Notes to Accounts of TARC Ltd.

Mar 31, 2025

o) Provisions, contingent assets and contingent
liabilities

Provisions are recognized 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. 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.

p) Onerous contracts

I f the Company has a contract that is onerous, the
present obligation under the contract is recognised
and measured ever, before a separate provision for
an onerous contract is established, the Company
recognises any impairment loss that has occurred on
assets dedicated to that contract.

An onerous contract is a contract under which the
unavoidable costs (i.e., the costs that the Company
cannot avoid because it has the contract) of meeting
the obligations under the contract exceed the
economic benefits expected to be received under it.
The unavoidable costs under a contract reflect the
least net cost of exiting from the contract, which is the

lower of the cost of fulfilling it and any compensation or
penalties arising from failure to fulfil it.

These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.

Contingent liability is disclosed for:

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

• 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.

Contingent assets are neither recognised nor disclosed
except when realisation of income is virtually certain,
related asset is disclosed.

q) 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
re-measurement 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.

The right-of-use assets are also subject to impairment.
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.

The Company''s lease liabilities are included in "other
financial liabilities

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.

Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards of ownership of
an asset are classified as operating leases. Rental income
from operating lease is recognised on a straight-line
basis over the term of the relevant lease. Initial direct
costs incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased
asset and recognised over the lease term on the same
basis as rental income. Contingent rents are recognised
as revenue in the period in which they are earned.
Fit-out rental income is recognised in the statement of
profit and loss on accrual basis.

Leases are classified as finance leases when substantially
all of the risks and rewards of ownership transfer from
the Company to the lessee. Amounts due from lessees
under finance leases are recorded as receivables at the
Company''s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect
a constant periodic rate of return on the net investment
outstanding in respect of the lease.

r) Financial instruments

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

1. Financial assets

Initial recognition and measurement
Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI)
and fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset''s
contractual cash flow characteristics and the
Company''s business model for managing them.
With the exception of trade receivables that do
not contain a significant financing component or
for which the Company has applied the practical
expedient, the Company initially measures a
financial asset at its fair value plus, in the case of
a financial asset not at fair value through profit or
loss, net of transaction costs. Trade receivables that
do not contain a significant financing component
or for which the Company has applied the practical
expedient are measured at the transaction price
determined under Ind AS 115.

In order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are
''solely payments of principal and interest (SPPI)'' on
the principal amount outstanding. This assessment
is referred to as the SPPI test and is performed at an
instrument level.

The Company''s business model for managing
financial assets refers to how it manages its financial
assets in order to generate cash flows. The business
model determines whether cash flows will result
from collecting contractual cash flows, selling the
financial assets or both.

Subsequent measurement

i. Financial assets carried at amortised cost - a
financial asset is measured at amortised cost
if both the following conditions are met:

• The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows; and

• Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortised cost using
the effective interest rate (EIR) method.

ii. Investments in equity instruments of
subsidiaries, joint ventures and associates
- Investments in equity instruments of
subsidiaries, joint ventures and associates are
accounted for at cost in accordance with Ind
AS 27 Separate Financial Statements.

i ii. I nvestments in other equity instruments -
Investments in equity instruments which are
held for trading are classified as at fair value
through profit or loss (FVTPL). For all other
equity instruments, the Company makes an
irrevocable choice upon initial recognition, on
an instrument by instrument basis, to classify
the same either as at fair value through
other comprehensive income (FVTOCI) or
fair value through profit or loss (FVTPL).
Amounts presented in other comprehensive
income are not subsequently transferred

to profit or loss. However, the Company
transfers the cumulative gain or loss within
equity. Dividends on such investments
are recognised in profit or loss unless the
dividend clearly represents a recovery of part
of the cost of the investment.

iv. Investments in mutual funds - Investments
in mutual funds are measured at fair value
through profit and loss (FVTPL).

v. Derivative instrument - The Company holds
derivative financial instruments to hedge its
foreign currency exposure for underlying
external commercial borrowings (''ECB'').
Derivative financial instruments has been
accounted for at FVTPL

De-recognition of financial assets

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from
the Company''s standalone balance sheet) when:

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

• The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a ''pass-through''
arrangement; and either (a) the company
has transferred substantially all the risks and
rewards of the asset, or (b) the Company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured
at the lower of the original carrying amount of the
asset and the maximum amount of consideration
that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss for financial
assets.

ECL is the weighted-average of difference between
all contractual cash flows that are due to the
Company in accordance with the contract and
all the cash flows that the Company expects to
receive, discounted at the original effective interest
rate, with the respective risks of default occurring
as the weights. When estimating the cash flows, the
Company is required to consider-

• All contractual terms of the financial assets
(including prepayment and extension) over
the expected life of the assets.

• Cash flows from the sale of collateral held or
other credit enhancements that are integral
to the contractual terms.

Trade Receivables

In respect of trade receivables, the Company
applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance
at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are the
expected credit losses that result from all possible
default events over the expected life of a financial
instrument.

Other financial assets

In respect of its other financial assets, the Company
assesses if the credit risk on those financial assets
has increased significantly since initial recognition.
If the credit risk has not increased significantly since
initial recognition, the Company measures the
loss allowance at an amount equal to 12-month
expected credit losses, else at an amount equal to
the lifetime expected credit losses.

When making this assessment, the Company uses
the change in the risk of a default occurring over
the expected life of the financial asset. To make
that assessment, the Company compares the risk
of a default occurring on the financial asset as at
the balance sheet date with the risk of a default
occurring on the financial asset as at the date of
initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant

increases in credit risk since initial recognition.
The Company assumes that the credit risk on
a financial asset has not increased significantly
since initial recognition if the financial asset is
determined to have low credit risk at the balance
sheet date.

2. Non- derivative financial liability

Initial recognition and measurement
Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company''s financial liabilities include trade
and other payables, security deposits, loans and
borrowings and other financial liabilities including
bank overdrafts and financial guarantee contracts.

Subsequent measurement
Subsequent to initial recognition, the measurement
of financial liabilities depends on their classification,
as described below:

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through
the EIR amortisation process. Amortised cost is
calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included as finance costs in the statement of profit
and loss.

Financial guarantee contracts
Financial guarantee contracts are those contracts
that require a payment to be made to reimburse
the holder for a loss it incurs because the specified
party fails to make a payment when due in
accordance with the terms of a debt instrument.
Financial guarantee contracts are recognized
as a financial liability at the time the guarantee
is issued 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 expected
loss allowance determined as per impairment
requirements of Ind-AS 109 and the amount
recognised less cumulative amortization.

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 or loss.

3. Reclassification of Financial instruments

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

4. 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) Fair value measurement

The Company measures financial instruments such
as derivative instruments etc at fair value at each
balance sheet date. 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. The fair value of an asset or a
liability is measured using the assumptions that market
participants would use when pricing the asset or liability,
assuming that market participants act in their economic
best interest. A fair value measurement of a non-financial
asset takes into account a market participant''s ability to
generate economic benefits by using the asset in its
highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the
use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

External valuers are involved for valuation of significant
assets, such as properties and unquoted financial
assets, and significant liabilities, such as contingent
consideration. Involvement of external valuers is decided
upon annually by the management. Valuers are selected
based on market knowledge, reputation, independence
and whether professional standards are maintained.
Fair value disclosure of Investment Properties are based
on management own assessment relying upon various
parameters.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.

This note summarises accounting policy for fair value.
Other fair value related disclosures are given in the
relevant notes.

• Disclosures for valuation methods, significant
estimates and assumptions

• Quantitative disclosures of fair value measurement
hierarchy

• Investment in unquoted equity shares

• Investment properties

• Financial instruments

t) Convertible instruments

Convertible instruments are separated into liability and
equity components based on the terms of the contract.
On issuance of the convertible instruments, the fair value
of the liability component is determined using a market
rate for an equivalent non-convertible instrument.
This amount is classified as a financial liability measured
at amortised cost (net of transaction costs) until it is
extinguished on conversion or redemption.

The remainder of the proceeds is allocated to the
conversion option that is recognised and included in
equity since conversion option meets Ind AS 32 criteria
for fixed to fixed classification. Transaction costs are
deducted from equity, net of associated income tax.
The carrying amount of the conversion option is not
remeasured in subsequent years.

Transaction costs are apportioned between the liability
and equity components of the convertible instruments
based on the allocation of proceeds to the liability and
equity components when the instruments are initially
recognised.

u) Non - current assets held for sale

The Company classifies non-current assets and disposal
groups as held for sale if their carrying amounts will
be recovered principally through a sale/ distribution
rather than through continuing use. Actions required
to complete the sale/ distribution should indicate that
it is unlikely that significant changes to the sale will be
made or that the decision to sell will be withdrawn.
Management must be committed to the sale expected
within one year from the date of classification.

For these purposes, sale transactions include exchanges
of non-current assets for other non-current assets when
the exchange has commercial substance. The criteria for
held for sale classification is regarded met only when the
assets or disposal group is available for immediate sale in
its present condition, subject only to terms that are usual
and customary for sales/ distribution of such assets (or
disposal groups), its sale is highly probable; and it will
genuinely be sold, not abandoned. The Company treats
sale of the asset or disposal group to be highly probable
when:

• The appropriate level of management is committed
to a plan to sell the asset,

• An active programme to locate a buyer and
complete the plan has been initiated,

• The asset (or disposal group) is being actively
marketed for sale at a price that is reasonable in
relation to its current fair value,

• The sale is expected to qualify for recognition as a
completed sale within one year from the date of
classification, and

• Actions required to complete the plan indicate that
it is unlikely that significant changes to the plan will
be made or that the plan will be withdrawn.

Non-current assets held for sale and disposal groups are
measured at the lower of their carrying amount and the
fair value less costs to sell. Assets and liabilities classified

as held for sale are presented separately in the balance
sheet.

Property, plant and equipment and intangible assets
once classified as held for sale to owners are not
depreciated or amortised.

v) Significant management judgements

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

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.

