Accounting Policies of Suratwwala Business Group Ltd. Company

Mar 31, 2025

2. Material Accounting Policies

a. Statement of Compliance:

The Standalone Financial Statements are prepared
in accordance with Indian Accounting Standards
("Ind AS") as per the Companies (Indian Accounting
Standards) Rules, 2015 notified under the section 133
of the Companies Act, 2013 ("the Act") and the relevant
provisions and amendments, as applicable.

Accounting policies have been consistently applied
except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy
hitherto in use.

b. Basis of Preparation of Standalone Financial
Statements:

The Standalone Financial Statements have been
prepared on the going concern basis under historical
cost method and accrual basis of accounting except for
certain financial instruments that are measured at fair
values at the end of each reporting period, as explained
in the accounting policies below.

Historical cost is generally based on the fair value
of the considerations 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

in to account when pricing the asset or liability at the
measurement date. Fair value for measurement and/
or disclosure purposes in these Standalone Financial
Statements is determined on such a basis, except for
share-based payment transactions that are within the
scope of Ind AS 102, leasing transactions that are within
the scope of Ind AS 116, and measurements that have
some similarities to fair value but are not fair value, such
as net realizable value in Ind AS 2 or value in use in Ind
AS 36.

c. Use of Estimates

The preparation of Standalone Financial Statements
in conformity with Ind AS requires the management
of the Company to make judgement, estimates and
assumptions to be made that affect the reported
amounts of assets and liabilities on the date of
Standalone Financial Statements, disclosure of
contingent liabilities as at the date of the Standalone
Financial Statements, and the reported amounts of
income and expenses during the reported period.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimates are
revised, and future periods are affected.

d. Fair value measurement

The Company''s accounting policies and disclosures
require the measurement of fair values for financial and
non-financial assets and liabilities.

The Company has an established control framework
with respect to the measurement of fair values.
The management regularly reviews significant un¬
observable inputs and valuation adjustments for
financial reporting purposes, fair value measurements
are categorized 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 measurement in its entirety, which are described
as follows:

- Level 1 inputs are quoted prices (unadjusted) in
active markets for identical assets or liabilities that
the entity can access at the measurement date.

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

- Level 3 inputs are unobservable inputs for the asset
or liability.

e. Current versus Non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification. The Company classifies an asset as
current asset when:

- it expects to realize the asset, or intends to sell or
consume it, in its normal operating cycle;

- it holds the asset primarily for the purpose of
trading;

- it expects to realize the asset within twelve months
after the reporting period; or

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

All other assets are classified as non-current.

A liability is classified as current when -

- it expects to settle the liability, or intends to buy it,
in its normal operating cycle;

- it holds the liability primarily for the purpose of
trading;

- the liability is due to be settled within twelve
months after the reporting period; or

- it does not have an unconditional right to defer
settlement of the liability for at least twelve months
after the reporting period. Terms of a liability that
could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do
not affect its classification

The Company as required by Ind AS 1 presents assets and
liabilities in the Balance Sheet based on current/non-
current classification. Deferred tax assets and liabilities
are classified as non-current assets and liabilities.
The Company''s normal operating cycle in respect of
operations relating to the construction of real estate
projects may vary from project to project depending
upon the size of the project, type of development,
project complexities and related approvals. Operating
cycle for all completed projects business is based on

12-month period. Assets and liabilities have been
classified into current and non-current based on their
respective operating cycle.

f. Inventories

Inventory is valued at cost or net realizable value
whichever is lower. Inventory comprises of stock
of raw material, completed properties for sale and
properties under construction (Work in Progress). Work
in Progress comprises cost of land, development rights,
construction and development cost, cost of material,
services and other overheads related to projects under
construction.

Finished Stock is valued at cost or net realizable value
whichever is lower.

Net realizable Value is the estimated selling price in the
ordinary course of business less its estimated cost of
completion and the estimated cost necessary to make
the sale.

g. Cash & Cash Equivalent

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 an insignificant risk of changes in value.

h. Property, Plant & Equipment and Intangible assets
and Depreciation

Property, plant and equipment at their initial recognition
are stated at their cost of acquisition. On transition to
Ind AS, the Company had elected to measure all of its
property, plant and equipment at the previous GAAP
carrying value (deemed cost). The cost comprises
purchase price, borrowing cost, if capitalization criteria
are met and directly attributable cost of bringing the
asset to its working condition for the intended use. Any
trade discount and rebates are deducted in arriving at
the purchase price. Subsequent costs are included in
the asset''s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that
incremental future economic benefits associated with
the item will flow to the Company.

