1. Corporate information

Ansal Buildwell Limited (“the Company”) was set up as a Company registered under the Companies Aet, 1956. It was incorporated on December 29, 1983. The Company is primarily engaged in the business of promotion, construction and development of integrated townships, residential and commercial complexes,multi-storeyed buildings, flats, houses, apartments etc.

The Company is a public limned company incorporated and domiciled in India The address of its registered & corporate office is 118. UTF. Pmkashdeep, 7 Tolstoy Marg, New Delhi -110001. The Company is listed on the BSE Limited (BSE).

2. Basis of preparation

2.1 Statement of compliance

The standalone financial statements have been prepared in accordance with Indian Accounting Standards find AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

2.2 New and amended Ind AS

Chi 31 March 2023, the Ministry of Corporate Affairs notified Companies (Indian Accounting Standards) Amendment Rules. 2023 amending the Companies (Indian Accounting Standards) Rules. 2015. The amendments come into force with effect from 1 April 2023. i.e.. Financial Year 2023-24.

2.3 Amendments to Ind AS I Presentation of Financial Statements These amendments require the companies io disclose in their financial statements ‘material accounting policies’ as against the erstwhile requirement to disclose significant accounimg policies’. The word ‘significant’ is substituted by ‘material’. Accounting policy information is material if, when considered together with other information included m corporation's financial statement, it can reasonably be expected to influence decisions tJhar the primary users of general purpose financial statements make based on those financial statements.

2.4 Amendments to Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors—Definition of Accounting Estimates: The amendments replace the definition of a change in accounting estimates^- with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty*’. The defm it ion ofa change in accounting estimates was deleted.

Up to the year ended March 31,2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. The date of transition to Ind AS is April 1,2016. The financial statements are presented in rupees and all values are rounded to the nearest lakhs, except when otherwise indicated.

3. Material accounting policies

3.1 Basis of preparation

Hie financial statements have been prepared on the historical cost basis except for certain financial instruments that 3rc measured at fair value at the end of each reporting period, as explained in the accounringpolicies mentioned below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.Fair value is the price that would be received to sell an asset or paid to transfer a liabilityin an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,2 or 3 based on the degree to which the inputs to the fair value measurements are observahle and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

a) Level I inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement dale;

b) Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the

asset or liability, either directly or indirectly; and

c) Level 3 inputs are unobservable inputs for the asset or liability.

3.2 Current/ non-current classification

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

a) Expected to be realised Or intended to be sold or consumed m normal operating cycle:

b) Held primarily for the pin-pose of trading;

c) Expected to be realised within twelvemonths after the reporting period;

d) Cash and cash equivalents 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 treated as current when:

a) . It is expected to be settled in normal operating cycle;

b) It is held primarily for the purpose of trading;

c) . It is due to be settled within twelve months alter the reporting period, or

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

All other liabilities are classified as non-current.

3.3 Revenue recognition

Revenue is recognised to the extent that it Ls probable that economic benefit will flow to the Company and that the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payments and excluding taxes and duties collected on behalf of the Government. Revenue is reduced for estimated customer returns, rebates and other similar allowances. However, the Company executed certain sale deeds during the year and the related amounts has not been included under the head "Revenue from Operation- Sales", as the revenue has already been recognized in earlieryears based on the percentage of completion method(POCM) in accordance with the previous Indian GAAP applicable the company.

3.3.1 Revenue from constructed properties is recognised in accordance with Ind AS 115. the Revenue have been recognised when (or as) the entity satisfies a perfonnation obligation by transferring a promised goods to a customer. An asset is transferred when (or as) the customers obtained control of that asset.

An entity transfers control of a good or service over time and. therefore, satisfies a perforation obligation and recognise revenue over time, if one of the fol lowing criteria is met:

a) The customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs.

b) The entity’s performance creates or enhances an asset that the customer controls as lire asset is created

or enhanced.

c) The entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

When the outcome of ?. real estate project can be estimated reliably and the above conditions are satisfied, revenue is recognised according to Ind AS 115

The estimates relating to saleable area, sale value, estimated cost etc., arc revised and updated periodically by the management and necessary' adjustments are made in the current years account.

