- defined benefit plans - plan assets measured at
fair value;

Also, the fair values of financial instruments measured
at amortised cost are required to be disclosed in the
said standalone financial statements.

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

Fair value measurement:

Fair value is the price that would be received on
sale of an asset or paid to transfer a liability in an
orderly transaction between market participants at
the measurement date (that is, an exit price). It is a
market-based measurement, not an entity-specific
measurement. The fair value measurement is based on
the presumption that the transaction to sell the asset or
transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company. 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 is available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

Where required/appropriate, external valuers
are involved.

All financial assets and liabilities for which fair value
is measured or disclosed in the standalone financial
statements are categorised within the fair value
hierarchy established by Ind AS-113 that categorizes into
three levels, the inputs to valuation techniques used to
measure fair value. These are based on the degree to
which the inputs to the fair value measurements are

observable and the significance of the inputs to the fair
value measurement in its entirety:

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

Level 2: inputs are inputs other than quoted prices
included within Level 1 that are observable for the asset
or liability, either directly(i.e. as prices) or indirectly (i.e.
derived from prices).

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

The fair value hierarchy gives the highest priority
to quoted prices (unadjusted) in active markets for
identical assets or liabilities (Level 1 inputs) and the
lowest priority to unobservable inputs (Level 3 inputs).

For financial assets and liabilities maturing within one
year from the Balance Sheet date and which are not
carried at fair value, the carrying amount approximates
fair value due to the short maturity of these instruments.

The Company recognises transfers between levels
of fair value hierarchy at the end of reporting period
during which change has occurred.

c) Current non-current classification:

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

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

• Held primarily for the purpose of trading

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

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

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

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

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

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

Operating cycle for the business activities of the
Company covers the duration of the specific project/
contract/product line/service including the defect
liability period, wherever applicable and extends up
to the realisation of receivables (including retention
monies) within the agreed credit period normally
applicable to the respective projects/lines of business.

d) Functional and presentation currency

Items included in the standalone financial statements
of the Company are measured using the currency of the
primary economic environment in which the Company
operates (i.e. the "functional currency"). The standalone
financial statements are presented in Indian Rupee,
the national currency of India, which is the functional
currency of the Company.

e) Rounding of amounts:

All amounts disclosed in the standalone financial
statements and notes are in Indian Rupees in lakhs
rounded off to two decimal places as permitted
by Schedule III to the Companies Act, 2013, unless
otherwise stated.

1.2 Use of estimates

The preparation of standalone financial statements
in conformity with the recognition and measurement
principles of the Ind AS requires management to
make judgements, estimates and assumptions that
affect the application of the accounting policies and
the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the
date of the standalone financial statements, and the
reported amounts of revenues, expenses and the
results of operations during the reporting period.
Actual results could differ from those estimates. The
estimates and underlying assumptions are reviewed
on an ongoing basis. Such estimates & assumptions
are based on management evaluation of relevant facts
& circumstances as on date of standalone financial
statements. Revisions to accounting estimates are
recognised in the period in which the estimate is
revised if the revision affects only that period; they
are recognised in the period of the revision and
future periods if the revision affects both current and
future periods. The significant accounting judgements
made by management in applying the Company's
accounting policies and the key sources of estimation

uncertainty are disclosed in Note 56 to the standalone
financial statements.

1.3 Revenue recognition

Revenue from construction/project related activity is
recognised as follows:

Revenue from contracts with customers is recognised
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration to which the Company expects to be
entitled in exchange for those goods or services.

A single performance obligation is identified in the
construction projects that the Company engages
in, owing to the high degree of integration and
customisation of the various goods and services to
provide a combined output which is transferred to the
customer over time and not at a specific point in time
since the entity's performance creates or enhances as
asset (e.g., work in progress) that the customer controls
as the asset is created or enhanced.

