Notes to Accounts of Shriram Properties Ltd.

Mar 31, 2025

p. Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present
obligation (legal or constructive), as a result of past events,
and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and when a reliable estimate of the amount of obligation
can be made at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect
the current best estimates. Provisions are discounted
to their present values, where the time value of money
is material, using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.

When the Company expects some or all of a provision
to be reimbursed, the reimbursement is recognised as
a separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision
is presented in the statement of profit and loss net of
any reimbursement.

Contingent liability is disclosed for:

i. Possible obligations which will be confirmed only by
future events not wholly within the control of the
Company or

ii. Present obligations arising from past events where it
is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.

q. Financial instruments
Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value and
transaction cost that is attributable to the acquisition of the
financial asset is also adjusted. However, trade receivables
that do not contain a significant financing component
are measured at transaction value and investments in
subsidiaries are measured at cost in accordance with Ind
AS 27 - Separate financial statements.

Subsequent measurement
Debt Instruments

Debt instruments at amortised cost

A ‘Debt instruments'' is subsequently measured at
amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual

cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal
amount outstanding.

After initial measurement, such 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 statement of profit
and loss.

Debt Instruments at fair value through other
comprehensive income (FVTOCI)

A debt instrument is subsequently measured at fair value
through other comprehensive income if it is held within
a business model whose objective is achieved by both
collecting contractual cash flows and selling financial
assets and the contractual terms of the asset give rise on
specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding. Fair value movements are recognised in
other comprehensive income (OCI).

Debt instruments at Fair value through profit and loss
(FVTPL)

FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorisation as at amortised cost or as FVTOCI, is
classified as at FVTPL. Debt instruments included within
the FVTPL category are measured at fair value with all
changes recognised in the statement of profit and loss.

Equity investments

All equity investments in the scope of Ind AS 109,''
Financial Instruments'', are measured at fair value.
Equity instruments which are held for trading and
contingent consideration has been recognised by an
acquirer in a business combination to which Ind AS
103,'' Business Combinations'' applies, are classified
as at FVTPL. For all other equity instruments, the
Company may make an irrevocable election to present
in OCI with subsequent changes in the fair value.
The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity instrument as
at FVTOCI, then all fair value changes on the instrument,
excluding dividends, impairment gains or losses and
foreign exchange gains and losses, are recognised in
the OCI.

There is no recycling of the amounts from OCI to the
statement of profit and loss, even on sale of investment.

Equity instruments included within the FVTPL category
are measured at fair value with all changes recognised in
the statement of profit and loss.

De-recognition of financial assets

A financial asset is primarily de-recognised when the
rights to receive cash flows from the asset have expired
or the Company has transferred its rights to receive cash
flows from the asset.

r. Financial liabilities
Initial recognition

All financial liabilities are recognised initially at fair value
and transaction cost that is attributable to the acquisition
of the financial liabilities is also adjusted. These liabilities
are classified as amortised cost.

Subsequent measurement

These liabilities include borrowings, payables and
deposits. Subsequent to initial recognition, these liabilities
are measured at amortised cost using the effective
interest method.

De-recognition of financial liabilities

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

Offsetting of financial instruments

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

s. Financial guarantee contracts

Financial guarantee contracts issued by the Company
are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the
specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial
guarantee contracts are recognised initially as a liability
at fair value, adjusted for transaction costs that are
directly attributable to the issuance of the guarantee.

Subsequently, the liability is measured at higher of the
amount of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount recognised
less cumulative amortisation.

t. Impairment of financial assets

The Company recognises loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss.
Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to
lifetime ECL. For all other financial assets, expected credit
losses are measured at an amount equal to the twelve
month ECL, unless there has been a significant increase
in credit risk from initial recognition in which case those
are measured at lifetime ECL. The amount of expected
credit losses (or reversal) that is required to adjust the
loss allowance at the reporting date to the amount that is
required to be recognised is recognised as an impairment
gain or loss in the statement of profit and loss.

u. Impairment of non-financial assets

At the end of each reporting period, the Company reviews
the carrying amounts of its tangible and intangible
assets to determine whether there is any indication
that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible
to estimate the recoverable amount of an individual
asset, the Company estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units
for which a reasonable and consistent allocation basis can
be identified.

Recoverable amount is the higher of fair value less costs
to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects
current market assessments of the time value of money
and the risks specific to the asset for which the estimates
of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
is recognised immediately in the statement of profit and
loss, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as
a revaluation decrease.