3.3.2 Revenue from sale of completed real estate projects, l3nd. development rights and sale/ transfer of rights in agreements arc recognised in the financial year in which agreements of such sales are executed and there is no uncertainty aboutultimate collections.

3.3.3 Whereas all uicomc and expenses arc accounted for on accrual basis, interest on delayed payments by customers against dues arc taken into account on “Cash Basis'’ owing to practical difficulties and uncertainties involved.

3.3.4 Income from rent is recognised on accrual basis in accordance with the terms of agreement with the lessee.

3.3.5 Income from maintenance charges is recognised on accrual basis.

3.3.6 Interest income on bank deposits is recognised on accrual basis on a time proportion basis. Interest income on other financial instruments is recognised using the effective interest rate method.

3.3.7 Dividend income is recognised when the right to receive the dividend is established.

3.3.8 The Company pays interest on refund of registration money received for Future Projects in the eventuality if property is not offered to the buyers and the same is demanded from the Company in the project against which such registration amounts are received. In view of the same interest is charged to the Statement ofProfit & Loss only when liability of interest crystalizes.

3.4 Leasing

A contract contains a lease at the 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 wherher a conrracr 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) it has substantially all of the economic benefits from use of the asset through the period of the lease, and (iii) it has the right to direct the use of the asset.

3.4.1 As lessor

Receipts from operating leases are recognised in the Statement of Profit and Loss On a straight-line basis over die term of the relevant lease.

Where (he lease payments are structured to increase in line with expected general inflation to compensate for expected inflationary cost incrcascs_k lease income is recognised as per the contractual terms.

3.4.2 As lessee

The Lessee arangements are recognised as right-of-usc (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low-value leases For these short-term and low-value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

3.5 Borrowing costs

Borrowing cost that 3rc directly attributable to die acquisition or construction of a qualifying asset (including real estate projects) arc considered 3s pan of the cost of the asset- project. All other borrowing costs are treated as period cost and charged to the statement of profit and loss in the year in which incurred.

3.6 Investment in subsidiaries, associate and joint ventures

The Company records the investment in subsidiaries, associate and joint ventures at cost less impairment loss, if any.

On disposal of investment in subsidiary, associate and joint venture, the difference between net disposal proceeds and rhe carryi ng amount is recognised in the Statement of profit and loss.

3.7 Foreign currency translation

3.7.1 Functional and presentational currency

The Company’s financial statements are presented in Indian rupees (1NR), which is also the

Company’s functional currency. Functional currency the currency of the primary economic environment in which an entity operates and is normally the currency in which the entity primarily generates and expends cash.

3.7.2 Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the Settlement of such transactions and from the translation of monetary assets and liabilitiesdenominated m foreign currencies at year end exchange rates are generally recognised in the statement of profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges

Non-mooetary items that are measured in terms of historical cost in a foreign currency are translated usingihe exchange rates at the dates of the initial transactions. Non-monetarv items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation ofnon-monctary items measured at fair value is rreared in line with the recognition of the gain or loss on the change in fair value of the item (i.e.. translation differences on items whose fair value gain or loss is recognised in other comprehensive income or profit or loss are also recognised in other comprehensive income or profit or loss, respectively).

3.8 Taxation

Income tax expense for the year comprises of current tax and deferred tax.

3.8.1 Currenttax

The tax currently payable is based on taxable profu for the year. Taxable profit differs from 'profit before tax' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated in accordance with the Income-tax Act. 1961. using tax rates that have been enacted or substantially enacted by the end of the reporting period.

3.8.2 Deferred tax

Deferred lax is recognised on temporary differences between die carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in die computation of Taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable th3t taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities arc not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither die taxable profit nor the accounting profits.

The carrying amount of deferred lax 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 pan of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reportuig date and arc 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.