When significant parts of plant and equipment are
required to be replaced at intervals, the Company
depreciates them separately based on their specific
useful lives. Likewise, when a major inspection is
performed, its cost is recognised in the carrying

amount of the plant and equipment as a replacement
if the recognition criteria are satisfied. Any remaining
carrying amount of the cost of the previous inspection
is derecognised. All other repair and maintenance
costs are recognised in statement of profit and loss as
incurred. The Company identifies and determines cost
of each component/ part of the asset separately, if the
component/ part have a cost which is significant to the
total cost of the asset and has useful life that is materially
different from that of the remaining asset.

Property, Plant & Equipment and Intangible assets
are measured at actual cost net of accumulated
depreciation/ amortization and net of accumulated
impairment.

The estimated useful lives and residual values of the
Property, Plant & Equipment and Intangible assets are
reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a
prospective basis.

i. Intangible Assets

Intangible assets acquired separately are measured on
initial recognition at cost. Intangible assets are carried at
cost less any accumulated amortization and impairment
losses.

The useful lives of intangible assets are assessed as
either finite or indefinite. Currently the company has
not identified any Intangible assets other than goodwill
to have indefinite life.

Intangible assets with finite lives are amortized over
the useful economic life. The useful economic life and
the amortization method for an intangible asset with
a finite useful life are reviewed at least at the end of
each reporting period. The amortization expense on
intangible assets with finite lives is recognized in the
Standalone Statement of Profit and Loss.

Gains or losses arising from de recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognized in the
Standalone Statement of Profit and Loss when the asset
is derecognized.

j. Revenue Recognition

• Revenue from Contracts with Customers

Revenue is recognized either at point of time or
over a period of time based on the conditions
in the contracts with customers. The Company
determines the performance obligations associated
with the contract with the customers at contract
inception and also determine whether they satisfy
the performance obligation over time or at a point
in time.

The Company satisfies the performance obligation
and recognizes revenue over time, if one of the
following criteria is met:

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

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

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

Revenue from real estate projects is recognized on
the Point in Time Method of accounting as per Ind
AS 115, when:

- The seller has transferred to the buyer all
significant risks and rewards of ownership and
the seller retains no effective control of the real
estate unit to a degree usually associated with
ownership.

- The seller has effectively handed over the
possession of the real estate unit to the buyer
forming part of the transaction.

- No significant uncertainty exists regarding the
amount of consideration that will be derived
from real estate unit sales; and

- It is not unreasonable to expect ultimate
collection of revenue from buyers.

The Company recognizes revenue for performance
obligation satisfied over time or point in time on the
basis of reasonably measurement of its progress
towards complete satisfaction of the performance
obligation.

The Company uses cost-based input method for
measuring progress for performance obligation
satisfied over time. Under this method, the
Company recognizes revenue in proportion to the
actual project cost incurred as against the total
estimated project cost.

In respect of contract with customers which do not
meet the criteria to recognize revenue over a period
of time, revenue is recognized at point in time with
respect to such contracts for sale of residential
and commercial units as and when the control is
passed on to the customers which is linked to the
application and receipt of occupancy certificate

Further, for projects executed through joint
development arrangements not being jointly
controlled operations, where in 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.

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
for the purpose of revenue recognition.

• Revenue from maintenance and other services

Facility charges, management charges, project
management fees, rental, hire charges, sub lease
and maintenance income are recognized on
accrual basis as per the terms and conditions of
relevant agreements.

• Revenue from sale of materials & services

Revenue is recognized at point in time with respect
to contracts for sale of Materials and services as and

when the control is passed on to the customers and
after satisfaction of [performance obligations.

• Rental Income

Rental income arising from leases is accounted
over the lease terms on straight line basis unless
there is another systematic basis which is more
representative of the time pattern of the lease.
Revenue from lease rentals is disclosed net of
indirect taxes, if any.