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.

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.

Determining the lease term of contracts with renewal
and termination options (Company as lessee)-
The Company determines the lease term as the
non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The Company
has several lease contracts that include extension and
termination options. The Company applies judgement
in evaluating whether it is reasonably certain whether
or not to exercise the option to renew or terminate
the lease. That is, it considers all relevant factors that
create an economic incentive for it to exercise either
the renewal or termination. After the commencement

date, the Company reassesses the lease term if there
is a significant event or change in circumstances that
is within its control and affects its ability to exercise or
not to exercise the option to renew or to terminate (e.g.,
construction of significant leasehold improvements or
significant customisation to the leased asset).

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.

Provisions - 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 contingent liabilities.
However the actual future outcome may be different
from this judgement.

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.

Significant estimates

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities, are described below. The Company based
its assumptions and estimates on parameters available
when the standalone financial statements were
prepared. Existing circumstances and assumptions
about future developments, however, may change due
to market changes or circumstances arising that are
beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

Net realizable 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. The Company also
involves specialist to perform valuations of inventories,
wherever required.

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 assets.

Valuation of investment property - Investment property
is stated at cost. However, as per Ind AS 40 there is a
requirement to disclose fair value as at the balance
sheet date. The Company has not engaged independent
valuation specialists to determine the fair value of its
investment property as at reporting date. The fair value
of the investment properties have been disclosed by
the management of the Company based upon its own
assessment and relying upon prevailing circle rates and
market values and also on the basis of valuation report
from IBBI approved registered valuer.

Impairment of Property plant equipment, Investment
properties and CWIP - Impairment exists when the
carrying value of an asset or cash generating unit
exceeds its recoverable amount, which is the higher
of its fair value less costs of disposal and its value in
use. The value in use calculation is based on a DCF
model. The cash flows are derived from the budgets.
The recoverable amount is sensitive to the discount rate
used for the DCF model as well as the expected future
cash-inflows and the growth rate used.

Defined benefit obligation (DBO) - Management''s
estimate of the DBO is based on a number of underlying
assumptions such as standard rates of inflation, 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.

Fair value measurement disclosures - 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.

Valuation of investment in subsidiaries, joint ventures
and associates - Investments in subsidiaries, joint
ventures and associates are carried at cost. 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, joint ventures and associates

Note no. 4.4 - Investments pledged as security for loan taken by Company/Subsidiary companies: [Refer note 15.2 ]

1 50,000 No. of Equity shares held by the Company in TARC Infrastructure Limited having book value of H 5.00 lakhs
has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

2 50,000 No. of Equity shares held by the Company in BBB Realty Limited having book value of H 5.00 lakhs has been
pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

3 50,000 No. of Equity shares held by the Company in Bolt Properties Limited having book value of H 5.00 lakhs has
been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

4 50,000 No. of Equity shares held by the Company in Elevator Promoters Limited having book value of H 5.00 lakhs
has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

5 50,000 No. of Equity shares held by the Company in Elevator Properties Limited having book value of H 5.00 lakhs has
been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

6 50,000 No. of Equity shares held by the Company in Fabulous Builders Limited having book value of H 5.00 lakhs has
been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

7 50,000 No. of Equity shares held by the Company in Gadget Builders Limited having book value of H 5.00 lakhs has
been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

8 50,000 No. of Equity shares held by the Company in Grand Buildtech Limited having book value of H 5.00 lakhs has
been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

9 50,000 No. of Equity shares held by the Company in Green View Buildwell Limited having book value of H 5.00 lakhs
has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

10 6,250 No. of Equity shares held by the Company in High Land Meadows Limited having book value of H 5005.00 lakhs
has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

11 50,000 No. of Equity shares held by the Company in Jubilant Software Services Limited having book value of H 5.00
lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

12 50,000 No. of Equity shares held by the Company in Kalinga Realtors Limited having book value of H 5.00 lakhs has
been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

13 50,000 No. of Equity shares held by the Company in Park Land Construction and Equipments Limited having book
value of H 5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship
Limited.

14 64,16,029 No. of Equity shares held by the Company in TARC Green Retreat Limited having book value of H 9979.51
lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

Accordingly, the Company has lodged its claim before HSIIDC and has not accepted the claim offered by HSIIDC .
The Hon''ble supreme court of India vide order dated 21 July, 2022 has directed to submit the dispute of claim to arbitraion
to a mutually agreed person and in event of no agreement , the arbitration to be referred to Delhi International Arbitration
Centre (DIAC) . The Company have paid due fee for arbitration to DIAC on February 21,2024 for arbitration and Arbitration
proceedings are pending. Final outcome of Arbitration proceedings are pending with DIAC . A sum of H 29,360.04 lakhs
(net) including apportionment of related finance costs of H 13211.91 lakhs being recoverable from HSIIDC have been shown
as "Other receivables" in Other financial Assets. In view of uncertainty on the time and amount of claim, no provision for
impairment in the amount recoverable have been made in books of accounts.

7.2 Other receivables of current nature includes recoverable from subsidiary company namely TARC Infrastructure
Limited , H 23,199.74 lakhs (Previous year H 23,199.74 lakhs) on account of sale of Property , Plant and Equipment
and from other subsidiary companies on account of corporate shared services amounting to Nil ( Previous year
H 118.53 lakhs) and one associate amounting to H 21.03 lakhs (previous year H 12.06 lakhs ) . [Refer note (34.5 (ix)
for details ]

9.2 Capital advances and Advances to Contractors comprise of advances of H589.28 lakhs (previous year H650.97 lakhs ) and
H 3088.08 lakh ( previous year H 435.38 lakh) respectively towards land , transferable development rights (''projects'') and
advances to vendors/ contractors. Having regard to the nature of business, these include amounts relating to projects that
could take a substantial period of time to conclude. Management has evaluated the status of these projects and is confident
of performance of obligations of the counter-parties. In view of the management, these advances are in accordance with
the normal trade practice and are not in the nature of loans or advance in the nature of loans.

9.3 Capital Advances given by the Company includes under litigation H 476. 85 lakhs (previous year H 458.35 lakhs). As the
management of the Company is quite hopeful that the Company will be able to get favourable judicial order in it''s favor
no provision for any kind of impairment in the value of these capital advances have been made in books of accounts, while
for Capital Advances under litigation where reccovery is not certain a provision for impairment has been made during the
previous year ended March 31,2024 . The Company got refund of H 50.00 lakhs given as capital advances, through legal
proceedings which were earlier in litigation during the previous year ended March 31,2024.

13.2 Right, preference and restrictions attached to shares

The Company has only one class of equity shares having a par value of H 2 each. Each holder of equity shares is entitled
to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the holders of equity
shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares held by the shareholders.

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividend, if
any, are recorded as a liability on the date of declaration by the Company''s Board of Directors.

13.3 The Company has not allotted shares for consideration other than cash except issue of 295096335 equity shares @ H 2/-
each to the shareholders of Anant Raj Limited in the financial year 2020-21 pursuant to demerger order passed by Hon''ble
NCLT Chandigarh during a period of five years immediately preceding the reporting date.

The Company has neither issued any bonus shares not bought back any shares during the period of five years immediately
preceeding the reporting date.

15.1 Disclosure for security against Borrowing and repayment term:
i. Issue of Debentures:

During the year ended March 31, 2023, the Company had issued at par 11,300 number of 6 % senior
secured, redeemable rated, listed non convertible debentures 2027 having face value of Rs 10,00,000 per
debenture along with 2000, 6% senior secured redeemable rated unlisted non- convertible debentures having
face value of Rs 10,00,000 per debenture on private placement basis , aggregating to Rs. 133,000.00 lakhs Series A
The above stated 11,300, 6% senior secured redeemable non convertible debentures are listed at BSE Limited w.e.f.
May 5, 2022 . These debentures are redeemable over a period of 5 years .

During the year ended March 31,2024, the Company had issued 1910 number of 6 % senior secured , redeemable
rated, unlisted non convertible debentures 2027 having face value of H 10,00,000 per debenture- series C,
aggregating to H 19,100 lakhs. Additionally the Company redeemed 2000, 6% senior secured redeemable rated
unlisted non- convertible debentures having face value of H 10,00,000 per debenture aggregating to Rs 200 crores.

During the year ended March 31, 2025, the Company has partially redeemed 6% Senior Secured Redeemable
rated listed and unlisted non convertible debentures 2027 aggregating to H 45,104.07 lakhs and H 9,688.09
lakhs respectively by face value redemption while number of debentures remaining same , accordingly the
face value of 11,300 number of 6% senior secured redeemable rated listed non convertible debentures have
come down to H 6,00,849 per debenture and of 1910 number of 6% senior secured redeemable rated
unlisted non- convertible debentures 2027 to H 4,92,770 per debenture as against H 10,00,000 per debenture.

Additionally, on April 7, 2025 , the Company issued 40,900 (Forty Thousand and Nine Hundred) Debentures of face value of
H 1,00,000 (Rupees One Lakh) each aggregating to H 40,900.00 lakhs on private placement basis to India Opportunities
Fund SSA - Scheme I. Subsequently, on April 8, 2025 the Company redeemed 6% Senior Secured Redeemable
rated listed and unlisted non convertible debentures 2027 aggregating to H 67,895.93 lakhs and 9,411.91 lakhs
respectively ."

M/s Catalyst Trusteeship Limited is the debenture trustee for the said debenture issued. A debenture trust deed
dated April 28, 2022 and amended debenture trust deed dated September 22, 2023 has been executed between
the company TARC Limited and M/s Catalyst Trusteeship Limited

The Company have complied with all covenants of the debenture trust deed including mandatory security and has
not defaulted in repayment of debentures.

15.2 The aforesaid debentures are further secured by :

a) First ranking pledge over 100 % of the equity share capital of each obligator (other than company and personal

guarantor ) on a fully dilutive basis in Favor of the debenture trustee.

The details of investments held by the company in it''s subsidiaries and also investment held by subsidiaries in Step

Down Subsidiaries of the Company pledged as security are as follows:

Investments held by the Company in it''s Subsidiaries:

i 50,000 No. of Equity shares held by the Company in TARC Infrastructure Limited having book value of H 5.00 lakhs
has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

ii 50,000 No. of Equity shares held by the Company in BBB Realty Limited having book value of H 5.00 lakhs has
been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

iii 50,000 No. of Equity shares held by the Company in Bolt Properties Limited having book value of H 5.00 lakhs
has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

iv 50,000 No. of Equity shares held by the Company in Elevator Promoters Limited having book value of H 5.00 lakhs
has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

v 50,000 No. of Equity shares held by the Company in Elevator Properties Limited having book value of H5.00 lakhs
has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

vi 50,000 No. of Equity shares held by the Company in Fabulous Builders Limited having book value of H 5.00 lakhs
has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

vii 50,000 No. of Equity shares held by the Company in Gadget Builders Limited having book value of H 5.00 lakhs
has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

viii 50,000 No. of Equity shares held by the Company in Grand Buildtech Limited having book value of H 5.00 lakhs
has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

ix 50,000 No. of Equity shares held by the Company in Green View Buildwell Limited having book value of H 5.00
lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

x 6,250 No. of Equity shares held by the Company in High Land Meadows Limited having book value of H 5005.00
lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xi 50,000 No. of Equity shares held by the Company in Jubilant Software Services Limited having book value of H
5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship
Limited.

xii 50,000 No. of Equity shares held by the Company in Kalinga Realtors Limited having book value of H 5.00 lakhs
has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xiii 50,000 No. of Equity shares held by the Company in Park Land Construction and Equipments Limited having
book value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xiv 64,16,029 No. of Equity shares held by the Company in TARC Green Retreat Limited having book value of H
9979.51 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship
Limited.

xv 50,000 No. of Equity shares held by the Company in Townsend Construction and Equipments Limited having
book value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xvi 7,40,000 No. of Equity shares held by the Company in Travel Mate India Limited having book value of H 39.96
lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

Investments held by the Subsidiaries in Step Down Subsidiaries of The Company.

xvii 977 No. of Equity shares held by TARC Projects Limited in Moon Shine Entertainment Limited having book
value of H 6315.75 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xviii 50,000 No. of Equity shares held by High Land Meadows Limited in Capital Buildcon Limited having book value
of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship
Limited.

xix 50,000 No. of Equity shares held by High Land Meadows Limited in Krishna Buildtech Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xx 50,000 No. of Equity shares held by High Land Meadows Limited in Rising Realty Limited having book value of
H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship
Limited.

xxi 50,000 No. of Equity shares held by High Land Meadows Limited in Ankur Buildcon Limited having book value of
H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship
Limited.

xxii 50,000 No. of Equity shares held by Green View Buildwell Limited in Capital Buildtech Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xxiii 50,000 No. of Equity shares held by Green View Buildwell Limited in Carnation Buildtech Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xxiv 50,000 No. of Equity shares held by Green View Buildwell Limited in Gagan Buildtech Limited having book value
of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship
Limited.

xxv 50,000 No. of Equity shares held by Green View Buildwell Limited in Greatways Buildtech Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xxvi 50,000 No. of Equity shares held by Green View Buildwell Limited in Monarch Buildtech Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xxvii 50,000 No. of Equity shares held by Green View Buildwell Limited in Papillon Buildcon Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xxviii50,000 No. of Equity shares held by Green View Buildwell Limited in Papillon Buildtech Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xxix 50,000 No. of Equity shares held by Green View Buildwell Limited in West Land Buildcon Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

xxx 5,000 No. of Equity shares held by Green View Buildwell Limited in Oriental Promoters Limited having book
value of H 5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst
Trusteeship Limited.

35 Leases

The company has recognised a lease liability measured at the present value of remaining lease payments. The right of use
assets is recognised at its carrying amount as if the Standard had been applied since the Commencement of the lease but
discounted using lessee incremental borrowing rate. The principal portion of the lease payments and interest have been
disclosed under cash flow from financing activities. The weighted average incremental borrowing rate of 14.00% has been
applied to lease liability recognised in balance sheet at the date of initial application.

35.1 As a Lessee

The Company''s significant leasing arrangements are in respect of operating leases for Commercial premises.
Lease expenditure for operating leases is recognised on a straight-line basis over the period of lease. These leasing
arrangements are non-cancellable/ cancellable and are renewable on a periodic basis by mutual consent on mutually
accepted terms.

36 Segment reporting

An operating segment is one whose operating results are regularly reviewed by the entity''s chief operating decision maker
to make decisions about resources to be allocated to the segment and assess its performance. The Company has identified
the chief operating decision maker as its Managing Director. The Chief Operating Decision Maker reviews performance of
real estate business on an overall business.

As the Company has a single reportable segment, the segment wise disclosure requirements of Ind AS 108 on ''Operating
Segment'' is not applicable.

Investment in Subsidiaries, LLPs, Partnership firm and Associate is measured at cost and hence are not required to be
disclosed as per Ind AS 107 "Financial Instruments Disclosures". therefore, the same have been excluded from the above
table.

37.2 Fair values hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:

The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:

i) Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active
markets for identical assets or liabilities

ii) Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from
prices).

iii) Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable
market data (unobservable inputs).

Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported
by prices from observable current market transactions in the same instrument nor are they based on available market
data.

Trade receivables, cash & cash equivalents, other bank balances, loans, other current financial assets, trade payables
and other current financial liabilities: Approximate their carrying amounts largely due to short-term maturities of these
instruments.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent
limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates
presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale
transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective
reporting dates may be different from the amounts reported at each year end.

For short term financial assets and liabilities carried at amortized cost. The carrying value is reasonable approximation of
fair value.

The carrying amount of bank balances, Trade Receivable, Trade Payable, other financial assets / liabilities, loans, cash and
cash equivalents, borrowings are considered to be the same as their fair value due to their short term nature.

38 Financial risk management objectives

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include loans,
trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the
management of these risks. The Company''s senior management provides assurance that the Company''s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised below:

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Mar 31, 2024

o) Provisions, contingent assets and contingent liabilities

Provisions are recognized 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. 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.

p) Onerous contracts

If the Company has a contract that is onerous, the present obligation under the contract is recognised and measured ever, before a separate provision for an onerous contract is established, the Company recognises any impairment loss that has occurred on assets dedicated to that contract.

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it.

These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liability is disclosed for:

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

• 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.

Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain, related asset is disclosed.

q) 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 re-measurement 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.

The right-of-use assets are also subject to impairment. 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.

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

The Company''s lease liabilities are included in "other financial liabilities"

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.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. Fit-out rental income is recognised in the statement of profit and loss on accrual basis.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

r) Financial instruments

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

1. Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI) and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them. With the exception of trade receivables that do not contain a significant financing component

or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, net of transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets or both.

Subsequent measurement

i. Financial assets carried at amortised cost - a financial asset is measured at amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.

ii. Investments in equity instruments of subsidiaries, joint ventures and associates - Investments in equity instruments of subsidiaries, joint ventures and associates are accounted for at cost in accordance with Ind AS 27 Separate Financial Statements.

iii. Investments in other equity instruments -

Investments in equity instruments which are held for trading are classified as at fair value through profit or loss (FVTPL). For all other equity instruments, the Company makes an irrevocable choice upon initial recognition, on an instrument by instrument basis, to classify the same either as at fair value through other comprehensive income (FVTOCI) or fair value through profit or loss (FVTPL). Amounts presented in other comprehensive income are not subsequently transferred to profit

or loss. However, the Company transfers the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

iv. Investments in mutual funds - Investments in mutual funds are measured at fair value through profit and loss (FVTPL).

v. Derivative instrument - The Company holds derivative financial instruments to hedge its foreign currency exposure for underlying external commercial borrowings (''ECB''). Derivative financial instruments has been accounted for at FVTPL

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s standalone balance sheet) when:

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

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets.

ECL is the weighted-average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider-

• All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Trade Receivables

In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

Other financial assets

In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.

When making this assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.

2. Non- derivative financial liability

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, security deposits, loans and borrowings and other financial liabilities including bank overdrafts and financial guarantee contracts.

Subsequent measurement

Subsequent to initial recognition, the measurement of financial liabilities depends on their classification, as described below:

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified party fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued 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 expected loss allowance determined as per impairment requirements of Ind-AS 109 and the amount recognised less cumulative amortization.

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 or loss.

3. Reclassification of Financial instruments

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

4. 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) Fair value measurement

The Company measures financial instruments such as derivative instruments etc at fair value at each balance sheet date. 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. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company

determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved for valuation of significant assets, such as properties and unquoted financial assets, and significant liabilities, such as contingent consideration. Involvement of external valuers is decided upon annually by the management. Valuers are selected based on market knowledge, reputation, independence and whether professional standards are maintained. Fair value disclosure of Investment Properties are based on management own assessment relying upon various parameters.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

• Disclosures for valuation methods, significant estimates and assumptions

• Quantitative disclosures of fair value measurement hierarchy

• Investment in unquoted equity shares

• Investment properties

• Financial instruments

t) Convertible instruments

Convertible instruments are separated into liability and equity components based on the terms of the contract. On issuance of the convertible instruments, the fair value of the liability component is determined using a market rate for an equivalent non-convertible instrument. This amount is classified as a financial liability measured at amortised cost (net of transaction costs) until it is extinguished on conversion or redemption.

The remainder of the proceeds is allocated to the conversion option that is recognised and included in equity since conversion option meets Ind AS 32 criteria for fixed to fixed classification. Transaction costs are deducted from equity, net of associated income tax. The carrying amount of the conversion option is not remeasured in subsequent years.

Transaction costs are apportioned between the liability and equity components of the convertible instruments

based on the allocation of proceeds to the liability and equity components when the instruments are initially recognised.

j) Non - current assets held for sale

The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale/ distribution rather than through continuing use. Actions required to complete the sale/ distribution should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale expected within one year from the date of classification.