Where an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been
determined had no impairment loss been recognised for
the asset (or cash-generating unit) in prior years. A reversal
of an impairment loss is recognised immediately in the
statement of profit and loss, unless the relevant asset is
carried at a revalued amount, in which case the reversal of
the impairment loss is treated as a revaluation increase.

v. Investment in subsidiaries and joint ventures

Investment in equity instruments of subsidiaries and joint
ventures are stated at cost as per Ind AS 27 ‘Separate
Financial Statements''. Where the carrying amount of
an investment is greater than its estimated recoverable
amount, it is assessed for recoverability and in case of
permanent diminution, provision for impairment is
recorded in statement of Profit and Loss.

w. Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company is engaged in the business
of construction, development and sale of all or any part
of housing project which is the only reportable segment.
The Company operates primarily in India and there is no
other significant geographical segment.

x. Cash flow statement

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature and item of income
or expenses associated with investing or financing cash
flows. The cash from operating, investing and financing
activities of the Company are segregated.

The loans from/to related parties are in nature of current
accounts. Accordingly, receipts and payments from/to
related parties have been shown on a net basis in the
cash flow statement.

y. Leases

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

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for short-

term leases and leases of low-value assets. The Company
recognises lease liabilities to make lease payments and
right-of-use assets representing the right-to-use the
underlying assets.

Right-of-use assets

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

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

Lease liabilities

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

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

Short-term leases and leases of low-value assets

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

z. Share based payments

Select employees of the Company receive remuneration
in the form of equity settled instruments, for rendering
services over a defined vesting period. Equity instruments
granted are measured by reference to the fair value of
the instrument at the date of grant. The expense is
recognised in the statement of profit and loss with a
corresponding increase to the share based payment
reserve, a component of equity.

That cost, based on the estimated number of equity
instruments that are expected to vest, will be recognised
over the period during which the employee is required to
provide the service in exchange for the equity instruments.

1.3 Significant judgements and estimates in applying
accounting policies

a) Revenue from contracts with customers - The
Company has applied judgements that significantly
affect the determination of the amount and timing
of revenue from contracts with customers.

b) Net realisable value of inventory - The determination
of net realisable value of inventory involves
estimates based on prevailing market conditions,
current prices and expected date of commencement
and completion of the project, the estimated
future selling price, cost to complete projects and
selling cost.

c) I mpairment of financial assets - At each balance
sheet date, based on historical default rates observed

over expected life, the management assesses the
expected credit loss on outstanding financial assets.

d) Impairment of Investments - At each balance sheet
date, the management assesses the indicators
of impairment of such investments. This requires
assessment of several external and internal factor
including capitalisation rate, key assumption
used in discounted cash flow models (such as
revenue growth, unit price and discount rates) or
sales comparison method which may affect the
carrying value of investments in subsidiaries and
joint ventures.

e) Contingent liabilities - At each balance sheet date
basis the management estimate, changes in facts
and legal aspects, the Company assesses the
requirement of provisions against the outstanding
guarantees and litigations. However, the actual
future outcome may be different from this estimate.

f) Recognition of deferred tax assets - The extent to
which deferred tax assets can be recognised is based
on an assessment of the probability of the future
taxable income against which the deferred tax assets
can be utilised.

g) Control over development management
arrangements - The Company has entered into
certain agreements to provide development
management services for projects with unrelated
parties. Management has assessed its involvement
in such projects to assess control in such projects in
accordance with Ind AS 110, ‘Consolidated Financial
Statements''. As the Company does not have the
rights to make decisions around all the relevant
activities of the project''s principal purpose and as
the relevant decisions would require the consent of
other parties, the management has concluded that
the agreement gives the aforesaid parties control of
the arrangement and the Company is acting as an
agent for such parties and hence does not possess
control over the projects.

Notes:

a) Contractual obligations

There are no contractual commitments pending for the acquisition of property, plant and equipment as at the balance
sheet date.

b) Property, plant and equipment pledged as security

Details of property, plant and equipment pledged are given as per note 33.

c) The title deeds of all the immovable properties are held by the Company (other than properties where the Company is
the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

d) The Company has not revalued its property, plant and equipment (including right of use assets) during the year ended
March 31, 2025 and March 31, 2024.

(e) Depreciation amounting to H 6 lakhs (March 31, 2024 : Nil) inventorised during the year ended March 31, 2025.

5 INVESTMENTS (CONTINUED)

Notes:

The recoverable amount of the above mentioned investments, for impairment testing is determined based on value-in-use
calculations which uses cash flow projections based on financial budgets approved by management.

The Company prepares its cash flow forecasts for each investment based on the most recent financial budgets approved by
management with projected revenue growth rate ranges. The rate used to discount the forecasted cash flows ranges basis the
weighted average cost of capital.

Key assumptions used for value in use calculations are as follows:

Discount rates - Management estimates discount rates that reflect current market assessments of the risks specific to the CGU,
taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated
in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating
segments and is derived from its weighted average cost of capital (WACC).

Growth rates - The growth rates are based on industry growth forecasts. Management determines the budgeted growth rates
based on past performance and its expectations on market development. The weighted average growth rates used were
consistent with industry reports.