With respect to the method for recognising revenue over
time (i.e. the method for measuring progress towards
complete satisfaction of a performance obligation),
the Company has established certain criteria that
are applied consistently for similar performance
obligations. In this regard, the method chosen by the
Company to measure the value of goods or services for
which control is transferred to the customer over time
is the output method based on surveys of performance
completed to date (or measured unit of work), according
to which revenue is recognised corresponding to the
units of work performed and on the basis of the price
allocated thereto. In cases where the work performed
till the reporting date has not reached the milestone
specified in the contract, the Company recognises
revenue only to the extent that it is highly probable that
the customer will acknowledge the same. This method
is applied as the progress of the work performed can
be measured during its performance on the basis of
the contract. Under this method, on a regular basis, the
work completed under each contract is measured and
the corresponding output is recognised as revenue.

For performance obligations in which control is not
transferred over time, control is transferred as at a
point in time at the transaction price.

Transaction price is the amount of consideration to
which the Company expects to be entitled in exchange
for transferring goods or service to a customer
excluding amounts collected on behalf of a third party
and is adjusted for variable considerations.

Contract modifications are accounted for when
additions, deletions or changes are approved either
to the scope or price or both. Goods/services added
that are not distinct are accounted for on a cumulative
catch-up basis. Goods / services that are distinct are
accounted for prospectively as a separate contract,
if the additional goods/services are priced at the
standalone selling price else as a termination of the
existing contract and creation of a new contract. In
cases where the additional work has been approved
but the corresponding change in price has not been
determined, the recognition of revenue is made for an
amount with respect to which it is highly probable that
a significant reversal will not occur.

If the consideration promised in a contract includes
a variable amount, this amount is recognised only to
the extent that it is highly probable that a significant
reversal in the amount recognised will not occur.

In some circumstances (for example, in the early
stages of a contract), an entity may not be able to
reasonably measure the outcome of a performance
obligation, but the entity expects to recover the costs
incurred in satisfying the performance obligation. In
those circumstances, the entity recognise revenue
only to the extent of the costs incurred until such time
that it can reasonably measure the outcome of the
performance obligation.

Contract costs

Costs related to work performed in projects are
recognised on an accrual basis. Costs incurred in
connection with the work performed are recognised as
an expense.

Provision for future losses

Provision for future losses are recognised as soon as
it becomes evident that the total costs expected to be
incurred in a contract exceed the total expected revenue
from that contract.

Contract balances

i) Contract assets

A contract asset is recognised for amount of work
done but pending billing/acknowledgement by
customer or amounts billed but payment is due
on completion of future performance obligation,
since it is conditionally receivable. The provision
for Expected Credit Loss on contract assets is made
on the same basis as financial assets as stated in
note No. 2.7.

ii) Trade receivables

A receivable represents the Company's right to
an amount of consideration that is unconditional
(i.e., only the passage of time is required before
payment of the consideration is due). Refer to
accounting policies of financial assets in section
Financial instruments - Initial recognition and
subsequent measurement.

iii) Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received advance payments from the
customer. If a customer pays consideration before
the Company transfers goods or services to the
customer, a contract liability is recognised when
the consideration received.

Revenue (other than sale)

Revenue (other than sale) is recognised as and when the
right to receive such income arises and it is probable
that the economic benefits will flow to the company and
the revenue can be reliably measured.

Claim on clients: Claims are accounted as income in the
period of receipt of arbitration award or acceptance
by client or evidence of acceptance received. Interest
awarded, being in the nature of additional compensation
under the terms of the contract, is accounted as other
revenue on receipt of favourable arbitration award.

Rental Income:

Rental Income from investment property is recognized
in statement of profit and loss on straight-line basis
over the term of the lease.

Interest Income

Interest income from financial assets is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can
be measured reliably. Interest income is accrued on a
time basis by reference to the principal outstanding and
at the effective interest rate (EIR) applicable, which is
the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset
to that asset's net carrying amount on initial recognition.

1.4 Property, plant and equipment (PPE)

Recognition:

Property, plant and equipment is stated at acquisition
cost net of accumulated depreciation and accumulated
impairment losses, if any except freehold non
mining land which is carried at cost less accumulated

impairment losses. Subsequent costs are included in
the asset's carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that
future economic benefits associated with the item will
flow to the Company and the cost of the item can be
measured reliably. All other repairs and maintenance
are charged to the Statement of Profit and Loss during
the period in which they are incurred.