For these purposes, sale transactions include exchanges of non-current assets for other non-current assets when the exchange has commercial substance. The criteria for held for sale classification is regarded met only when the assets or disposal group is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales/ distribution of such assets (or disposal groups), its sale is highly probable; and it will genuinely be sold, not abandoned. The Company treats sale of the asset or disposal group to be highly probable when:

• The appropriate level of management is committed to a plan to sell the asset,

• An active programme to locate a buyer and complete the plan has been initiated,

• The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value,

• The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and

• Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet.

Property, plant and equipment and intangible assets once classified as held for sale to owners are not depreciated or amortised.

) Significant management judgements

The following are significant management judgements in applying the accounting policies of the Company

that have the most significant effect on the financial statements.

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.

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.

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.

Determining the lease term of contracts with renewal and termination options (Company as lessee)- The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

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.

Provisions - 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 contingent liabilities. However the actual future outcome may be different from this judgement.

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.

Significant estimates

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities, are described below. The Company based its assumptions and estimates on parameters available when the standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Net realizable 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. The Company also involves specialist to perform valuations of inventories, wherever required.

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 assets.

Valuation of investment property - Investment property is stated at cost. However, as per Ind AS 40 there is a requirement to disclose fair value as at the balance sheet date. The Company has not engaged independent valuation specialists to determine the fair value of its investment property as at reporting date. The fair value of the investment properties have been disclosed by the management of the Company based upon its own assessment and relying upon prevailing circle rates and market values and also on the basis of valuation report from IBBI approved registered valuer.

Impairment of Property plant equipment, Investment properties and CWIP - Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The value in use calculation is based on a DCF model. The cash flows are derived from the budgets. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used.

Defined benefit obligation (DBO) - Management''s estimate of the DBO is based on a number of underlying assumptions such as standard rates of inflation, 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.

Fair value measurement disclosures - 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.

Valuation of investment in subsidiaries, joint ventures and associates - Investments in subsidiaries, joint ventures and associates are carried at cost. 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, joint ventures and associates.

Note no. 4.3 - Investments pledged as security for loan taken by Company:

1 50,000 No. of Equity shares held by the Company in TARC Infrastructure Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

2 50,000 No. of Equity shares held by the Company in BBB Realty Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

3 50,000 No. of Equity shares held by the Company in Bolt Properties Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

4 50,000 No. of Equity shares held by the Company in Echo Buildtech Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

5 50,000 No. of Equity shares held by the Company in Elevator Promoters Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

6 50,000 No. of Equity shares held by the Company in Elevator Properties Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

7 50,000 No. of Equity shares held by the Company in Fabulous Builders Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

8 50,000 No. of Equity shares held by the Company in Gadget Builders Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

9 50,000 No. of Equity shares held by the Company in Grand Buildtech Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

10 50,000 No. of Equity shares held by the Company in Green View Buildwell Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

11 6,250 No. of Equity shares held by the Company in High Land Meadows Limited having book value of C5005.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

12 50,000 No. of Equity shares held by the Company in Jubilant Software Services Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

13 50,000 No. of Equity shares held by the Company in Kalinga Realtors Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

14 50,000 No. of Equity shares held by the Company in Park Land Construction and Equipments Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

15 64,16,029 No. of Equity shares held by the Company in TARC Green Retreat Limited having book value of C9979.51 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

16 5,36,566 No. of Equity shares held by the Company in TARC Projects Limited having book value of C24,296.94 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

17 50,000 No. of Equity shares held by the Company in Townsend Construction and Equipments Limited having book value of C5.00 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

18 7,40,000 No. of Equity shares held by the Company in Travel Mate India Limited having book value of C39.96 lakhs has been pledged with the debentureholder by creating a charge in favour of Catalyst Trusteeship Limited.

Note no. 4.4 - All investments in equity shares of subsidiaries, associates and partnership firm are stated at cost as per Ind AS

27 "Separate Financial Statements"

15.2 The aforesaid debentures are further secured by :

a) First ranking pledge over 100 % of the equity share capital of each obligator (other than company and personal guarantor)

on a fully dilutive basis in Favor of the debenture trustee.

The details of investments held by the company in it''s subsidiaries and also investment held by subsidiaries in Step Down

Subsidiaries of the Company pledged as security for such debentures are as follows:

Investments held by the Company in it''s Subsidiaries:

i 50,000 No. of Equity shares held by the Company in TARC Infrastructure Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

ii 50,000 No. of Equity shares held by the Company in BBB Realty Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

iii 50,000 No. of Equity shares held by the Company in Bolt Properties Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

iv 50,000 No. of Equity shares held by the Company in Echo Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

v 50,000 No. of Equity shares held by the Company in Elevator Promoters Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

vi 50,000 No. of Equity shares held by the Company in Elevator Properties Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

vii 50,000 No. of Equity shares held by the Company in Fabulous Builders Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

viii 50,000 No. of Equity shares held by the Company in Gadget Builders Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

ix 50,000 No. of Equity shares held by the Company in Grand Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

x 50,000 No. of Equity shares held by the Company in Green View Buildwell Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xi 6,250 No. of Equity shares held by the Company in High Land Meadows Limited having book value of C5005.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xii 50,000 No. of Equity shares held by the Company in Jubilant Software Services Limited having book value of C5.00 lakhs

has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xiii 50,000 No. of Equity shares held by the Company in Kalinga Realtors Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xiv 50,000 No. of Equity shares held by the Company in Park Land Construction and Equipments Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xv 64,16,029 No. of Equity shares held by the Company in TARC Green Retreat Limited having book value of C9979.51 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xvi 5,36,566 No. of Equity shares held by the Company in TARC Projects Limited having book value of C24,296.94 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xvii 50,000 No. of Equity shares held by the Company in Townsend Construction and Equipments Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xviii 7,40,000 No. of Equity shares held by the Company in Travel Mate India Limited having book value of C39.96 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

Investments held by the Subsidiaries in Step Down Subsidiaries of The Company.

xix 977 No. of Equity shares held by TARC Projects Limited in Moon Shine Entertainment Limited having book value of C6315.75 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xx 50,000 No. of Equity shares held by High Land Meadows Limited in Capital Buildcon Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxi 50,000 No. of Equity shares held by High Land Meadows Limited in Krishna Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxii 50,000 No. of Equity shares held by High Land Meadows Limited in Rising Realty Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxiii 50,000 No. of Equity shares held by High Land Meadows Limited in Ankur Buildcon Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxiv 50,000 No. of Equity shares held by Green View Buildwell Limited in Capital Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxv 50,000 No. of Equity shares held by Green View Buildwell Limited in Carnation Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxvi 50,000 No. of Equity shares held by Green View Buildwell Limited in Gagan Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxvii 50,000 No. of Equity shares held by Green View Buildwell Limited in Greatways Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxviii 50,000 No. of Equity shares held by Green View Buildwell Limited in Monarch Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxix 50,000 No. of Equity shares held by Green View Buildwell Limited in Papillon Buildcon Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxx 50,000 No. of Equity shares held by Green View Buildwell Limited in Papillon Buildtech Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxxi 50,000 No. of Equity shares held by Green View Buildwell Limited in West Land Buildcon Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxxii 5,000 No. of Equity shares held by Green View Buildwell Limited in Oriental Promoters Limited having book value of C5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

b) Irrevocable and unconditional demand guarantees from each guarantor in Favor of the Debenture Trustee namely:

37.2 Fair values hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques:

The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:

i) Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities

ii) Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

iii) Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs).

Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Trade receivables, cash & cash equivalents, other bank balances, loans, other current financial assets, trade payables and other current financial liabilities: Approximate their carrying amounts largely due to short-term maturities of these instruments.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including security deposits, loans to employees, loan to subsidiary companies and other financial instruments. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets.

i. Concentration of Loans

The Company''s exposure to credit risk for loan is presented as below. Loans represents loans to related parties for business purposes.

B. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

Management monitors rolling forecasts of the 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.

C. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ real estate risk. Financial instruments affected by market risk include loans and borrowings.

a. Currency Risk

Currency risk is not material, as the Company''s primary business activities are within India and does not have significant exposure in foreign currency.

b. Interest Rate Risk i. Liabilities

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. 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, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings keeping in view of current market scenario.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

48 Balances of financial assets and liabilities (current and non-current), Capital advance, Compensation receivables, EDC receivables, advances to contractors etc which were majorly acquired under scheme of arrangement involving demerger are subject to confirmation and reconciliation with the respective parties and have been carried in the financial statement as per books of accounts. The management of the Company has initiated reconciliation process and necessary adjustments in carrying value is being made as and when reconciliation is completed The management of the Company is hopeful that the accounts will be reconciled in due course of time and suitable adjustments shall be made as and when such reconciliation is completed.

49 Utilization of proceeds from Issue of debentures

During the year ended March 31, 2024, the Company has issued 1910 number of 6 % senior secured,unrated, unlisted, redeemable non convertible debenture having face value and issue price per security of C10,00,000 per debenture on private placement basis, aggregating to C19,100.00 lakhs.

50 Additional regulatory information required by Schedule III of Companies Act, 2013

i) Details of Benami property: There are no benami property being held by the company. No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

ii) Utilisation of borrowed funds and share premium:

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) 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

The Company has not received any fund from any person(s) or entity(ies), 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 Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

iii) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under section 2(87) of the Companies Act, 2013 read with companies (Restriction on number of layers) Rules, 2017.

iv) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

v) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

vi) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

vii) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

viii) The company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any tenure or period of repayment other than to subsidiaries as per detail given in Note 5 to Standalone Financial Statements.

ix) There are no charges or satisfaction of charges which are yet to be registered or satisfied with Registrar of Companies.

x) The Company has not been declared wilful defaulter by any bank or financial institution or any other lender.

xi) The company has not taken any working capital limits from banks or financial institutions on the basis of security of current assets.

xii) Audit Trail: The Company has used an accounting software for maintaining its books of account for the financial year ended March 31,2024 which has a feature of recording audit trail (edit log) facility and the same has been operating for all the relevant transactions recorded in the software. Although, the accounting software has inherent limitations, there were no instances of the audit trail feature been tempered.