Note:

Deferred tax assets is recognised to the extent that it is probable that future taxable profits will be available against which the
deductible temporary differences and carried forward tax losses can be utilised. Due to lack of convincing evidence on probability
of future long-term capital gains, the Company has not recorded deferred tax asset on deductible temporary differences which
primarily includes the carry forward long-term capital losses amounting to Nil (31 March 2024: H 377 lakhs).

(#) Includes the Company''s entitlement on proportionate share of constructed properties receivable pursuant to Joint Development Agreements (JDAs) and
other contractual agreements, amounting to H 11,731 lakhs (31 March 2024 : H 11,936 lakhs) which includes H 10,035 lakhs (31 March 2024: H 10,241 lakhs)
from related party (Refer note 43).

(*) Details of assets pledged are given under note 33.

Note:

Write-down of inventories to net realisable value amounted to H 214 lakhs (31 March 2024: Nil) for the year ended 31 March
2025 has been recorded as addition in expense during the current year and added to ‘changes in inventories'' in the standalone
statement of profit and loss.

Reversal of write-down of inventories to net realisable value amounted to Nil (31 March 2024: H 151 lakhs) for the year ended 31
March 2025 has been recorded as reduction in expense during the current year and reduced from ‘changes in inventories'' in the
standalone statement of profit and loss.

Nature of reserves

a) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions
of the Companies Act, 2013.

b) General reserve

The General reserve is created by transfer profits from retained earnings. As the General reserve is created by a transfer
from one component of equity to another and is not item of other comprehensive income, items included in the General
reserve will not be reclassified subsequently to statement of profit and loss.

c) Retained earnings

Retained earnings represents the accumulated undistributed earnings of the Company as at balance sheet date.

d) Share based payment reserve

The share based payment reserve is used to record the value of equity settled share based payment transaction with
employees. The amounts recorded in share based payment reserves are transferred to share premium upon exercise of
stock options by employees.

37 FINANCIAL RISK MANAGEMENT (CONTINUED)

B Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the
business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of
expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition,
the Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level
of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory
requirements and maintaining debt financing plans.

C Market risk
a. Interest rate risk
1 Liabilities

The Company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as
defined in Ind AS 107, ‘Financial Instruments - Disclosures'', since neither the carrying amount nor the future cash flows will
fluctuate because of a change in market interest rates.

38 CAPITAL MANAGEMENT

The Company''s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long-term
borrowings, short-term borrowings, current maturities of long-term borrowings less cash and cash equivalents and other
bank balances.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There
have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No
changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and
March 31, 2024.

i. The Income Tax Authorities have disputed certain allowances claimed by the Company and resultant carry forward of
business losses pertaining to different assessment years. Further, asessment under Section 153C of the Income tax
act, 1961 has been carried out during the current year and orders have been received.

The Company is contesting the aforesaid adjustments/ demands made by the Income Tax Authorities, which are
pending before various forums. Based on the advice from independent tax/ legal experts and the development on the
appeals, the management is confident that the aforesaid adjustments/ demands will not be sustained on completion
of the proceedings and accordingly, pending the decision by the various forums, no provision has been made in these
standalone financial statements.

ii. There are various disputes pending with the authorities of indirect taxes. The Company is contesting these demands
raised by authorities and are pending at various forums. Based on the grounds of the appeals and advice of the
independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding
before the various forums. Pending the final decisions on the above matter, no adjustment has been made in these
standalone financial statements.

iii. The Company is contesting various litigations with Real Estate Regulatory Authority (RERA) and RERA Appellate
tribunal pertaining to compensation claim by customers for delayed handover of flats. Based on the grounds of the
appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong
likelihood of succeeding before these authorities. Pending the final decisions on the above matter, no adjustment has
been made in these standalone financial statements.

iv. The Company is also involved in certain litigation for lands acquired by it for construction purposes, either through
a Joint Development Agreement or through outright purchases. These cases are pending with the Civil Courts and
scheduled for hearings shortly. After considering the circumstances and legal advice received, management believes
that these cases will not adversely effect the standalone financial statements.

44 SHARE-BASED PAYMENT

The Company established the Employee Stock Option Plan 2013 (the “Plan”) to attract and retain talent and remain
competitive in the talent market and strengthen interdependence between individual and organisation prosperity.

On 14 April 2018, pursuant to the nomination and remuneration committee approval, the Company has issued following
stock-based compensation:

a) 32,595 options granted to employees at an exercise price of H 10 per share (Tranche 1). These stock options will vest
over one year from the grant date. These options shall be exercisable on or before five years from the date of vesting.

b) 5,95,164 options granted to employees at an exercise price of H 10 per share (Tranche 2). These options are issued
under a graded vesting schedule, meaning that they vest rateably over three years. These options shall be exercisable
on or before 5 years from the date of vesting.

On February 14, 2023, pursuant to the nomination and remuneration committee approval, the Company has issued
following stock-based compensation:

c) 3,32,500 options granted to employees at an exercise price of H 10 per share (Tranche 3). These stock options will vest
over one year from the grant date. These options shall be exercisable on or before five years from the date of vesting.

On 20 July 2024, pursuant to the nomination and remuneration committee approval, the Company has issued following
stock-based compensation:

d) 20,14,855 options granted to employees at an exercise price of H 10 per share (Tranche 4). These options are issued
under a graded vesting schedule, meaning that they vest rateably over 3-4 years and linked to actual delivery of agreed
KPI. These options shall be exercisable on or before five years from the date of vesting.

The Company records stock compensation expense for these options, net of estimated forfeitures on a straight-line
basis over the vesting period. Tranche 1 and Tranche 2 have a grant date fair value of H 126.22 per unit and H 127.22 per
option respectively. Tranche 3 have a grant day fair value of H 63.08 per option. Tranche 4 (period linked) have grant
date fair value of H 103.90 per option.

E The performance obligation of the Company in case of sale of residential plots, villas, apartments, commercial space and
development management of such properties is satisfied once the project is completed and control is transferred to the
customers. The customer makes the payment for contract price as per installment stipulated in customer''s agreement
which can be cancelled by the customer for convenience.

The transaction price of the remaining performance obligation (unsatisfied or partly satisfied) as at 31 March 2025 is H 34,044
lakhs (31 March 2024 is H 19,747 lakhs). The same is expected to be recognised within 1 to 4 years.

46 SEGMENTAL INFORMATION

The Company is engaged in the development and construction of residential and commercial properties which is considered
to be the only reportable business segment as per Ind AS 108, ‘Segment Reporting''.

Major Customers

Revenues from one customer of the Company''s business represents approximately H 1,000 lakhs (approximately 16%)
(31 March 2024 - H 1,921 lakhs approximately 15%) of the Company''s total revenues.

47 The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies,
which uses accounting software for maintaining its books of account, shall use only such accounting software which has
a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of
account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of audit trail (edit log)
facility and the same was enabled and operated throughout the year for all relevant transactions recorded in the software
at the application level. The Company has not enabled the feature of recording audit trail (edit log) at the database level,
which has consequential impact on the preservation of the audit trail as per the statutory requirements.

The audit trail has been preserved by the Company as per the statutory requirements for record retention at the
application level.

48 SEARCH CONDUCTED BY ENFORCEMENT DIRECTORATE

The Enforcement Directorate conducted a search activity at the Company''s business premises on 23 October 2024. The
management of the Company has extended full co-operation to the officials by responding to their clarifications/details
sought and reiterates that there is nothing to implicate our subsidiaries/joint ventures, current or erstwhile, or its directors or
the Company in connection with the allegations. The Company has made the necessary disclosures to the stock exchanges
in this regard on 24 October 2024, in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015 (as amended). As
on the date of issuance of these financial statements, the Company has not received any formal communication regarding
the findings of their investigation / examination.

The Company after considering all available information and facts as of date, has not identified the need for any adjustments
to the current or prior period financial statements.

50 OTHER STATUTORY INFORMATION

i. The Company has not advanced or provided loan to or invested funds in any entities including foreign entities
(Intermediaries) or to any other persons, with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

ii. The Company has not received any fund from any persons or entities, including foreign entities (funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

51 No adjusting or significant no adjusting events have occurred between 31 March 2025 and the date of authorisation of these
standalone financial statements.

As per report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of Shriram Properties Limited

Chartered Accountants
Firm''s Registration No.:

001076N/N500013

Nikhil Vaid Murali M Gopalakrishnan J Ravindra K Pandey Ramaswamy K

Partner Chairman and Managing Director Chief Executive Officer Chief Financial Officer Company Secretary

Membership No.: 213356 DIN: 00030096 ACS: 28580

Hyderabad Los Angeles, USA Bengaluru Bengaluru Bengaluru

27 May 2025 27 May 2025 27 May 2025 27 May 2025 27 May 2025

Note

a) The increase in debt equity ratio is on account of new borrowings made during the year for the projects.

b) The decrease in debt service coverage ratio is on account of reduction in earnings available for debt service during the year.

c) The decrease in return on equity, net profit ratio and return on capital employed is primarily attributable to loss incurred
during the year.

d) The decrease in inventory turnover ratio is primarily attributable to the resultant decrease in the cost of revenue due to
decrease in revenue from operations.

e) The decrease in trade receivables turnover ratio is primarily attributable to the decrease in the revenue from operations.

f) The increase in trade payable turnover ratio is attributable to the increase in material and contract cost incurred during
the year.

g) The decrease in in net capital turnover ratio is primarily attributable to the reduction in net profit after taxes during the year
and also increase in working capital, in the development of projects under development.

h) The decrease in Return on Investment is on account of maturity of deposits during the year.