Cost of an item of property, plant and equipment
comprises -

i. its purchase price, including import duties and
non -refundable purchase taxes (net of duty/ tax
credit availed), after deducting trade discounts
and rebates.

ii. any costs directly attributable to bringing the asset
to the location and condition necessary for it to
be capable of operating in the manner intended
by management.

iii. borrowing cost directly attributable to the
qualifying asset in accordance with accounting
policy on borrowing cost.

iv. t he costs of dismantling, removing the item and
restoring the site on which it is located.

PPE in the course of construction for production, supply
or administrative purposes are carried at cost, less any
recognised impairment loss. Cost includes direct costs,
related pre-operational expenses and for qualifying
assets applicable borrowing costs to be capitalised
in accordance with the Company's accounting policy.
Administrative, general overheads and other indirect
expenditure (including borrowing costs) incurred during
the project period which are not directly related to the
project nor are incidental thereto, are expensed.

Property, plant and equipment which are not ready
for intended use as on the date of Balance Sheet are
disclosed as "Capital work-in-progress". They are
classified to the appropriate categories of property,
plant and equipment when completed and ready for
intended use. Depreciation of these assets, on the same
basis as other items of PPE, commences when the assets
are ready for their intended use.

Capital work-in-progress are carried at cost, comprising
direct cost, related incidental expenses and attributable
borrowing cost, less impairment losses if any.

De-recognition:

An item of property, plant and equipment is derecognized
upon disposal or when no future economic benefits are
expected to arise from the continued use of asset. Any
gain or loss arising on the disposal or retirement of an

item of property, plant and equipment is determined
as the difference between the sales proceeds and the
carrying amount of the asset and is recognised in the
Statement of Profit and Loss.

When significant parts of an item of property, plant and
equipment have materially different useful lives, they
are accounted for as separate items (major components)
of property, plant and equipment. Such items, if any,
are depreciated separately.

Machinery spares which meets the criteria of PPE is
capitalized and depreciated over the useful life of the
respective asset.

Depreciation:

Depreciation on Property, Plant & Equipment's (other
than freehold land and capital work in progress) is
provided on the straight line method, based on their
respective estimate of useful lives, as given below.
Estimated useful lives of assets are determined based
on internal assessment estimated by the management
of the Company and supported by technical advice
wherever so required. The management believes that
useful lives currently used, which is as prescribed under
Schedule II to the Companies Act, 2013, fairly reflect
its estimate of the useful lives and residual values of
Property, Plant & Equipment's ( considered at 5% of the
original cost), though these lives in certain cases are
different from lives prescribed under Schedule II to the
Companies Act, 2013.

*Changes in the estimation of mining reserves where useful
lives of assets are limited to the life of the project, which in turn
is limited to the life of the probable and economic feasibility of
reserve, could impact the useful lives of the assets for charging
depreciation. Reserves at mines are estimated by Geology and
Mining Department, Nagpur Maharashtra.

**In respect of these assets, the management estimate of useful
lives, based on technical assessment is different than the useful
lives prescribed under Part C of Schedule II to the Companies
Act, 2013. However, based on internal technical evaluation and
external advice received, the management believes that the useful
lives as considered for arriving at the depreciation rates, best
represent the period over which management expect to use these
assets.

Assets individually costing D 5000 or less are fully
depreciated in the year of acquisition.

Depreciation of an asset begins when it is available for
use, i.e., when it is in the location and condition necessary
for it to be capable of operating in the manner intended
by management. Depreciation of an asset ceases at the
earlier of the date that the asset is classified as held for
sale (or included in a disposal group that is classified as
held for sale) in accordance with Ind AS 105 and the date
that the asset is derecognized. Therefore, depreciation
does not cease when the asset becomes idle or is retired
from active use unless the asset is fully depreciated.
Where the residual value of an asset equals or exceeds
its carrying amount, the depreciation charged would
be Nil until the residual value subsequently decreases
below the carrying amount.

Depreciation methods, useful lives and residual values
are reviewed periodically including at the end of each
financial year. Any changes in depreciation method,
useful lives and residual values are treated as a
change in accounting estimate and applied/adjusted
prospectively, if appropriate.

.5 Intangible assets
Recognition:

Identifiable intangible assets are recognised when
the Company controls the asset, it is probable that
future economic benefits attributed to the asset will
flow to the Company and the cost of the asset can be
reliably measured.

At initial recognition, the separately acquired intangible
assets with finite useful lives are recognised at cost of
acquisition. Following initial recognition, the intangible
assets are carried at cost less any accumulated

amortisation and accumulated impairment losses,
if any.

Intangible assets not ready for the intended use on the
date of the balance sheet are disclosed as 'intangible
assets under development'.

Derecognition:

Intangible assets are derecognised (eliminated from
the balance sheet) on disposal or when no future
economic benefits are expected from its use and
subsequent disposal.

Gains or losses arising from the retirement or disposal
of an intangible asset are determined as the difference
between the net disposal proceeds and the carrying
amount of the asset and should be recognised as
income or expense in the statement of profit and loss.

Amortisation:

Intangible assets are amortised on a straight line basis
over the estimated useful lives of respective assets
from the date when the asset are available for use, on
pro-rata basis. Estimated useful lives by major class of
finite-life intangible assets are as follows:

The amortisation period and the amortisation method
for finite-life intangible assets is reviewed at each
financial year end. Changes in the expected useful
life or the expected pattern of consumption of future
economic benefits embodied in the asset are considered
to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting
estimates and adjusted prospectively.

1.6 Investment Property

Properties including those under construction (land
or a building—or part of a building—or both) held (by
the owner or by the lessee under a finance lease) to
earn rentals or for capital appreciation or both, rather
than for: (a) use in the production or supply of goods
or services or for administrative purposes; or (b) sale
in the ordinary course of business; are classified as
investment property.

Investment properties are measured initially at cost,
including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost
less accumulated depreciation and accumulated
impairment loss, if any.

Costs include costs incurred initially to acquire an
investment property, being purchase price and any

directly attributable expenditure and costs incurred
subsequently to add to, replace part of, or service a
property. Costs of the day-to-day servicing of such
a property primarily being the cost of labour and
consumables, and may include the cost of minor parts
(the purpose of these expenditures whereof is often
described as for the 'repairs and maintenance' of the
property) are recognised in the Statement of profit and
loss as incurred.

The Company has developed a building (being Bus
Terminal and Depot and Commercial Complex at Kota)
for Rajasthan State Road Transport Corporation (RSRTC)
under an "Agreement to develop"/ License Agreement
on the land belonging to RSRTC under finance lease
arrangement. The expenditure (construction cost)
incurred has been shown in Balance Sheet under
the main head "Investment Property" and sub-head
Right of Use Assets (Building) meeting the definition
of Investment Property as defined in Ind As 40. The
Company has a right to sub-lease Right of Use Asset
(Commercial Complex). The primary lease period of
Commercial complex is 30 years which can be extended
for a further period of 10 years at the option of the
Company from the date of completion of the project.
Thereafter, the Commercial Complex will be handed
over to RSRTC. The Management expects to use the said
property in primary period of lease of 30 years.

Depreciation is recognised using straight line method so
as to write off the cost of the investment property less
their residual values over their estimated useful lives.

The Company depreciates building held as investment
property over the period of 30 years having zero
residual value.

Estimated useful life of the asset and residual value
thereof is determined based on internal assessment
estimated by the management of the Company and
supported by technical advice wherever so required.
Based on such assessment and advice, the management
believes that useful life and residual value currently
used is different from the useful life and residual value
prescribed in Schedule II to the Companies Act, 2013.
However based on internal technical evaluation and
external advice received, the management believes that
the estimated useful life and residual value is realistic
and reflect fair approximation of the period over which
the asset is likely to be used.

Depreciation method is reviewed at each financial year
end to reflect the expected pattern of consumption of the
future benefits embodied in the investment property.
The estimated useful life and residual values are also
reviewed at each financial year end and the effect of
any change in the estimates of useful life/residual value

is accounted on prospective basis. Freehold land and
properties under construction are not depreciated.

Though the Company measures investment property
using cost based measurement, the fair value of
investment property is disclosed in the notes. Fair
values are determined based on an annual evaluation
performed by an accredited external independentvaluer.

An investment property is derecognised upon disposal
or when the investment property is permanently
withdrawn from use/ expiry of lease term and no future
economic benefits are expected from the disposal.
Any gain or loss arising on derecognition of property is
recognised in the Statement of Profit and Loss in the
same period.