3.8.3 Current and deferred t ax for the year

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

3.9 Employee benefits

3.9.1 Short term employee benefits

Liabilities recognised in respect of short-term employee benefits in respect of wages and salaries, performance incentives, leaves etc. are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service

3.9.2 Long term employee benefits

Accumulated leaves expected to be carried forward beyond twelve months, arc treated as long-term employee benefits. Liability- for such long term benefit is provided based on the actuarial valuation using the projected unit credit method at year-end.

3.9.3 Defined contribution plan

The Company's contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense io the Statement of Profit and Loss based on the amount of contribution required to be made.

3.9.4 Defined benefit plan

For defined benefit plan in the form of gratuity, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, 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 not reclassified to profit or loss in subsequent periods. 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.

3.10 Property, plant and equipment

3.10.1 Recognition and Measurement

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and any recognised impairment losses, and include interest on loans attributable to the acquisition of qualifying assets upto the dale they are ready for their intended use. Freehold land is measured at cost and is not depreciated.

L_J

3.10.2 Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation on tangible fixed assets (other than free hold land) is recognised on written down value method as per the useful life prescribed in Schedule II to the ConipaniesAct. 2013.

Freehold land is not depreciated.

depreciation on car parkj ng spaces is not charged during the year as the management treats the same as Land and notBuilding.

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.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the 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 sale proceeds and the carrying amount of the asset and is recognised in the statement of profit or loss.

3.11 Intangible assets

3.11.1 Recognition and Measurement

Intangible assets are stated at cost of acquisition or construction less accumulated amortisation and any recognised impairment losses, and include interest on loans attributable to die acquisition of qualifying assets upto the date they are ready for their intended use.

3.11.2 Amortisation

Amortisation on intangible assets isrccogniscd over the estimated useful life of the asset.

The residual values, useful lives and method of depreciation of intangible assets are reviewed at each financial year end and adjusted prospectively, if appropriate.

An item of intangible asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of intangible 3ssct is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in the statement ofprofi t or loss.

3.12 Impairment of tangible and intangible assets

The management periodically assesses whether there is any indication that an asset may have been impaired. If any such indication exists, the recoverable amount is estimated in order to determine the extent of impairment loss (if any). An impairment loss is recognized wherever ihe carrying value of an asset exceeds its recoverable amount. Recoverable amount is higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash Gows expected to arise from the continuing use of an asset and from its disposal at the end of the useful life.

Impairment losses recognized in prior years are reversed when there is an indication that the impairment losses recognized earlier no longer exist or have decreased. Such reversals are recognized a* an increase in the carrying amount of the asset to the extent that does not exceed the carrying amounts tliat would Imvebeen determined (net ofdepreciation)hadno impairment loss been recognized in prior years.

3.14 Provisions and contingencies

3.14.1 Provisions

Provisions arc recognised when the Company has a present obligation as a result of a past event and 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 ofrhc amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at Ihe end of the reporting period, taking into account the risks and uncertainties surrounding the obligation When the effect of rime value is material, the amount is determined by discounting the expected fiirure cash flows.

3.14.2 Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

3.15Financial instruments

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

3.15.1 Financial assets

3.15.1.1 Recognition and measurement

All financial assets arc recognised initially at fair value phis (other than financial assets at fair value through profit or loss) transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by-regulation or convention in the market place (regular way trades) arc recognised on the trade date. i.e. the date that the Company commits to purchase or sell the asset.

All recognised financial assets arc subsequently measured in then entirety at either amortised cost or fair value, dependingon the classification of the financial assets.

3.15.1.2 Classification nf financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and is determined at the lime of initial recognition. The Company classifies its financial assets in the following measurement categories:

a) Those measured at amortized cost,

b) Those to be measured subsequently at fair value, either through other comprehensive income

(FVTOCI) orthrough profit or loss (FVTPL)

Financial assets at amortised cost:

A financial assets is measured at the amortised cost if both the following conditions are met:

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

b) Contractual terms of the asset give rise on specified dates to cash flows ili3t are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Financial assets at FVTOCI:

A financial asset is classified as at the FVTOCI if both of the following criteria sre met unless the asset is designated at fair value through profit or loss under fsir value option.