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Mar 31, 2024

p. Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect

the current best estimates. Provisions are discounted to their present values, where the time value of money is material, using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liability is disclosed for:

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

(ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

q. Financial instruments Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted. However, trade receivables that do not contain a significant financing component are measured at transaction value and investments in subsidiaries are measured at cost in accordance with Ind AS 27 - Separate financial statements.

Subsequent measurement Debt Instruments

Debt instruments at amortised cost

A ‘Debt instruments'' is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the statement of profit and loss.

Debt Instruments at fair value through other comprehensive income (FVTOCI)

A debt instrument is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Fair value movements are recognised in other comprehensive income (OCI).

Debt instruments at Fair value through profit and loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classified as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

Equity investments

All equity investments in the scope of Ind AS 109,'' Financial Instruments'', are measured at fair value. Equity instruments which are held for trading and contingent consideration has been recognised by an acquirer in a business combination to which Ind AS 103,'' Business Combinations'' applies, are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in OCI with subsequent changes in the fair value.

The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or losses and foreign exchange gains and losses, are recognised in the OCI.

There is no recycling of the amounts from OCI to the statement of profit and loss, even on sale of investment.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

De-recognition of financial assets

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.

r. Financial liabilities Initial recognition

All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. These liabilities are classified as amortised cost.

Subsequent measurement

These liabilities include borrowings, payables and deposits. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.

De-recognition of financial liabilities

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

Offsetting of financial instruments

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

s. Financial guarantee contracts

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

t. Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the twelve

month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognised as an impairment gain or loss in the statement of profit and loss.

u. Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement of profit and loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the statement of profit and loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

v. Investment in subsidiaries and joint ventures

Investment in equity instruments of subsidiaries and joint ventures are stated at cost as per Ind AS 27 ‘Separate Financial Statements. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is assessed for recoverability and in case of permanent diminution, provision for impairment is recorded in Statement of Profit and Loss.

w. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company is engaged in the business of construction, development and sale of all or any part of housing project which is the only reportable segment. The Company operates primarily in India and there is no other significant geographical segment.

x. Cash flow statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature and item of income or expenses associated with investing or financing cash flows. The cash from operating, investing and financing activities of the Company are segregated.

The loans from/to related parties are in nature of current accounts. Accordingly, receipts and payments from/to related parties have been shown on a net basis in the cash flow statement.

y. Leases

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

Company as a lessee

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

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use

assets includes the amount of lease liabilities recognised, initial direct costs incurred and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term.

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

Lease liabilities

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

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

Short-term leases and leases of low-value assets

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

z. Share based payments

Select employees of the Company receive remuneration in the form of equity settled instruments, for rendering services over a defined vesting period. Equity instruments granted are measured by reference to the fair value of the instrument at the date of grant. The expense is recognised in the statement of profit and loss with a corresponding increase to the share based payment reserve, a component of equity.

That cost, based on the estimated number of equity instruments that are expected to vest, will be recognised over the period during which the employee is required to provide the service in exchange for the equity instruments.

1.3 Significant judgements and estimates in applying accounting policies

a. Revenue from contracts with customers - The Company has applied judgements that significantly affect the determination of the amount and timing of revenue from contracts with customers.

b. Net realisable value of inventory - The determination of net realisable value of inventory involves estimates based on prevailing market conditions, current prices and expected date of commencement and completion of the project, the estimated future selling price, cost to complete projects and selling cost.

c. I mpairment of financial assets - At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding financial assets.

d. Impairment of Investments - At each balance sheet date, the management assesses the indicators of impairment of such investments. This requires

assessment of several external and internal factor including capitalisation rate, key assumption used in discounted cash flow models (such as revenue growth, unit price and discount rates) or sales comparison method which may affect the carrying value of investments in subsidiaries and joint ventures.

e. Contingent liabilities - At each balance sheet date basis the management estimate, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding guarantees and litigations. However, the actual future outcome may be different from this estimate.

f. Recognition of deferred tax assets - The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilised.

g. Control over development management arrangements - The Company has entered into certain agreements to provide development management services for projects with unrelated parties. Management has assessed its involvement in such projects to assess control in such projects in accordance with Ind AS 110, ‘Consolidated Financial Statements''. As the Company does not have the rights to make decisions around all the relevant activities of the project''s principal purpose and as the relevant decisions would require the consent of other parties, the management has concluded that the agreement gives the aforesaid parties control of the arrangement and the Company is acting as an agent for such parties and hence does not possess control over the projects.

Notes to financial instruments

i. The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables, borrowings, lease liabilities and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The Company has measured investments in equity shares of subsidiaries and joint ventures at the deemed cost. The Company has considered the carrying amount under previous GAAP as the deemed cost for the investment made before Ind AS transition date.

ii. Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

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

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: unobservable inputs for the asset or liability.

Measurement of fair value of financial instruments

The Company''s finance team performs valuations of financial items for financial reporting purposes, including Level 3 fair values, in consultation with third party valuation specialist wherever necessary. Valuation techniques are selected based on the characteristics of each instrument, with the overall objective of maximizing the use of market-based information.

Investment in debentures

The fair values of the optionally convertible debentures are estimated using a discounted cash flow approach, which discounts the estimated contractual cash flows using discount rates derived from observable market interest rates of similar bonds with similar risk.

B Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

38 CAPITAL MANAGEMENT

The Company''s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.

40 CONTINGENT LIABILITIES (CONTINUED)

II There are various disputes pending with the authorities of indirect taxes. The Company is contesting these demands raised by authorities and are pending at various forums. Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the various forums. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

III The Company is contesting various litigations with Real Estate Regulatory Authority (RERA) and RERA Appellate tribunal pertaining to compensation claim by customers for delayed handover of flats. Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before these authorities. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements

IV The Company is also involved in certain litigation for lands acquired by it for construction purposes, either through a Joint Development Agreement or through outright purchases. These cases are pending with the Civil Courts and scheduled for hearings shortly. After considering the circumstances and legal advice received, management believes that these cases will not adversely effect the standalone financial statements.

41 COMMITMENTS

i. The Company is committed to provide business and financial support as and when required to 8 subsidiaries and 2 joint ventures, which are in losses and are dependent on the Company for meeting out their cash requirements.

ii. The Company has entered into joint development agreements with owners of land for its construction and development. Under the agreements the Company is required to pay certain payments/deposits to the owners of the land and share in built up area/revenue from such developments in exchange of undivided share in land as stipulated under the agreements.

44 SHARE BASED PAYMENT

The Company established the Employee Stock Option Plan 2013 (the Plan) to attract and retain talent and remain competitive in the talent market and strengthen interdependence between individual and organization prosperity.

On 14 April 2018, pursuant to the nomination and remuneration committee approval, the Company has issued following stock-based compensation:

(a) 32,595 options granted to employees at an exercise price of H 10 per share (Tranche 1). These stock options will vest over one year from the grant date. These options shall be exercisable on or before five years from the date of vesting.

(b) 595,164 options granted to employees at an exercise price of H 10 per share (Tranche 2). These options are issued under a graded vesting schedule, meaning that they vest rateably over three years. These options shall be exercisable on or before 5 years from the date of vesting.

(c) On 14 February 2023, pursuant to the nomination and remuneration committee approval, the Company has issued following stock-based compensation:

332,500 options granted to employees at an exercise price of H 10 per share (Tranche 3). These stock options will vest over one year from the grant date. These options shall be exercisable on or before five years from the date of vesting.

The Company records stock compensation expense for these options, net of estimated forfeitures on a straight-line basis over the vesting period. Tranche 1 and Tranche 2 have a grant date fair value of H 126.22 per unit and H 127.22 per option respectively. Tranche 3 have a grant day fair value of H 63.08 per option.

46 SEGMENTAL INFORMATION

The Company is engaged in the development and construction of residential and commercial properties which is considered to be the only reportable business segment as per Ind AS 108, ‘Segment Reporting''.

Major Customers

Revenues from one customer of the Company''s business represents approximately H 1,921 lakhs (approximately 15%) of the Company''s total revenues. However, during the year ended 31 March 2023, the Company has widespread customer base and no single customer accounted for 10% or more of revenue.

47 COMPLIANCE WITH THE REQUIREMENT OF THE AUDIT TRAIL UNDER RULE 11(G) OF THE COMPANIES (AUDIT AND AUDITORS) RULES, 2014

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

During the financial year commencing on 1 April 2023, the Company has used an accounting software SAP for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software.

Audit trail (edit log) is enabled only at the application level as part of standard SAP framework in line with the recommendation in the accounting software administration guide which states that enabling the same at database level all the time consume storage space on the disk and can impact database performance significantly. Further, the Company''s users have access to perform transactions only from the application level, and no access has been provided to any user for accessing database and there are no instances of audit trail feature being tampered with.

48 INITIAL PUBLIC OFFERING

During the year ended 31 March 2022, the Company had completed its Initial Public Offer (IPO) of 5,08,73,592 equity shares of face value of H 10 each at an issue price of H 118 per share (including a share premium of H 108 per share). A discount of H 11 per share was offered to eligible employees bidding in the employee''s reservation portion. The issue comprised of a fresh issue of 2,12,12,576 equity shares aggregating to H 25,004 lakhs and offer for sale of 2,96,61,016 equity shares by selling shareholders aggregating to H 35,000 lakhs. Pursuant to the IPO, the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 20 December 2021.