• Revenue from sale of Land

Revenue from sale of land and development rights
is recognized upon transfer of all significant risks
and rewards of ownership of such real estate/
property, as per the terms of the contracts entered
into with buyers, which generally coincides with
the firming of the sales contracts/agreements.
Revenue from sale of land and development rights
is only recognized when transfer of legal title to the
buyer is not a condition precedent for transfer of
significant risks and rewards of ownership to the
buyer.

• Other Income

Interest income is accounted on an accrual basis on
a time proportion basis.

Dividend income is recognized when the right to
receive is established.

k. Cost of Construction / Development

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

l. Advance Paid towards Land Procurement

Advances paid by the Company to the seller/
intermediary towards outright purchase of land is
recognized as land advance under other assets during

the course of obtaining clear and marketable title, free
from all encumbrances and transfer of legal title to the
Company, whereupon it is transferred to land stock
under inventories. Management is of the view that
these advances are given under normal trade practices
and are neither in the nature of loans nor advance in the
nature of loans.

m. Employee Benefits

Employee benefits include provident fund, gratuity and
compensated absences.

• Short-term employee benefits:

Employee benefits payable wholly within twelve
months of rendering the service are classified as
short-term employee benefits. The undiscounted
amount of short-term employee benefits expected
to be paid in exchange for the services rendered by
employees is recognized during the year.

• Post-employment benefits:

- Defined contribution plans:

Contributions to the provident fund, which is
defined contribution scheme, are recognized
as an employee benefit expense in the
statement of profit and loss in the period in
which the contribution is due. Contributions
are made in accordance with the rules of the
statute and are recognized as expenses when
employees render service entitling them to
the contributions.

- Defined benefit plans:

Gratuity:

The Company accounts its liability for future
gratuity benefits based on actuarial valuation,
as at the balance sheet date, determined
every year by an independent actuarial using
the projected unit credit method. Obligation
under the defined benefit plan is measured at
the present value of the estimated future cash
flows using a discount rate that is determined
by reference to the prevailing market yields at
the balance sheet date on government bonds.

For defined benefit retirement benefit plans,
the cost of providing benefits is determined

using the projected unit credit method,
with actuarial valuations being carried out
at the end of each annual reporting period.
Remeasurement, comprising actuarial gains
and losses, the effect of the changes to the
asset ceiling (if applicable) and the return
on plan assets (excluding net interest), is
reflected immediately in the balance sheet
with a charge or credit recognized in other
comprehensive income in the period in which
they occur. Remeasurement recognized in
other comprehensive income is reflected
immediately in retained earnings and is not
reclassified to profit or loss. Past service cost is
recognized in the Statement of profit or loss in
the period of a plan amendment. Net interest
is calculated by applying the discount rate at
the beginning of the period to the net defined
benefit liability or asset. Defined benefit costs
are categorized as follows:

- Service cost (including current service
cost, past service cost, as well as gains and
losses on curtailments and settlements);

- Net interest expense or income; and

- Remeasurement

The Company presents the first two
components of defined benefit costs in
statement of profit or loss in the line item
''Employee benefits expense''. Curtailment
gains and losses are accounted for as past
service costs. The retirement benefit obligation
recognized in the balance sheet represents
the actual deficit or surplus in the Company''s
defined benefit plans. Any surplus resulting
from this calculation is limited to the present
value of any economic benefits available in the
form of refunds from the plans or reductions in
future contributions to the plans.

A liability for a termination benefit is recognized
at the earlier of when the entity can no longer
withdraw the offer of the termination benefit
and when the entity recognizes any related
restructuring costs.

n. Borrowing Cost

Borrowing costs that are directly attributable to real

estate project development activities are inventorized
/ capitalized as part of project cost.

Borrowing costs are inventorised / capitalized as part
of project cost when the activities that are necessary to
prepare the inventory / asset for its intended use or sale
are in progress. Borrowing costs are suspended from
inventorization / capitalization when development
work on the project is interrupted for extended periods
and there is no imminent certainty of recommencement
of work.

All other borrowing costs are expensed in the period
in which they occur. Borrowing costs consist of interest
and other costs that the Company incurs in connection
with the borrowing of funds.

o. Leases

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

• The Company as lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of an asset are classified as operating leases.
Rental income arising is accounted for on a straight¬
line basis over the lease terms. Contingent rents are
recognized as revenue in the period in which they are
earned.