3) The objective of the business model is achieved both by collecting contractual cash flow's and selling the financial asset, and

b) The asset's contractual cash flows represent SPPI.

Financial assets at FVTPL:

FVTPL is a residual category for financial assets. Any asset, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

3.15.1.3 Investments in equity instruments atFVTOCI

On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in the fair value in other comprehensive income pertaining 10 investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in lair value recognised in other comprehensive income and accumulated in the 'Reserve for equity instruments through other comprehensive income¹. The cumulative gam or loss is not reclassified to profit or loss on disposal of the investments.

"A financial asset is held for trading if:

a) It has been acquired principally for the purpose ofsclling it in the near term; or

b) Or- initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has an recent actual pattern of short-tenn profit-taking; or

o) lit is a derivative that is not designated and effective as a hedging instrument or a financial guarantee."

The Company has equity investment in three entities which arc not held for trading. The Company has elected the. FVTOCI irrevocable option for this investment (Refer Note no. 10). Fair value is determined in the manner described in Note no. 39.

Dividend on above investment in equity instruments is recognised in profit or loss when the Company's rigid to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the Company, the dividend docs not represent a recovery of part of cost of the investment and the amount of di videndcan be measured reliably.

3.15.1.4 Derecognition

"A financial asset is primarily derecognised when:

a) The rights to receive cash flow’s from the asset have expired, or

b) The Company has transferred its rights to receive cash flow's from the asset or has assumed an obligation to pay the received cash flows ui lull without material delay to a Hurd party under 3 ‘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 ofthe asset, but has transferred control ofthe asset,"

3.15.1.51mpairment of financial assets

In accoidance with Ind AS 109. the Company applies expected credit loss CECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g.. loans, debt securities, deposits and bank balance.

b) Any contractual right to receive cash or another financial asset that result from transactions that arc within the scope of Ind AS 18.

l j

"The Company believes that. considering their nature of business and past history, the expected credit loss ui relation to its financial assets is non-existent or grossly immaterial. Thus, the Company has not recognised any provision for expected credit loss. The Company reviews this policy annually, if required.

3.15.2 Financial liabilities

3.15.2.1 Recognition and measurement

"Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair Value and. in the case of borrowings and payables, net of directly attributable transaction costs.

'I he Company’s financial liabilities include trade and other payables and borrowings.

All recognised financial liabilities are subsequentl y measured in their entiret y at either amortised cost or fair value, depending on the classification ofrhe financial liabilities."

3.15.2.2 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 tenns. or the terms of an existing liability are substantially modified, such an exchange or modification is treated os 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.

3.16 Offsetting financial instruments

Financial assets and liabilities are offset aod the net amount is reported in the balance sheet where there is a legally enforceable light to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

3.17 Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, cash at bank and short term deposits with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

3.l8Earnings per share (EPS)

"Basic earnings per share has been computed by dividing the profi(/(loss) after lax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the profit/(loss) after tax and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity share (if any)."

4. Recent accounting pronouncements

Amendments to Indian Accounting Standards (lnd AS) issued but not yet effective

"The amendments to standards that arc issued, but not yet effective, up to the date of issuance of the financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards} Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standards:"

Amendments tolnd AS 12 Recognition of Deferred Tax Assets for Unrealised Losses

"The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circtmi,stances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities arc required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate}, without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

Ihcse amendments are effective for annual periods beginning on or alter April I. 20IS. These amendments arc not expected to have material effect on Company’s standalone financial statements."

5. Material accounting judgements, estimates and assumptions

The preparation of the financial statements requires management of the C ompany to make judgements, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods

In die process of applying the accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the fmancialstatemems:

Deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of foe Company’s future taxable income against which foe deferred tax assets can be utilized.

Defined benefit obligation (DBO)

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

Useful lives ofporperty, plant and equipment and intangible assets

The Company reviews the estimated useful lives at the end ofcach reporting period.

Contingent liabilities

The Company has ongoing litigations with various regulatory authorities and others. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management's assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability.