revenue in respect of administrative services is recognised 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 contractual agreed terms.

3) Other operating income

Income from transfer/assignment of development rights

The revenue from transfer/assignment of development right are recognised in the year in which the legal agreements are duly executed and the performance obligations thereon are duly satisfied and there exists no uncertainty in the ultimate collection of consideration from customers.

Maintenance income

Revenue in respect of maintenance services is recognised 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 contractual agreed terms.

Others

Interest on delayed receipts, cancellation/forfeiture income and transfer fees etc from customers are recognised based upon underlying agreements with customers and when reasonable certainty of collection is established.

Unbilled revenue disclosed under other financial assets represents revenue recognised over and above the amount due as per payment plans agreed with the customers. Progress billings which exceed the costs and recognised profits to date on projects under construction are disclosed under other current liabilities. Any billed amount that has not been collected is disclosed under trade receivables and is net of any provisions for amounts doubtful of recovery.

Contract balances

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 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 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.

4) Interest income

Interest income is accounted on an accrual basis at effective interest rate, except in cases where ultimate collection is considered doubtful.

h. Inventories

Properties held for development

Properties held for development represents land acquired for future development and construction, and is stated at cost including the cost of land, the related costs of acquisition and other costs incurred to get the properties ready for their intended use.

Properties under development

Properties under development represents construction work in progress which are stated at the lower of cost and net realisable value. This comprises of cost of land, construction related overhead expenditure, borrowing costs and other net costs incurred during the period of development.

Properties held for sale

Completed properties held for sale are stated at the lower of cost and net realisable value. Cost includes cost of land, construction related overhead expenditure, borrowing costs and other costs incurred during the period of development.

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.

i. Property, plant and equipment (PPE)

Recognition and initial measurement

Properties plant and equipment are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost if capitalisation criteria are met, any expected costs of decommissioning and any 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 measurement

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.

Depreciation and useful lives

Depreciation on property, plant & equipment is provided on the straight-line method, based on the useful life of

Cost of assets not ready for use at the balance sheet date are disclosed under capital work-in-progress.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is derecognised 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 derecognised.

j. Intangible assets

Recognition and initial measurement

I ntangible assets (software) are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost if capitalisation 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 measurement (amortisation)

The cost of capitalised software is amortised over a period of 10 years from the date of its acquisition on a straight line basis.

k. Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.

All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are incurred.

The Company determines the amount of borrowing costs eligible for capitalisation as the actual borrowing

costs incurred on that borrowing during the period less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalisation are determined by applying a capitalisation rate to the expenditures on that asset.

The Company suspends capitalisation of borrowing costs during extended periods in which it suspends active development of a qualifying asset.

Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

n. Employee benefits

Defined contribution plan

The Company''s contribution to provident fund is charged to the statement of profit and loss or inventorised as a part of project under development, as the case may be. The Company''s contributions towards provident fund are deposited with the Regional Provident Fund Commissioner under a defined contribution plan, in accordance with Employees'' Provident Funds and Miscellaneous Provisions Act, 1952.

Defined benefit plan

The Company has funded gratuity as defined benefit plan where the amount that an employee will receive on retirement is defined by reference to the employee''s length of service and final salary. The liability recognised in the balance sheet for defined benefit plans as the present value of the defined benefit obligation (DBO) at the reporting date less the fair value of plan assets. Management estimates the DBO annually with the assistance of independent actuaries who use the projected unit credit method to calculate the defined benefit obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss or inventorised as a part of project under development, as the case may be.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss

as past service cost or inventorised as a part of project under development, as the case may be.

Actuarial gain or loss arising from experience adjustments and changes in actuarial assumptions are recognised in other comprehensive income in the year in which such gain or loss arise.

Vacation pay

The Company also provides benefit of vacation pay to its employees. Liability in respect of vacation pay becoming due and expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method as on the reporting date. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss or inventorised as a part of project under development, as the case may be in the year in which such gains or losses arise.

The Company presents the leave as a current liability in the balance sheet, to the extent it does not have an unconditional right to defer its settlement for 12 months after the reporting date. Where company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.

Other short-term benefits

Short-term employee benefits comprising employee costs including performance bonus is recognised in the statement of profit and loss on the basis of the amount paid or payable for the period during which services are rendered by the employee.

i. Tax expense Income taxes

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

Current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act,1961 and other applicable tax laws in the countries where the Company operates and generates taxable income.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases

used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

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.