1.7 Financial instruments
Financial Assets:

Initial recognition and measurement:

Financial assets are recognised when the Company
becomes a party to the contractual provisions of
the instrument.

On initial recognition, a financial asset is recognised at
fair value, except for trade receivables which are initially
measured at transaction price. In case of financial
assets which are recognised at fair value through profit
and loss (FVTPL), its transaction costs are recognised
in the statement of profit and loss. In other cases, the
transaction costs are added to or deducted from the fair
value of the financial assets.

Financial assets are subsequently classified as
measured at

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

• fair value through profit and loss (FVTPL)

• fair value through other comprehensive income
(FVOCI).

Equity Instruments:

I nvestment in subsidiaries are measured at cost less
impairment losses, if any.

All investments in equity instruments in scope of Ind
AS 109 classified under financial assets are initially
measured at fair value.

If the equity investment is not held for trading, the
Company may, on initial recognition, irrevocably elect
to measure the same either at FVOCI or FVTPL. The
Company makes such election on an instrument-by¬
instrument basis. Equity Instruments which are held for
trading are classified as measured at FVTPL.

Fair value change on an equity instrument is recognised
as other income in the Statement of Profit and Loss
unless the Company has elected to measure such
instrument at FVOCI. Fair value changes excluding
dividends, on an equity instrument measured at FVOCI
are recognized in OCI. Amounts recognised in OCI are
not subsequently reclassified to the Statement of Profit
and Loss. Dividend income on the investments in equity
instruments are recognised as 'other income' in the
Statement of Profit and Loss.

The Company does not have any equity investments
designated at FVOCI.

Derecognition:

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire, or it transfers the contractual rights to
receive the cash flows from the asset.

Impairment of Financial Asset:

In accordance with Ind AS 109, the Company applies the
expected credit loss ("ECL") model for measurement and
recognition of impairment loss on financial assets and
credit risk exposures. The Company follows 'simplified
approach' for recognition of impairment loss allowance
on trade receivables or contract revenue receivables.
Simplified approach does not require the Company
to track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECL at
each reporting date, right from its initial recognition.
This involves use of provision matrix constructed on the
basis of historical credit loss experience and adjusted
for forward looking information. The expected credit
loss allowance is based on the ageing of the receivables
that are due and the rates used in the provision matrix.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then the

loans and borrowings and payables, net of directly
attributable transaction costs.

The fair value of a financial instrument at initial
recognition is normally the transaction price. If the
Company determines that the fair value at initial
recognition differs from the transaction price,
difference between the fair value at initial recognition
and the transaction price shall be recognized as gain
or loss unless it qualifies for recognition as an asset
or liability. This normally depends on the relationship
between the lender and borrower or the reason for
providing the loan. Accordingly in case of interest-free
loan from promoters to the Company, the difference
between the loan amount and its fair value is treated as
an equity contribution to the Company.

In accordance with Ind AS 113, the fair value of a
financial liability with a demand feature is not less than
the amount payable on demand, discounted from the
first date that the amount could be required to be paid.

The Company's financial liabilities include trade and
other payables and loans and borrowings including
bank overdrafts.

Subsequent measurement

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

Loans and borrowings

After initial recognition, interest-bearing loans and
borrowings are subsequentlymeasuredatamortisedcost
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, unless and to the extent capitalised as part of
costs of an asset.

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

Trade and other payables

For trade and other payables maturing within one year
from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of
these instruments.

Derecognition

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

Offsetting of Financial Instruments

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

1.8 Impairment of non-financial assets

The carrying amounts of non-financial assets other
than inventories are assessed at each reporting date to
ascertain whether there is any indication of impairment.
If any such indication exists then the asset's recoverable
amount is estimated. An impairment loss is recognised,
as an expense in the Statement of Profit and Loss, for the
amount by which the asset's carrying amount exceeds
its recoverable amount. The recoverable amount is the
higher of an asset's fair value less cost to sell and value
in use. Value in use is ascertained through discounting
of the estimated future cash flows using a discount rate
that reflects the current market assessments of the
time value of money and the risk specific to the assets.
For the purpose of assessing impairment, assets are
grouped at the lowest levels into cash generating units
for which there are separately identifiable cash flows.