The total offer expenses are estimated to be H 4,700 lakhs (inclusive of taxes) which are proportionately allocated between the Company and the selling shareholders as per respective offer size. The Company''s share of expenses of H 1,300 lakhs (net of taxes) has been adjusted to securities premium.

Note

a. The decrease in debt service coverage ratio is on account of higher repayment of debt during the year.

b. The improvement in return on equity, net profit ratio and return on capital employed were primarily due to increase in profit during the year. The increase in profit is majorly on account of decrease in loss from impairment of loans as compared to the previous year.

c. The decrease in inventory turnover ratio is attributable to lesser cost of revenue owing to lesser flats registered during the year.

d. The improvement in trade receivables turnover ratio is primarily attributable to the decrease in the trade receivables on account of timely collections from customers.

e. The decrease in net capital turnover ratio is attributable to increase in working capital, in the development of projects under development.

f. The increase in Return on Investment is on account of increase in interest rates and maturity of deposits during the year.

50 OTHER STATUTORY INFORMATION

(i) The Company has not advanced or provided loan to or invested funds in any entities including foreign entities (Intermediaries) or to any other persons, with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) The Company has not received any fund from any persons or entities, including foreign entities (funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

51 No adjusting or significant no adjusting events have occurred between 31 March 2024 and the date of authorization of these standalone financial statements.

As per report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of Shriram Properties Limited

Chartered Accountants

Firm''s Registration No.: 001076N/N500013

Nikhil Vaid Murali M Gopalakrishnan J Ramaswamy K

Partner Chairman and Managing Director Executive Director and Company Secretary

Membership No.: 213356 DIN: 00030096 Group Chief Financial Officer ACS: 28580

Hyderabad Bengaluru Bengaluru Bengaluru

29 May 2024 29 May 2024 29 May 2024 29 May 2024

---

Mar 31, 2023

Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present
obligation (legal or constructive), as a result of past
events, and it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and when a reliable estimate of the
amount of obligation can be made at the reporting date.
These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates. Provisions
are discounted to their present values, where the time
value of money is material, using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.

When the Company expects some or all of a provision
to be reimbursed, the reimbursement is recognised as
a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision

is presented in the statement of profit and loss net of
any reimbursement.

Contingent liability is disclosed for:

(i) Possible obligations which will be confirmed only by
future events not wholly within the control of the
Company or

(ii) Present obligations arising from past events where
it is not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot
be made.

q) Financial instruments
Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair
value and transaction cost that is attributable to the
acquisition of the financial asset is also adjusted.
However, trade receivables that do not contain a
significant financing component are measured at
transaction value and investments in subsidiaries
are measured at cost in accordance with Ind AS 27 -
Seperate financial statements.

Subsequent measurement
Debt Instruments

Debt instruments at amortised cost

A ‘Debt instruments'' is subsequently measured at
amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding.

After initial measurement, such 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 statement of
profit and loss.

Debt Instruments at fair value through other
comprehensive income (FVTOCI)

A debt instrument is subsequently measured at fair value
through other comprehensive income if it is held within
a business model whose objective is achieved by both
collecting contractual cash flows and selling financial
assets and the contractual terms of the asset give rise
on specified dates to cash flows that are solely payments
of principal and interest on the principal amount

outstanding. Fair value movements are recognised in
other comprehensive income (OCI).

Debt instruments at Fair value through profit and loss
(FVTPL)

FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorisation as at amortised cost or as FVTOCI, is
classified as at FVTPL. Debt instruments included within
the FVTPL category are measured at fair value with all
changes recognised in the statement of profit and loss.

Equity investments

All equity investments in the scope of Ind AS 109,''
Financial Instruments'', are measured at fair value. Equity
instruments which are held for trading and contingent
consideration has been recognised by an acquirer in a
business combination to which Ind AS 103,'' Business
Combinations'' applies, are classified as at FVTPL. For all
other equity instruments, the Company may make an
irrevocable election to present in OCI with subsequent
changes in the fair value.

The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, impairment gains
or losses and foreign exchange gains and losses, are
recognised in the OCI.

There is no recycling of the amounts from OCI to the
statement of profit and loss, even on sale of investment.

Equity instruments included within the FVTPL category
are measured at fair value with all changes recognised in
the statement of profit and loss.

De-recognition of financial assets

A financial asset is primarily de-recognised when the
rights to receive cash flows from the asset have expired
or the Company has transferred its rights to receive cash
flows from the asset.

r) Financial liabilities
Initial recognition

All financial liabilities are recognised initially at fair
value and transaction cost that is attributable to the
acquisition of the financial liabilities is also adjusted.
These liabilities are classified as amortised cost.