• The Company as 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
recognizes right-of-use assets and lease liabilities at
the lease commencement date. The right-of-use assets
is initially measured at cost which includes the initial
amount of lease liabilities recognized, 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.

The lease liabilities are initially measured at the present
value of lease payments to be made over the lease
term, discounted using the Company''s incremental
borrowing rate. It is re-measured when there is a

change in future lease payments arising from a change
in an index or rate, if there is a change in the Company''s
estimate of the amount expected to be payable under
a residual value guarantee, or if the Company changes
its assessment of whether it will exercise a purchase,
extension or termination option. When the lease liability
is re-measured in this way, a corresponding adjustment
is made to the carrying amount of the right-of-use asset
or is recorded in the Statement of Profit and Loss.

The Company applies the short-term lease recognition
exemption to its short-term leases of assets (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). Lease payments on short-term leases
are recognized as expense on a straight-line basis over
the lease term.

p. Earnings Per Share

The Company reports basic and diluted earnings per
share in accordance with Ind AS-33 on ''Earnings per
Share'' Basic earnings per share is computed by dividing
the net profit or loss for the year by the weighted
average number of Equity shares outstanding during
the year.

Diluted earnings per share is computed by dividing the
net profit or loss for the year by the weighted average
number of equity shares outstanding during the year
as adjusted for the effects of all diluted potential equity
shares except where the results are anti-dilutive.

The weighted average number of equity shares
outstanding during the period is adjusted for events as
bonus issue, bonus element in a rights issue, share split,
and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding,
without a corresponding change in resources.

q. Current and Deferred Taxes
Current Tax

Tax expense comprises of current tax and deferred tax.
Current tax is measured at the amount expected to be
paid to/ recovered from the tax authorities, based on
estimated tax liability computed after taking credit for
allowances and exemption in accordance with the local
tax laws existing in the respective countries.

Deferred Tax

Deferred income tax is recognized using the balance
sheet approach. Deferred income tax assets and
liabilities are recognized for deductible and taxable
temporary differences arising between the tax base
of assets and liabilities and their carrying amount for
financial reporting purpose.

Deferred income tax assets are recognized to the extent
that it is probable that taxable profit will be available
against which the deductible temporary differences
and the carry forward of unused tax credits and unused
tax losses can be utilised.

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

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

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

Deferred tax assets and liabilities are offset only if:

- The Company has a legally enforceable right to set
offcurrent tax assets against current tax liabilities;
and

- The deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same
taxation authority on the same taxable entity.

Current and deferred tax for the year:

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

r. Impairment

• Financial assets (other than at fair value)

The Company assesses at each date of the balance
sheet whether a financial asset or a Company of
financial assets is impaired.

Ind AS 109 requires expected credit losses to
be measured through a loss allowance. The
Company recognizes life time expected losses for
all contract assets and / or all trade receivables that
do not constitute a financing transaction. For all
other financial assets, expected credit losses are
measured at an amount equal to the 12 month
expected credit losses or at an amount equal to the
lifetime expected credit losses if the credit risk on
the financial asset has increased significantly since
initial recognition.

• Non-financial assets

Property, Plant & Equipment and Intangible
assets (PPE&IA)

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

Impairment losses are recognized in the statement
of profit and loss. After impairment, depreciation
is provided on the revised carrying amount of
the asset over its remaining useful life. 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 recognized for the asset (or
cash-generating unit) in prior years. A reversal of
an impairment loss is recognized 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.

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Mar 31, 2024

2. Material Accounting Policies

a. Statement of Compliance:

The Standalone Financial Statements are prepared in accordance with Indian Accounting Standards ("Ind AS") as per the Companies (Indian Accounting Standards) Rules, 2015 notified under the section 133 of the Companies Act, 2013 ("the Act") and the relevant provisions and amendments, as applicable.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b. Basis of Preparation of Standalone Financial Statements:

The Standalone Financial Statements have been prepared on the going concern basis under historical cost method and accrual basis of accounting except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the considerations 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 in to account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these Standalone Financial Statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

c. Use of Estimates

The preparation of Standalone Financial Statements in conformity with Ind AS requires the management of the Company to make judgement, estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of Standalone Financial Statements, disclosure of contingent liabilities as at the date of the Standalone Financial Statements, and the reported amounts of income and expenses during the reported period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised, and future periods are affected.

d. Fair value measurement

The Company''s accounting policies and disclosures require the measurement of fair values for financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant unobservable inputs and valuation adjustments for financial reporting purposes, fair value measurements are categorized 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 measurement in its entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in activemarketsforidenticalassetsorliabilitiesthatthe entity can access at the measurement date.