Impairment losses recognised in prior years are reversed
when there is an indication that the impairment losses
recognised no longer exist or have decreased. Such
reversals are recognised as an increase in carrying
amounts of assets to the extent that it does not exceed
the carrying amounts that would have been determined
(net of amortization or depreciation) had no impairment
loss been recognised in previous years.

1.9 Borrowing costs

Borrowing costs comprises interest expense on
borrowings calculated using the effective interest
method and exchange differences arising from foreign
currency borrowings to the extent that they are
regarded as an adjustment to interest costs.

The effective interest method is a method of calculating
the amortised cost of a financial asset or a financial
liability and of allocating the interest income or interest
expense over the relevant period.

The effective interest rate (EIR) is the rate that exactly
discounts estimated future cash payments or receipts
through the expected life of the financial instrument or,
when appropriate, a shorter period to the net carrying
amount of the financial asset or financial liability. EIR
calculation does not include exchange differences.

Borrowing costs that are directly attributable to
the acquisition, construction or production of a
qualifying asset, which are assets that necessarily
take a substantial period of time to get ready for their
intended use or sale, are included in the cost of those
assets. Such borrowing costs are capitalised as part of
the cost of the asset when it is probable that they will
result in future economic benefits to the entity and the
costs can be measured reliably. Other borrowing costs
are recognised as an expense in the period in which
they are incurred.

The capitalisation of borrowing costs as part of the cost
of a qualifying asset commences when expenditure for
the asset is being incurred, borrowing costs are being
incurred and activities that are necessary to prepare the
asset for its intended use or sale are in progress.

Capitalisation of borrowing costs is suspended or
ceases when substantially all the activities necessary to
prepare the qualifying asset, if any, for its intended use
or sale are interrupted or completed.

Investment income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalisation.

1.10 Foreign currency transactions

The standalone financial statements are presented
in Indian Rupees (INR), the functional currency of the
Company. Items included in the standalone financial
statements of the Company are recorded using the
currency of the primary economic environment in which
the Company operates (the 'functional currency').

Foreign currency transactions are translated into the
functional currency using exchange rates at the date of
the transaction. Foreign exchange gains and losses from

settlement of these transactions and from translation
of monetary assets and liabilities at the reporting date
exchange rates are recognised in the Statement of Profit
and Loss.

Non-monetary assets and liabilities denominated in a
foreign currency and measured at historical cost are
translated at the exchange rate prevalent at the date
of transaction.

2.11 Leases

The determination of whether an arrangement is
(or contains) a lease is based on the substance of
the arrangement at the inception of the lease. The
arrangement is, or contains, a lease if fulfillment of the
arrangement is dependent on the use of a specific asset
or assets and the arrangement conveys a right to use
the asset or assets, even if that right is not explicitly
specified in an arrangement.

(a) Company as a Lessee

The Company's lease asset classes primarily
consist of leases for commercial complex, land
and buildings. The Company assesses whether
a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. To assess whether a contract
conveys the right to control the use of an identified
asset, the Company assesses whether: (i) the
contract involves the use of an identified asset (ii)
the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and (iii) the Company has the right to
direct the use of the asset.

The company recognises a right-of-use asset and
a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at
or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it
is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end
of the lease term. The estimated useful lives of
right-of-use assets are determined on the same
basis as those of property, plant and equipment.

In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted
for certain re-measurements of the lease liability.

The lease liability is initially measured at the
present value of the lease payments that are not
paid at the commencement date, discounted using
the interest rate implicit in the lease or, if that
rate cannot be readily determined, company's
incremental borrowing rate.

Generally, the company uses its incremental
borrowing rate as the discount rate.

Lease payments included in the measurement of
the lease liability comprise the following:

- Fixed payments, including in-substance
fixed payments;

- Variable lease payments that depend on an
index or a rate, initially measured using the
index or rate as at the commencement date;

- Amounts expected to be payable under a
residual value guarantee; and

- The exercise price under a purchase option
that the company is reasonably certain to
exercise, lease payments in an optional
renewal period if the company is reasonably
certain to exercise an extension option, and
penalties for early termination of a lease
unless the company is reasonably certain not
to terminate early.