Current and deferred tax for the period

Current and deferred tax are recognised in profit or loss, except when they are relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

o. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

---

Mar 31, 2023

Significant accounting policies

a) Statement of compliance

The standalone financial statements of the Company
have been prepared in accordance with the Indian
Accounting Standards (Ind-AS) as notified under
Section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules 2015
by Ministry of Corporate Affairs (‘MCA''). The Company
has uniformly applied the accounting policies during the
periods presented.

The standalone financial statements for the year ended
31 March 2023 were authorised and approved for issue
by the Board of Directors on 29 May 2023.

b) Basis of preparation of financial statements

The financial statements have been prepared on accrual
and going concern basis under the historical cost basis
except for certain financial assets and liabilities which
are measured at fair value.

Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date,
regardless of whether that price is directly observable
or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the
Company takes in to account the characteristics of
the asset or liability if market participants would take
those characteristics into account when pricing the
asset or liability at the measurement date. Fair value
for measurement and/or disclosure purposes in these
financial statements is determined on such a basis,
except for share-based payment transactions that are
within the scope of Ind AS 102, ‘Share-based Payment'',
leasing transactions that are within the scope of Ind
AS 116, ‘Leases'', and measurements that have some
similarities to fair value but are not fair value, such as
net realisable value in Ind AS 2 ‘Inventories'', or value in
use in Ind AS 36 ‘Impairment of assets'' etc.

In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2, or 3 based
on the degree to which the inputs to the fair value
measurements are observable and the significance of
the inputs to the fair value measurements in its entirety,
which are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for
financial instruments.

Level 2: The fair value of financial instruments that
are not traded in an active market is determined
using valuation techniques which maximise the use of
observable market data rely as little as possible on entity
specific estimates.

Level 3: Inputs for the assets or liabilities that are not
based on the observable marked data (unobservable
inputs)

c) Use of estimates

The preparation of financial statements is in conformity
with generally accepted accounting principles which
require the management of the Company to make
judgements, estimates and assumptions that affect
the reported amount of revenues, expenses, assets and
liabilities and disclosure of contingent liabilities at the end
of the reporting period. Although these estimates are
based upon the management''s best knowledge of current
events and actions, uncertainty about these assumptions
and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets
or liabilities in future period. Appropriate changes in
estimates are made as management becomes aware of
changes in circumstances surrounding the estimates.
Application of accounting policies that require significant
accounting estimates involving complex and subjective
judgements and the use of assumptions in these financial
statements have been disclosed in note 1.3.

d) Standards/amendments issued but not yet effective

The Ministry of Corporate Affairs (MCA) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. On 31 March 2023, MCA
amended the Companies (Indian Accounting Standards)
Amendment Rules, 2023 which shall be effective from
1 April 2023.

e) Current versus non-current classification

The Company presents assets and liabilities in the balance
sheet based on current/non-current classification.

(i) An asset is classified as current when it is:

• Expected to be realised or intended to sold or
consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months
after the reporting period, or

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

(ii) All other assets are classified as non-current.

(iii) A liability is classified as current when:

• It is expected to be settled in normal
operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after
the reporting period, or

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

(iv) All other liabilities are classified as non-current.

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

Based on the nature of service and the time between
the acquisition of assets for development and their
realisation in cash and cash equivalents, the Company
has ascertained its operating cycle as four years for
the purpose of current and non-current classification
of assets and liabilities which pertain to the project
and for all other assets and liabilities the Company has
considered twelve months.

f) Foreign currency transactions

Functional and presentation currency

The financial statements are presented in Indian Rupee
(‘ C'') which is also the functional and presentation currency
of the Company. All amounts have been rounded-off to
the nearest million, unless otherwise indicated.

(a) Initial recognition

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

(b) Conversion

Foreign currency monetary items are converted
to functional currency using the closing rate.
Non-monetary items denominated in a foreign
currency which are carried at historical cost are
reported using the exchange rate at the date of
the transaction; and non-monetary items which are
carried at fair value or any other similar valuation
denominated in a foreign currency are reported
using the exchange rates that existed when the
values were determined.

Exchange differences arising on monetary items
on settlement, or restatement as at reporting date,
at rates different from those at which they were

initially recorded, are recognised in the statement
of profit and loss in the year in which they arise.

g. Revenue recognition

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. Revenue
is measured based on the transaction price, which is the
consideration, adjusted for discounts and other credits,
if any, as specified in the contract with the customer.
The Company presents revenue from contracts with
customers net of indirect taxes in its statement of profit
and loss.