51 Struck off Companies: The Company does not have any relationship with Companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956

52 The figures have been rounded off to the nearest lakhs or decimal thereof. The figure 0.00 wherever appearing in the financial statement represents figures less than C500.

53 The Previous year figures have been regrouped/ reclassified, wherever necessary, to make them comparable with current year figures.

The accompanying notes form an integral part of Standalone financial statements.

As per our report of even date.

For Doogar & Associates For and on behalf of Board of Directors of TARC Limited

Chartered Accountants

Firm Registration No. 000561N

Anil Sarin Amar Sarin

Chairman Managing Director & CEO

M. S. Agarwal DIN: 00016152 DIN: 00015937

Partner

Membership no. 086580 Nitin Kumar Goel Amit Narayan

Chief Financial Officer Company Secretary

Place : Gurugram ACS: 20094

Date: May 27, 2024

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Mar 31, 2023

1 The construction activities at one of the Company’s Residential Group Housing Project, named ''Madelia’ in Sector M-1A, Manesar, Gurugram, Haryana, assigned to Company upon demerger were suspended consequent upon pending litigation at the Hon’ble Supreme Court of India. On March 12, 2018, the Hon’ble Supreme Court of India has pronounced an order in the matter requiring the Company to file its claim for the subject Project before the Office of the Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC). Accordingly, the Company has lodged its claim before HSIIDC and is continuously pursuing HSIIDC for the settlement of its claim. A sum of D 29,360.04 lakhs (previous year 29,276.64 lakhs) including apportionment of related finance costs of D4,336.65 lakhs (previous year 4,336.65 lakhs) being recoverable from HSIIDC (net off of advances received from customers amounting to D 10,105.54 lakhs (previous year D 10,105.54 lakhs)) have been shown as Other receivables in Other financial Assets. No provision for impairment in the amount recoverable have been made in books of accounts, as the manangement is certain that the claim would be received.

2 Other receivables of current nature includes recoverable from subsidiary company namely Anant Raj Infrastructure Limited (Previously known as Anant Raj Infrastructure Private Limited), D23,199.74 lakhs (Previous year D23,199.74 lakhs) on account of sale of Property, Plant and Equipment and from other subsidiary companies on account of corporate shared services amounting to D2,228.19 lakhs (Previous year Nil) and one associate namely Niblic Greens Hospitality Private Limited amounting to D4.39 lakhs (previous year Nil). [Refer note 34.5 (xi) for details]

3 The company have accounted interest from subsidiaries amounting to D6031.68 Lakhs (previous year Nil) on account of discharge of it’s liabilities and is shown as Interest receivable - current. The amount of Interest recovered have been netted off from interest expense on such debentures in statement of Profit and loss.

13.2 Right, preference and restrictions attached to shares

The Company has only one class of equity shares having a par value of D2 each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividend, if any, are recorded as a liability on the date of declaration by the Company’s Board of Directors.

15.1 During the year ended March 31, 2023, the Company have issued at par 1 1,300 number of 6 % senior secured, redeemable rated, listed non convertible debentures 2027 having face value of D10,00,000 per debenture along with 2000 number of 6% senior secured redeemable rated unlisted non- convertible debentures having face value of D10,00,000 per debenture to India Opportunities Fund SSA scheme 1, aggregating to D1,33,000.00 lakhs. The above stated 1 1,300, 6% senior secured redeemable non convertible debentures are listed at BSE Limited. w.e.f. May 5, 2022. These debentures are redeemable over a period of 5 years.

M/s Catalyst Trusteeship Limited is the debenture trustee for the said debenture issued. A debenture trust deed dated April 28, 2022 has been executed between the Company TARC Limited and M/s Catalyst Trusteeship Limited

The Company have complied with all covenants of the debenture trust deed including mandatory security cover of 2x of the Debenture Trust Deed

15.2The aforesaid debentures are further secured by :

a) First ranking pledge over 100 % of the equity share capital of each obligator (other than company and personal guarantor) on a fully dilutive basis in Favor of the debenture trustee.

The details of investments held by the Company in it’s subsidiaries and also investment held by subsidiaries in Step Down Subsidiaries of the Company pledged as security are as follows:

Investments held by the Company in it’s Subsidiaries:

i 50,000 No. of Equity shares held by the Company in Anant Raj Infrastructure Limited (Formerly Known as Anant Raj Infrastructure Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

ii 50,000 No. of Equity shares held by the Company in BBB Realty Limited (Formerly known as BBB Realty Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

iii 50,000 No. of Equity shares held by the Company in Bolt Properties Limited (Formerly known as Bolt Properties Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

iv 50,000 No. of Equity shares held by the Company in Echo Buildtech Limited (Formerly Known as Echo Buildtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

v 50,000 No. of Equity shares held by the Company in Elevator Promoters Limited (Formerly Known as Elevator Promoters Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

vi 50,000 No. of Equity shares held by the Company in Elevator Properties Limited (Formerly Known as Elevator Properties Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

vii 50,000 No. of Equity shares held by the Company in Fabulous Builders Limited (Formerly Known as Fabulous Builders Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

viii 50,000 No. of Equity shares held by the Company in Gadget Builders Limited (Formerly Known as Gadget Builders Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

ix 50,000 No. of Equity shares held by the Company in Grand Buildtech Limited (Formerly Known as Grand Buildtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

x 50,000 No. of Equity shares held by the Company in Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xi 6,250 No. of Equity shares held by the Company in High Land Meadows Limited (Formerly Known as High Land Meadows Private Limited) having book value of H5005.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xii 50,000 No. of Equity shares held by the Company in Jubilant Software Services Limited (Formerly Known as Jubilant Software Services Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xiii 0,000 No. of Equity shares held by the Company in Kalinga Realtors Limited (Formerly Known as Kalinga Realtors Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xiv 50,000 No. of Equity shares held by the Company in Park Land Construction and Equipments Limited (Formerly Known as Park Land Construction and Equipments Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xv 64,16,029 No. of Equity shares held by the Company in TARC Green Retreat Limited (Formerly Known as TARC Green Retreat Private Limited) having book value of H9979.51 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xvi 5,36,566 No. of Equity shares held by the Company in TARC Projects Limited having book value of H24,296.94 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xvii 50,000 No. of Equity shares held by the Company in Townsend Construction and Equipments Limited (Formerly Known as Townsend Construction and Equipments Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xviii 7,40,000 No. of Equity shares held by the Company in Travel Mate India Limited (Formerly Known as Travel Mate India Private Limited) having book value of H39.96 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

Investments held by the Subsidiaries in Step Down Subsidiaries of The Company.

xix 977 No. of Equity shares held by TARC Projects Limited in Moon Shine Entertainment Limited (Formerly Known as Moon Shine Entertainment Private Limited) having book value of H6315.75 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xx 50,000 No. of Equity shares held by High Land Meadows Limited (Formerly Known as High Land Meadows Private Limited) in Capital Buildcon Limited (Formerly Known as Capital Buidcon Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxi 50,000 No. of Equity shares held by High Land Meadows Limited (Formerly Known as High Land Meadows Private Limited) in Krishna Buildtech Limited (Formerly Known as Krishna Buildtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxii 50,000 No. of Equity shares held by High Land Meadows Limited (Formerly Known as High Land Meadows Private Limited) in Rising Realty Limited (Formerly Known as Rising Realty Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxiii 50,000 No. of Equity shares held by High Land Meadows Limited (Formerly Known as High Land Meadows Private Limited) in Ankur Buildcon Limited (Formerly Known as Ankur Buildcon Private Limited having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxiv 50,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in Capital Buildtech Limited (Formerly Known as Capital Buidtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxv 50,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in Carnation Buildtech Limited (Formerly Known as Carnation Buildtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxvi 50,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in Gagan Buildtech Limited (Formerly Known as Gagan Buildtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxvii 50,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in Greatways Buildtech Limited (Formerly Known as Greatways Buildtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxviii50,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in Monarch Buildtech Limited (Formerly Known as Monarch Buildtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxix 50,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in Papillon Buildcon Limited (Formerly Known as Papillon Buildcon Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxx 50,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in Papillon Buildtech Limited (Formerly Known as Papillon Buildtech Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxxi 50,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in West Land Buildcon Limited (Formerly Known as West Land Buildcon Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

xxxii 5,000 No. of Equity shares held by Green View Buildwell Limited (Formerly Known as Green View Buildwell Private Limited) in Oriental Promoters Limited (Formerly Known as Oriental Promoters Private Limited) having book value of H5.00 lakhs has been pledged with the debenture holder by creating a charge in favour of Catalyst Trusteeship Limited.

35 Leases

The Ministry of Corporate Affairs (MCA) through Companies (Indian Accounting Standard) Amendment Rules 2019 and Companies (Indian Accounting Standard) Second Amendment Rules has notified Ind AS 116 ''leases’ which replaces existing lease standard, Ind AS 17 Leases and other Interpretation. Ind AS 116 sets out the principles for recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single on balance sheet lease accounting model for lessees.

The company has recognised a lease liability measured at the present value of remaining lease payments. The right of use assets is recognised at its carrying amount as if the Standard had been applied since the Commencement of the lease but discounted using lessee incremental borrowing rate. The principal portion of the lease payments and interest have been disclosed under cash flow from financing activities. The weighted average incremental borrowing rate of 14.00% has been applied to lease liability recognised in balance sheet at the date of initial application.

36 Segment reporting

An operating segment is one whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. The Company has identified the chief operating decision maker as its Managing Director. The Chief Operating Decision Maker reviews performance of real estate business on an overall business.

As the Company has a single reportable segment, the segment wise disclosure requirements of Ind AS 108 on ''Operating Segment'' is not applicable.

Investment in Subsidiaries, LLPs, Partnership firm and Associate is measured at cost and hence are not required to be disclosed as per Ind AS 107 Financial Instruments Disclosures. therefore, the same have been excluded from the above table.

