Note 2: Summary of significant accounting policies:

a. Basis of preparation

The standalone financial statements of the Company comply in all material aspects with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) Companies (Indian
Accounting Standards) Rules, 2015 (as amended) and other relevant provisions of the Act.

b. Historical cost and Fair value

The financial statements have been prepared on the historical cost basis except for -

(i) certain fixed assets (PP&E) converted into stock-in-trade in year 2013-14 as explained in note 7(a) and;

(ii) certain financial assets/liabilities that are measured at fair values/amortised cost at the end of each
reporting period in accordance with Ind AS 109, as explained in the accounting policies below.

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 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 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 standalone 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.

c. Current versus non-current classification

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

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

• Held primarily for the purpose of trading;

• Expected to be realised within the operating cycle or 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 the normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within the operating cycle or 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.

The normal operating cycle in respect of operation relating to under construction real estate project
depends on signing of the agreement, size of the project, phasing of the project, type of development,
project complexities, approvals needed and realisation of the project into cash and cash equivalents and
range from 3 to 8 years. Accordingly, project related assets and liabilities have been classified into current
and non-current based on operating cycle of respective projects (also refer note 7(a)). All other assets
and liabilities have been classified into current and non-current based on a period of 12 months.

d. Revenue Recognition

The Company derives revenues primarily from leasing of real estate, from sale of wind power, renewable
energy certificates (REC) and share of profit from real estate development, i.e. construction and sale of
residential/ commercial units, which is done via subsidiary entity (partnership firm).

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless of when the payment is being made. The Company
has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all
the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.

Revenue is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment i.e. adjusted for discounts, incentive, time value of money and
excluding taxes or duties collected on behalf of the government. No element of financing deemed present,
as the sales are made with a credit term consistent with market practice. Further the Company charges
interest to customers on delayed payment, if any.

Revenue from lease of real estate, arising from operating leases on investment properties is accounted for
on a straight-line basis over the lease terms. Refer note 2(j) below for lease accounting.

Revenue from the sale of wind power is recognised when earned on the basis of contractual arrangement
with the customers and reflects the value of electric units supplied including an estimated value of units
supplied to the customers between the date of their last meter reading and year end. Electric units
generated and supplied, but not billed are recognised on accrual basis & disclosed as unbilled revenue.

Share of profit from real estate project through the subsidiary entity is recognised when the right to
receive is established.

Income from REC received for wind power generated is recognised when the REC certificate is received/
accrued.

e. Other income

Other gains/ (loss)

Profit from sale/transfer of investments and other assets is recognised only when the transfer is complete,
i.e. when the transferee obtains control and legal title for the asset and when there is no uncertainty on
the amount and timing of receipt of the sale consideration. The recording of profit from sale/transfer is
postponed until then.

Interest income

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable. Interest income is included in other income in the statement of profit and loss.

Dividends

Income from dividend on investments is accrued in the year in which it is declared, whereby the Company's
right to receive is established.

f. Trade receivables and Contract balances

The company classifies the right to consideration in exchange for deliverables as either a receivable or as
unbilled revenue. A receivable is a right to consideration that is unconditional upon passage of time.

g. Property, plant and equipment

Property, plant and equipment, are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the cost of replacing part of the property, plant and
equipment and borrowing costs for long-term construction projects if the recognition criteria are met.

When significant parts of the property, plant and equipment are required to be replaced at intervals,
the Company depreciates them separately based on their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised
in statement of profit or loss as incurred. No decommissioning liabilities are expected or be incurred on
the assets of plant and equipment.

The Company, based on technical assessment made by technical expert and management estimate,
depreciates all the assets over estimated useful life which is also the useful life prescribed in Schedule II to
the Companies Act, 2013. The management believes that these estimated useful lives are realistic and
reflect fair approximation of the period over which the assets are likely to be used.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

h. Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied
by the Company for use in business is classified as investment property. Investment properties are
measured initially at cost, including transaction costs. Investment properties are stated at cost less
accumulated depreciation (as applicable to building component) and accumulated impairment loss, if any.

Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future
economic benefits associated with expenditure will flow to the company and the cost of the item can be
measured reliably. All other repairs and maintenance costs are expensed when incurred.

The Company, based on technical assessment made by technical expert and management estimate,
depreciates the building over estimated useful life of 30 years, which is also the useful life prescribed in
Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are
realistic and reflect fair approximation of the period over which the assets are likely to be used.

Though the Company measures investment property using cost based measurement, as per disclosure
requirement, the fair value of investment property is disclosed in the notes.

i. Inventory

Inventory comprises of stock of properties under development/construction. Construction work-in¬
progress comprises cost of land, construction and development cost, cost of material, services and other
overheads related to projects under construction. Inventory is valued at cost or net realizable value
whichever is lower except for the land and certain land development rights (TDR) converted from fixed
asset into stock-in-trade after revaluing those fixed assets. Such land and land development rights held as
stock-in-trade are carried at that revalued amount of those fixed assets. Development expenses incurred on
the land including directly related overheads are accounted in inventory as 'Stock in trade - other
development', and carried at cost.

j. 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 fulfilment 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 stated in the arrangement.

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. The arrangements, in which the Company is a lessor doesn't
qualify as finance lease and hence are all operating lease.

When the lease include both land and building element, the Company assess classification of each element
as a finance lease or an operating lease based on guidance from Ind AS 116. Whenever necessary in order
to classify and account for a lease of land and buildings, lease payments are allocated between the
land and the buildings elements in proportion to the relative fair values of the leasehold interests in the land
element and buildings element of the lease at the inception date. If the lease payments cannot be allocated
reliably between these two elements, the entire lease is classified as a finance lease, unless it is clear that
both elements are operating leases, in which case the entire lease is classified as an operating lease.

For a lease of land and buildings in which the amount for the land element is immaterial to the lease, then
the land and buildings as a single unit for the purpose of lease classification and the lease is classified as
a finance lease or an operating lease applying guidance from Ind AS 116. In such case the Company regard
the economic life of the buildings as the economic life of the entire underlying asset.

Company as a lessee

The Company had taken certain lands on lease, for which the Right of use asset has been recognised as
per Ind As 116. However since the entire lease payments were done on the inception of the lease itself,
there is no future lease payment or lease liability in that regard.

k. Taxes

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss of the year
and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax
rate enacted or substantially enacted at the reporting date.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.

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

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

l. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.