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

- Level 3 inputs are unobservable inputs for the asset or liability.

e. Current versus Non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. The Company classifies an asset as current asset when:

- it expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

- it holds the asset primarily for the purpose of trading;

- it expects to realize the asset within twelve months after the reporting period; or

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

All other assets are classified as non-current.

A liability is classified as current when -

- it expects to settle the liability, or intends to buy it, in its normal operating cycle;

- it holds the liability primarily for the purpose of trading;

- the liability is due to be settled within twelve months after the reporting period; or

- it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification

The Company as required by Ind AS 1 presents assets and liabilities in the Balance Sheet based on current/non-current classification. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The Company''s normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects business is based on 12-month period. Assets and liabilities have been classified into current and non-current based on their respective operating cycle.

f. Inventories

Inventory is valued at cost or net realizable value whichever is lower. Inventory comprises of stock of raw material, completed properties for sale and properties under construction (Work in Progress). Work in Progress comprises cost of land, development rights, construction and development cost, cost of material, services and other overheads related to projects under construction.

Net realizable Value is the estimated selling price in the ordinary course of business less its estimated cost of completion and the estimated cost necessary to make the sale.

g. Cash & Cash Equivalent

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 an insignificant risk of changes in value.

h. Property, Plant & Equipment and Intangible assets and Depreciation

Property, plant and equipment at their initial recognition are stated at their cost of acquisition. On transition to Ind AS, the Company had elected to measure all of its property, plant and equipment at the previous GAAP carrying value (deemed cost). The cost comprises purchase price, borrowing cost, if capitalization criteria

are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that incremental future economic benefits associated with the item will flow to the Company.

When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. Any remaining carrying amount of the cost of the previous inspection is derecognised. All other repair and maintenance costs are recognised in statement of profit and loss as incurred. The Company identifies and determines cost of each component/ part of the asset separately, if the component/ part have a cost which is significant to the total cost of the asset and has useful life that is materially different from that of the remaining asset.

Property, Plant & Equipment and Intangible assets are measured at actual cost net of accumulated depreciation/ amortization and net of accumulated impairment.

The estimated useful lives and residual values of the Property, Plant & Equipment and Intangible assets are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

i. Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets are carried at cost less any accumulated amortization and impairment losses.

The useful lives of intangible assets are assessed as either finite or indefinite. Currently the company has not identified any Intangible assets other than goodwill to have indefinite life.

Intangible assets with finite lives are amortized over the useful economic life. The useful economic life and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. The amortization expense on intangible assets with finite lives is recognized in the Standalone Statement of Profit and Loss.

Gains or losses arising from de recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Standalone Statement of Profit and Loss when the asset is derecognized.

j. Revenue Recognition

• Revenue from Contracts with Customers

Revenue from real estate projects is recognized on the Point in Time Method of accounting as per Ind AS 115, when:

- The seller has transferred to the buyer all significant risks and rewards of ownership and the seller retains no effective control of the real estate unit to a degree usually associated with ownership.

- The seller has effectively handed over the possession of the real estate unit to the buyer forming part of the transaction.

- No significant uncertainty exists regarding the amount of consideration that will be derived from real estate unit sales; and

- It is not unreasonable to expect ultimate collection of revenue from buyers.

Further, for projects executed through joint development arrangements not being jointly controlled operations, where in 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.

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 for the purpose of revenue recognition.

• Revenue from maintenance and other services

Facility charges, management charges, project management fees, rental, hire charges, sub lease and maintenance income are recognized on accrual basis as per the terms and conditions of relevant agreements.

• Revenue from sale of Land

Revenue from sale of land and development rights is recognized upon transfer of all significant risks and rewards of ownership of such real estate/ property, as per the terms of the contracts entered into with buyers, which generally coincides with the firming of the sales contracts/agreements.