The lease liability is subsequently remeasured
by increasing the carrying amount to reflect
interest on the lease liability, reducing the carrying
amount to reflect the lease payments made and
re-measuring the carrying amount to reflect
any reassessment or lease modifications or to
reflect revised in-substance fixed lease payments.
The company recognises the amount of the re¬
measurement of lease liability due to modification
as an adjustment to the right-of-use asset and
statement of profit and loss depending upon the
nature of modification. Where the carrying amount
of the right-of-use asset is reduced to zero and
there is a further reduction in the measurement
of the lease liability, the Company recognises any
remaining amount of the re-measurement in the
statement of profit and loss.

The company presents right-of-use assets and
lease liabilities separately in balance sheet.

Short-term leases and leases of low-value assets

The company has elected not to recognise right-
of-use assets and lease liabilities for short term
leases that have a lease term of 12 months or less
and low value leases. The company recognises
the lease payments associated with these leases
as an expense on a straight-line basis over the
lease term.

(b) Company as a Lessor

Lease for which the Company is a lessor is classified
as a finance or operating lease. Whenever the
terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee, the
contract is classified as a finance lease. All other
leases are classified as operating leases.

Finance lease

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.

Operating lease

Rental income from operating sub lease of Right of
Use (ROU) Asset is recognised on a straight-line basis
over the term of the relevant lease unless either
another systematic basis is more representative of
the time pattern in which use benefit derived from
the leased asset is diminished, even if the payments
to the lessor are not on that basis. It assesses the
lease classification of a sub-lease with reference to
the right-of-use asset arising from the head lease,
not with reference to the underlying asset.

Where the Company provides incentives for
the lessee to enter into the agreement such as
an up-front cash payment to the lessee or the
reimbursement or assumption by the lessor of
costs of the lessee (such as relocation costs,
leasehold improvements and costs associated with
a pre-existing lease commitment of the lessee),
such incentives are recognised as an integral part
of the net consideration agreed for the use of the
leased asset, irrespective of the incentive's nature
or form or the timing of payments.

2.12 (a) Inventories

Inventories are valued at the lower of cost and net
realisable value.

Costs incurred in bringing each product to its
present location and condition, are accounted for
as follows:

• Construction materials, stores and spares:
cost includes cost of purchase (viz. the
purchase price, import duties and other taxes
(other than those subsequently recoverable
by the entity from the taxing authorities), and
transport, handling and other costs directly
attributable to the acquisition and is net of
trade discounts, rebates and other similar
items) and other costs incurred in bringing
the inventories to their present location and
condition. Cost is determined on first in first
out (FIFO) basis.

• Traded goods: cost includes cost of purchase
and other costs incurred in bringing the
inventories to their present location and
condition. Cost is determined on first in first
out basis.

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

Assessment of net realisable value is made in each
subsequent period and when the circumstances
that previously caused inventories to be written-
down below cost no longer exist or when there is
clear evidence of an increase in net realisable value
because of changed economic circumstances, the
write-down, if any, in the past period is reversed to
that extent of the original amount written-down so
that the resultant carrying amount is the lower of
the cost and the revised net realisable value.

Obsolete, slow moving and defective inventories
are identified from time to time and, where
necessary, a provision is made for such inventories.

(b) Inventory property

Properties (including under construction) acquired
for sale in the ordinary course of business, rather
than to be held for rental or capital appreciation, is
held as inventory property and is measured at the
lower of cost and net realisable value (NRV).

Cost includes: Freehold and leasehold rights for
land, amounts paid to contractors/builders for
construction linked payments for flats acquired by
allotment from builders, property transfer taxes,
and other related costs.

Non-refundable commissions paid to sales or
marketing agents on the sale of real estate units
are expensed when paid.

NRV is the estimated selling price in the ordinary
course of the business, based on market prices
at the reporting date and discounted for the time
value of money if material, less estimated costs of
completion and the estimated costs necessary to
make the sale.

The cost of inventory property recognised in profit
or loss on disposal is determined with reference to
the specific costs incurred on the property sold.

1.13 Employee benefits

Short- term employee benefits:

All employee benefits payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits. Benefits such as salaries,
wages, social security contributions, short term
compensated absences (paid annual leaves) etc. are
measured on an undiscounted basis at the amounts
expected to be paid when the liabilities are settled
and are expensed in the period in which the employee
renders the related service.