Subsequent measurement

These liabilities include borrowings, payables and
deposits. Subsequent to initial recognition, these
liabilities are measured at amortised cost using the
effective interest method.

De-recognition of financial liabilities

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

Offsetting of financial instruments

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

s) Financial guarantee contracts

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

t) Impairment of financial assets

The Company recognises loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss.
Loss allowance for trade receivables with no significant
financing component is measured at an amount equal
to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the
twelve month ECL, unless there has been a significant
increase in credit risk from initial recognition in which
case those are measured at lifetime ECL. The amount
of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date to the
amount that is required to be recognised is recognised
as an impairment gain or loss in the statement of profit
and loss.

u) Impairment of non-financial assets

At the end of each reporting period, the Company reviews
the carrying amounts of its tangible and intangible
assets to determine whether there is any indication
that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible

to estimate the recoverable amount of an individual
asset, the Company estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units
for which a reasonable and consistent allocation basis
can be identified.

Recoverable amount is the higher of fair value less
costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that
reflects current market assessments of the time value of
money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
is recognised immediately in the statement of profit and
loss, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as
a revaluation decrease.

Where an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been
determined had no impairment loss been recognised
for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately
in the statement of profit and loss, unless the relevant
asset is carried at a revalued amount, in which case
the reversal of the impairment loss is treated as a
revaluation increase.

v) Investment in subsidiaries and joint ventures

Investment in equity instruments of subsidiaries and
joint ventures are stated at cos as per Ind AS 27 ‘Separate
Financial Statements. Where the carrying amount of an
investment is greater than its estimated recoverable
amount, it is assessed for recoverability and in case
of permanent diminution, provision for impairment is
recorded in statement of Profit and Loss.

w) Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company is engaged in the business
of construction, development and sale of all or any part
of housing project which is the only reportable segment.
The Company operates primarily in India and there is no
other significant geographical segment.

x) Cash flow statement

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects

of transactions of a non-cash nature and item of income
or expenses associated with investing or financing cash
flows. The cash from operating, investing and financing
activities of the Company are segregated.

The loans from/to related parties are in nature of current
accounts. Accordingly, receipts and payments from/to
related parties have been shown on a net basis in the
cash flow statement.

y) Leases

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

Company as a lessee

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

Right-of-use assets

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

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

Lease liabilities

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

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

Short-term leases and leases of low-value assets

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

z) Share-based payments

Select employees of the Company receive remuneration
in the form of equity settled instruments, for rendering
services over a defined vesting period. Equity instruments
granted are measured by reference to the fair value of
the instrument at the date of grant. The expense is
recognised in the statement of profit and loss with a
corresponding increase to the share-based payment
reserve, a component of equity.

That cost, based on the estimated number of equity
instruments thatareexpectedtovest, will berecognisedover
the period during which the employee is required to provide
the service in exchange for the equity instruments.

aa) IPO transaction cost

Share issue expenses are adjusted against the Securities
Premium Account as permissible under Section 52 of the
Companies Act, 2013.

1.3 Significant judgements and estimates in applying
accounting policies

a) Revenue from contracts with customers - The Company

has applied judgements that significantly affect the

determination of the amount and timing of revenue from
contracts with customers.

b) Net realisable value of inventory - The determination
of net realisable value of inventory involves estimates
based on prevailing market conditions, current prices
and expected date of commencement and completion
of the project, the estimated future selling price, cost to
complete projects and selling cost.

c) Impairment of financial assets - At each balance sheet
date, based on historical default rates observed over
expected life, the management assesses the expected
credit loss on outstanding financial assets.

d) Impairment of Investments - At each balance sheet date,
the management assesses the indicators of impairment
of such investments. This requires assessment of several
external and internal factor including capitalisation rate,
key assumption used in discounted cash flow models
(such as revenue growth, unit price and discount rates) or
sales comparison method which may affect the carrying
value of investments in subsidiaries and joint ventures.

e) Contingent liabilities - At each balance sheet date
basis the management estimate, changes in facts and
legal aspects, the Company assesses the requirement
of provisions against the outstanding guarantees and
litigations. However, the actual future outcome may be
different from this estimate.

f) Recognition of deferred tax assets - The extent to which
deferred tax assets can be recognised is based on an
assessment of the probability of the future taxable
income against which the deferred tax assets can be
utilised.

g) Control over development management arrangements

- The Company has entered into certain agreements to
provide development management services for projects
with unrelated parties. Management has assessed its
involvement in such projects to assess control in such
projects in accordance with Ind AS 110, ‘Consolidated
Financial Statements''. As the Company does not have
the rights to make decisions around all the relevant
activities of the project''s principal purpose and as the
relevant decisions would require the consent of other
parties, the management has concluded that the
agreement gives the aforesaid parties control of the
arrangement and the Company is acting as an agent for
such parties and hence does not possess control over
the projects.