The Company considers whether there are other
promises in the contract that are separate performance
obligations to which a portion of the transaction price
needs to be allocated. In determining the transaction
price, the Company considers the effects of variable
consideration, the existence of significant financing
components, non-cash consideration, and consideration
payable to the customer (if any).

The Company has applied five step model as per Ind AS
115 ‘Revenue from contracts with customers'' to recognise
revenue in the standalone 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.

1) Sale of constructed / developed properties

Revenue is recognised over the time from the financial
year in which the registration of sale deed is executed
based on the percentage-of-completion method (‘POC
method'') of accounting with cost of project incurred
(input method) for the respective projects determining
the degree of completion of the performance obligation.

The revenue recognition of real estate property under
development requires forecasts to be made of total
budgeted costs with the outcomes of underlying
construction contracts, which further require
assessments and judgments to be made on changes
in work scopes and other payments to the extent they
are probable and they are capable of being reliably
measured. In case, where the total project cost is
estimated to exceed total revenues from the project,
the loss is recognised immediately in the Statement of
Profit and Loss.

Further, for projects executed through joint development
arrangements not being jointly controlled operations,
wherein the land owner/possessor provides land and
the Company undertakes to develop properties on
such land and in lieu of land owner providing land, the
Company has agreed to transfer certain percentage
of constructed area or certain percentage of the
revenue proceeds, the revenue from the development
and transfer of constructed area/revenue sharing
arrangement in exchange of such development rights/
land is being accounted on gross basis on launch of the
project. Revenue is recognised over time using input
method, on the basis of the inputs to the satisfaction of
a performance obligation relative to the total expected
inputs to the satisfaction of that performance obligation.

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

For contracts involving sale of real estate unit, the
Company receives the consideration in accordance
with the terms of the contract in proportion of the
percentage of completion of such real estate project
and represents payments made by customers to secure
performance obligation of the Company under the
contract enforceable by customers. Such consideration
is received and utilised for specific real estate projects
in accordance with the requirements of the Real Estate
(Regulation and Development) Act, 2016. Consequently,
the Company has concluded that such contracts with
customers do not involve any financing element since
the same arises for reasons explained above, which is
other than for provision of finance to/from the customer.

2) Sale of services

Development management fees

The Company renders development management
services involving multiple elements such as Sales and
Marketing, Project Management and Consultancy (PMC)
services, Customer Relationship Management (CRM)
Services and financial management services to other

real estate developers. The Company''s performance
obligation is satisfied either over the period of time or
at a point in time, which is evaluated for each service
under development management contract seperately.
Revenue is recognised upon satisfaction of each such
performance obligation.

Administrative income

Revenue in respect of administrative services is
recognised 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 contractual agreed terms.

3) Other operating income

Income from transfer/ assignment of development
rights

The revenue from transfer/ assignment of development
right are recognized in the year in which the legal
agreements are duly executed and the performance
obligations thereon are duly satisfied and there exists no
uncertainty in the ultimate collection of consideration
from customers.

Maintenance income

Revenue in respect of maintenance services is recognised
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
contractual agreed terms.

Others

I nterest on delayed receipts, cancellation/ forfeiture
income and transfer fees etc. from customers are
recognised based upon underlying agreements with
customers and when reasonable certainty of collection
is established.

Unbilled revenue disclosed under other financial assets
represents revenue recognised over and above the
amount due as per payment plans agreed with the
customers. Progress billings which exceed the costs and
recognised profits to date on projects under construction
are disclosed under other current liabilities. Any billed
amount that has not been collected is disclosed under
trade receivables and is net of any provisions for amounts
doubtful of recovery.

Contract balances

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 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 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.

4) Interest income

I nterest income is accounted on an accrual basis at
effective interest rate, except in cases where ultimate
collection is considered doubtful.

h) Inventories

Properties held for development

Properties held for development represents land
acquired for future development and construction, and
is stated at cost including the cost of land, the related
costs of acquisition and other costs incurred to get the
properties ready for their intended use.

Properties under development

Properties under development represents construction
work in progress which are stated at the lower of cost
and net realisable value. This comprises of cost of land,
construction related overhead expenditure, borrowing
costs and other net costs incurred during the period
of development.

Properties held for sale

Completed properties held for sale are stated at the
lower of cost and net realisable value. Cost includes
cost of land, construction related overhead expenditure,
borrowing costs and other costs incurred during the
period of development.

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.

i. Property, plant and equipment (PPE)

Recognition and initial measurement

Properties plant and equipment are stated at their
cost of acquisition. The cost comprises purchase price,
borrowing cost if capitalisation criteria are met, any
expected costs of decommissioning and any 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 measurement

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.

Depreciation and useful lives

Depreciation on property, plant & equipment is provided
on the straight-line method, based on the useful life of
asset specified in Schedule II to the Companies Act, 2013.
Residual values, useful lives and method of depreciation
are reviewed at each financial year end and adjusted
prospectively, if appropriate.

De-recognition

An item of property, plant and equipment and any
significant part initially recognised is derecognised
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 derecognised.

j) Intangible assets

Recognition and initial measurement

I ntangible assets (software) are stated at their cost of
acquisition. The cost comprises purchase price, borrowing
cost if capitalisation 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 measurement (amortisation)

The cost of capitalised software is amortised over a
period of 10 years from the date of its acquisition on a
straight-line basis.

k) Borrowing cost

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which
are assets that necessarily take a substantial period of
time to get ready for their intended use, are added to the
cost of those assets, until such time as the assets are
substantially ready for their intended use.

All other borrowing costs are recognised in the Statement
of Profit and Loss in the period in which they are incurred.

The Company determines the amount of borrowing
costs eligible for capitalisation as the actual borrowing
costs incurred on that borrowing during the period less
any interest income earned on temporary investment
of specific borrowings pending their expenditure on
qualifying assets, to the extent that an entity borrows
funds specifically for the purpose of obtaining a qualifying
asset. In case if the Company borrows generally and uses
the funds for obtaining a qualifying asset, borrowing
costs eligible for capitalisation are determined by
applying a capitalisation rate to the expenditures on
that asset.

The Company suspends capitalisation of borrowing
costs during extended periods in which it suspends
active development of a qualifying asset.

l) Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are
subject to insignificant risk of changes in value.

m) Employee benefits
Defined contribution plan

The Company''s contribution to provident fund is charged
to the statement of profit and loss or inventorised as
a part of project under development, as the case may
be. The Company''s contributions towards provident
fund are deposited with the Regional Provident Fund
Commissioner under a defined contribution plan, in
accordance with Employees'' Provident Funds and
Miscellaneous Provisions Act, 1952.

Defined benefit plan

The Company has funded gratuity as defined benefit
plan where the amount that an employee will receive
on retirement is defined by reference to the employee''s
length of service and final salary. The liability recognised
in the balance sheet for defined benefit plans as the
present value of the defined benefit obligation (DBO)
at the reporting date less the fair value of plan assets.
Management estimates the DBO annually with the
assistance of independent actuaries who use the
projected unit credit method to calculate the defined
benefit obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the statement
of profit and loss or inventorised as a part of project
under development, as the case may be.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss
as past service cost or inventorised as a part of project
under development, as the case may be.

Actuarial gain or loss arising from experience adjustments
and changes in actuarial assumptions are recognised in
other comprehensive income in the year in which such
gain or loss arise.

Vacation pay

The Company also provides benefit of vacation pay
to its employees. Liability in respect of vacation pay
becoming due and expected to be availed more than
one year after the balance sheet date is estimated on
the basis of an actuarial valuation performed by an
independent actuary using the projected unit credit
method as on the reporting date. Actuarial gains and
losses arising from experience adjustments and changes
in actuarial assumptions are recorded in the statement
of profit and loss or inventorised as a part of project
under development, as the case may be in the year in
which such gains or losses arise.

The Company presents the leave as a current liability
in the balance sheet, to the extent it does not have
an unconditional right to defer its settlement for 12
months after the reporting date. Where company has
the unconditional legal and contractual right to defer the
settlement for a period beyond 12 months, the same is
presented as non-current liability.

Other short-term benefits

Short-term employee benefits comprising employee
costs including performance bonus is recognised in the
statement of profit and loss on the basis of the amount
paid or payable for the period during which services are
rendered by the employee.

n) Tax expense
Income taxes

I ncome tax expense represents the sum of the tax
currently payable and deferred tax.

Current tax

Current tax is the amount of tax payable based on the
taxable profit for the year as determined in accordance
with the applicable tax rates and the provisions of the
Income Tax Act, 1961 and other applicable tax laws in the
countries where the Company operates and generates
taxable income.

Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable
profits will be available against which those deductible
temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the
asset to be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

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.

Current and deferred tax for the period

Current and deferred tax are recognised in profit or loss,
except when they are relate to items that are recognised
in other comprehensive income or directly in equity,
in which case, the current and deferred tax are also
recognised in other comprehensive income or directly
in equity respectively.

o) Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the
weighted average number of equity shares outstanding
during the period. The weighted average number of
equity shares outstanding during the period is adjusted
for events including a bonus issue.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number
of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.