Post-employment benefits:

i) Defined contribution plan

The defined contribution plan is post-employment
benefit plan under which the Company contributes
fixed contribution to a government administered
fund and will have no obligation to pay further
contribution. The Company's defined contribution
plan comprises of Provident Fund, Employee State
Insurance Scheme and Labour Welfare Fund. The
Company's contribution to defined contribution
plans are recognized in the Statement of Profit and
Loss in the period in which employee renders the
related service.

ii) Defined benefit plan

The Company's obligation towards gratuity liability
is funded to an approved gratuity fund which is
managed by Life Insurance Corporation of India
(LIC). The present value of the defined benefit
obligations is determined based on actuarial
valuation using the projected unit credit method.
The difference, if any between the actuarial
valuation of the gratuity of the employees at the
year end and the balance of funds is provided for
assets/ liabilities in the books.

The amount recognised as 'Employee benefit
expenses' in the Statement of Profit and Loss is
the cost of accruing employee benefits promised
to employees over the current year and the costs
of individual events such as past/future service
benefit changes and settlements (such events are
recognised immediately in the Statement of Profit
and Loss).

The amount of net interest expense calculated
by applying the liability discount rate to the net
defined benefit liability or asset is charged or
credited to 'Finance costs' in the Statement of
Profit and Loss.

Re-measurement of net defined benefit liability/
asset pertaining to gratuity comprise of actuarial
gains/ losses (i.e. changes in the present value
of the defined benefit obligation resulting from
experience adjustments and effects of changes in
actuarial assumptions), the return on plan assets
(excluding interest) and the effect of the asset
ceiling (if any, excluding interest) and is recognised
immediately in the balance sheet with a charge
or credit recognised in other comprehensive
income in the period in which they occur. Re¬
measurements are not reclassified to profit or loss
account in subsequent periods.

Other long-term employee benefit obligations:

The liabilities for earned leave that are not
expected to be settled wholly within 12 months
are measured as the present value of expected
future payments to be made in respect of services
provided by employees up to the end of the
reporting period using the projected unit credit
method. The benefits are discounted using the
market yields at the end of the reporting period
that have terms approximating to the terms of the
related obligation. Re-measurements as a result of
experience adjustments and changes in actuarial
assumptions are recognised in the Statement
of Profit and Loss. Accumulated leave, which is
expected to be utilized within the next 12 months,
is treated as short term employee benefit.

1.14 Taxation

Tax expense comprises of current and deferred tax
and includes any adjustments related to past periods
in current and/or deferred tax adjustments that may
become necessary due to certain developments or
reviews during the relevant period.

Current income tax:

Tax on income for the current period is determined on
the basis of taxable income (or on the basis of book
profits wherever minimum alternate tax is applicable)
and tax credits computed in accordance with the
provisions of the Income Tax Act 1961, and based on the
expected outcome of assessments/appeals.

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted, at the reporting date in the
countries where the Company operates and generates
taxable income.

Current income tax relating to items recognized outside
profit or loss is recognized outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognized in correlation to the
underlying transaction either in other comprehensive
income or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are
subject to interpretation and establishes provisions
where appropriate.

Current tax assets and current tax liabilities are offset
when there is a legally enforceable right to set off the
recognized amounts and there is an intention to settle
the asset and the liability on a net basis.

Deferred tax:

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

• When the deferred tax liability arises from the
initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination
and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss

• In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint arrangements,
when the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse in
the foreseeable future.

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused

tax credits and any unused tax losses & unabsorbed
tax depreciation. Deferred tax assets are recognised
to the extent that it is probable that taxable profit will
be available against which the deductible temporary
differences, and the carry forward of unused tax credits
and unused tax losses can be utilised, except:

• When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss

• In respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint arrangements,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable future
and taxable profit will be available against which
the temporary differences can be utilized

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are recognised
to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to
be recovered.

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

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss. Deferred tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.

1.15 Claims & Counter Claims

Claims and counter claims including under arbitrations
are accounted for on their settlement/ award.
Contract related claims are recognised when there is a
reasonable certainty.