37.2 Fair values hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques:

The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:

i) Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities

ii) Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

iii) Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs).

Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Trade receivables, cash & cash equivalents, other bank balances, loans, other current financial assets, trade payables and other current financial liabilities: Approximate their carrying amounts largely due to short-term maturities of these instruments.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.

ii) Receivables resulting from other than sale of properties: Credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively.

For short term financial assets and liabilities carried at amortized cost. The carrying value is reasonable approximation of fair value.

The carrying amount of bank balances, Trade Receivable, Trade Payable, other financial assets / liabilities, loans, cash and cash equivalents, borrowings are considered to be the same as their fair value due to their short term nature.

38 Financial risk management objectives

The Company’s principal financial liabilities comprise borrowings, debenture redemption, trade and other payables. The main purpose of these financial liabilities is to finance and support Company’s operations. The Company’s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management provides assurance that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including security deposits, loans to employees, loan to subsidiary companies and other financial instruments. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets.

The loans granted to subsidiary companies are less prone to credit risk as granted for acquiring real estate/investment properties.

ii. Concentration of trade receivables

i) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, therefore, substantially eliminating the Company’s credit risk in this respect.

B. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

Management monitors rolling forecasts of the 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.

C. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ real estate risk. Financial instruments affected by market risk include loans and borrowings.

a. Currency Risk

Currency risk is not material, as the Company’s primary business activities are within India and does not have significant exposure in foreign currency.

b. Interest Rate Risk i. Liabilities

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. 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, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings keeping in view of current market scenario.

Exposure to interest rate risk

ii. Assets

The company’s fixed deposits, interest bearing security deposits are carried at fixed rate. Therefore, the said assets are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

39 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

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 issue of debentures. The company has complied with all covenants of debenture issue as per Debenture Trust Deed

M/s Catalyst Trusteeship Limited has been appointed as debenture trustee for the benefit of debenture holders. The company has entered into debenture trust deed, inter alia, specifying terms and conditions of debentures and power, authorities and obligation of company and debenture trustees in respect of debentures. Breach of any covenant under the debenture trust deed is an event of default under schedule 8 of debenture trust deed.

41 Corporate Social Responsibility (CSR) Expenditure

The Gross amount required to be spent by the Company during the year ended March 31,2023 on CSR is Nil, as average net profit of the Company for the purpose of determining the spending on CSR activities computed in accordance with the provisions of section 135, excluding of items given under Rule 2 (1)(h) of Companies (CSR Policy) Rules 2014 read with section 198 of Companies Act 2013 is below the threshold limits.

43 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

44 The Company is engaged in the business of real estate development, which has been classified as infrastructure facilities, accordingly disclosures as required under section 186 (4) of Companies Act 2013 have not been given. The amount outstanding in respect of loans outstanding are given in note 46 and closing balance of investment are given in note no. 4 of Standalone Financial statement.

45 The company’s business activities which are primarily real estate development and related activities falls within a single reportable segment as the management of the Company views the entire business activities as real estate development. Accordingly, there are no additional disclosures to be furnished in accordance with the requirements of Ind As- 108 operating segment with respect to single reportable segment. Further the operations of the Company is domiciled in India and therefore there are no reportable geographical segment.

47 Disclosures as per clause 52 (4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015 :

The disclosure as per clause 52 (4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015 are as under.

Since clause 52 (4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015 became applicable to the Company effective financial year 2022 -2023, corresponding previous year figures are not given.

48 Balances of financial assets and liabilities (current and non current), Capital advance, Compensation receivables, EDC receivables, advances to contractors which were majorly acquired under scheme of arrangement involving demerger are subject to confirmation and reconciliation with the respective parties and have been carried in the financial statement as per books of accounts. The management of the Company have initiated reconciliation process and is a long drawn process. Necessary adjustment in carrying amount of these balances shall be made upon confirmation of such reconciliation process, however management of the Company have assessed that there is no likelihood of material changes in the carrying amount of these balances.

49 Utilization of proceeds from Issue of debentures

During the year ended March 31,2023, the Company has issued 1 1,300 number of 6 % senior secured, redeemable rated, listed non convertible debentures 2027 having face value and issue price per security of D10,00,000 per debenture and also 2000 Number of 6% senior secured redeemable rated unlisted non- convertible debentures having face value and issue price of D10,00,000 per debenture on private placement basis, aggregating to C133,000.00 lakhs. 1 1,300, 6% senior secured redeemable non convertible debentures got listed with BSE Limited on May 5, 2022. The details of utilization of proceeds from issue of debentures for the year ended March 31,2023 are as under :

50 Additional regulatory information required by Schedule III of Companies Act, 2013

i) Details of Benami property: There are no benami property being held by the Company. No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

ii) Utilisation of borrowed funds and share premium:

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) 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

The Company has not received any fund from any person(s) or entity(ies), 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 Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

iii) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under section 2(87) of the Companies Act, 2013 read with companies (Restriction on number of layers) Rules, 2017.

iv) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

v) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

vi) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

vii) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

viii) The company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any tenure or period of repayment other than to subsidiaries as per detail given in Note 5 to Standalone Financial Statements.

ix) There are no charges or satisfaction of charges which are yet to be registered or satisfied with Registrar of Companies.

x) The Company has not been declared wilful defaulter by any bank or financial institution or any other lender.

xi) The company has not taken any working capital limits from banks or financial institutions on the basis of security of current assets.

51Struck off Companies: The Company does not have any relationship with Companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 except as reported in Note no. 9 and 20 to Standalone Financial statements

52 Standards issued and amended but not yet effective

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules 2015 by issue of Companies (Indian Accounting standard) amendment Rules, 2023 applicable from April 1,2023 as below :-

IND AS 1 - Presentation of Financial Statements - The amendment requires Companies to disclose their material accounting policy rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The company does not expect this amendment to have any significant impact in its financial statement.

IND AS 12- Income Taxes- The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transaction that, on initial

recognition, give raise to equal taxable and deductible temporary differences. The company is evaluating the impact, if any, in its financial statements.

Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors- The amendments will help entities to distinguish between accounting policies and accounting estimates, the definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are monetary amounts in financial statement that are subject to measurement uncertainty. Entities develop accounting estimates if accounting policies require item in financial statement to be measured in a way that involves measurement uncertainty. The company does not expect this amendment to have any significant impact in its financial statements.

53 The figures have been rounded off to the nearest lakhs or decimal thereof. The figure 0.00 wherever appearing in the financial statement represents figures less than D500.

54 The Previous year figures have been regrouped/ reclassified, wherever necessary, to make them comparable with current year figures.

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Mar 31, 2021

i. Capitalised borrowing cost

No borrowing costs were capitalised during the current year and previous year.

ii. Property plant and equipment pledged as security

The Details of Property, plant and equipment pledged as security for loans taken by the Company are fully explained in Note 15.1.

iii. Assets not held in the name of Company

The legal title of properties comprising of land and building having gross value of Rs. 27,934.08 lakhs (net value Rs.27,934.08 lakhs) as at March 31,2021 acquired by the Company pursuant to the Scheme of Arrangement ("Scheme") approved by the National Company Law Tribunal, Chandigarh Bench, Chandigarh ("Tribunal") is yet to be transferred in name of the Company.

i. Capitalised borrowing cost

Rs. 331.02 lakhs (previous year Rs. 1,321.78 lakhs) borrowing costs were capitalised.

ii. Capitalised Other expenses to investment properties

Rs. 77.74 lakhs (previous year Rs. 327.13 lakhs) other related expenditure were capitalised to investment properties.

iii. Investment property pledged as security

The details of investment properties pledged as security by the company for loans taken are given in Note 15.1.

v. Fair value hierarchy and valuation technique

The fair value of investment properties consisting of land and Building have been done by Management based on its own assessment relying upon circle rate/prevailing market price and have not been done from registered valuer, accordingly disclosure as level 3 fair value hierchy as under:

Assets not held in the name of Company

The legal title of properties comprising of land and building having gross value of Rs. 55,613.19 lakhs (net value Rs. 54,112.66 lakhs) as at March 31,2021 acquired by the Company pursuant to the Scheme of Arrangement ("Scheme") approved by the National Company Law Tribunal, Chandigarh Bench, Chandigarh ("Tribunal") is yet to be transferred in name of the Company.

. Leasing arrangements

Certain investment properties are leased to tenants under long-term operating leases with monthly rental payments. Refer note 35 for details on future minimum lease rentals.

i. The Investment Properties consisting of Land and Building are situated in India and have been categorised as investment properties based on its usages.

Note no. 4.3 - Investment pledged as security for loan taken by Company/Subsidiary companies:

a. 5,36,566 No. of Equity shares held by the Company in TARC Projects Limited (formerly knowns as Anant Raj Projects Limited) having book value of Rs. 24,296.94 lakhs has been pledged with Indiabulls housing finance limited for loan taken by the Subsidiary company.

b. 50,000 No. of Equity shares held by the Company in Echo Buildtech Private Limited having book value of Rs. 5.00 lakhs has been pledged with L & T Finance Limited for loan taken by the Company.

c. 50,000 No. of Equity shares held by the Company in Grand Buildtech Private Limited having book value of Rs. 5.00 lakhs has been pledged with L & T Finance Limited for loan taken by the Company.

d. 50,000 No. of Equity shares held by the Company in Park Land Construction & Equipment Private Limited having book value of Rs. 5.00 lakhs has been pledged with L & T Finance Limited for loan taken by the Company.

e. 50,000 No. of Equity shares held by the Company in Jubilant Software Services Private Limited having book value of Rs. 5.00 lakhs has been pledged with L & T Finance Limited for loan taken by the Company.

f. 50,000 No. of Equity shares held by the Company in BBB Realty Private Limited having book value of Rs. 5.00 lakhs has been pledged with Hero Housing Finnace Limited for loan taken by the Company.

g. 50,000 No. of Equity shares held by the Company in Bolt Properties Private Limited having book value of Rs. 5.00 lakhs has been pledged with Hero Housing Finnace Limited for loan taken by the Company.

7.1 The construction activities at one of the Company''s Residential Group Housing Project, named ''Madelia'' in Sector M-1A, Manesar, Gurugram, Haryana, assigned to Company upon demerger were suspended consequent upon pending litigation at the Hon''ble Supreme Court of India. On March 12, 2018, the Hon''ble Supreme Court of India has pronounced an order in the matter requiring the Company to file its claim for the subject Project before the Office of the Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC). Accordingly, the Company has lodged its claim before HSIIDC and is continuously pursuing HSIIDC for the settlement of its claim. A sum of Rs. 38,291.00/- lakhs being recoverable from HSIIDC have been shown as "Other receivables" in Other financial Assets. Finance cost of Rs 3,233.67 lakhs have been transferred from finance cost to HSIIDC recoverable being related cost. Inview of uncertainty on the time and amount of claim, no provision for impairment in the amount recoverable have been made in books of accounts. The amount of Rs. 35,057.32 lakhs being recoverable from HSIIDC hitherto being carried as inventory in financial year 2019-2020 has been transferred from inventory to amount recoverable from HSIIDC and disclosed in Other non current financial assets.

8.2 The Company have recognised deferred tax asset on business losses carried forward, as the Company have certainty that there will be sufficient taxable income to realise such assets in future. Similarly the Company have recognised deferred tax assets on reversal of development income/profit recognised in earlier years upon adoption of IND AS 115, based on premise that profit of earlier years reversed will not be subject to income tax in future years as already taxed.

9.1 The balances of input tax recoverable from government authorities represent input receivable as per books of accounts of the Company and is not reconciled with GST portal as required credit transfer in FORM ITC-02 have not been given/filed by demerged entity representing input tax credit belonging to the Company.

13.2 Right, preference and restrictions attached to shares

The Company has only one class of equity shares having a par value of Rs. 2 each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividend, if any, are recorded as a liability on the date of declaration by the Company''s Board of Directors.

i. Term loan from Bank:

a. Term loan from Bank of Rs. 24,464.58 lakhs (Rs. 22,353.50 lakhs) are secured against, (i) extension of exclusive charge by way of equitable mortgage on Hauz Khas Property. (ii) Exclusive charge on property situated on Plot no. 3, Sector Tech Zone-2 Greater Noida Industrial Development Area, Uttar pradesh measuring 100840 Sq. mtrs. (iii) Exclusive charge on receivables including future receivables of property being plot no.3, at sector tech zone-2 area situated in Greater Noida Industrial Development Area, Uttar Pradesh measuring 100840 sq. mtrs. The aforesaid term loan are also additionally secured by way of unconditional and irrevocable personal guarantee of 2 (two) Director/Promoters of the Company. The aforesaid term loans will be repayable in 2 (two) years & 8 (eight) months in quarterly installments.

ii. Term loan from non banking financial institutions:

a. Term loan of Rs. Rs. 5,202.65 lakhs (Rs. 4,863.83 lakhs) is secured against, (i) exclusive charge by way of equitable mortgage of land admeasuring 11,925.99 sq. mtrs. located at Kapashera (New Delhi), a group housing project, along with present and future construction thereon, (ii) exclusive charge on all movable assets and current assets pertaining to the project, both present and future, including project receivables/future receipts and all other amounts/proceeds emanating from (a) insurance contracts, (b) other documents in relation to the project, (iii) exclusive charge on transferable development rights generating out of the project, (iv) exclusive charge on the Escrow Account and the Debt Service Reserve Account. (v) pledge of 100% paid up equity capital, including accretion thereof of land owning companies. The aforesaid term loan is also additionally secured by way of unconditional and irrevocable personal guarantees of 3 (three) promoters/directors of the Company. The aforesaid term loans will be repayable in 3 (three) years & 10 (ten) months in quarterly installments.

b. Term loan of Rs. Nil (Rs. 2,797.45 lakhs) is secured against, (i) exclusive charge by way of equitable mortgage of land admeasuring 3.2875 acres located at Village Shahoorpur, Hauz Khas (Chattarpur, New Delhi), consisting of 2.6875 Acres licensed a motel land and 0.60 Acres Agriculture land including the built up motel and banquet area and any future construction thereon, (ii) exclusive charge on all the borrowers'' movable assets, including but not limited to plant and machinery, spares and tools and accessories, present and future of the property, (iii) exclusive charge on transferable Development Rights and/ or Floor Space Index generating out of the property, (iv) exclusive charge on the entire property rentals and all other amounts received under the documents entered into with the customers by the borrowers and all insurance proceeds both present and future, (v) exclusive charge on escrow accounts and DSRA maintained for the property and monies deposited therein. The aforesaid term loans are also additionally secured by way of unconditional and irrevocable personal guarantees of 2 (two) promoters/directors of the Company.

c. Term loan of Rs. 9,386.45 lakhs (Rs.8,867.91 lakhs) is secured against, (i) exclusive charge by way of equitable mortgage on the property of land parcel measuring 7.375 acres located in village satbari, tehsil Hauz khas, Chattarpur, New Delhi (ii) exclusive charge on all the borrowers'' movable assets, including but not limited to plant and machinery, spares and tools and accessories, present and future of the property, (iii) exclusive charge on transferable Development Rights and/ or Floor Space Index generating out of the property, (iv) exclusive charge on the entire property rentals and all other amounts received under the documents entered into with the tenant by the borrower and all insurance proceeds both present and future, (v) exclusive charge by way of security of all rights, title, interest, claims, benefits, demands under all property documents, both present and future, (vi) exclusive charge on escrow account maintained for the property and monies deposited therein. The aforesaid term loans are also additionally secured by way of unconditional and irrevocable personal guarantees of 2 (two) promoters/directors of the Company. The aforesaid term loans will be repayable in 3(three) years & 4 (four) months in quarterly installments.

d. Term loan of Rs. 14,780.10 lakhs (Rs. 17,350.12 lakhs), is secured against, (i) exclusive charge by way of mortgage of land admeasuring 15.575 acres, located at (Gurugram, Haryana) together with all buildings and structures standing thereon, both present and future, in Group Housing Project (GHP), named Maceo, (ii) exclusive charge on all movable assets pertaining to the aforesaid GHP, (iii) exclusive charge on Transferable Development Rights generating out of the aforesaid GHP, (iv) exclusive charge on entire receivables of the aforesaid GHP, (v) exclusive charge/ assignment by way of security interest on all rights, title, interest, claims, benefits, demands and privileges under GHP''s documents, both present and future, (vi) exclusive charge on the escrow account, debt service reserve account and monies deposited therein, (vii) pledge of 100% equity shares of Jubilant Software Services Private Limited, the land owning Company,. The aforesaid term loan is also additionally secured by way of unconditional and irrevocable personal guarantees of 3 (three) promoters/directors of the Company. The aforesaid term loans will be repayable in 1 (one) years & 9 (nine) months in quarterly installments.

e. Term loan of Rs. Rs. 16,931.87 lakhs (Rs. 17,277.24 lakhs) is secured by way of, (i) exclusive charge 2 (two) commercial lands admeasuring 6.95 acres and 4.32 acres [subsequent to Demerger the land parcel admeasuring 4.32 acres is no more with the Company. The necessary changes in this regard in the loan agreement and related documents are in the process of incorporation.], located at Sector 63A (Gurugram, Haryana), along with all buildings and structures thereon, both present and future, (ii) exclusive charge over receivables from sold/unsold (present and future) inventory of the project, and (iii) escrow of receivables generated from the sold/unsold units of the project. The aforesaid loan is also additionally secured by way of personal guarantee of 2 (two) directors/promoters of the Company. The aforesaid term loans will be repayable in 1 (one) years & 8 (eight) months in quarterly installments.

Term loan of Rs 1,561.76 Lakhs (Nil) was extended by the lender by another Term Loan facility of Rs 30 cr on the same security towards part finance of the commercial plot development on 6.95 acres land is sector 63A, Gurgaon, Haryana.

f. Term loan of Rs 8,348.48 lakhs (Rs 8692.49 lakhs) is secured by way of extension of charge over land, admeasuring 7.23 acres located at Village Samalkha (Mehrauli, New Delhi), owned by TARC Green Retreat Pvt. Ltd. (formerly known as Green Retreat & Motels Pvt. Ltd.), (ii) Land situated at Jindpur, Delhi, (iii) personal guarantees of 2 directors / promoters of the company. The aforesaid term loans of Rs. 8348.48 lakhs will be repayable in 3 (three) years in monthly & quarterly installments.

g. Term loan of Rs 9,640.41 Lakhs (Rs 9847.92 lakhs) is secured by way of extension of charge over land admeasuring 7.23 acres located at Village Samalkha (Mehrauli, New Delhi), owned by Green Retreat & Motels Pvt. Ltd, (ii) personal guarantees of 2 directors / promoters of the company. The aforesaid term loans of Rs. 9640.41 lakhs will be repayable in 2 (two) years and 3 (three) months in monthly & quarterly installments.

h. Term loan of Rs 4,838.51 Lakhs (Rs 3970.21 lakhs) is secured by way of extension of charge over land admeasuring 7.23 acres located at Village Samalkha (Mehrauli, New Delhi), owned by Green Retreat & Motels Pvt. Ltd, (ii) Land situated at Jindpur, Delhi, (iii) personal guarantees of 2 directors / promoters of the company. The aforesaid terms loans of Rs. 4,838.51 lakhs will be repayable in 2 (two) years and 4 (four) months in monthly & quarterly installments.

iii. Term loan from housing finance companies:

a. Term loans of Rs. 382.65 lakhs (Rs. 1,211.90 lakhs) are secured against, (i) equitable mortgage of land admeasuring 40048.25 sq. meters located at Village Dhumaspur, (Gurugram, Haryana), owned by subsidiaries of the Company. The aforesaid term loans are further collaterally secured by way of personal guarantees of 3 (three) directors/promoters of the Company and corporate guarantees of land owing companies. The aforesaid term loans will be repayable in 1 (one) months in monthly installments.