Revenue from sale of land and development rights is only recognized when transfer of legal title to the buyer is not a condition precedent for transfer of significant risks and rewards of ownership to the buyer.

• Other Income

Interest income is accounted on an accrual basis on a time proportion basis. Dividend income is recognized when the right to receive is established.

k. Cost of Construction / Development

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

l. Advance Paid towards Land Procurement

Advances paid by the Company to the seller/ intermediary towards outright purchase of land is recognized as land advance under other assets during the course of obtaining clear and marketable title, free from all encumbrances and transfer of legal title to the Company, whereupon it is transferred to land stock under inventories. Management is of the view that these advances are given under normal trade practices and are neither in the nature of loans nor advance in the nature of loans.

m. Employee Benefits

Employee benefits include provident fund, gratuity and compensated absences.

• Short-term employee benefits:

Employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the year.

• Post-employment benefits:

- Defined contribution plans:

Contributions to the provident fund, which is defined contribution scheme, are recognized as an employee benefit expense in the statement of profit and loss in the period in which the contribution is due. Contributions are made in accordance with the rules of the statute and are recognized as expenses when employees render service entitling them to the contributions.

- Defined benefit plans:

Gratuity:

The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the balance sheet date, determined every year by an independent actuarial using the projected unit credit method. Obligation under the defined benefit plan is measured at the present value of the estimated future cash flows using a discount rate that is determined by reference to the prevailing market yields at the balance sheet date on government bonds.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognized in the Statement of profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:

- Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

- Net interest expense or income; and

- Remeasurement

The Company presents the first two components of defined benefit costs in statement of profit or loss in the line item ''Employee benefits expense'' Curtailment gains and losses are accounted for as past service costs. The retirement benefit obligation recognized in the balance sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognized

at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.

n. Borrowing Cost

Borrowing costs that are directly attributable to real estate project development activities are inventorized/ capitalized as part of project cost.

Borrowing costs are inventorised / capitalized as part of project cost when the activities that are necessary to prepare the inventory / asset for its intended use or sale are in progress. Borrowing costs are suspended from inventorization / capitalization when development work on the project is interrupted for extended periods and there is no imminent certainty of recommencement of work.

All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.

o. Leases

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

• The Company as lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Contingent rents are recognized as revenue in the period in which they are earned.

• The Company as 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 recognizes right-of-use assets and lease liabilities at the lease

commencement date. The right-of-use assets is initially measured at cost which includes the initial amount of lease liabilities recognized, 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.

The lease liabilities are initially measured at the present value of lease payments to be made over the lease term, discounted using the Company''s incremental borrowing rate. It is re-measured when there is a change in future lease payments arising

from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in the Statement of Profit and Loss.

The Company applies the short-term lease recognition exemption to its short-term leases of assets (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). Lease payments on short-term leases are recognized as expense on a straight-line basis over the lease term.

p. Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with Ind AS-33 on ''Earnings per Share'' Basic earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of Equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all diluted potential equity shares except where the results are anti-dilutive.

The weighted average number of equity shares outstanding during the period is adjusted for events as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

q. Current and Deferred Taxes Current Tax

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to/ recovered from the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the local tax laws existing in the respective countries.

Deferred Tax

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount for financial reporting purpose.

Deferred income tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

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

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

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

Deferred tax assets and liabilities are offset only if:

The Company has a legally enforceable right to set offcurrent tax assets against current tax liabilities; and

The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.

Current and deferred tax for the year:

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

r. Impairment

• Financial assets (other than at fair value)

The Company assesses at each date of the balance sheet whether a financial asset or a Company of financial assets is impaired.

Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognizes life time expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

• Non-financial assets

Property, Plant & Equipment and Intangible assets (PPE&IA)

The Company assesses at each reporting date whether there is an indication that an asset maybe impaired. If any indication exists, or when annual impairment testing for an asset is required, the

Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Company of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

Impairment losses are recognized in the statement of profit and loss. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. 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 recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized 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.

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Mar 31, 2023

"\. Corporate Information

Suratwwala Business Group Limited ("the Company") is a Company registered under the Companies Act, 1956. It was incorporated on 31^st January 2008. The Company is primarily engaged in business of construction of residential, commercial; IT Parks along with renting of immovable properties.

2. Significant Accounting PoliciesA. Statement of Compliance :

The financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015. Upto the year ended 31 March 2022, the company has prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006.These are the company''s first Ind AS financial statements . The date of transition to Ind AS is 1 April 2021. Refer Note XX for the details of first-time adoption of Ind AS by the Company.

B. Basis of Preparation of Financial Statements :

The financial statements have been prepared on the historical cost and accrual basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the considerations 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 betweenmarket 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 pricingthe 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, leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fairvalue but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorized 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 measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity canaccess at the measurement date;

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

• Level 3 inputs are unobservable inputs for the asset or liability.

C. Use of Estimates :

The preparation of financial statements requires the management of the company to make judgement, estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements, disclosure ofcontingent liabilities as at the date of the financial statements, and the reported amounts of income and expenses during the reported period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

D. Inventories:

Inventory comprises of stock of raw material, completed properties for sale and properties under construction (Workin Progress). Work In Progress comprises cost of land, development rights, construction and development cost, cost of material, services and other overheads related to projects under construction. Inventory is valued at cost or net realizablevalue whichever is lower.

E. Cash Flow Statement:

The Cash Flow statement is prepared by indirect method set out in Ind AS 7- "Cash Flow Statements" and present cash flows by operating, investing and financing activities of the Company.

F. Property, Plant & Equipment and Intangible assets :

Property, Plant & Equipment and Intangible assets are stated at actual cost less accumulated depreciation and net of impairment. The actual cost capitalised includes material cost, freight, installation cost, duties and taxes, eligible borrowing costs and other incidental expenses incurred during the construction / installation stage.

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residua lvalue. Depreciation/amortisation on Property, Plant & Equipment is charged based on written down value method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013.

The estimated useful lives and residual values of the Property, Plant & Equipment and Intangible assets are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

For transition to Ind AS, the Company has elected to continue with the carrying value of all the property, plant and equipment recognised asof 1 April 2021 (transition date) measured as per the previous GAAP and use that carrying valueas its deemed cost as of the transition date.

G. Revenue Recognition :

i. Revenue from Contracts with Customers

Revenue from real estate projects is recognised on the ''Completed Contract Method of accounting as per IND AS115, when: o the seller has transferred to the buyer all significant risks and rewards of ownership and the seller retains no effective control of the real estate to a degree usually associated with ownership; o The seller has effectively handed over possession of the real estate unit to the buyer forming part of the transaction; o No significant uncertainty exists regarding the amountof consideration that will be derived from real estate sales;and o It is not unreasonable to expect ultimate collection of revenue from buyers.

ii. In case of joint development projects, revenue is recognised to the extent of company''s percentage share of the underlying real estate development project.

iii. Facility charges, management charges, project management fees, rental, hire charges, sub lease and maintenanceincome are recognized on accrual basis as per the terms and conditions of relevant agreements.

iv. Interest income is accounted on accrual basis on a time proportion basis.

v. Dividend income is recognized when right to receive is established.

vi. Share of profit (Loss) from partnership firms/LLPs in which the Company is partner is recognized based on the financial information provided and confirmed by the respective firms.

H. Cost of Construction / Development :

Cost of Construction/Development (including cost of land) incurred is charged to the statement of profit and loss proportionate to project area sold. Costs incurred for projects which have not achieved reasonable level of developmentis carried over as construction work-in-progress.

I. Unbilled receivables :

Unbilled receivables represent revenue recognised as per the Note G ''Revenue Recognition'' above less amount due fromcustomers as per payment plans adopted by them.

J. Foreign Currency transactions :

Transactions in foreign currencies are recorded at the rates of exchange prevailing on the date of the transaction. Foreigncurrency monetary assets and liabilities are translated into rupees at the rate of exchange prevailing on the date of the Balance Sheet and the resulting gain/loss is recorded in the Statement of Profit and Loss. Exchange differences arising on settlement of transactions and translation of monetary items are recognised as income or expense in the year in which they arise.

K. Employee Benefits :

Retirement benefit costs and termination benefits:

Payments to defined contribution retirement benefit are recognized as an expense when employees have rendered service entitling them to the contributions.

For defined retirement benefit plans, the cost of providing is determined using the projected unit credit method forwhich actuarial valuations are being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or a credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• Net interest expense or income; and

• Remeasurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item ''Employeebenefits expense''. Curtailmentgains and losses are accounted for as past service costs.

Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the formof refunds from the plans or reductions on future contributions to the plans.

A liability for a termination benefit is recognized either when the entity can no longer withdraw the offer of the terminationbenefit or when the entity recognizes any related restructuring costs, whichever is earlier.

Short-term and other long-term employee benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries and annual leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognized in respect of other long-term employee benefits are measured at the present value of the estimatedfuture cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

L. Employee Stock Option Scheme :

Equity settled share based payments to employees are measured at fair value in accordance with Ind AS 102, share basedpayments. The fair value determined at the grant date of the share based payment is expensed over the vesting period, based on the groups estimate of equity instruments that will eventually vest, with a corresponding increase in equity.

M. 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 or sale, are added to the cost of thoseassets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

N. Leases:

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

i. The Company as lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Contingent rents are recognised as revenue in the period in which they are earned.

ii. The Company as 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 right-of-use assets and lease liabilities at the lease commencement date. The right-of-use assets is initially measured at cost which includes the initial 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.

The lease liabilities is initially measured at the present value of lease payments to be made over the lease term, discounted using the Company''s incremental borrowing rate. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in the Statement of Profit and Loss.

The Company applies the short-term lease recognition exemption to its shortterm leases of assets (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). Lease payments on short-term leases are recognised as expense on a straight-line basis over the lease term.

O. Earnings Per Share :

The Company reports basic and diluted earnings per share in accordance with Ind AS - 33 on ''Earnings per Share''. Basicearnings per share is computed by dividing the net profit or loss for the year by the weighted average number of Equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutedpotential equity shares except where the results are anti- dilutive

P. Current and Deferred Taxes

Current Tax:

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the local tax laws existing in the respective countries.

Deferred Tax:

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.

Deferred income tax asset are recognised to the extent that it is probable that taxable profit will be available against whichthe deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that itis no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

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

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

Current and deferred tax for the uear:

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

Q. Impairment:

(i) Financial assets (other than at fair value):

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired.

Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

(ii) Non-financial assets:

Property, Plant & Equipment and Intangible assets (PPE&IA):

At each Balance Sheet date, the Company reviews the carrying amounts of its PPE&IA to determine whether thereis any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher ofan asset''s fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the Statement of Profit and Loss as and when theyarise.

Investment in Subsidiaries:

The entire carrying amount of the investment is tested for impairment in accordance with Ind AS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costsof disposal) with its carrying amount .Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with Ind AS 36 to the extent that the recoverable amount of the investment subsequently increases.

R. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised when the Company has a present obligation as a result of past event and it is probable thanan outflow of resources will be required to settle the obligation, in respect of which the reliable estimate can be made.When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material) and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates.

Contingent liabilities and Contingent assets are not recognised in the financial statements.

S. Operating Cycle:

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

T. Financial Instruments:

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset orfinancial liability.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.

Effective interest method:

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Financial assets at amortised cost:

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financialasset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value:

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arisingon re-measurement recognised in profit or loss.

Financial liabilities and equity instruments :

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Financial liabilities are measured at amortised cost using the effective interest method.

Financial liabilities at FVTPL are stated at fair value, with gains and losses arising on remeasurement recognized in profitand loss account.

U. Significant management judgment in applying accounting policies and estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the related disclosures.

Significant management judgments

The following are significant management judgments in applying the accounting policies of the Company that have the most significant effect on the financial statements.

(i) Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.

(ii) Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

(iii) Classification of leases - The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset. The Company has also factored in overall time period of rent agreements to arrive at lease period to recognize rental income on straight-line basis.

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

Significant estimates

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be different.

(v) 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 receivables and advances.

(vi) Defined benefit obligation (DBO) - Management''s estimate of the DBO is based on a numberof critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

(vii) Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.

(viii) Useful lives of depreciable/ amortisable assets - Management reviews its estimate of the useful lives of depreciable/ amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain software, customer relationships, IT equipment and other plant and equipment.