1 Corporate Information
Ajmera Realty & Infra India limited is a public company
domiciled in India and incorporated under the provisions
of the Indian Companies Act, 1956. Its shares are listed on
two stock exchanges in India. The company is engaged in
real estate business.
The Financial statements of the Company are approved
by the Board of director and authorized for issue on 25th
May 2026.
1.1 Statement of compliance
The financial statements of the Company have been
prepared in accordance with the Indian Accounting
Standards as notified under section 133 of of The
Companies Act, 2013 Read with rule 3 of the Companies
(Indian Accounting Standards) Rules 2015 by Ministry of
Corporate Affairs ('MCA') and other relevant provisions as
amended from time to time.
2 Material Accounting Policies & Key Accounting
Estimates & Judgement
2.1. Basis of preparation
The financial statements have been prepared on
a historical cost basis, except for certain financial
instruments which are measured at fair values at the
end of each reporting period as explained in Accounting
Policies below (note 2.22).
The financial statements are presented in 'Indian Rupees'
(? ) in Lakhs, which is Company's functional currency and
all values are rounded to the nearest Lakhs, except when
otherwise indicated.
2.2. Current and Non Current Classification
An asset/liabilities is classified as current when it satisfies
any of the following criteria :
i. the asset/liability is expected to be realised/ settled in
the Company's normal operating cycle
ii. the asset is intended for sale or consumption
iii. the asset/liability is held primarily for the purpose
of trading
iv. the asset/liability is expected to be realised/settled
within twelve months after the reporting period
v. the asset is cash or cash equivalent unless it is restricted
from being exchanged or used to settle a liability for at
least twelve months after the reporting date
vi. in the case of a liability, the Company does not have an
unconditional right to defer settlement of the liability
for at least twelve months after the reporting date
All other assets and liabilities are classified as non current
For the purpose of current/non-current classification of
assets and liabilities, the Company has ascertained its
normal operating cycle as twelve months. This is based
on the nature of services and the time between the
acquisition of assets or inventories for processing and
their realisation in cash and cash equivalents.
.3. Property, Plant and Equipment (PPE)
Recognition and initial measurement
Property, plant and equipment are stated at their cost of
acquisition. The cost comprises purchase price, borrowing
cost if capitalization criteria are met and directly
attributable cost of bringing the asset to its working
condition for the intended use. Any trade discount and
rebates are deducted in arriving at the purchase price.
Subsequent costs are included in the asset's carrying
amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company. All
other repair and maintenance costs are recognized in
statement of profit or loss as incurred.
Subsequent measurement (depreciation and useful
lives)
Property, plant and equipment are subsequently
measured at cost less accumulated depreciation and
impairment losses. Depreciation on property, plant and
equipment is provided on a straight-line basis, computed
on the basis of useful lives (asset-out below) prescribed in
Schedule II to the Act:
The residual values, useful lives and method of depreciation
are reviewed at the end of each financial year.
De-recognition
An item of property, plant and equipment and any
significant part initially recognized is de-recognized
upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising
on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying
amount of the asset) is recognized in the statement of
profit and loss, when the asset is de-recognized.
2.4. Intangible Assets
Recognition and initial measurement
Intangible assets are stated at their cost of acquisition.
The cost comprises purchase price, borrowing cost, if
capitalization criteria are met and directly attributable
cost of bringing the asset to its working condition for the
intended use.
Subsequent measurement (amortisation)
The cost of capitalized software is amortized over a period
of 6 years from the date of its acquisition.
2.5. Borrowing cost
Borrowing costs directly attributable to the acquisition
and/or construction of a qualifying asset are capitalized
during the period of time that is necessary to complete
and prepare the asset for its intended use or sale. A
qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use. All other
borrowing costs are charged to the statement of profit
and loss as incurred.
2.6. Investments
a) Investment in equity instruments of subsidiaries,
joint ventures and associates
Investment in equity instruments of subsidiaries,
joint ventures and associates are stated at cost as per
Ind AS 27 'Separate Financial Statements'
b) Investment in Other Equity Instruments
These investments being strategic in nature are
measured at fair value through profit and loss
(FVTPL) since these are not held for trading purposes.
In absence of any contradictory information cost
of investments (net of any permanent diminution)
reflects fair value of these instruments
2.7. Inventories:
Direct expenditure relating to construction activity is
inventorised. Other expenditure (including borrowing
costs) during construction period is inventorised to
the extent the expenditure is directly attributable cost
of bringing the asset to its working condition for its
intended use. Other expenditure (including borrowing
costs) incurred during the construction period which
is not directly attributable for bringing the asset to its
working condition for its intended use is charged to the
statement of profit and loss. Direct and other expenditure
is determined based on specific identification to the
construction and real estate activity. Cost incurred/items
purchased specifically for projects are taken as consumed
as and when incurred/ received.
a) Work-in-progress - Contractual: Cost of work yet
to be certified/ billed, as it pertains to contract costs
that relate to future activity on the contract, are
recognised as contract work-in-progress provided it
is probable that they will be recovered. Contractual
work-in-progress is valued at lower of cost and net
realisable value.
b) Work-in-progress - Real estate projects (including
land inventory): Represents cost incurred in respect
of unsold area of the real estate development projects
or cost incurred on projects where the revenue is yet
to be recognised. Real estate work-in-progress is
valued at lower of cost and net realisable value.
c) Finished goods - Flats: Valued at lower of cost and
net realisable value.
d) Building materials purchased, not identified with
any specific project are valued at lower of cost and
net realisable value. Cost is determined based on a
weighted average basis.
e) Land inventory: Valued at lower of cost and net
realisable value.
2.8. Revenue Recognition
Revenue is recognised upon transfer of control of
promised inventory to customers in an amount that
reflects the consideration which the company expects
to receive in exchange. Revenue is recognised over the
period of time when control is transferred to the customer
on satisfaction of performance obligation, based on
contracts with customers.
Revenue is measured based on the transaction price,
which is the consideration, adjusted for discounts, price
concessions, incentives, if any, as specified in the contracts
with the customers. Revenue excludes taxes collected
from customers on behalf of the government.
i. Revenue from Real estate projects
Revenue from Real estate projects is recognized
when it is reasonably certain that the ultimate
collection will be made and that there is buyers
commitment to make the complete payment.
Revenue from real estate under development is
recognized upon transfer of all significant risks
and rewards of ownership of such real estate, as
per the terms of the contracts entered into with
buyers, which generally coincides with the firming
of the sales contracts/ agreement, except for the
contracts where the company still has obligations
to perform substantial acts even after the transfer
of all significant risks and rewards. In such cases, the
revenue is recognized on percentage of completion
method, when the stage of completion of each
project reaches a reasonable level of progress. The
revenue is recognized in proportion that the contract
cost incurred for work performed up to the reporting
date bear to the estimated total contract cost.
Revenue from real estate projects including revenue
from sale of undivided share of land [group housing]
is recognised upon transfer of all significant risks and
rewards of ownership of such real estate/ property,
as per the terms of the contracts entered into with
buyers, which generally coincides with the firming of
the sales contracts/ agreements.
When the outcome of a real estate project can be
estimated reliably and the conditions above are
satisfied, project revenue (including from sale of
undivided share of land) and project costs associated
with the real estate project should be recognised as
revenue and expenses by reference to the stage of
completion of the project activity at the reporting
date arrived at with reference to the entire project
costs incurred (including land costs). Revenue is
recognized on execution of either an agreement or
a letter of allotment.
ii. Interest Income
Interest income is recognized on a time proportion
basis taking into account the amount outstanding
and the applicable interest rate. Interest income
is included under the head "other income" in the
statement of profit and loss.
iii. Dividend Income
Dividend income is recognized with the company's
right to receive dividend is established by the
reporting date.
iv. Other Income
Other Income is accounted on accrual basis.
2.9. Cost of revenue
Cost of constructed properties includes cost of land
(including cost of development rights/land under
agreements to purchase), internal development costs,
external development charges, borrowing costs,
overheads, construction costs and development/
construction materials, which is charged to the statement
of profit and loss based on the revenue recognized as
explained in accounting policy for revenue from real
estate projects above, in consonance with the concept of
matching costs and revenue.
2.10. Foreign Currency Transactions
Functional and Presentation Currency
The financial statements are presented in Indian Rupees
(C) which is also the functional and presentation currency
of the Company.
Transactions and balances
Foreign currency transactions are recorded in the
functional currency, by applying the exchange rate
between the functional currency and the foreign currency
at the date of the transaction.
Foreign currency monetary items outstanding at the
balance sheet date are converted to functional currency
using the closing rate. Non-monetary items denominated
in a foreign currency which are carried at historical cost
are reported using the exchange rate at the date of the
transactions.
Exchange differences arising on monetary items on
settlement, or restatement as at reporting date, at rates
different from those at which they were initially recorded,
are recognized in the statement of profit and loss in the
year in which they arise.
2.11.Employee Benefit Expenses
Retirement and other employee benefits
Retirement benefit in the form of provident fund, and
Employee State Insurance Contribution and Labour
Welfare Fund are defined contribution scheme. The
Company has no obligation, other than the contribution
payable to the provident fund. The Company recognizes
contribution payable to the provident fund scheme as
an expenditure, when an employee renders the related
service.
The Company operates defined benefit plan for its
employee, viz., gratuity. The costs of providing benefits
under this plan are determined on the basis actuarial
valuation at each financial year-end using the projected
unit credit method. Remeasurement, comprising actuarial
gains and losses, the effect of the changes to the asset
ceiling (if applicable) and the return on plan assets
(excluding net interest), is reflected immediately in the
balance sheet with a charge or credit recognised in other
comprehensive income in the period in which they occur.
Remeasurement recognised in other comprehensive
income is reflected immediately in retained earnings
and is not reclassified to profit or loss. Past service cost
is recognised in profit or loss in the period of a plan
amendment. Net interest is calculated by applying the
discount rate at the beginning of the period to the net
defined benefit liability or asset. Defined benefit costs are
categorised as follows:
- Service cost (including current service cost, past service
cost, as well as gains and losses on curtailments and
settlements);
- Net interest expense or income; and
- Remeasurement
The Company presents the first two components of
defined benefit costs in profit or loss in the line item
'Employee benefits expense' Curtailment gains and losses
are accounted for as past service costs.
Accumulated leave, which is expected to be utilized,
within next 12 months is treated as short - term employee
benefit. The Company measures the expected cost of such
absences as the additional amount that it expects to pay
as a result of the unused entitlement that has accumulated
at the reporting date.
The Company recognizes termination benefit as a liability
and an expense when the Company has a present
obligation as a result of past event, it is probable that an
outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. If the
termination benefits fall due more than 12 months after
the balance sheet date, they are measured at present value
of future cash flows using the discount rate determined by
reference to market yields at the balance sheet date on
government bonds.
Employee benefit plan
The parameter most subject to change is the discount rate.
In determining the appropriate discount rate for plans
operated in India, the management considers the interest
rates of government bonds in currencies consistent with
the currencies of the post-employment benefit obligation.
The mortality rate is based on publicly available mortality
tables for India. Those mortality tables tend to change
only at interval in response to demographic changes.
Future salary increases and gratuity increases are based
on expected future inflation rates for the respective
countries.
2.12.Taxation
Tax expense recognized in statement of profit and loss
comprises the sum of deferred tax and current tax except
the ones recognized in other comprehensive income or
directly in equity.
Current tax is determined as the tax payable in respect of
taxable income for the year and is computed in accordance
with relevant tax regulations. 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).
Deferred tax is recognized in respect of temporary
differences between carrying amount of assets
and liabilities for financial reporting purposes and
corresponding amount used for Taxation purposes.
Deferred tax assets on unrealised tax loss are recognized
to the extent that it is probable that the underlying tax
loss will be utilised against future taxable income. This
is assessed based on the Company's forecast of future
operating results, adjusted for significant on-taxable
income and expenses and specific limits on the use of
any unused tax loss. Unrecognized deferred tax assets are
re-assessed at each reporting date and are recognized 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 recognized outside statement of profit and loss is
recognized outside statement of profit or loss (either in
other comprehensive income or in equity).
.13. Impairment of non-financial assets
At each reporting date, the Company assesses whether
there is any indication based on internal/external factors,
that an asset may be impaired. If any such indication exists,
the recoverable amount of the asset or the cash generating
unit is estimated. If such recoverable amount of the asset
or cash generating unit to which the asset belongs is
less than its carrying amount. The carrying amount is
reduced to its recoverable amount and the reduction is
treated as an impairment loss and is recognized in the
statement of profit and loss. If, at the reporting date, there
is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount.
Impairment losses previously recognized are accordingly
reversed in the statement of profit and loss.
.14.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.
2.15.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.
2.16.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.
2.17.Cash and Cash Equivalent
Cash and cash equivalents comprise cash in hand, demand
deposits and short-term highly liquid investments that are
readily convertible into known amount of cash and which
are subject to an insignificant risk of changes in value.
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