b. Term loan of Rs. 1,789.68 lakhs (Rs. 1,770.22 lakhs) is secured by way of (i) equitable mortgage on Villas at Rishikesh, Uttarakhand held in the name of two subsidiaries of the Company and land parcel in Delhi held in the name a subsidiary company of the Company. The aforesaid term loan is also additionally secured by way of personal guarantees of 2 (two) directors of the Company, and corporate guarantees of all the aforesaid three subsidiaries of the Company. The aforesaid terms loans will be repayable in 5 (five) years in monthly & quarterly installments.

iv. Vehicle Loan

a. Vehicle loans of Rs. 40.32 lakhs (Rs. 95.35 lakhs) are secured against hypothecation of respective vehicles. The aforesaid vehicle loans are repayable on equated monthly installments over different periods till September, 2024.

v. Borrowings from related parties represent non-interest bearing unsecured borrowings obtained from its directors, and are repayable wherever stipulated or as mutually agreed. There is no overdue of principal due as at the year end.

vi. The details of investments pledged as security for loan taken are given in Note no. 4.3.

vii. There were delays/defaults in repayment of principal and interest during the year. The details of delay / default in repayment of Principal & Interest [other than extension given under moratorium by Reserve Bank of India/Government of India during lockdown period in financial year 2020-21] and outstanding as at balance sheet date are as under :-

viii. The Company has applied to YES Bank to restructure it''s credit facilities under the DCCO guidelines of RBI. A proposal in this regard was submitted to bank on March 30, 2021 followed by a detailed Information Memorandum on 28 May,2021.The proposal is under active consideration by bank and is at an advance stage of finalisation wherein the bank is proposing to carry out a TEV study of the proposal of the company. It is also under consideration that the cut off date which was proposed by the company as 31^st December,2020 to be changed to 30^th June,2021. Due interest including penal interest charged by bank of Rs. 1,716.50 lakhs and overdue prnincipal Rs. 3,187.50 lakhs part of aforesaid restructure proposal and is not included in details of defaults as above in point no. (vii).

The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 ("the Act") has been determined to the extent such parties have been identified by the company, on the basis of information and records available with them. This information has been relied upon by the auditors.

35 Leases

The Ministry of Corporate Affairs (MCA) through Companies (Indian Accounting Standard) Amendment Rules 2019 and Companies (Indian Accounting Standard) Second Amendment Rules has notified Ind AS 116 ''leases'' which replaces existing lease standard, Ind AS 17 Leases and other Interpretation. Ind AS 116 sets out the principles for recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single on balance sheet lease accounting model for lessees.

The company has adopted Ind AS 116 effective annual reporting period beginning from April 01, 2019 and applied the standard to its leases retrospectively.

On Transition date i.e. April 01, 2019, the company has recognised a lease liability measured at the present value of remaining lease payments. The right of use assets is recognised at its carrying amount as if the Standard had been applied since the Commencement of the lease but discounted using lessee incremental borrowing rate. The principal portion of the lease payments and interest have been disclosed under cash flow from financing activities. The weighted average incremental borrowing rate of 14.00% has been applied to lease liability recognised in balance sheet at the date of initial application.

36 Segment reporting

An operating segment is one whose operating results are regularly reviewed by the entity''s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. The Company has identified the chief operating decision maker as its Managing Director. The Chief Operating Decision Maker reviews performance of real estate business on an overall business.

As the Company has a single reportable segment, the segment wise disclosure requirements of Ind AS 108 on ''Operating Segment'' is not applicable. In compliance to the said standard, Entity-Wise disclosures are as under :

37.2 Fair values hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques: The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:

i) Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities

ii) Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

iii) Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs).

Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Trade receivables, cash & cash equivalents, other bank balances, loans, other current financial assets, trade payables and other current financial liabilities: Approximate their carrying amounts largely due to short-term maturities of these instruments.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.

38 Financial risk management objectives

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including security deposits, loans to employees, loan to subsidiary companies and other financial instruments. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets.

ii. Concentration of trade receivables

i) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, therefore, substantially eliminating the Company''s credit risk in this respect.

ii) Receivables resulting from other than sale of properties: Credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively.

B. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

Management monitors rolling forecasts of the 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.

C. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ real estate risk. Financial instruments affected by market risk include loans and borrowings.

a. Currency Risk

Currency risk is not material, as the Company''s primary business activities are within India and does not have significant exposure in foreign currency.

b. Interest Rate Risk i. Liabilities

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. 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, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings keeping in view of current market scenario.

39 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

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 except as reported in note no 15.

40 Corporate Social Responsibility (CSR) Expenditure

The Gross amount required to be spent by the Company during the year ended March 31,2021on CSR is Nil, as average net profit of the Company for the purpose of determining the spending on CSR activities computed in accordance with the provisions of section 135, excluding of items given under Rule 2 (1)(h) of Companies (CSR Policy) Rules 2014 read with section 198 of Companies Act 2013 is Nil and there is a loss.

42 The Company continues to monitor the impact of COVID 19 on its business including its impact on customers, supply chain etc. Due care has been exercised in concluding on significant accounting judgement and estimates including in relation to recoverability of receivables, inventory and other financial assets based on information available to date while preparing the Company''s financial statement for the year ended March 31,2021.

43 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

44 The Company is engaged in the business of real estate development, which has been classified as infrastructure facilities, accordingly disclosure as required under section 186 (4) of Companies Act 2013 have not been given.

46 Scheme of Arrangement

a. Pursuant to the Scheme of Arrangement (“Scheme") approved by the National Company Law Tribunal, Chandigarh Bench, Chandigarh ("Tribunal"), all assets and liabilities of Anant Raj Limited (“Demerged Company") relating to Project Division has been transferred to and vested in the Company at their respective book values as appearing in the books of account of the Demerged Company on the appointed date i.e. close of September 30,2018.

b. As per the Scheme approved by the Hon''ble National Company Law Tribunal, Chandigarh Bench on August 24, 2020, the appointed date is Close of the day on September 30, 2018 and the effective date is August 25, 2020, the date on which the certified copy of the Order was filed with the Registrar of the Company in accordance with the applicable provision of the Companies Act 2013.

c. The Company in pursuance of scheme of arrangement took over "MACEO" and "MADELIA" project as part of the project division for which revenue from sale of properties will arise.

Since appointed date i.e. close of September 30, 2018 (or beginning of October 1, 2018) the Company has applied Ind AS with regard to revenue recognition replacing Ind AS - 18 and Ind AS 11. In accordance with Ind AS 115, the company have opted to apply modified retrospective approach, accordingly profit reversed on Maceo and Madelia Project not completed / not offered for possession amounting to Rs.28,086.63 lakhs (net of deferred tax of Rs. 9,446.29 lakhs) have been adjusted against retained earnings transferred under scheme of arrangement as on 01-10-2018 by reversal of revenue of Rs.1,11,656.26 lakhs resulting in increase in advance from customers of Rs.29,384.97 lakhs and decrease in trade receivables of Rs.2,767.98 lakhs and decrease in unbilled receivable of Rs. 79,503.29 lakhs and increase in Project in progress of Rs.74,123.34 lakhs. The comparative Ind AS financial & information has been restated as if demerger had occurred from the beginning of the preceding period i.e 01-10-2018.

e. Pursuant to the Scheme of Arrangement, as approved by the Hon''ble National Company Law Tribunal, the existing share capital of the Company of Rs. 5.00 lakhs comprising of 2,50,000 equity shares of Rs. 2/- each was cancelled and 29,50,96,335 equity shares of Rs. 2/- each fully paid up, aggregating to Rs. 5901.93 lakhs were issued on October 08,2020 to the Shareholders of Anant Raj limited (Demerged company) as on the record date, in the ration of 1 (one) equity share of Rs. 2/- each of the Company for every 1 (one) equity share held in the Demerged company.

f. As the Appointed date of the Scheme was September 30, 2018, the Shares amounting to Rs. 5901.93 lakhs have been shown as “Pending allotment" as on the appointed date and also on March 31,2020.

g. To facilitate the allotment of the above said shares, the authorised share capital of the Company was increased from Rs. 5.00 lakhs to 8500.00 lakhs divided into 42,50,00,000 equity shares of Rs. 2/- each vide resolution passed by shareholders of the Company on August 20,2020.

h. The difference between the payment over the value of net assets of the of the Project Division of the Demerged company transferred/ vested in the Company (Resulting company) has been credited to Capital Reserve, which is treated as free reserve of the Company, as per the sanctioned scheme.Accordingly Rs. 1,68,927.73 lakhs have been taken to Capital Reserve and subsequently transferred to retained earning.

i. Balances of Financial Assets and Liabilities (current and non current), Capital Advance, Compensation receivables, EDC receivables, Input Tax Credit Receivables etc. which was acquired by the Company as per (c) above under scheme of Arrangement are subject to confirmation and reconciliation with the respective parties and have been carried in the financial statement as per said scheme and Books of Accounts. The Management of the Company have initiated reconciliation process.Necessary adjustment in carrying amount of these balances shall be made upon confirmation of such reconciliation process, however management of the Company have assessed that there is no likelyhood of material changes in the carrying amount of these balances.

47 Standards issued but not yet effective:

The Ministry of Corporate Affairs (MCA) notifies new Indian Accounting Standard or amendment there to. There is no such notification which would have been made applicable from 01.04.2021.

48 Events reported after the Balance sheet date:

The name of the Company has been changed to TARC Limited vide MCA certificate dated April 19, 2021 from Anant Raj Global Limited, Therefore, The financial statements as at March 31,2021 has been prepared in the name of TARC Limited (Formerly known as Anant Raj Global Limited).

49 The Previous year figures have been regrouped/ reclassified, wherever necessary, to make them comparable with current year figures.